Net Income per Diluted Share was $3.34 for the Quarter and $5.99
for the Six Months of 2025
Erie, Pa., August 7, 2025 - Erie Indemnity Company
(NASDAQ: ERIE) today announced financial results for the quarter and six months
ending June 30, 2025. Net income was $174.7
million, or $3.34 per diluted share, in
the second quarter of 2025,
compared to $163.9 million, or $3.13 per diluted share, in the second quarter of 2024. Net income was $313.1
million, or $5.99 per diluted share, in
the first six months of 2025, compared to $288.5
million, or $5.52 per diluted share, in
the first six months of 2024.
2Q 2025 Highlights
Operating income before taxes increased $9.0 million, or 4.7 percent, in the second quarter of 2025 compared to the second quarter of 2024.
- Management fee revenue - policy issuance and renewal services increased $63.0 million, or 8.3 percent, in the second quarter of 2025 compared to the second quarter of 2024.
- Management fee revenue - administrative services increased $1.2 million, or 7.3 percent, in the second quarter of 2025 compared to the second quarter of 2024.
- Cost of operations - policy issuance and renewal services
- Commissions increased $43.5 million in the second quarter of 2025, compared to the second quarter of 2024, primarily driven by the growth in direct and affiliated assumed written premium and, to a lesser extent, an increase in agent incentive compensation.
- Non-commission expense increased $10.6 million in the second quarter of 2025 compared to the second quarter of 2024.Information technology costs increased $7.1 million primarily due to an increase in personnel costs and a decrease in capitalized professional fees related to technology initiatives. Sales and advertising expense increased $2.8 million primarily due to increased agent-related and advertising costs. Personnel costs were impacted by increased healthcare costs compared to 2024.
Income from investments before taxes totaled $19.6 million in the second quarter of 2025 compared to $13.8 million in the second quarter of 2024. Net investment income was $20.0 million in the second quarter of 2025 compared to $16.0 million in the second quarter of 2024. Net realized and unrealized gains on investments were $0.5 million in the second quarter of 2025 compared to losses of $1.8 million in the second quarter of 2024.
First Half 2025 Highlights
Operating income before taxes increased $21.5 million, or 6.5 percent, in the first six months of 2025 compared to the first six months of 2024.
- Management fee revenue - policy issuance and renewal services increased $152.3 million, or 10.7 percent, in the first six months of 2025 compared to the first six months of 2024.
- Management fee revenue - administrative services increased $2.0 million, or 5.8 percent, in the first six months of 2025 compared to the first six months of 2024.
- Cost of operations - policy issuance and renewal services
- Commissions increased $104.6 million in the first six months of 2025 compared to the first six months of 2024, primarily driven by the growth in direct and affiliated assumed written premium and, to a lesser extent, an increase in agent incentive compensation.
- Non-commission expense increased $26.9 million for the first six months of compared to the first six months of 2024.Underwriting and policy processing expense increased $4.3 million primarily due to increased personnel costs and printing and postage costs. Information technology costs increased $18.4 million primarily due to an increase in personnel costs and hardware and software costs and a decrease in capitalized professional fees related to technology initiatives. Customer service costs increased $2.7 million primarily due to increased personnel costs. Sales and advertising expense increased $3.0 million primarily due to increased advertising and personnel costs. Personnel costs were impacted by increased healthcare costs compared to 2024.
Income from investments before taxes totaled $39.1 million in the first six months of 2025 compared to $28.9 million in the first six months of 2024. Net investment income was $40.0 million in the first six months of 2025 compared to $31.9 million in the first six months of 2024. Net investment income included $1.2 million of limited partnership earnings in the first six months of 2025 compared to $0.3 million in the first six months of 2024. Net realized and unrealized gains were $1.0 million in the first six months of 2025 compared to $0.1 million in the first six months of 2024. Net impairment losses recognized in earnings were $1.8 million in the first six months of 2025 compared to $3.1 million in the first six months of 2024.
Webcast Information
Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on August 8, 2025. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.
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