Business
Erie Indemnity Reports Third Quarter 2021 Results
Net Income per Diluted Share was $1.72 for the Quarter and $4.64 for the Nine Months of 2021 ERIE, Pa., Oct. 28, 2021 /PRNewswire/ -- Erie Indemnity Company
About this update from Erie Indemnity Company
[{"type":"text","content":"Net Income per Diluted Share was $1.72 for the Quarter and $4.64 for the Nine Months of 2021\n\n\nERIE, Pa., Oct. 28, 2021 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and nine months ending September 30, 2021. Net income was $90.2 million, or $1.72 per diluted share, in the third quarter of 2021, compared to $89.2 million, or $1.71 per diluted share, in the third quarter of 2020. Net income was $242.8 million, or $4.64 per diluted share, in the first nine months of 2021, compared to $230.5 million, or $4.41 per diluted share, in the first nine months of 2020.\n\n \n \n \n \n \n \n\n \nThe uncertainty resulting from the COVID-19 pandemic continues to evolve and the pandemic's ultimate impact and duration remain uncertain at this time. \n3Q and Nine Months 2021\n(in thousands)\n3Q'21\n3Q'20\n2021\n2020\nOperating income\n$\n95,103\n$\n96,225\n$\n256,263\n$\n273,105\nInvestment income\n20,598\n16,438\n55,004\n18,796\nInterest and other expense, net\n1,575\n967\n4,690\n1,596\nIncome before income taxes\n114,126\n111,696\n306,577\n290,305\nIncome tax expense\n23,903\n22,480\n63,759\n59,786\nNet income\n$\n90,223\n$\n89,216\n$\n242,818\n$\n230,519\n \n 3Q 2021 Highlights \nOperating income before taxes decreased $1.1 million, or 1.2 percent, in the third quarter of 2021 compared to the third quarter of 2020.\nManagement fee revenue - policy issuance and renewal services increased $20.3 million, or 4.2 percent, in the third quarter of 2021 compared to the third quarter of 2020. Management fee revenue - administrative services decreased $0.4 million, or 2.9 percent, in the third quarter of 2021 compared to the third quarter of 2020. Cost of operations - policy issuance and renewal services Commissions increased $14.9 million in the third quarter of 2021 compared to the third 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 third quarter of 2021 compared to the third quarter of 2020. Non-commission expense increased $5.9 million in the third quarter of 2021 compared to the third quarter of 2020. Information technology costs increased $3.8 million primarily due to increased hardware and soft...