Net Income was $124.6 million, Earnings per Diluted Share was $2.38
Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter ending March 31, 2024. Net income was $124.6 million, or $2.38 per diluted share, in the first quarter of 2024, compared to $86.2 million, or $1.65 per diluted share, in the first quarter of 2023.
1Q 2024
|
(in thousands) |
1Q'24 |
1Q'23 |
|---|---|---|
|
Operating income |
$138,812 |
$110,543 |
|
Investment income (loss) |
15,079 |
(4,732) |
|
Other income |
3,411 |
3,337 |
|
Income before income taxes |
157,302 |
109,148 |
|
Income tax expense |
32,750 |
22,907 |
|
Net income |
$124,552 |
$86,241 |
1Q 2024 Highlights
Operating income before taxes increased $28.3 million, or 25.6 percent, in the first quarter of 2024 compared to the first quarter of 2023.
- Management fee revenue - policy issuance and renewal services increased $107.6 million, or 19.3 percent, in the first quarter of 2024 compared to the first quarter of 2023.
- Management fee revenue - administrative services increased $1.7 million, or 11.5 percent, in the first quarter of 2024 compared to the first quarter of 2023.
- Cost of operations - policy issuance and renewal services
- Commissions increased $67.0 million in the first quarter of 2024 compared to the first quarter of 2023, primarily driven by the growth in direct and affiliated assumed written premium and an increase in agent incentive compensation.
- Non-commission expense increased $14.3 million in the first quarter of 2024 compared to the first quarter of 2023.Underwriting and policy processing expense increased $4.4 million primarily due to increased underwriting report and personnel costs. Information technology costs decreased $3.7 million primarily due to an increase in capitalized professional fees and personnel costs related to technology initiatives. Sales and advertising expense increased $4.3 million primarily due to increased agent-related costs. Administrative and other costs increased $7.2 million primarily due to an increase in personnel and travel costs.
Income from investments before taxes totaled $15.1 million in the first quarter of 2024 compared to loss from investments before taxes of $4.7 million in the first quarter of 2023. Net investment income was $15.9 million in the first quarter of 2024 compared to $2.2 million in the first quarter of 2023. Net investment income included $0.5 million of limited partnership earnings in the first quarter of 2024 compared to losses of $10.8 million in the first quarter of 2023. Net realized and unrealized gains on investments were $1.9 million in the first quarter of 2024 compared to losses of $5.3 million in the first quarter of 2023. Net impairment losses recognized in earnings were $2.7 million in the first quarter of 2024 compared to $1.6 million in the first quarter of 2023.
Webcast Information
Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on April 26, 2024. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.