Erie Indemnity Q3 Revenue Rises on Policy Growth

TL;DR

ERIE Q3 revenue up to $707.8M from $654.1M, policy growth driving results.

AI Summary

Erie Indemnity Co. reported its third-quarter 2024 results for the period ending September 30, 2024. The company's policy issuance and renewal services generated $707.8 million in revenue for Q3 2024, compared to $654.1 million in Q3 2023. For the first nine months of 2024, policy issuance and renewal services revenue was $2.1 billion, up from $1.9 billion in the same period of 2023.

Why It Matters

This filing shows Erie Indemnity's continued growth in its core insurance services, indicating a stable or expanding customer base and potentially stronger future earnings.

Risk Assessment

Risk Level: low — The filing details standard operational and financial performance without significant new risks or negative trends.

Key Numbers

• $707.8M — Q3 2024 Policy Issuance and Renewal Services Revenue (Represents growth over the prior year's quarter.)
• $654.1M — Q3 2023 Policy Issuance and Renewal Services Revenue (Baseline for Q3 revenue comparison.)
• $2.1B — Year-to-date 2024 Policy Issuance and Renewal Services Revenue (Shows sustained growth over the first nine months.)
• $1.9B — Year-to-date 2023 Policy Issuance and Renewal Services Revenue (Baseline for year-to-date revenue comparison.)

Key Players & Entities

• ERIE INDEMNITY CO (company) — Filer
• 20240930 (date) — Reporting Period End Date
• 20241031 (date) — Filing Date
• $707.8 million (dollar_amount) — Q3 2024 Policy Issuance and Renewal Services Revenue
• $654.1 million (dollar_amount) — Q3 2023 Policy Issuance and Renewal Services Revenue
• $2.1 billion (dollar_amount) — Year-to-date 2024 Policy Issuance and Renewal Services Revenue
• $1.9 billion (dollar_amount) — Year-to-date 2023 Policy Issuance and Renewal Services Revenue

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-20240930.htm (10-Q) — 1898KB
• ex-31109302024.htm (EX-31.1) — 15KB
• ex-31209302024.htm (EX-31.2) — 15KB
• ex-3209302024.htm (EX-32) — 9KB
• 0000922621-24-000023.txt ( ) — 9721KB
• erie-20240930.xsd (EX-101.SCH) — 45KB
• erie-20240930_cal.xml (EX-101.CAL) — 110KB
• erie-20240930_def.xml (EX-101.DEF) — 312KB
• erie-20240930_lab.xml (EX-101.LAB) — 599KB
• erie-20240930_pre.xml (EX-101.PRE) — 426KB
• erie-20240930_htm.xml (XML) — 2115KB

Financial Statements (Unaudited)

Financial Statements (Unaudited)

Notes to Financial Statements – September 30, 2024

Notes to Financial Statements – September 30, 2024 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 September 30, Nine months ended September 30, 2024 2023 2024 2023 Operating revenue Management fee revenue - policy issuance and renewal services $ 769,162 $ 649,049 $ 2,195,734 $ 1,840,478 Management fee revenue - administrative services 17,154 16,151 51,139 46,976 Administrative services reimbursement revenue 206,754 187,118 604,349 544,411 Service agreement revenue 6,816 6,620 19,803 19,408 Total operating revenue 999,886 858,938 2,871,025 2,451,273 Operating expenses Cost of operations - policy issuance and renewal services 613,007 523,349 1,757,531 1,513,690 Cost of operations - administrative services 206,754 187,118 604,349 544,411 Total operating expenses 819,761 710,467 2,361,880 2,058,101 Operating income 180,125 148,471 509,145 393,172 Investment income Net investment income 17,322 14,642 49,235 30,360 Net realized and unrealized investment gains (losses) 2,925 ( 2,227 ) 2,983 ( 9,246 ) Net impairment losses recognized in earnings ( 698 ) ( 113 ) ( 3,763 ) ( 1,917 ) Total investment income 19,549 12,302 48,455 19,197 Other income 1,168 3,001 7,871 9,643 Income before income taxes 200,842 163,774 565,471 422,012 Income tax expense 41,012 32,734 117,186 86,879 Net income $ 159,830 $ 131,040 $ 448,285 $ 335,133 Net income per share Class A common stock – basic $ 3.43 $ 2.81 $ 9.63 $ 7.20 Class A common stock – diluted $ 3.06 $ 2.51 $ 8.57 $ 6.41 Class B common stock – basic and diluted $ 515 $ 422 $ 1,444 $ 1,079 Weighted average shares outstanding – Basic Class A common stock 46,189,059 46,189,037 46,189,038 46,188,962 Class B common stock 2,542 2,542 2,542 2,542 Weighted average shares outstanding – Diluted Class A common stock 52,306,514 52,299,369 52,301,001 52,298,655 Class B common stock 2,542 2,542 2,542 2,542 Dividends declared per share Class A com

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 u

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