Business
Erie Indemnity Reports Third Quarter 2020 Results
Net Income per Diluted Share was $1.71 for the Quarter and $4.41 for the Nine Months of 2020 ERIE, Pa., Oct. 29, 2020 /PRNewswire/ -- Erie Indemnity Company
About this update from Erie Indemnity Company
[{"type":"text","content":"Net Income per Diluted Share was $1.71 for the Quarter and $4.41 for the Nine Months of 2020\n\n\nERIE, Pa., Oct. 29, 2020 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and nine months ending September 30, 2020. Net income was $89.2 million, or $1.71 per diluted share, in the third quarter of 2020, compared to $94.2 million, or $1.80 per diluted share, in the third quarter of 2019. Net income was $230.5 million, or $4.41 per diluted share, in the first nine months of 2020, compared to $257.2 million, or $4.92 per diluted share, in the first nine months of 2019. \n\n \n \n \n \n \n \n\n \nThe significant disruption to the economy and financial markets resulting from the COVID-19 pandemic that began in the first quarter of 2020 continues to evolve and the pandemic's ultimate impact and duration remain highly uncertain at this time. While the Exchange experienced declines in new business premium in the second quarter of 2020 due to the pandemic, new business premiums grew 10.4% in the third quarter of 2020 compared to the same period in 2019. The financial markets substantially recovered in the third quarter from the financial volatility negatively impacting our portfolio in the first quarter of 2020, improving our investment results in the third quarter. \n3Q and Nine Months 2020\n(in thousands)\n3Q'20\n3Q'19\n2020\n2019\nOperating income\n$\n96,225\n$\n105,907\n$\n273,105\n$\n288,639\nInvestment income\n16,438\n13,606\n18,796\n33,053\nInterest and other expense, net\n967\n11\n1,596\n637\nIncome before income taxes\n111,696\n119,502\n290,305\n321,055\nIncome tax expense\n22,480\n25,333\n59,786\n63,821\nNet income\n$\n89,216\n$\n94,169\n$\n230,519\n$\n257,234\n \n 3Q 2020 Highlights \nOperating income before taxes decreased $9.7 million, or 9.1 percent, in the third quarter of 2020 compared to the third quarter of 2019.\nManagement fee revenue - policy issuance and renewal services increased $10.1 million, or 2.1 percent, in the third quarter of 2020 compared to the third quarter of 2019. Management fee revenue - administrative services increased $0.5 million, or 3.3 percent, in the third quarter of 2020 compared to the third quarter of 2019. Cost of operations - policy issuance and renewal services Commissions increased $6.2 million in the third quarter of 2020 compared to ...