Business
Erie Indemnity Reports Second Quarter 2021 Results
Net Income per Diluted Share was $1.51 for the Quarter and $2.92 for the Six Months of 2021 ERIE, Pa., July 29, 2021 /PRNewswire/ -- Erie Indemnity Company
About this update from Erie Indemnity Company
[{"type":"text","content":"Net Income per Diluted Share was $1.51 for the Quarter and $2.92 for the Six Months of 2021\n\n\nERIE, Pa., July 29, 2021 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and six months ending June 30, 2021. Net income was $79.0 million, or $1.51 per diluted share, in the second quarter of 2021, compared to $82.0 million, or $1.57 per diluted share, in the second quarter of 2020. Net income was $152.6 million, or $2.92 per diluted share, in the first six months of 2021, compared to $141.3 million, or $2.70 per diluted share, in the first six months of 2020.\n\n \n \n \n \n \n \n\n \nThe uncertainty resulting from the COVID-19 pandemic continues to evolve and the pandemic's ultimate impact and duration remain uncertain at this time. \n2Q and First Half 2021\n(in thousands)\n2Q'21\n2Q'20\n1H21\n1H20\nOperating income\n$\n85,065\n$\n91,189\n$\n161,160\n$\n176,880\nInvestment income\n16,418\n11,553\n34,406\n2,358\nInterest and other expense, net\n1,587\n260\n3,115\n629\nIncome before income taxes\n99,896\n102,482\n192,451\n178,609\nIncome tax expense\n20,867\n20,505\n39,856\n37,306\nNet income\n$\n79,029\n$\n81,977\n$\n152,595\n$\n141,303\n \n 2Q 2021 Highlights \nOperating income before taxes decreased $6.1 million, or 6.7 percent, in the second quarter of 2021 compared to the second quarter of 2020.\nManagement fee revenue - policy issuance and renewal services increased $18.5 million, or 3.8 percent, in the second quarter of 2021 compared to the second quarter of 2020. Management fee revenue - administrative services decreased $0.1 million, or 1.0 percent, in the second quarter of 2021 compared to the second quarter of 2020. Cost of operations - policy issuance and renewal services Commissions increased $14.7 million in the second quarter of 2021 compared to the second quarter of 2020, driven by the growth in direct and affiliated assumed written premium, primarily in lines of business that pay a higher commission rate. To a lesser extent, there was also an increase in agent incentive compensation for the second quarter of 2021 compared to the second quarter of 2020. Non-commission expense increased $9.2 million in the second quarter of 2021 compared to the second quarter of 2020. Underwriting and policy processing expense increased $3.3 million primarily due to increased per...