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Erie Indemnity Reports Second Quarter 2025 Results

1. ERIE reported Q2 2025 net income of $174.7 million, up 6.8%. 2. Management fee revenue increased by $63 million, or 8.3% year-over-year. 3. Investment income rose significantly, totaling $19.6 million in Q2 2025. 4. Operating income before taxes increased by 4.7% compared to last year. 5. Dividends per share increased, showing solid financial performance.

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$357.3208/08 10:53 PM EDTLatest Updated
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Why Bullish?

With increased income and management fees, ERIE demonstrates strong financial growth, potentially boosting investor confidence.

How important is it?

The financial results indicate strong operational efficiency and growth, likely influencing investor sentiment positively.

Why Short Term?

Positive quarterly results often influence stock price trends shortly after the announcement.

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Net Income per Diluted Share was $3.34 for the Quarter and $5.99 for the Six Months of 2025 , /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and six months ending June 30, 2025.  Net income was $174.7 million, or $3.34 per diluted share, in the second quarter of 2025, compared to $163.9 million, or $3.13 per diluted share, in the second quarter of 2024.  Net income was $313.1 million, or $5.99 per diluted share, in the first six months of 2025, compared to $288.5 million, or $5.52 per diluted share, in the first six months of 2024. 2Q and First Half 2025 (in thousands) 2Q'25 2Q'24 1H'25 1H'24 Operating income $      199,173 $      190,208 $      350,549 $      329,020 Investment income 19,600 13,827 39,136 28,906 Other income 1,974 3,292 5,808 6,703 Income before income taxes 220,747 207,327 395,493 364,629 Income tax expense 46,062 43,424 82,391 76,174 Net income $      174,685 $      163,903 $      313,102 $      288,455 2Q 2025 Highlights Operating income before taxes increased $9.0 million, or 4.7 percent, in the second quarter of 2025 compared to the second quarter of 2024. Management fee revenue - policy issuance and renewal services increased $63.0 million, or 8.3 percent, in the second quarter of 2025 compared to the second quarter of 2024. Management fee revenue - administrative services increased $1.2 million, or 7.3 percent, in the second quarter of 2025 compared to the second quarter of 2024. Cost of operations - policy issuance and renewal services Commissions increased $43.5 million in the second quarter of 2025, compared to the second 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 increased $10.6 million in the second quarter of 2025 compared to the second quarter of 2024. Information technology costs increased $7.1 million primarily due to an increase in personnel costs and a decrease in capitalized professional fees related to technology initiatives. Sales and advertising expense increased $2.8 million primarily due to increased agent-related and advertising costs. Personnel costs were impacted by increased healthcare costs compared to 2024. Income from investments before taxes totaled $19.6 million in the second quarter of 2025 compared to $13.8 million in the second quarter of 2024.  Net investment income was $20.0 million in the second quarter of 2025 compared to $16.0 million in the second quarter of 2024.  Net realized and unrealized gains on investments were $0.5 million in the second quarter of 2025 compared to losses of $1.8 million in the second quarter of 2024.               First Half 2025 Highlights               Operating income before taxes increased $21.5 million, or 6.5 percent, in the first six months of 2025 compared to the first six months of 2024. Management fee revenue - policy issuance and renewal services increased $152.3 million, or 10.7 percent, in the first six months of 2025 compared to the first six months of 2024. Management fee revenue - administrative services increased $2.0 million, or 5.8 percent, in the first six months of 2025 compared to the first six months of 2024. Cost of operations - policy issuance and renewal services Commissions increased $104.6 million in the first six months of 2025 compared to the first six 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 $26.9 million for the first six months of compared to the first six months of 2024. Underwriting and policy processing expense increased $4.3 million primarily due to increased personnel costs and printing and postage costs. Information technology costs increased $18.4 million primarily due to an increase in personnel costs and hardware and software costs and a decrease in capitalized professional fees related to technology initiatives. Customer service costs increased $2.7 million primarily due to increased personnel costs. Sales and advertising expense increased $3.0 million primarily due to increased advertising and personnel costs. Personnel costs were impacted by increased healthcare costs compared to 2024. Income from investments before taxes totaled $39.1 million in the first six months of 2025 compared to $28.9 million in the first six months of 2024.  Net investment income was $40.0 million in the first six months of 2025 compared to $31.9 million in the first six months of 2024.  Net investment income included $1.2 million of limited partnership earnings in the first six months of 2025 compared to $0.3 million in the first six months of 2024.  Net realized and unrealized gains were $1.0 million in the first six months of 2025 compared to $0.1 million in the first six months of 2024.  Net impairment losses recognized in earnings were $1.8 million in the first six months of 2025 compared to $3.1 million in the first six months of 2024. Webcast Information Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on August 8, 2025.  Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com. Erie Insurance Group According to A.M. Best Company, 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.  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+ (Superior) by A.M. 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 June 30, Six months ended June 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) Operating revenue Management fee revenue - policy issuance and renewal services $        823,853 $        760,886 $       1,578,902 $       1,426,572 Management fee revenue - administrative services 18,296 17,051 35,941 33,985 Administrative services reimbursement revenue 212,644 206,028 422,917 397,595 Service agreement revenue 5,304 6,473 11,736 12,987   Total operating revenue 1,060,097 990,438 2,049,496 1,871,139 Operating expenses Cost of operations - policy issuance and renewal services 648,280 594,202 1,276,030 1,144,524 Cost of operations - administrative services 212,644 206,028 422,917 397,595   Total operating expenses 860,924 800,230 1,698,947 1,542,119 Operating income 199,173 190,208 350,549 329,020 Investment income Net investment income 20,030 16,010 39,978 31,913 Net realized and unrealized investment gains (losses) 479 (1,795) 981 58 Net impairment losses recognized in earnings (909) (388) (1,823) (3,065) Total investment income 19,600 13,827 39,136 28,906 Other income 1,974 3,292 5,808 6,703 Income before income taxes 220,747 207,327 395,493 364,629 Income tax expense 46,062 43,424 82,391 76,174 Net income $        174,685 $        163,903 $          313,102 $          288,455 Net income per share Class A common stock – basic $              3.75 $              3.52 $                6.72 $                6.19 Class A common stock – diluted $              3.34 $              3.13 $                5.99 $                5.52 Class B common stock – basic and diluted $               563 $               528 $              1,008 $                 929 Weighted average shares outstanding – Basic Class A common stock 46,189,063 46,189,042 46,188,984 46,189,028 Class B common stock 2,542 2,542 2,542 2,542 Weighted average shares outstanding – Diluted Class A common stock 52,304,407 52,305,299 52,304,397 52,303,551 Class B common stock 2,542 2,542 2,542 2,542 Dividends declared per share Class A common stock $            1.365 $            1.275 $                2.73 $                2.55 Class B common stock $          204.75 $          191.25 $            409.50 $            382.50 Erie Indemnity Company Consolidated Statements of Financial Position (in thousands) June 30,2025 December 31,2024 (Unaudited) Assets Current assets: Cash and cash equivalents (includes restricted cash of $25,923 and $23,559, respectively) $        358,027 $        298,397 Available-for-sale securities 59,162 44,604 Receivables from Erie Insurance Exchange and affiliates, net 769,148 707,060 Prepaid expenses and other current assets, net 71,133 83,902 Accrued investment income 11,998 11,069 Total current assets 1,269,468 1,145,032 Available-for-sale securities, net 1,048,584 991,726 Equity securities 68,095 85,891 Available-for-sale and equity securities lent 35,535 7,285 Fixed assets, net 519,834 513,494 Agent loans, net 85,027 80,597 Defined benefit pension plan 54,650 21,311 Other assets, net 47,021 43,278 Total assets $     3,128,214 $     2,888,614 Liabilities and shareholders' equity Current liabilities: Commissions payable $        446,424 $        408,309 Agent incentive compensation 70,101 75,458 Accounts payable and accrued liabilities 193,032 190,028 Dividends payable 63,569 63,569 Contract liability 46,213 42,761 Deferred executive compensation 7,181 14,874 Securities lending payable 35,159 7,513 Total current liabilities 861,679 802,512 Defined benefit pension plan 26,820 28,070 Contract liability 22,594 21,170 Deferred executive compensation 18,471 19,721 Deferred income taxes, net 476 6,418 Other long-term liabilities 13,629 23,465 Total liabilities 943,669 901,356 Shareholders' equity 2,184,545 1,987,258 Total liabilities and shareholders' equity $     3,128,214 $     2,888,614 SOURCE Erie Indemnity Company WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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