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Erie Indemnity Reports First Quarter 2020 Results
Net Income was $59.3 million, Earnings per Diluted Share was $1.13 ERIE, Pa., May 7, 2020 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today
About this update from Erie Indemnity Company
[{"type":"text","content":"Net Income was $59.3 million, Earnings per Diluted Share was $1.13\n\n\n ERIE, Pa., May 7, 2020 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter ending March 31, 2020. Net income was $59.3 million, or $1.13 per diluted share, in the first quarter of 2020, compared to $75.3 million, or $1.44 per diluted share, in the first quarter of 2019.\n\n \n \n \n \n \n \n\n \nOn March 11, 2020, the outbreak of the coronavirus (\"COVID-19\") was declared a global pandemic. The impacts of the pandemic and efforts to mitigate the spread of the virus have had significant adverse impacts on economic conditions and financial markets. We did not experience significant financial impacts on our core businesses of policy issuance and renewal services and administrative services in the first quarter of 2020. However, the financial market volatility did have a significant impact on our first quarter 2020 investment portfolio.\n1Q 2020\n(in thousands)\n1Q'20\n1Q'19\nOperating income\n$\n85,691\n$\n86,122\nInvestment (loss) income\n(9,195)\n9,795\nInterest expense and other income, net\n369\n402\nIncome before income taxes\n76,127\n95,515\nIncome tax expense\n16,801\n20,204\nNet income\n$\n59,326\n$\n75,311\n \n 1Q 2020 Highlights \nOperating income before taxes decreased $0.4 million, or 0.5 percent, in the first quarter of 2020 compared to the first quarter of 2019.\nManagement fee revenue - policy issuance and renewal services increased $12.8 million, or 3.0 percent, in the first quarter of 2020 compared to the first quarter of 2019. Management fee revenue - administrative services increased $0.8 million, or 5.9 percent, in the first quarter of 2020 compared to the first quarter of 2019. Cost of operations - policy issuance and renewal services Commissions increased $9.0 million in the first quarter of 2020 compared to the first quarter of 2019. The increase was primarily driven by the growth in direct and affiliated assumed premiums written by the Exchange of 3.5 percent in the first quarter of 2020. The estimated agent incentive payouts at March 31, 2020 are based on actual underwriting results for the two prior years and current year-to-date actual results and forecasted results for the remainder of 2020. Therefore, fluctuations in the current quarter underwriting results can impact the estimat...