Business
Erie Indemnity Reports Full Year and Fourth Quarter 2021 Results
Net Income per Diluted Share was $1.05 for the Quarter and $5.69 for the Year ERIE, Pa., Feb. 24, 2022 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE)
About this update from Erie Indemnity Company
[{"type":"text","content":"Net Income per Diluted Share was $1.05 for the Quarter and $5.69 for the Year\n\n\n ERIE, Pa., Feb. 24, 2022 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the full year and quarter ending December 31, 2021. Net income was $297.9 million, or $5.69 per diluted share, in 2021, compared to $293.3 million, or $5.61 per diluted share, in 2020. Net income was $55.0 million, or $1.05 per diluted share, in the fourth quarter of 2021, compared to $62.8 million, or $1.20 per diluted share, in the fourth quarter of 2020. \n\n \n \n \n \n \n \n\n \nThe uncertainty resulting from COVID-19 and subsequent resulting conditions continues to evolve and the ultimate impact and duration remain uncertain at this time. \n4Q and Full Year 2021\n(dollars in thousands)\n4Q'21\n4Q'20\n2021\n2020\nOperating income\n$ 61,834\n$ 65,052\n$ 318,097\n$ 338,157\nInvestment income\n12,328\n14,071\n67,332\n32,867\nInterest and other expense, net\n4,335\n913\n9,025\n2,509\nIncome before income taxes\n69,827\n78,210\n376,404\n368,515\nIncome tax expense\n14,785\n15,425\n78,544\n75,211\nNet income\n$ 55,042\n$ 62,785\n$ 297,860\n$ 293,304\n2021 Full Year Highlights\nOperating income before taxes decreased $20.1 million, or 5.9 percent, in 2021 compared to 2020. \nManagement fee revenue - policy issuance and renewal services increased $71.4 million, or 3.9 percent, in 2021 compared to 2020. Management fee revenue allocated to administrative services decreased $1.2 million, or 2.0 percent, in 2021 compared to 2020. Cost of operations - policy issuance and renewal services Commissions increased $57.2 million in 2021 compared to 2020 resulting from higher direct and affiliated assumed premiums written by the Exchange and higher agent incentive compensation. Non-commission expense increased $31.3 million in 2021 compared to 2020. Underwriting and policy processing costs increased $4.5 million primarily due to increased personnel costs and underwriting report costs. Information technology costs increased $11.3 million primarily due to increased hardware and software costs and personnel costs. Administrative and other expenses increased $14.2 million primarily driven by increased professional fees and building and equipment depreciation. Personnel costs in all categories were impacted by higher medical costs compared to the prio...