Erie Indemnity Reports First Quarter 2023 Results
Erie, Pa., April 27, 2023 - Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter ending March 31, 2023. Net income was $86.2 million, or $1.65 per diluted share, in the first quarter of 2023, compared to $68.6 million, or $1.31 per diluted share, in the first quarter of 2022.
1Q 2023
(in thousands) |
1Q'23 |
1Q'22 |
|---|---|---|
|
Operating income |
$110,543 |
$84,312 |
|
Investment (loss) income |
(4,732) |
3,009 |
|
Interest expense and other (income), net |
(3,337) |
526 |
|
Income before income taxes |
109,148 |
86,795 |
|
Income tax expense |
22,907 |
18,176 |
|
Net Income |
$86,241 |
$68,619 |
(in thousands)
Operating income
1Q'23
$110,543
1Q'22
$84,312
(in thousands)
Investment (loss) income
1Q'23
(4,732)
1Q'22
3,009
(in thousands)
Interest expense and other (income), net
1Q'23
(3,337)
1Q'22
526
(in thousands)
Income before income taxes
1Q'23
109,148
1Q'22
86,795
(in thousands)
Income tax expense
1Q'23
22,907
1Q'22
18,176
(in thousands)
Net Income
1Q'23
$86,241
1Q'22
$68,619
1Q 2023 Highlights
Operating income before taxes increased $26.2 million, or 31.1 percent, in the first quarter of 2023 compared to the first quarter of 2022.
- Management fee revenue - policy issuance and renewal services increased $70.1 million, or 14.4 percent, in the first quarter of 2023 compared to the first quarter of 2022.
- Management fee revenue - administrative services increased $0.9 million, or 6.1 percent, in the first quarter of 2023 compared to the first quarter of 2022.
- Cost of operations - policy issuance and renewal services
- Commissions increased $27.7 million in the first quarter of 2023 compared to the first quarter of 2022, primarily driven by the growth in direct and affiliated assumed written premium, partially offset by a decrease in agent incentive compensation.
- Non-commission expense increased $17.0 million in the first quarter of 2023 compared to the first quarter of 2022.Underwriting and policy processing expense increased $2.7 million primarily due to increased personnel and underwriting report costs. Information technology costs increased $11.5 million primarily due to increased professional fees, hardware and software costs, and personnel costs. Administrative and other costs increased $2.9 million primarily due to an increase in personnel costs related to compensation and building occupancy costs, partially offset by a decrease in professional fees. Personnel costs in all expense categories were also impacted by lower pension costs due to an increase in the discount rate compared to 2022.
Loss from investments before taxes totaled $4.7 million in the first quarter of 2023 compared to income from investments before taxes of $3.0 million in the first quarter of 2022. Net investment income was $2.2 million in the first quarter of 2023 compared to $10.5 million in the same period of 2022. Included in net investment income is $10.8 million of limited partnership losses in the first quarter of 2023 compared to earnings of $2.8 million in the first quarter of 2022. Net realized and unrealized losses on investments were $5.3 million in the first quarter of 2023 compared to $7.3 million in the first quarter of 2022.
Webcast Information
Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on April 28, 2023. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.