Erie Indemnity Reports Third Quarter 2019 Results

About this update from Erie Indemnity Company

[{"type":"text","content":"ERIE, Pa., Oct. 24, 2019 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and nine months ending September 30, 2019. Net income was $94.2 million, or $1.80 per diluted share, in the third quarter of 2019, compared to $80.4 million, or $1.54 per diluted share, in the third quarter of 2018. Net income was $257.2 million, or $4.92 per diluted share, in the first nine months of 2019, compared to $225.9 million, or $4.32 per diluted share, in the first nine months of 2018.\n\n \n \nOperating income before taxes increased $9.2 million, or 9.5 percent, in the third quarter of 2019 compared to the third quarter of 2018.\nManagement fee revenue - policy issuance and renewal services increased $23.1 million, or 5.1 percent, in the third quarter of 2019 compared to the third quarter of 2018. Management fee revenue - administrative services increased $0.9 million, or 6.7 percent, in the third quarter of 2019 compared to the third quarter of 2018. Cost of operations - policy issuance and renewal services Commissions increased $10.2 million in the third quarter of 2019 compared to the third quarter of 2018, as a result of the 5.2 percent increase in direct and affiliated assumed premiums written by the Exchange, partially offset by lower agent incentive costs related to less profitable growth, compared to the third quarter of 2018. Non-commission expense increased $4.6 million in the third quarter of 2019 compared to the third quarter of 2018. Information technology costs increased $5.4 million primarily due to increased professional fees. Underwriting and policy processing expense increased $1.9 million primarily due to underwriting report costs and other policy acquisition costs. Customer service costs increased $1.0 million primarily due to increased personnel costs. Administrative and other expenses decreased $2.9 million primarily driven by a decrease in long-term incentive plan cost due to a decrease in the company stock price in the third quarter of 2019. Personnel costs in all expense categories were impacted by lower estimated costs for incentive plans related to underwriting performance.The administrative services reimbursement revenue and corresponding cost of operations increased both total operating revenue and total operating expenses by $142.7 million in the third quarter o...

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