Erie Indemnity Co. Q1 Revenue Rises on Policy Services

TL;DR

ERIE Q1 revenue up to $664.5M from policy issuance & renewal services. Strong growth!

AI Summary

Erie Indemnity Co. reported its first quarter 2024 results, ending March 31, 2024. The company's Policy Issuance and Renewal Services revenue for the first three months of 2024 was $664.5 million, an increase from $604.1 million in the same period of 2023. Administrative Services Management Fee revenue also saw a rise to $170.5 million in Q1 2024 from $154.9 million in Q1 2023.

Why It Matters

The increase in revenue from policy issuance and renewal services suggests growing demand for Erie's insurance products, potentially indicating a positive outlook for the company's core business.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags or significant negative developments.

Key Numbers

• $664.5M — Policy Issuance and Renewal Services Revenue (Q1 2024, up from $604.1M in Q1 2023)
• $170.5M — Administrative Services Management Fee (Q1 2024, up from $154.9M in Q1 2023)

Key Players & Entities

• ERIE INDEMNITY CO (company) — Filer
• 20240331 (date) — Reporting Period End Date
• $664.5 million (dollar_amount) — Policy Issuance and Renewal Services revenue for Q1 2024
• $604.1 million (dollar_amount) — Policy Issuance and Renewal Services revenue for Q1 2023
• $170.5 million (dollar_amount) — Administrative Services Management Fee revenue for Q1 2024
• $154.9 million (dollar_amount) — Administrative Services Management Fee revenue for Q1 2023

FAQ

Key Financial Figures

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

Filing Documents

• erie-20240331.htm (10-Q) — 1438KB
• ex-31103312024.htm (EX-31.1) — 15KB
• ex-31203312024.htm (EX-31.2) — 15KB
• ex-3203312024.htm (EX-32) — 9KB
• 0000922621-24-000010.txt ( ) — 8066KB
• erie-20240331.xsd (EX-101.SCH) — 43KB
• erie-20240331_cal.xml (EX-101.CAL) — 103KB
• erie-20240331_def.xml (EX-101.DEF) — 307KB
• erie-20240331_lab.xml (EX-101.LAB) — 577KB
• erie-20240331_pre.xml (EX-101.PRE) — 413KB
• erie-20240331_htm.xml (XML) — 1562KB

Financial Statements (Unaudited)

Financial Statements (Unaudited)

Notes to Financial Statements – March 31 , 202 4

Notes to Financial Statements – March 31 , 202 4 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk Item 4.

Controls and Procedures

Controls and Procedures PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings Item 1A.

Risk Factors

Risk Factors Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Item 6. Exhibits

SIGNATURES

SIGNATURES 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS ERIE INDEMNITY COMPANY (dollars in thousands, except per share data) Three months ended March 31, 2024 2023 Operating revenue Management fee revenue - policy issuance and renewal services $ 665,686 $ 558,090 Management fee revenue - administrative services 16,934 15,189 Administrative services reimbursement revenue 191,567 172,827 Service agreement revenue 6,514 6,359 Total operating revenue 880,701 752,465 Operating expenses Cost of operations - policy issuance and renewal services 550,322 469,095 Cost of operations - administrative services 191,567 172,827 Total operating expenses 741,889 641,922 Operating income 138,812 110,543 Investment income Net investment income 15,903 2,183 Net realized and unrealized investment gains (losses) 1,853 ( 5,282 ) Net impairment losses recognized in earnings ( 2,677 ) ( 1,633 ) Total 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 Net income per share Class A common stock – basic $ 2.67 $ 1.85 Class A common stock – diluted $ 2.38 $ 1.65 Class B common stock – basic and diluted $ 401 $ 278 Weighted average shares outstanding – Basic Class A common stock 46,189,014 46,188,819 Class B common stock 2,542 2,542 Weighted average shares outstanding – Diluted Class A common stock 52,301,803 52,296,621 Class B common stock 2,542 2,542 Dividends declared per share Class A common stock $ 1.275 $ 1.19 Class B common stock $ 191.25 $ 178.50 See accompanying notes to Financial Statements. See Note 11, "Accumulated Other Comprehensive Income (Loss)", for amounts reclassified out of accumulated other comprehensive income (loss) into the Statements of Operations. 3 Table of Contents ERIE INDEMNITY COMPANY (in thousands) Three months ended March 31

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Note 1. Nature of Operations 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. 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 of the direct and affiliated assumed premiums written by the Exchange. The policy issuance and renewal services we provide on behalf of the subscribers at the Exchange are related to the sales, underwriting and issuance of policies. The sales related services we provide include agent compensation and certain sales and advertising support services. Agent compensation includes scheduled commissions to agents based upon premiums written as well as incentive compensation, which is earned by achieving targeted measures. The underwriting services we provide include

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