Press release
Erie Indemnity Reports Full Year and Fourth Quarter 2022 Results
Net Income per Diluted Share was $1.25 for the Quarter and $5.71 for the Year ERIE, Pa., March 1, 2023 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE)
About this update from Erie Indemnity Company
[{"type":"text","content":"Net Income per Diluted Share was $1.25 for the Quarter and $5.71 for the Year\nERIE, Pa., March 1, 2023 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the full year and quarter ending December 31, 2022. Net income was $298.6 million, or $5.71 per diluted share, in 2022, compared to $297.9 million, or $5.69 per diluted share, in 2021. Net income was $65.5 million, or $1.25 per diluted share, in the fourth quarter of 2022, compared to $55.0 million, or $1.05 per diluted share, in the fourth quarter of 2021.\n\n \n \n \n \n \n \n\n \nThe uncertainty resulting from post-pandemic conditions and the current economic environment continues to evolve and the duration or extent of financial impacts remain uncertain.\n4Q and Full Year 2022\n(dollars in thousands)\n4Q'22\n4Q'21\n2022\n2021\nOperating income\n$ 81,430\n$ 61,834\n$ 376,214\n$ 318,097\nInvestment income\n288\n12,328\n632\n67,332\nInterest expense and other, net\n(243)\n4,335\n394\n9,025\nIncome before income taxes\n81,961\n69,827\n376,452\n376,404\nIncome tax expense\n16,471\n14,785\n77,883\n78,544\nNet income\n$ 65,490\n$ 55,042\n$ 298,569\n$ 297,860\n \n 2022 Full Year Highlights \nOperating income before taxes increased $58.1 million, or 18.3 percent, in 2022 compared to 2021.\nManagement fee revenue - policy issuance and renewal services increased $174.7 million, or 9.1 percent, in 2022 compared to 2021. Management fee revenue - administrative services remained consistent at $58.3 million in both 2022 and 2021.Cost of operations - policy issuance and renewal services Commissions increased $71.1 million in 2022 compared to 2021 driven by direct and affiliated assumed written premium growth, partially offset by a reduction in agent incentive compensation. Non-commission expense increased $47.1 million in 2022 compared to 2021. Underwriting and policy processing costs increased $6.4 million primarily due to increased underwriting report, printing, and personnel costs. Information technology costs increased $13.1 million primarily due to increased hardware and software costs and professional fees, partially offset by decreased personnel costs. Sales and advertising costs increased $7.5 million primarily due to increased advertising and agent-related expenses. Administrative and other expenses increased $22.5 million primarily due to...