Erie Indemnity Co. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Erie Indemnity Co. has submitted its annual 10-K filing for the fiscal year 2023, detailing its financial performance and operations.</b>

AI Summary

ERIE INDEMNITY CO (ERIE) filed a Annual Report (10-K) with the SEC on February 26, 2024. Erie Indemnity Co. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 100 Erie Insurance Place, Erie, PA 16530. Erie Indemnity Co. is classified under SIC code 6411: Insurance Agents, Brokers & Services. The report was filed on February 26, 2024.

Why It Matters

For investors and stakeholders tracking ERIE INDEMNITY CO, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Erie Indemnity Co.'s financial health, operational activities, and strategic positioning for the fiscal year 2023, which is crucial for investors and stakeholders to assess the company's performance and future outlook. As a key regulatory filing, this 10-K report ensures transparency and compliance with SEC requirements, offering detailed financial statements and disclosures that are essential for market participants to make informed investment decisions.

Risk Assessment

Risk Level: low — ERIE INDEMNITY CO shows low risk based on this filing. The company operates in the insurance sector, which is subject to regulatory changes and economic fluctuations, but the filing itself does not indicate any immediate or severe risks.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Erie Indemnity Co.'s performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240226 — Filing Date (As of date)
• 2023-01-01 — Reporting Period Start (Fiscal year start date)
• 2023-12-31 — Reporting Period End (Fiscal year end date)

Key Players & Entities

• ERIE INDEMNITY CO (company) — Filer name
• PA (location) — State of incorporation
• 100 ERIE INSURANCE PL (address) — Business street address
• ERIE (city) — Business city
• PA (state) — Business state
• 16530 (zip_code) — Business zip code
• 8148702000 (phone_number) — Business phone
• 6411 (sic_code) — Standard Industrial Classification

FAQ

Industry Context

Erie Indemnity Co. operates within the insurance agents, brokers, and services industry, providing essential intermediary services for insurance products.

Regulatory Implications

The company is subject to standard SEC regulations for public companies, including the requirement to file annual reports (10-K) to ensure transparency and provide financial information to investors.

What Investors Should Do

1. Analyze the full 10-K document for detailed financial statements, including revenue, net income, and balance sheet information.
2. Examine any disclosed risk factors or management's discussion and analysis (MD&A) to understand potential challenges and strategic initiatives.
3. Compare the 2023 financial performance with previous years to identify trends and assess growth or decline.

Key Dates

• 2024-02-26: 10-K Filing — Official submission of the annual report for fiscal year 2023.

Year-Over-Year Comparison

This filing represents the annual 10-K report for the fiscal year 2023, providing a comprehensive update compared to previous quarterly filings or the prior year's annual report.

Key Financial Figures

• $0.0292 — t: Class A common stock, stated value $0.0292 per share ERIE NASDAQ Stock Market, LLC

Filing Documents

• erie-20231231.htm (10-K) — 2460KB
• ex-102112312023.htm (EX-10.21) — 39KB
• ex-19112312023.htm (EX-19.1) — 33KB
• ex-2312312023.htm (EX-23) — 5KB
• ex-31112312023.htm (EX-31.1) — 15KB
• ex-31212312023.htm (EX-31.2) — 15KB
• ex-3212312023.htm (EX-32) — 10KB
• ex-97112312023.htm (EX-97.1) — 34KB
• erie-20231231_g1.jpg (GRAPHIC) — 89KB
• 0000922621-24-000006.txt (&nbsp;) — 13175KB
• erie-20231231.xsd (EX-101.SCH) — 81KB
• erie-20231231_cal.xml (EX-101.CAL) — 138KB
• erie-20231231_def.xml (EX-101.DEF) — 466KB
• erie-20231231_lab.xml (EX-101.LAB) — 1006KB
• erie-20231231_pre.xml (EX-101.PRE) — 654KB
• erie-20231231_htm.xml (XML) — 2470KB

TEM NUMBER AND CAPTION PAGE

PART ITEM NUMBER AND CAPTION PAGE I Item 1.

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 7 Item 1B. Unresolved Staff Comments 13 I tem 1C. Cybersecurity 13 Item 2.

Properties

Properties 14 Item 3.

Legal Proceedings

Legal Proceedings 15 Item 4. Mine Safety Disclosures 16 II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 17 Item 6.

Selected Financial Data

Selected Financial Data 18 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 39 Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 73 Item 9A.

Controls and Procedures

Controls and Procedures 73 Item 9B. Other Information 73 III Item 10. Directors, Executive Officers and Corporate Governance 75 Item 11.

Executive Compensation

Executive Compensation 76 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 76 Item 13. Certain Relationships and Related Transactions, and Director Independence 76 Item 14. Principal Accountant Fees and Services 76 IV Item 15. Exhibits and Financial Statement Schedules 77 Item 16. Form 10-K Summary 77

Signatures

Signatures 81 2 Table of Contents PART I

BUSINESS

ITEM 1. BUSINESS General Erie Indemnity Company ("Indemnity", "we", "us", "our") is a publicly held Pennsylvania business corporation that has since its incorporation in 1925 served as the attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange ("Exchange"). The Exchange, which also commenced business in 1925, is a Pennsylvania-domiciled reciprocal insurer that writes property and casualty insurance. The Exchange has wholly owned property and casualty subsidiaries including: Erie Insurance Company, Erie Insurance Company of New York, Erie Insurance Property & Casualty Company and Flagship City Insurance Company, and a wholly owned life insurance company, Erie Family Life Insurance Company ("EFL"). Our primary function as attorney-in-fact is to perform policy issuance and renewal services on behalf of the subscribers at the Exchange. We also act as attorney-in-fact on behalf of the subscribers at the Exchange with respect to all claims handling and investment management services, as well as the service provider for all claims handling, life insurance, and investment management services for the Exchange's insurance subsidiaries, collectively referred to as "administrative services". Acting as attorney-in-fact in these two capacities is done in accordance with a subscriber's agreement (a limited power of attorney) executed individually by each subscriber (policyholder), which appoints Indemnity as each subscriber's attorney-in-fact to transact certain business on their behalf. In accordance with the subscriber's agreement for acting as attorney-in-fact in these two capacities, we retain a management fee calculated as a percentage, not to exceed 25%, of the direct and affiliated assumed premiums written by the Exchange. The management fee rate is set at least annually by our Board of Directors. The process of setting the management fee rate includes, but is not limited to, the evaluation of current year operating results compared to both

RISK FACTORS

ITEM 1A. RISK FACTORS Our business involves various risks and uncertainties, including, but not limited to those discussed in this section. The risks and uncertainties described in the risk factors below, or any additional risk outside of those discussed below, could have a material adverse effect on our business, financial condition, operating results, cash flows, or liquidity if they were to develop into actual events. This information should be considered carefully together with the other information contained in this report and in other reports and materials we file periodically with the Securities and Exchange Commission. Our risks have been divided into the following categories: Risks related to Erie Insurance Exchange – risks related to our dependence on our relationship with the Exchange associated with management fees, premium growth, and financial condition, as the Exchange is our sole customer and principal source of revenue Operating risks – risks stemming from events or circumstances that directly or indirectly affect our operations, including our operations as attorney-in-fact for the subscribers at the Exchange Market, Capital, and Liquidity risks – risks that may impact the values or results of our investment portfolio, ability to meet financial obligations or covenants, or obtain capital as necessary Although we have organized risks generally according to these categories in the discussion below, risks may have impacts in more than one category and are included where the impact is most significant. Risks related to Erie Insurance Exchange If the management fee rate retained by Indemnity is reduced or if there is a significant decrease in the amount of direct and affiliated assumed premiums written by the Exchange, revenues and profitability could be materially adversely affected. We are dependent upon management fees we retain, which represent our principal source of revenue. In accordance with the subscriber's agreement with the s

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View this 10-K filing on SEC EDGAR