Business
Erie Indemnity Reports Full Year and Fourth Quarter 2020 Results
Net Income per Diluted Share was $1.20 for the Quarter and $5.61 for the Year ERIE, Pa., Feb. 25, 2021 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE)
About this update from Erie Indemnity Company
[{"type":"text","content":"Net Income per Diluted Share was $1.20 for the Quarter and $5.61 for the Year\n\n\n\n ERIE, Pa., Feb. 25, 2021 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the full year and quarter ending December 31, 2020. Net income was $293.3 million, or $5.61 per diluted share, in 2020, compared to $316.8 million, or $6.06 per diluted share, in 2019. Net income was $62.8 million, or $1.20 per diluted share, in the fourth quarter of 2020, compared to $59.6 million, or $1.14 per diluted share, in the fourth quarter of 2019. \n\n \n \n \n \n \n \n\n \nThe significant disruption to the economy and financial markets resulting from the COVID-19 pandemic that began in the first quarter of 2020 continues to evolve and the pandemic's ultimate impact and duration remain highly uncertain at this time. Although the Exchange experienced declines in new business premiums in the first half of 2020 due to business disruptions and recessionary conditions, new business premiums grew 10.8% in the second half of 2020 compared to the same period in 2019. The financial markets substantially recovered during the remainder of 2020 from the volatility impacting our portfolio in the first quarter of 2020, resulting in overall realized and unrealized gains.\n4Q and Full Year 2020\n(dollars in thousands)\n4Q'20\n4Q'19\n2020\n2019\nOperating income\n$\n65,052\n$\n68,700\n$\n338,157\n$\n357,339\nInvestment income\n14,071\n6,914\n32,867\n39,967\nInterest expense and other (income), net\n913\n(36)\n2,509\n601\nIncome before income taxes\n78,210\n75,650\n368,515\n396,705\nIncome tax expense\n15,425\n16,063\n75,211\n79,884\nNet income\n$\n62,785\n$\n59,587\n$\n293,304\n$\n316,821\n \n 2020 Full Year Highlights \nOperating income before taxes decreased $19.2 million, or 5.4 percent, in 2020 compared to 2019. \nManagement fee revenue - policy issuance and renewal services increased $31.3 million, or 1.7 percent, in 2020 compared to 2019. Management fee revenue allocated to administrative services increased $2.3 million, or 4.0 percent, in 2020 compared to 2019. Cost of operations - policy issuance and renewal services Commissions increased $26.6 million in 2020 compared to 2019 resulting from higher direct and affiliated assumed premiums written by the Exchange and higher agent incentive compensation. The Exchange experienced a s...