Erie Indemnity Reports Third Quarter 2025 Results

About this update from Erie Indemnity Company

Net Income per Diluted Share was $3.50 for the Quarter and $9.48 for the Nine Months of 2025 ERIE, Pa. , Oct. 30, 2025 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE ) today announced financial results for the quarter and nine months ending September 30, 2025 . Net income was $182.9 million , or $3.50 per diluted share, in the third quarter of 2025, compared to $159.8 million , or $3.06 per diluted share, in the third quarter of 2024. Net income was $496.0 million , or $9.48 per diluted share, in the first nine months of 2025, compared to $448.3 million , or $8.57 per diluted share, in the first nine months of 2024. 3Q and Nine Months 2025 (in thousands) 3Q'25 3Q'24 2025 2024 Operating income $ 208,921 $ 180,125 $ 559,470 $ 509,145 Investment income 21,554 19,549 60,690 48,455 Other income 2,286 1,168 8,094 7,871 Income before income taxes 232,761 200,842 628,254 565,471 Income tax expense 49,908 41,012 132,299 117,186 Net income $ 182,853 $ 159,830 $ 495,955 $ 448,285 3Q 2025 Highlights Operating income before taxes increased $28.8 million , or 16.0 percent, in the third quarter of 2025 compared to the third quarter of 2024. Management fee revenue - policy issuance and renewal services increased $56.1 million , or 7.3 percent, in the third quarter of 2025 compared to the third quarter of 2024. Management fee revenue - administrative services increased $1.7 million , or 9.8 percent, in the third quarter of 2025 compared to the third quarter of 2024. Cost of operations - policy issuance and renewal services Commissions increased $41.0 million in the third quarter of 2025, compared to the third quarter of 2024, primarily driven by the growth in direct and affiliated assumed written premium and, to a lesser extent, an increase in agent incentive compensation. Non-commission expense decreased $11.9 million in the third quarter of 2025 compared to the third quarter of 2024. Underwriting and policy processing expense increased $1.6 million primarily due to increased postage costs, partially offset by a decrease in underwriting report costs. Sales and advertising expense decreased $4.4 million primarily due to decreased agent-related costs and costs from community development initiatives. Administrative and other costs decreased $11.5 million primarily due to decreases in personnel costs and professional fees. Personnel costs were impacted by decreased incentive compensation compared to 2024. Decreased incentive plan costs were primarily driven by lower performance metrics compared to the third quarter of 2024 and a decrease in company stock price during the third quarter of 2025 compared to an increase during the third quarter of 2024. Income from investments before taxes totaled $21.6 million in the third quarter of 2025 compared to $19.5 million in the third quarter of 2024. Net investment income was $21.0 million in the third quarter of 2025 compared to $17.3 million in the third quarter of 2024. Net realized and unrealized gains were $1.3 million in the third quarter of 2025 compared to $2.9 million in the third quarter of 2024. Nine Months 2025 Highlights Operating income before taxes increased $50.3 million , or 9.9 percent, in the first nine months of 2025 compared to the first nine months of 2024. Management fee revenue - policy issuance and renewal services increased $208.4 million , or 9.5 percent, in the first nine months of 2025 compared to the first nine months of 2024. Management fee revenue - administrative services increased $3.6 million , or 7.1 percent, in the first nine months of 2025 compared to the first nine months of 2024. Cost of operations - policy issuance and renewal services Commissions increased $145.6 million in the first nine months of 2025 compared to the first nine months of 2024, primarily driven by the growth in direct and affiliated assumed written premium and, to a lesser extent, an increase in agent incentive compensation. Non-commission expense increased $15.0 million in the first nine months of 2025 compared to the first nine months of 2024. Underwriting and policy processing expense increased $5.9 million primarily due to increased postage and personnel costs. Information technology costs increased $19.8 million primarily due to an increase in personnel costs and hardware and software costs. Customer service costs increased $3.5 million primarily due to increased personnel costs and credit card processing fees. Administrative and other costs decreased $12.9 million primarily due to decreased personnel costs. Personnel costs were impacted by decreased incentive compensation and increased healthcare costs compared to 2024. Decreased incentive plan costs were primarily driven by lower performance metrics compared to the first nine months of 2024 and a decrease in company stock price during the first nine months of 2025 compared to an increase during the first nine months of 2024. Income from investments before taxes totaled $60.7 million in the first nine months of 2025 compared to $48.5 million in the first nine months of 2024. Net investment income was $61.0 million in the first nine months of 2025 compared to $49.2 million in the first nine months of 2024. Net investment income included $1.3 million of limited partnership earnings in the first nine months of 2025 compared to $0.1 million in the first nine months of 2024. Net realized and unrealized gains were $2.3 million in the first nine months of 2025 compared to $3.0 million in the first nine months of 2024. Net impairment losses recognized in earnings were $2.6 million in the first nine months of 2025 compared to $3.8 million in the first nine months of 2024. Webcast Information Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on October 31, 2025 . Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com . Erie Insurance Group Erie Insurance Group , based in Erie, Pennsylvania , is the 11th largest homeowners insurer, 12th largest automobile insurer and 10th largest commercial lines insurer in the United States based on direct premiums written, according to AM Best Company . Founded in 1925, Erie Insurance is a Fortune 500 company and the 16th largest property/casualty insurer in the United States based on net premiums written. Rated A (Excellent) by AM Best, ERIE has more than 7 million policies in force and operates in 12 states and the District of Columbia. News releases and more information are available on ERIE's website at www.erieinsurance.com . "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements contained herein that are not historical fact are forward-looking statements and, as such, are subject to risks and uncertainties that could cause actual events and results to differ, perhaps materially, from those discussed herein. Forward-looking statements relate to future trends, events or results and include, without limitation, statements and assumptions on which such statements are based that are related to our plans, strategies, objectives, expectations, intentions, and adequacy of resources. Examples of forward-looking statements are discussions relating to premium and investment income, expenses, operating results, and compliance with contractual and regulatory requirements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Among the risks and uncertainties, in addition to those set forth in our filings with the Securities and Exchange Commission, that could cause actual results and future events to differ from those set forth or contemplated in the forward-looking statements include the following: dependence upon our relationship with the Erie Insurance Exchange ("Exchange") and the management fee under the agreement with the subscribers at the Exchange; dependence upon our relationship with the Exchange and the growth of the Exchange, including: general business and economic conditions; factors impacting the timing of premium rates charged for policies; factors affecting insurance industry competition, including technological innovations; dependence upon the independent agency system; and ability to maintain our brand, including our reputation for customer service; dependence upon our relationship with the Exchange and the financial condition of the Exchange, including: the Exchange's ability to maintain acceptable financial strength ratings; factors affecting the quality and liquidity of the Exchange's investment portfolio; changes in government regulation of the insurance industry; litigation and regulatory actions; emergence of significant unexpected events, including pandemics, economic or social inflation, and changes in tariff policies; emerging claims and coverage issues in the industry; and severe weather conditions or other catastrophic losses, including terrorism; costs of providing policy issuance and renewal services to the subscribers at the Exchange under the subscriber's agreement; ability to attract and retain talented management and employees; ability to ensure system availability and effectively manage technology initiatives; difficulties with technology, data or network security breaches, including cyber attacks; ability to maintain uninterrupted business operations; compliance with complex and evolving laws and regulations and outcome of pending and potential litigation; factors affecting the quality and liquidity of our investment portfolio; and ability to meet liquidity needs and access capital. A forward-looking statement speaks only as of the date on which it is made and reflects our analysis only as of that date. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changes in assumptions or otherwise. Erie Indemnity Company Consolidated Statements of Operations (dollars in thousands, except per share data) Three months ended September 30 , Nine months ended September 30 , 2025 2024 2025 2024 (Unaudited) (Unaudited) Operating revenue Management fee revenue - policy issuance and renewal services $ 825,275 $ 769,162 $ 2,404,177 $ 2,195,734 Management fee revenue - administrative services 18,831 17,154 54,772 51,139 Administrative services reimbursement revenue 215,694 206,754 638,611 604,349 Service agreement revenue 6,939 6,816 18,675 19,803 Total operating revenue 1,066,739 999,886 3,116,235 2,871,025 Operating expenses Cost of operations - policy issuance and renewal services 642,124 613,007 1,918,154 1,757,531 Cost of operations - administrative services 215,694 206,754 638,611 604,349 Total operating expenses 857,818 819,761 2,556,765 2,361,880 Operating income 208,921 180,125 559,470 509,145 Investment income Net investment income 21,033 17,322 61,011 49,235 Net realized and unrealized investment gains 1,331 2,925 2,312 2,983 Net impairment losses recognized in earnings (810) (698) (2,633) (3,763) Total investment income 21,554 19,549 60,690 48,455 Other income 2,286 1,168 8,094 7,871 Income before income taxes 232,761 200,842 628,254 565,471 Income tax expense 49,908 41,012 132,299 117,186 Net income $ 182,853 $ 159,830 $ 495,955 $ 448,285 Net income per share Class A common stock – basic $ 3.93 $ 3.43 $ 10.65 $ 9.63 Class A common stock – diluted $ 3.50 $ 3.06 $ 9.48 $ 8.57 Class B common stock – basic and diluted $ 589 $ 515 $ 1,597 $ 1,444 Weighted average shares outstanding – Basic Class A common stock 46,189,068 46,189,059 46,189,012 46,189,038 Class B common stock 2,542 2,542 2,542 2,542 Weighted average shares outstanding – Diluted Class A common stock 52,305,599 52,306,514 52,304,797 52,301,001 Class B common stock 2,542 2,542 2,542 2,542 Dividends declared per share Class A common stock $ 1.365 $ 1.275 $ 4.095 $ 3.825 Class B common stock $ 204.75 $ 191.25 $ 614.25 $ 573.75 Erie Indemnity Company Consolidated Statements of Financial Position (in thousands) September 30 ,2025 December 31 , 2024 (Unaudited) Assets Current assets: Cash and cash equivalents (includes restricted cash of $28,000 and $23,559 , respectively) $ 568,551 $ 298,397 Available-for-sale securities 59,833 44,604 Available-for-sale securities lent 4,318 0 Receivables from Erie Insurance Exchange and affiliates, net 780,473 707,060 Prepaid expenses and other current assets, net 73,779 83,902 Accrued investment income 10,937 11,069 Total current assets 1,497,891 1,145,032 Available-for-sale securities, net 970,160 991,726 Equity securities 54,378 85,891 Available-for-sale and equity securities lent 51,836 7,285 Fixed assets, net 557,607 513,494 Agent loans, net 94,740 80,597 Defined benefit pension plan 51,819 21,311 Other assets, net 45,897 43,278 Total assets $ 3,324,328 $ 2,888,614 Liabilities and shareholders' equity Current liabilities: Commissions payable $ 425,310 $ 408,309 Agent incentive compensation 99,717 75,458 Accounts payable and accrued liabilities 199,995 190,028 Dividends payable 63,569 63,569 Contract liability 47,949 42,761 Deferred executive compensation 6,700 14,874 Securities lending payable 54,325 7,513 Total current liabilities 897,565 802,512 Defined benefit pension plan 31,065 28,070 Contract liability 23,361 21,170 Deferred executive compensation 20,798 19,721 Deferred income taxes, net 19,776 6,418 Other long-term liabilities 22,885 23,465 Total liabilities 1,015,450 901,356 Shareholders' equity 2,308,878 1,987,258 Total liabilities and shareholders' equity $ 3,324,328 $ 2,888,614 View original content to download multimedia: https://www.prnewswire.com/news-releases/erie-indemnity-reports-third-quarter-2025-results-302599835.html SOURCE Erie Indemnity Company

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