Erie Indemnity Reports Third Quarter 2025 Results

Net Income per Diluted Share was $3.50 for the Quarter and $9.48 for the Nine Months of 2025

Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and nine months ending September 30, 2025.  Net income was $182.9 million, or $3.50 per diluted share, in the third quarter of 2025, compared to $159.8 million, or $3.06 per diluted share, in the third quarter of 2024.  Net income was $496.0 million, or $9.48 per diluted share, in the first nine months of 2025, compared to $448.3 million, or $8.57 per diluted share, in the first nine months of 2024.

3Q 2025 Highlights

Operating income before taxes increased $28.8 million, or 16.0 percent, in the third quarter of 2025 compared to the third quarter of 2024.

• Management fee revenue - policy issuance and renewal services increased $56.1 million, or 7.3 percent, in the third quarter of 2025 compared to the third quarter of 2024.
• Management fee revenue - administrative services increased $1.7 million, or 9.8 percent, in the third quarter of 2025 compared to the third quarter of 2024.
• Cost of operations - policy issuance and renewal services
  • Commissions increased $41.0 million in the third quarter of 2025, compared to the third 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 decreased $11.9 million in the third quarter of 2025 compared to the third quarter of 2024. Underwriting and policy processing expense increased $1.6 million primarily due to increased postage costs, partially offset by a decrease in underwriting report costs. Sales and advertising expense decreased $4.4 million primarily due to decreased agent-related costs and costs from community development initiatives. Administrative and other costs decreased $11.5 million primarily due to decreases in personnel costs and professional fees. Personnel costs were impacted by decreased incentive compensation compared to 2024. Decreased incentive plan costs were primarily driven by lower performance metrics compared to the third quarter of 2024 and a decrease in company stock price during the third quarter of 2025 compared to an increase during the third quarter of 2024.

Income from investments before taxes totaled $21.6 million in the third quarter of 2025 compared to $19.5 million in the third quarter of 2024. Net investment income was $21.0 million in the third quarter of 2025 compared to $17.3 million in the third quarter of 2024. Net realized and unrealized gains were $1.3 million in the third quarter of 2025 compared to $2.9 million in the third quarter of 2024. 

Nine Months 2025 Highlights

Operating income before taxes increased $50.3 million, or 9.9 percent, in the first nine months of 2025 compared to the first nine months of 2024.

• Management fee revenue - policy issuance and renewal services increased $208.4 million, or 9.5 percent, in the first nine months of 2025 compared to the first nine months of 2024.
• Management fee revenue - administrative services increased $3.6 million, or 7.1 percent, in the first nine months of 2025 compared to the first nine months of 2024.
• Cost of operations - policy issuance and renewal services
  • Commissions increased $145.6 million in the first nine months of 2025 compared to the first nine 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 $15.0 million in the first nine months of 2025 compared to the first nine months of 2024. Underwriting and policy processing expense increased $5.9 million primarily due to increased postage and personnel costs. Information technology costs increased $19.8 million primarily due to an increase in personnel costs and hardware and software costs. Customer service costs increased $3.5 million primarily due to increased personnel costs and credit card processing fees. Administrative and other costs decreased $12.9 million primarily due to decreased personnel costs. Personnel costs were impacted by decreased incentive compensation and increased healthcare costs compared to 2024. Decreased incentive plan costs were primarily driven by lower performance metrics compared to the first nine months of 2024 and a decrease in company stock price during the first nine months of 2025 compared to an increase during the first nine months of 2024. 

Income from investments before taxes totaled $60.7 million in the first nine months of 2025 compared to $48.5 million in the first nine months of 2024. Net investment income was $61.0 million in the first nine months of 2025 compared to $49.2 million in the first nine months of 2024. Net investment income included $1.3 million of limited partnership earnings in the first nine months of 2025 compared to $0.1 million in the first nine months of 2024. Net realized and unrealized gains were $2.3 million in the first nine months of 2025 compared to $3.0 million in the first nine months of 2024. Net impairment losses recognized in earnings were $2.6 million in the first nine months of 2025 compared to $3.8 million in the first nine months of 2024.

Related Links

• Access Webcast
• Investor Supplement
• Statement of Operations