Date of Report (Date of Earliest Event Reported): |
(Exact name of registrant as specified in its charter) |
(State or other jurisdiction | (Commission | (IRS Employer | ||||||||||||||||||
of incorporation) | File Number) | Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: |
Not applicable | ||||||||
Former name or former address, if changed since last report |
stated value $0.0292 per share | |||||||||||||||||
(Title of each class) | (Trading Symbol) | (Name of each exchange on which registered) |
Exhibit No. | Description | |||||||
14.1 | ||||||||
99.1 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Erie Indemnity Company | ||||||||||||||
October 26, 2023 | By: | /s/ Julie M. Pelkowski | ||||||||||||
Name: Julie M. Pelkowski | ||||||||||||||
Title: Executive Vice President & CFO |
3Q and Nine Months 2023 | |||||||||||||||||
(in thousands) | 3Q'23 | 3Q'22 | 2023 | 2022 | |||||||||||||
Operating income | $ | 148,471 | $ | 106,472 | $ | 393,172 | $ | 294,784 | |||||||||
Investment income (loss) | 12,302 | (571) | 19,197 | 344 | |||||||||||||
Interest expense and other (income), net | (3,001) | (447) | (9,643) | 637 | |||||||||||||
Income before income taxes | 163,774 | 106,348 | 422,012 | 294,491 | |||||||||||||
Income tax expense | 32,734 | 22,035 | 86,879 | 61,412 | |||||||||||||
Net income | $ | 131,040 | $ | 84,313 | $ | 335,133 | $ | 233,079 | |||||||||
3Q 2023 Highlights |
Nine Months 2023 Highlights |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||||
Management fee revenue - policy issuance and renewal services | $ | 649,049 | $ | 551,666 | $ | 1,840,478 | $ | 1,584,213 | ||||||||||||||||||
Management fee revenue - administrative services | 16,151 | 14,657 | 46,976 | 43,446 | ||||||||||||||||||||||
Administrative services reimbursement revenue | 187,118 | 168,653 | 544,411 | 492,655 | ||||||||||||||||||||||
Service agreement revenue | 6,620 | 6,260 | 19,408 | 19,175 | ||||||||||||||||||||||
Total operating revenue | 858,938 | 741,236 | 2,451,273 | 2,139,489 | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Cost of operations - policy issuance and renewal services | 523,349 | 466,111 | 1,513,690 | 1,352,050 | ||||||||||||||||||||||
Cost of operations - administrative services | 187,118 | 168,653 | 544,411 | 492,655 | ||||||||||||||||||||||
Total operating expenses | 710,467 | 634,764 | 2,058,101 | 1,844,705 | ||||||||||||||||||||||
Operating income | 148,471 | 106,472 | 393,172 | 294,784 | ||||||||||||||||||||||
Investment income | ||||||||||||||||||||||||||
Net investment income | 14,642 | 5,834 | 30,360 | 24,606 | ||||||||||||||||||||||
Net realized and unrealized investment losses | (2,227) | (6,230) | (9,246) | (23,833) | ||||||||||||||||||||||
Net impairment losses recognized in earnings | (113) | (175) | (1,917) | (429) | ||||||||||||||||||||||
Total investment income (loss) | 12,302 | (571) | 19,197 | 344 | ||||||||||||||||||||||
Interest expense | — | 115 | — | 2,009 | ||||||||||||||||||||||
Other income | 3,001 | 562 | 9,643 | 1,372 | ||||||||||||||||||||||
Income before income taxes | 163,774 | 106,348 | 422,012 | 294,491 | ||||||||||||||||||||||
Income tax expense | 32,734 | 22,035 | 86,879 | 61,412 | ||||||||||||||||||||||
Net income | $ | 131,040 | $ | 84,313 | $ | 335,133 | $ | 233,079 | ||||||||||||||||||
Net income per share | ||||||||||||||||||||||||||
Class A common stock – basic | $ | 2.81 | $ | 1.81 | $ | 7.20 | $ | 5.00 | ||||||||||||||||||
Class A common stock – diluted | $ | 2.51 | $ | 1.61 | $ | 6.41 | $ | 4.46 | ||||||||||||||||||
Class B common stock – basic and diluted | $ | 422 | $ | 272 | $ | 1,079 | $ | 751 | ||||||||||||||||||
Weighted average shares outstanding – Basic | ||||||||||||||||||||||||||
Class A common stock | 46,189,037 | 46,189,025 | 46,188,962 | 46,188,878 | ||||||||||||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||||||||||||
Weighted average shares outstanding – Diluted | ||||||||||||||||||||||||||
Class A common stock | 52,299,369 | 52,296,411 | 52,298,655 | 52,297,685 | ||||||||||||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||||||||||||
Dividends declared per share | ||||||||||||||||||||||||||
Class A common stock | $ | 1.19 | $ | 1.11 | $ | 3.57 | $ | 3.33 | ||||||||||||||||||
Class B common stock | $ | 178.50 | $ | 166.50 | $ | 535.50 | $ | 499.50 |
September 30, 2023 | December 31, 2022 | |||||||||||||
(Unaudited) | ||||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 102,873 | $ | 142,090 | ||||||||||
Available-for-sale securities | 69,822 | 24,267 | ||||||||||||
Receivables from Erie Insurance Exchange and affiliates, net | 620,683 | 524,937 | ||||||||||||
Prepaid expenses and other current assets | 71,480 | 79,201 | ||||||||||||
Accrued investment income | 8,968 | 8,301 | ||||||||||||
Total current assets | 873,826 | 778,796 | ||||||||||||
Available-for-sale securities, net | 845,415 | 870,394 | ||||||||||||
Equity securities | 79,516 | 72,560 | ||||||||||||
Fixed assets, net | 434,975 | 413,874 | ||||||||||||
Agent loans, net | 59,544 | 60,537 | ||||||||||||
Defined benefit pension plan | 65,163 | 0 | ||||||||||||
Other assets | 36,110 | 43,295 | ||||||||||||
Total assets | $ | 2,394,549 | $ | 2,239,456 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Commissions payable | $ | 357,614 | $ | 300,028 | ||||||||||
Agent bonuses | 50,252 | 95,166 | ||||||||||||
Accounts payable and accrued liabilities | 165,797 | 165,915 | ||||||||||||
Dividends payable | 55,419 | 55,419 | ||||||||||||
Contract liability | 40,831 | 36,547 | ||||||||||||
Deferred executive compensation | 11,000 | 12,036 | ||||||||||||
Total current liabilities | 680,913 | 665,111 | ||||||||||||
Defined benefit pension plans | 27,744 | 51,224 | ||||||||||||
Contract liability | 19,653 | 17,895 | ||||||||||||
Deferred executive compensation | 18,547 | 13,724 | ||||||||||||
Deferred income taxes, net | 11,045 | 14,075 | ||||||||||||
Other long-term liabilities | 24,758 | 29,019 | ||||||||||||
Total liabilities | 782,660 | 791,048 | ||||||||||||
Shareholders’ equity | 1,611,889 | 1,448,408 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 2,394,549 | $ | 2,239,456 |
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