New

4th Quarter 2024 Earnings Supplemental

ERIE INDEMNITY COMPANY

Investor Supplement

Fourth Quarter 2024

This report is for informational purposes only and includes financial statements and financial exhibits that are unaudited. This report should be read in conjunction with documents filed with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K for 2024.

Erie Indemnity Company

Investor Supplement - Fourth Quarter 2024

Table of Contents

Definitions	Page
1
Indemnity Consolidated Income Statements	2
Indemnity Consolidated Balance Sheet Information	3
Property and Casualty Group Direct Written Premium Growth Measures	4
Property and Casualty Group Statutory Basis Combined Ratio - Direct Business	5

Erie Indemnity Company

Investor Supplement - Fourth Quarter 2024

Definitions

Indemnityis 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"). 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".

Exchange, which also commenced business in 1925, is a Pennsylvania-domiciled reciprocal insurer that writes property and casualty insurance.

Property and Casualty Group

The Property and Casualty Group ("P&C Group") is a regional insurance group operating in 12 Midwestern, Mid-Atlantic, and Southeastestates and the District of Columbia. The P&C Group is comprised of the Exchange and its wholly owned property and casualty insurance subsidiaries. Certain operating and statistical measures have been incorporated herein to provide supplemental data that indicate current trends in the P&C Group's business. These measures include revenue, policies in-force and policyholder retention. Policyholder retention is defined as renewal policies in the current period divided by total policies in the prior period.

The P&C Group, along with others in the property and casualty insurance industry, use statutory underwriting ratios as measures of performance. The loss and loss expense ratio is the ratio of incurred losses and loss adjustment expenses to earned premiums. The statutory underwriting expense ratio is the ratio of underwriting expenses to written premiums. The combined ratio is the sum of the loss and loss expense ratio, the underwriting expense ratio and the policyholder dividend ratio. A combined ratio below 100% demonstrates underwriting profit; a combined ratio above 100% demonstrates underwriting losses.

The calendar year ratio represents the combined ratio for the current calendar year.
Loss reserve development is the increase or decrease in incurred losses and loss adjustment expenses as a result of the re-estimation of loss and loss adjustment expense reserves at successive valuation dates for a group of claims. Loss reserve development may be related to one or more prior years. The prior year reserve development ratio represents the ratio of prior years' incurred losses and loss adjustment expenses to earned premiums.
The current accident year catastrophe loss ratio represents the ratio of current accident year incurred catastrophe losses and loss adjustment expenses to earned premiums.
The current accident year excluding catastrophes ratio represents the sum of the current accident year incurred losses and loss adjustment expenses to earned premiums ratio, the underwriting expense ratio and the policyholder dividend ratio.

Erie Indemnity Company

Investor Supplement - Fourth Quarter 2024

(dollars in thousands, except per share data)

Operating revenue

Indemnity

Consolidated Income Statements

	Three Months Ended (Unaudited)			Twelve Months Ended
December 31,	September 30,	June 30,	March 31,	December 31,	December 31,	December 31,
2024	2024	2024	2024	2023	2024	2023

Management fee revenue - policy issuance and renewal services Management fee revenue - administrative services Administrative services reimbursement revenue

Service agreement revenue Total operating revenue

$	698,340	$	769,162	$	760,886	$	665,686	$	601,595
	17,216		17,154		17,051		16,934		16,693
	201,987		206,754		206,028		191,567		192,728
	6,547		6,816		6,473		6,514		6,651
	924,090		999,886		990,438		880,701		817,667

2,894,074 $ 2,442,073
68,355 63,669

806,336 737,139

26,350 26,059

3,795,115 3,268,940

Operating expenses CommissionsNon-commissionexpenses

Cost of operations - policy issuance and renewal services Cost of operations - administrative services

Total operating expenses Operating income

Investment income

Interest and dividend income, net

Equity in earnings (losses) of limited partnerships Net investment income

Net realized and unrealized investment gains (losses) Net impairment losses recognized in earnings

Total investment income

Other income

Income before income taxes Income tax expense

Net income

Net income per share - diluted

	385,174		420,516		419,951		375,760		334,409
	169,619		192,491		174,251		174,562		163,446
	554,793		613,007		594,202		550,322		497,855
	201,987		206,754		206,028		191,567		192,728
	756,780		819,761		800,230		741,889		690,583
	167,310		180,125		190,208		138,812		127,084
	19,083		17,449		16,274		15,378		14,795
	1,837		(127)		(264)		525		(583)
	20,920		17,322		16,010		15,903		14,212
	246		2,925		(1,795)		1,853		3,408
	(361)		(698)		(388)		(2,677)		(7,849)
	20,805		19,549		13,827		15,079		9,771
	3,693		1,168		3,292		3,411		3,069
	191,808		200,842		207,327		157,302		139,924
	39,779		41,012		43,424		32,750		28,996
$	152,029	$	159,830	$	163,903	$	124,552	$	110,928

$	2.91	$	3.06	$	3.13	$	2.38	$	2.12

	1,601,401		1,348,530
	710,923		663,015
	2,312,324		2,011,545
	806,336		737,139
	3,118,660		2,748,684
	676,455		520,256
	68,184		55,880
	1,971		(11,308)
	70,155		44,572
	3,229		(5,838)
	(4,124)		(9,766)
	69,260		28,968
	11,564		12,712
	757,279		561,936
	156,965		115,875
$	600,314	$	446,061

$	11.48	$	8.53

Erie Indemnity Company

Investor Supplement - Fourth Quarter 2024

						Indemnity
					Consolidated Balance Sheet Information
						(Unaudited)
(in thousands)	December 31,		September 30,		June 30,		March 31,		December 31,
	2024			2024		2024		2024			2023
Assets
Cash, cash equivalents and restricted cash	$	298,397	$	221,213	$	170,634	$	144,872	$	144,055
Receivables from Erie Insurance Exchange and affiliates, net		707,060			736,973		708,171		641,691			625,338
Investments, net		1,159,116			1,169,600		1,108,139		1,084,597			1,068,520
Fixed assets, net		513,494			480,707		469,145		461,914			442,610
Agent loans, net		92,731			91,636		66,280		67,448			67,787
Defined benefit pension plan		21,311			64,172		65,221		66,270			34,320
Other assets, net		96,505			99,846		104,370		89,002			89,334
Total assets	$	2,888,614		$	2,864,147	$	2,691,960	$	2,555,794		$	2,471,964
Liabilities and shareholders' equity
Liabilities
Commissions payable	$	408,309	$	426,341	$	413,205	$	384,613	$	353,709
Agent incentive compensation		75,458			60,073		44,870		26,968			68,077
Defined benefit pension plan		28,070			27,757		26,591		23,792			26,260
Contract liability		63,931			63,974		62,215		60,555			61,120
Other liabilities		325,588			338,047		316,266		333,686			299,963
Total liabilities		901,356			916,192		863,147		829,614			809,129
Shareholders' equity		1,987,258			1,947,955		1,828,813		1,726,180			1,662,835
Total liabilities and shareholders' equity	$	2,888,614		$	2,864,147	$	2,691,960	$	2,555,794		$	2,471,964

Erie Indemnity Company

Investor Supplement - Fourth Quarter 2024 (Unaudited)

					Property and Casualty Group
					Direct Written Premium Growth Measures
				Three Months Ended						Twelve Months Ended
(dollars in thousands)	December 31,	September 30,	June 30,		March 31,	December 31,		December 31,	December 31,
	2024		2024	2024		2024		2023			2024		2023
Direct written premiums of the P&C Group
Private passenger auto	$	1,178,433	$	1,339,707	$ 1,287,418	$	1,154,951	$	1,037,831	$	4,960,509	$	4,240,518
Homeowners		843,405		956,385	917,549		680,642		689,679			3,397,981		2,720,661
Commercial multi-peril		415,996		414,132	438,806		418,799		356,948			1,687,733		1,419,480
Workers compensation		99,842		111,935	123,369		138,986		105,105			474,132		498,984
Commercial auto		246,062		250,801	272,548		263,055		212,116			1,032,466		891,017
All other lines of business		81,513		89,342	95,496		84,587		67,620			350,938		285,824
P&C Group direct written premiums - total	$	2,865,251	$	3,162,302	$ 3,135,186	$	2,741,020	$	2,469,299		$	11,903,759	$	10,056,484


				Property and Casualty Group
			Direct Written Premium Growth Measures

	December 31,	September 30,	June 30,		March 31,	December 31,
12 month growth rate policies in force		2024		2024	2024		2024		2023

Total all lines		4.8 %		6.0 %	6.8 %		7.1 %		6.9 %
Total personal lines		4.8 %		6.2 %	7.1 %		7.5 %		7.4 %
Total commercial lines		4.6 %		4.8 %	4.9 %		4.2 %		3.2 %
Retention trends (1)
Total all lines		90.4 %		90.8 %	91.1 %		91.2 %		91.2 %
Total personal lines		91.6 %		91.9 %	92.1 %		92.2 %		92.1 %
Total commercial lines		82.0 %		82.7 %	83.5 %		84.6 %		85.3 %
12 month % change average premiums
Total all lines		13.4 %		12.8 %	11.9 %		10.6 %		9.4 %
Total personal lines		15.1 %		14.7 %	13.7 %		12.0 %		10.5 %
Total commercial lines		9.4 %		9.3 %	9.0 %		9.4 %		9.5 %

Policyholder retention rates are impacted when a policyholder cancels an existing policy and enters into a new policy due to various factors, including buying a new home or changing the policy type. When this occurs, the cancelled policy reduces the reported retention rate.

Erie Indemnity Company

Investor Supplement - Fourth Quarter 2024 (Unaudited)

							Property and Casualty Group
					Statutory Basis Combined Ratio - Direct Business

			Three Months Ended December 31, 2024					Three Months Ended December 31, 2023
			Prior Year		Current		Current					Prior Year	Current		Current
			Reserve		Accident		Accident					Reserve	Accident		Accident
			Development		Year		Year					Development	Year		Year
Direct business only	Calendar	Deficiency		Catastrophe	Excluding			Calendar	Deficiency	Catastrophe		Excluding
Year		(Redundancy)		Losses		Catastrophes			Year		(Redundancy)	Losses		Catastrophes
Private passenger auto	127.7	%	0.8	%	0.1	%	126.8	%		133.4	%	(1.2) %	0.2	%	134.4	%
Homeowners	74.1	%	1.1	%	4.8	%	68.2	%	79.7	%	0.7 %	0.0	%	79.0	%
Other personal lines	120.3	%	0.5	%	1.5	%	118.3	%	135.9	%	1.7 %	0.1	%	134.1	%
Total personal lines	106.4 %	0.9 %	2.0 %	103.5 %	112.8 %	(0.4)%	0.1 %	113.1 %
Commercial multi-peril	74.0	%	0.0	%	3.5	%	70.5	%	88.4	%	6.1 %	11.3	%	71.0	%
Commercial auto	118.1	%	0.9	%	0.4	%	116.8	%	127.1	%	4.4 %	0.2	%	122.5	%
Workers compensation	106.5	%	4.0	%	0.0	%	102.5	%	90.5	%	(12.9) %	0.0	%	103.4	%
Other commercial lines	137.2	%	5.7	%	0.0	%	131.5	%	165.5	%	45.9 %	0.0	%	119.6	%
Total commercial lines	95.8 %	1.2 %	1.8 %	92.8 %	104.6 %	4.6 %	5.5 %	94.5 %
Grand total	103.4 %	1.0 %	1.9 %	100.5 %	110.4 %	1.1 %	1.7 %	107.6 %

		Twelve Months Ended December 31, 2024					Twelve Months Ended December 31, 2023
			Prior Year		Current		Current					Prior Year	Current		Current
			Reserve		Accident		Accident					Reserve	Accident		Accident
			Development		Year		Year					Development	Year		Year
Direct business only	Calendar	Deficiency		Catastrophe	Excluding			Calendar	Deficiency	Catastrophe		Excluding
Year		(Redundancy)		Losses		Catastrophes			Year		(Redundancy)	Losses		Catastrophes
Private passenger auto	119.9	%	(0.7) %	1.1	%	119.5	%		126.9	%	0.1 %	1.4	%	125.4	%
Homeowners	104.7	%	(1.5) %	28.3	%	77.9	%	125.0	%	2.5 %	38.6	%	83.9	%
Other personal lines	129.7	%	16.1	%	0.9	%	112.7	%	97.8	%	(4.2) %	0.5	%	101.5	%
Total personal lines	114.2 %	(0.7)%	11.7 %	103.2 %	125.6 %	0.9 %	15.6 %	109.1 %
Commercial multi-peril	88.9	%	(1.1) %	9.6	%	80.4	%	106.1	%	11.9 %	13.3	%	80.9	%
Commercial auto	122.8	%	6.5	%	0.8	%	115.5	%	121.9	%	5.2 %	1.0	%	115.7	%
Workers compensation	91.2	%	(10.9) %	0.0	%	102.1	%	80.2	%	(14.2) %	0.0	%	94.4	%
Other commercial lines	133.9	%	10.4	%	0.0	%	123.5	%	104.8	%	(7.7) %	0.0	%	112.5	%
Total commercial lines	102.1 %	0.4 %	5.0 %	96.7 %	106.1 %	4.1 %	6.5 %	95.5 %
Grand total	110.7 %	(0.4)%	9.7 %	101.4 %	119.8 %	1.9 %	12.8 %	105.1 %

Attachments

Disclaimer

Erie Indemnity Company published this content on February 28, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 28, 2025 at 12:26:51.430.

The post 4th Quarter 2024 Earnings Supplemental appeared first on Insurance News | InsuranceNewsNet.

Back to Listing

credit:

4th Quarter 2024 Earnings Supplemental

Recent

Democrats Urge DeSantis To Investigate Why State Didn’t Share Critical Insurance Study Read More

Operations Generalist EMEA Mexico Brazil Read More

IT Admin Read More