Erie Indemnity Reports Full Year and Fourth Quarter 2019 Results

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[{"type":"text","content":"Net Income per Diluted Share up 9.9 percent in 2019\n\n\nERIE, Pa., Feb. 27, 2020 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the full year and quarter ending December 31, 2019. Net income was $316.8 million, or $6.06 per diluted share, in 2019, compared to $288.2 million, or $5.51 per diluted share, in 2018. Net income was $59.6 million, or $1.14 per diluted share, in the fourth quarter of 2019, compared to $62.3 million, or $1.19 per diluted share, in the fourth quarter of 2018.\n\n \n \n\n \n4Q and Full Year 2019\n(dollars in thousands)\n4Q'19\n4Q'18\n2019\n2018\nOperating income\n$\n68,700\n$\n74,758\n$\n357,339\n$\n344,343\nInvestment income\n6,914\n4,995\n39,967\n25,796\nInterest expense and other (income), net\n(36)\n(2,889)\n601\n(1,181)\nIncome before income taxes\n75,650\n82,642\n396,705\n371,320\nIncome tax expense\n16,063\n20,328\n79,884\n83,096\nNet income\n$\n59,587\n$\n62,314\n$\n316,821\n$\n288,224\n \n2019 Full Year Highlights\nOperating income before taxes increased $13.0 million, or 3.8 percent, in 2019 compared to 2018.\nManagement fee revenue - policy issuance and renewal services increased $90.9 million, or 5.3 percent, in 2019 compared to 2018. Management fee revenue allocated to administrative services increased $3.6 million, or 6.7 percent, in 2019 compared to 2018. Cost of operations - policy issuance and renewal services Commissions increased $40.9 million in 2019 compared to 2018 as a result of the 5.2 percent increase in direct and affiliated assumed premiums written by the Exchange, somewhat offset by lower agent incentive costs related to less profitable growth. Non-commission expense increased $39.5 million in 2019 compared to 2018. Underwriting and policy processing costs increased $5.7 million primarily due to increased underwriting report costs and other policy acquisition costs. Information technology costs increased $23.1 million primarily due to increased professional fees and hardware and software costs. Sales and advertising costs decreased $3.2 million due to decreased personnel costs. Customer service costs increased $2.9 million primarily due to increased credit card processing fees and personnel costs. Administrative and other expenses increased $11.1 million primarily driven by an increase in long-term incentive plan costs due to a highe...

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