Net Income per Diluted Share was $1.53 for the Quarter and $2.84 for the Six Months of 2022
Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and six months ending June 30, 2022. Net income was $80.1 million, or $1.53 per diluted share, in the second quarter of 2022, compared to $79.0 million, or $1.51 per diluted share, in the second quarter of 2021. Net income was $148.8 million, or $2.84 per diluted share, in the first six months of 2022, compared to $152.6 million, or $2.92 per diluted share, in the first six months of 2021.
2Q 2022
|
(in thousands) |
2Q'22 |
2Q'21 |
|---|---|---|
|
Operating income |
$104,000 |
$85,095 |
|
Investment income (loss) |
(2,094) |
16,418 |
|
Interest and other expense, net |
558 |
1,587 |
|
Income before income taxes |
101,348 |
99,896 |
|
Income tax expense |
21,201 |
20,867 |
|
Net income |
$80,147 |
$79,029 |
1st Half 2022
|
(in thousands) |
1H 2022 |
1H 2021 |
|---|---|---|
|
Operating income |
$188,312 |
$161,160 |
|
Investment income |
915 |
34,406 |
|
Interest expense and other income, net |
1,084 |
3,115 |
|
Income before taxes |
188,143 |
192,451 |
|
Income tax expense |
39,377 |
39,856 |
|
Net income |
$148,766 |
$152,595 |
2Q 2022 Highlights
Operating income before taxes increased $18.9 million, or 22.3 percent, in the second quarter of 2022 compared to the second quarter of 2021.
- Management fee revenue - policy issuance and renewal services increased $42.3 million, or 8.4 percent, in the second quarter of 2022 compared to the second quarter of 2021.
- Management fee revenue - administrative services decreased $0.2 million, or 1.3 percent, in the second quarter of 2022 compared to the second quarter of 2021.
- Cost of operations - policy issuance and renewal services
- Commissions increased $14.3 million in the second quarter of 2022 compared to the second quarter of 2021, 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 $9.4 million in the second quarter of 2022 compared to the second quarter of 2021.Information technology costs increased $5.0 million primarily due to increased hardware and software costs and increased professional fees. Administrative and other costs increased $5.5 million primarily due to an increase in professional fees and increased personnel costs related to compensation. Personnel costs in all expense categories were also impacted by lower estimated costs for incentive plan awards related to underwriting performance.
Loss from investments before taxes totaled $2.1 million in the second quarter of 2022 compared to income from investments before taxes of $16.4 million in the second quarter of 2021. Net investment income was $8.3 million in the second quarter of 2022 compared to $13.7 million in the second quarter of 2021. Included in net investment income is $0.3 million of limited partnership losses in the second quarter of 2022 compared to earnings of $6.2 million in the second quarter of 2021. Net realized and unrealized losses on investments were $10.3 million in the second quarter of 2022 compared to net realized and unrealized gains of $2.8 million in the second quarter of 2021.
First Half 2022 Highlights
Operating income before taxes increased $27.2 million, or 16.8 percent, in the first six months of 2022 compared to the first six months of 2021.
- Management fee revenue - policy issuance and renewal services increased $74.6 million, or 7.8 percent, in the first six months of 2022 compared to the first six months of 2021.
- Management fee revenue - administrative services decreased $0.7 million, or 2.5 percent, in the first six months of 2022 compared to the first six months of 2021.
- Cost of operations - policy issuance and renewal services
- Commissions increased $34.0 million in the first six months of 2022 compared to the first six months of 2021, 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 $13.6 million in the first six months of 2022 compared to the first six months of 2021.Information technology costs increased $4.3 million primarily due to increased hardware and software costs. Administrative and other costs increased $8.6 million primarily driven by increased professional fees. Personnel costs in all expense categories were also impacted by lower estimated costs for incentive plan awards related to underwriting performance.
Income from investments before taxes totaled $0.9 million in the first six months of 2022 compared to $34.4 million in the first six months of 2021. Net investment income was $18.8 million in the first six months of 2022 compared to $30.7 million in the first six months of 2021. Included in net investment income is $2.5 million of limited partnership earnings in the first six months of 2022 compared to $15.2 million in the first six months of 2021. Net realized and unrealized losses on investments totaled $17.6 million in the first six months of 2022 compared to net realized and unrealized gains of $3.6 million in the first six months of 2021.
Webcast Information
Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on July 29, 2022. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.