Net Income was $68.6 million, Earnings per Diluted Share was $1.31
ERIE, Pa., April 28, 2022 - Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter ending March 31, 2022. Net income was $68.6 million, or $1.31 per diluted share, in the first quarter of 2022, compared to $73.6 million, or $1.41 per diluted share, in the first quarter of 2021.
1Q 2022
|
(in thousands) |
1Q'22 |
1Q'21 |
|---|---|---|
|
Operating income |
$84,312 |
$76,095 |
|
Investment income (loss) |
3,009 |
17,988 |
|
Interest and other expense, net |
526 |
1,528 |
|
Income before income taxes |
86,795 |
92,555 |
|
Income tax expense |
18,176 |
18,989 |
|
Net income |
$68,619 |
$73,566 |
1Q 2022 Highlights
Operating income before taxes increased $8.2 million, or 10.8 percent, in the first quarter of 2022 compared to the first quarter of 2021.
- Management fee revenue - policy issuance and renewal services increased $32.3 million, or 7.1 percent, in the first quarter of 2022 compared to the first quarter of 2021.
- Management fee revenue - administrative services decreased $0.5 million, or 3.6 percent, in the first quarter of 2022 compared to the first quarter of 2021.
- Cost of operations - policy issuance and renewal services
- Commissions increased $19.8 million in the first quarter of 2022 compared to the first quarter of 2021, primarily driven by the growth in direct and affiliated assumed written premium, primarily in lines of business that pay a higher commission rate.
- Non-commission expense increased $4.2 million in the first quarter of 2022 compared to the first quarter of 2021.Sales and advertising increased $1.8 million primarily due to agent related expenses. Administrative and other costs increased $3.1 million primarily due to an increase in professional fees compared to the same period in 2021.
Income from investments before taxes totaled $3.0 million in the first quarter of 2022 compared to $18.0 million in the first quarter of 2021. Net investment income was $10.5 million in the first quarter of 2022 compared to $17.1 million in the first quarter of 2021. Included in net investment income is $2.8 million of limited partnership earnings in the first quarter of 2022 compared to $9.0 million in the first quarter of 2021. Net realized and unrealized losses on investments were $7.3 million in the first quarter of 2022 compared to net realized and unrealized gains of $0.8 million in the first quarter of 2021.
Webcast Information
Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on April 29, 2022. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.