Erie Indemnity Reports Third Quarter 2024 Results

Net Income per Diluted Share was $3.06 for the Quarter and $8.57 for the Nine Months of 2024

Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and nine months ending September 30, 2024.  Net income was $159.8 million, or $3.06 per diluted share, in the third quarter of 2024, compared to $131.0 million, or $2.51 per diluted share, in the third quarter of 2023.  Net income was $448.3 million, or $8.57 per diluted share, in the first nine months of 2024, compared to $335.1 million, or $6.41 per diluted share, in the first nine months of 2023.

3Q 2024 Highlights

Operating income before taxes increased $31.7 million, or 21.3 percent, in the third quarter of 2024 compared to the third quarter of 2023.

• Management fee revenue - policy issuance and renewal services increased $120.1 million, or 18.5 percent, in the third quarter of 2024 compared to the third quarter of 2023.
• Management fee revenue - administrative services increased $1.0 million, or 6.2 percent, in the third quarter of 2024 compared to the third quarter of 2023.
• Cost of operations - policy issuance and renewal services
• • Commissions increased $66.3 million in the third quarter of 2024 compared to the third quarter of 2023, primarily driven by the growth in direct and affiliated assumed written premium and, to a lesser extent, an increase in agent incentive compensation related to the profitability component.
  • Non-commission expense increased $23.3 million in the third quarter of 2024 compared to the third quarter of 2023.Underwriting and policy processing expense increased $5.1 million primarily due to increased underwriting report and personnel costs. Information technology costs increased $3.6 million primarily due to an increase in hardware and software costs and personnel costs, partially offset by a decrease in professional fees. Sales and advertising expense increased $4.4 million primarily due to increased costs from community development initiatives and agent-related costs. Administrative and other costs increased $7.6 million primarily due to increased personnel costs.

Income from investments before taxes totaled $19.5 million in the third quarter of 2024 compared to $12.3 million in the third quarter of 2023. Net investment income was $17.3 million in the third quarter of 2024 compared to $14.6 million in the third quarter of 2023. Net realized and unrealized gains were $2.9 million in the third quarter of 2024 compared to losses of $2.2 million in the third quarter of 2023.

Nine Months 2024 Highlights

Operating income before taxes increased $116.0 million, or 29.5 percent, in the first nine months of 2024 compared to the first nine months of 2023.

• Management fee revenue - policy issuance and renewal services increased $355.3 million, or 19.3 percent, in the first nine months of 2024 compared to the first nine months of 2023.
• Management fee revenue - administrative services increased $4.2 million, or 8.9 percent, in the first nine months of 2024 compared to the first nine months of 2023.
• Cost of operations - policy issuance and renewal services
  • Commissions increased $202.1 million in the first nine months of 2024 compared to the first nine months of 2023, primarily driven by the growth in direct and affiliated assumed written premium and, to a lesser extent, an increase in agent incentive compensation related to the profitability component.
  • Non-commission expense increased $41.7 million in the first nine months of 2024 compared to the first nine months of 2023.Underwriting and policy processing expense increased $13.7 million primarily due to increased underwriting report and personnel costs. Information technology costs decreased $3.9 million primarily due to a decrease in professional fees, partially offset by an increase in hardware and software costs. Sales and advertising expense increased $9.6 million primarily due to increased agent-related costs and costs from community development initiatives. Customer service costs increased $6.7 million primarily due to increased personnel costs and credit card processing fees. Administrative and other costs increased $15.6 million primarily due to increased personnel costs, professional fees and charitable contributions.

Income from investments before taxes totaled $48.5 million in the first nine months of 2024 compared to $19.2 million in the first nine months of 2023. Net investment income was $49.2 million in the first nine months of 2024 compared to $30.4 million in the first nine months of 2023. Net investment income included $0.1 million of limited partnership earnings in the first nine months of 2024 compared to losses of $10.7 million in the first nine months of 2023. Net realized and unrealized gains were $3.0 million in the first nine months of 2024 compared to losses of $9.2 million in the first nine months of 2023. Net impairment losses recognized in earnings were $3.8 million in the first nine months of 2024 compared to $1.9 million in the first nine months of 2023.

Webcast Information

Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on November 1, 2024. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.

Related Links

• Access Webcast
• Investor Supplement
• Statement of Operations