EX-99.2 3 ex-99206302019.htm EXHIBIT 99.2 Exhibit


Exhibit 99.2

Erie Indemnity Company
Statements of Operations
(dollars in thousands, except per share data)
 
 
Three months ended June 30,
 
Six months ended June 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(Unaudited)
 
(Unaudited)
Operating revenue
 
 
 
 
 
 
 
 
Management fee revenue - policy issuance and renewal services, net
 
$
480,513

 
$
454,572

 
$
911,496

 
$
860,550

Management fee revenue - administrative services, net
 
14,195

 
13,299

 
28,146

 
26,373

Administrative services reimbursement revenue
 
146,095

 
146,507

 
288,575

 
292,470

Service agreement revenue
 
6,907

 
7,080

 
13,599

 
14,225

Total operating revenue
 
647,710

 
621,458

 
1,241,816

 
1,193,618

 
 
 
 
 
 
 
 
 
Operating expenses
 
 
 
 
 
 
 
 
Cost of operations - policy issuance and renewal services
 
405,005

 
379,628

 
770,509

 
728,258

Cost of operations - administrative services
 
146,095

 
146,507

 
288,575

 
292,470

Total operating expenses
 
551,100

 
526,135

 
1,059,084

 
1,020,728

Operating income
 
96,610

 
95,323

 
182,732

 
172,890

 
 
 
 
 
 
 
 
 
Investment income
 
 
 
 
 
 
 
 
Net investment income
 
8,030

 
7,104

 
16,547

 
13,924

Net realized investment gains (losses)
 
1,302

 
(32
)
 
3,805

 
(497
)
Net impairment losses recognized in earnings
 
(84
)
 
(646
)
 
(162
)
 
(646
)
Equity in earnings (losses) of limited partnerships
 
404

 
(219
)
 
(743
)
 
(411
)
Total investment income
 
9,652

 
6,207

 
19,447

 
12,370

 
 
 
 
 
 
 
 
 
Interest expense, net
 
272

 
602

 
721

 
1,155

Other income
 
48

 
58

 
95

 
102

Income before income taxes
 
106,038

 
100,986

 
201,553

 
184,207

Income tax expense
 
18,284

 
21,280

 
38,488

 
38,743

Net income
 
$
87,754

 
$
79,706

 
$
163,065

 
$
145,464

 
 
 
 
 
 
 
 
 
Net income per share
 
 
 
 
 
 
 
 
Class A common stock – basic
 
$
1.88

 
$
1.71

 
$
3.50

 
$
3.12

Class A common stock – diluted
 
$
1.68

 
$
1.52

 
$
3.12

 
$
2.78

Class B common stock – basic
 
$
283

 
$
257

 
$
525

 
$
469

Class B common stock – diluted
 
$
283

 
$
257

 
$
525

 
$
468

 
 
 
 
 
 
 
 
 
Weighted average shares outstanding – Basic
 
 
 
 
 
 
 
 
Class A common stock
 
46,188,994

 
46,188,705

 
46,188,668

 
46,188,309

Class B common stock
 
2,542

 
2,542

 
2,542

 
2,542

 
 
 
 
 
 
 
 
 
Weighted average shares outstanding – Diluted
 
 
 
 
 
 
 
 
Class A common stock
 
52,314,700

 
52,312,849

 
52,313,371

 
52,311,741

Class B common stock
 
2,542

 
2,542

 
2,542

 
2,542

 
 
 
 
 
 
 
 
 
Dividends declared per share
 
 
 
 
 
 
 
 
Class A common stock
 
$
0.90

 
$
0.84

 
$
1.80

 
$
1.68

Class B common stock
 
$
135.00

 
$
126.00

 
$
270.00

 
$
252.00


1



Erie Indemnity Company
Statements of Financial Position
(in thousands)
 
 
June 30, 2019
 
December 31, 2018
 
 
(Unaudited)
 
 
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
338,262

 
$
266,417

Available-for-sale securities
 
61,210

 
402,339

Receivables from Erie Insurance Exchange and affiliates
 
483,319

 
449,873

Prepaid expenses and other current assets
 
42,300

 
36,892

Federal income taxes recoverable
 
7,791

 
8,162

Accrued investment income
 
4,365

 
5,263

Total current assets
 
937,247

 
1,168,946

 
 
 
 
 
Available-for-sale securities
 
627,898

 
346,184

Equity securities
 
12,445

 
11,853

Limited partnership investments
 
30,344

 
34,821

Fixed assets, net
 
173,055

 
130,832

Deferred income taxes, net
 
19,090

 
24,101

Other assets
 
89,568

 
61,590

Total assets
 
$
1,889,647

 
$
1,778,327

 
 
 
 
 
Liabilities and shareholders' equity
 
 
 
 
Current liabilities:
 
 
 
 
Commissions payable
 
$
267,403

 
$
241,573

Agent bonuses
 
51,357

 
103,462

Accounts payable and accrued liabilities
 
124,794

 
111,291

Dividends payable
 
41,913

 
41,910

Contract liability
 
35,374

 
33,854

Deferred executive compensation
 
12,605

 
13,107

Current portion of long-term borrowings
 
1,914

 
1,870

Total current liabilities
 
535,360

 
547,067

 
 
 
 
 
Defined benefit pension plans
 
129,674

 
116,866

Long-term borrowings
 
96,860

 
97,860

Contract liability
 
18,339

 
17,873

Deferred executive compensation
 
13,199

 
13,075

Other long-term liabilities
 
32,761

 
11,914

Total liabilities
 
826,193

 
804,655

 
 
 
 
 
Shareholders’ equity
 
1,063,454

 
973,672

Total liabilities and shareholders’ equity
 
$
1,889,647

 
$
1,778,327



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