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Erie Indemnity Reports 4Q And Total Year 2013 Results

PR Newswire Association LLC

ERIE, Pa., Feb. 27, 2014 /PRNewswire/ --

4Q 2013 Highlights - Indemnity Shareholder Interest

  • Net income attributable to Indemnity per share-diluted was $0.67 per share in the fourth quarter of 2013, compared to net income per share-diluted of $0.56 per share in the fourth quarter of 2012.
  • Operating income attributable to Indemnity per share-diluted (excluding net realized gains or losses, impairments on investments and related taxes) was $0.67 per share in the fourth quarter of 2013, compared to operating income per share-diluted of $0.54 per share in the fourth quarter of 2012.
  • Indemnity's management operations pretax income totaled $41 million for the fourth quarter of 2013, compared to $34 million for the fourth quarter of 2012.

    Free Report: How to Earn $2k a Week The gross margin from management operations was 13.2 percent in the fourth quarter of 2013, compared to 12.2 percent in the fourth quarter of 2012.
  • Indemnity's investment operations pretax income totaled $13 million for the fourth quarter of 2013, compared to $10 million for the fourth quarter of 2012.

Total Year 2013 Highlights - Indemnity Shareholder Interest

  • Net income attributable to Indemnity per share-diluted was $3.08 per share for the year ended December 31, 2013, compared to net income per share-diluted of $2.99 per share for the year ended December 31, 2012.
  • Operating income attributable to Indemnity per share-diluted (excluding net realized gains or losses, impairments on investments and related taxes) was $3.07 per share for the year ended December 31, 2013, compared to operating income per share-diluted of $2.92 per share for the year ended December 31, 2012.
  • Indemnity's management operations pretax income totaled $209 million for the year ended December 31, 2013, compared to $205 million for the year ended December 31, 2012. The gross margin from management operations was 16.1 percent for the year ended December 31, 2013, compared to 17.3 percent for the year ended December 31, 2012.
  • Indemnity's investment operations pretax income totaled $38 million for the year ended December 31, 2013, compared to $36 million for the year ended December 31, 2012.

Erie Indemnity Company (NASDAQ: ERIE) today announced fourth quarter 2013 earnings of $36 million, compared to earnings of $30 million in the fourth quarter of 2012.

Free Report: How to Earn $2k a Week Operating income was $36 million in the fourth quarter of 2013, compared to $29 million in the fourth quarter of 2012.

Erie Insurance

For the year ended December31, 2013, Erie Indemnity Company's earnings totaled $163 million, compared to earnings of $160 million for the year ended December31, 2012. Operating income was $162 million for the year ended December31, 2013, compared to operating income of $157 million or the year ended December31, 2012.

4Q 2013 Results of the Erie Insurance Group's Operations(1)

Indemnity

shareholder

interest

Noncontrolling

interest

(Exchange)

Free Report: How to Earn $2k a Week

Elimination of

related party

transactions

Erie
Insurance
Group

(dollars in millions)

4Q'13

4Q'12

4Q'13

4Q'12

4Q'13

4Q'12

4Q'13

4Q'12

Management operations

$

41

 

$

34

 

$

 

$

 

$

(33)

 

$

(26)

 

$

8

 

$

8

 

Property and casualty insurance operations(2)

 

 

22

 

(61)

 

37

 

30

 

59

 

(31)

 

Life insurance operations(2)

 

 

14

 

12

 

0

 

(1)

 

14

 

11

 

Investment operations

13

 

10

 

380

 

170

 

(4)

 

(3)

 

389

 

177

 

Income from operations before income

taxes and noncontrolling interest

54

 

44

 

416

 

121

 

 

 

470

 

165

 

Provision for income taxes

18

 

14

 

138

 

32

 

 

 

156

 

46

 

Net income

$

36

 

$

30

 

$

278

 

$

89

 

$

 

$

 

$

314

 

$

119

 
                 
   

(1)

The consolidated financial statements of Erie Indemnity Company ("Indemnity") reflect the consolidated results of Indemnity and the Erie Insurance Exchange ("Exchange"), which we refer to collectively as the "Erie Insurance Group."  Indemnity, or Indemnity shareholder interest, refers to the interest in Erie Indemnity Company owned by the Class A and Class B shareholders.  The Exchange refers to the noncontrolling interest held for the interest of the subscribers (policyholders), and includes its interest in its property and casualty subsidiaries and Erie Family Life Insurance Company ("EFL").

   

(2)

All property and casualty and life insurance results accrue to the interest of the subscribers (policyholders) of the Exchange, or noncontrolling interest.

 

The following tables and discussion show the operating results attributable to the Indemnity shareholder interest in the Erie Indemnity Company owned by the Class A and Class B shareholders for the fourth quarter of 2013.

 

   

Management Operations

       
     

Indemnity

shareholder

interest

   

(dollars in millions)

4Q'13

4Q'12

   

Management fee revenue, net

$

301

 

$

275

 
   

Service agreement revenue

8

 

8

 
   

Total revenue from management operations

$

309

 

$

283

 
   

Commissions

$

172

 

$

158

 
   

Non-commission expense

96

 

91

 
   

Total cost of management operations

$

268

 

$

249

 
   

Income from management operations before taxes

$

41

 

$

34

 
   

Gross margin

13.2

%

12.2

%

  • The management fee rate was 25 percent for both the fourth quarters of 2013 and 2012.  Direct written premium of the property and casualty insurance operations, upon which the management fee is calculated, increased 9.5 percent in the fourth quarter of 2013, due to a 4.8 percent increase in policies in force and a 4.5 percent increase in the year-over-year average premium per policy for all lines of business at December 31, 2013.
  • Commissions increased $14 million, or 8.8 percent, in the fourth quarter of 2013, compared to the fourth quarter of 2012, primarily due to the 9.5 percent increase in direct written premium of the property and casualty insurance operations.  All other commissions remained relatively flat compared to the fourth quarter of 2012.
  • Non-commission expense increased $5 million, or 5.4 percent, in the fourth quarter of 2013, compared to the fourth quarter of 2012.  Personnel costs increased $4 million, driven by a $1 million increase in both pension and medical expenses and by a $2 million increase in the estimate for incentive plan compensation related to growth and underwriting performance.  All other operating costs increased $1 million.

 

         

Investment Operations

             
           

Indemnity

shareholder

interest

         

(dollars in millions)

4Q'13

4Q'12

         

Net investment income

$

4

 

$

4

 
         

Net realized gains on investments

0

 

1

 
         

Net impairment losses recognized in earnings

0

 

0

 
         

Equity in earnings of limited partnerships

9

 

5

 
         

Income from investment operations before taxes

$

13

 

$

10

 
  • Income from investment operations before taxes was $13 million in the fourth quarter of 2013, compared to $10 million in the fourth quarter of 2012.  Equity in earnings of limited partnerships increased $4 million, offset by a decrease of $1 million in net realized gains on investments.

 

 

Total Year 2013 Results of the Erie Insurance Group's Operations(1)

         
 

Indemnity

shareholder

interest

Noncontrolling

interest

(Exchange)

Elimination of

related party

transactions

Erie

Insurance Group

(dollars in millions)

2013

2012

2013

2012

2013

2012

2013

2012

Management operations

$

209

 

$

205

 

$

 

$

 

$

(178)

 

$

(174)

 

$

31

 

$

31

 

Property and casualty insurance operations(2)

 

 

68

 

(246)

 

192

 

187

 

260

 

(59)

 

Life insurance operations(2)

 

 

48

 

46

 

(2)

 

(2)

 

46

 

44

 

Investment operations

38

 

36

 

1,204

 

858

 

(12)

 

(11)

 

1,230

 

883

 

Income from operations before income

taxes and noncontrolling interest

247

 

241

 

1,320

 

658

 

 

 

1,567

 

899

 

Provision for income taxes

84

 

81

 

435

 

199

 

 

 

519

 

280

 

Net income

$

163

 

$

160

 

$

885

 

$

459

 

$

 

$

 

$

1,048

 

$

619

 
                 
   

(1)

The consolidated financial statements of Erie Indemnity Company ("Indemnity") reflect the consolidated results of Indemnity and the Erie Insurance Exchange ("Exchange"), which we refer to collectively as the "Erie Insurance Group."  Indemnity, or Indemnity shareholder interest, refers to the interest in Erie Indemnity Company owned by the Class A and Class B shareholders.  The Exchange refers to the noncontrolling interest held for the interest of the subscribers (policyholders), and includes its interest in its property and casualty subsidiaries and Erie Family Life Insurance Company ("EFL").

   

(2)

All property and casualty and life insurance results accrue to the interest of the subscribers (policyholders) of the Exchange, or noncontrolling interest.

 

                       

Share Repurchase Program

       

In the fourth quarter of 2013, Indemnity repurchased 142,132 shares of its outstanding Class A nonvoting common stock at a total cost of $10.2 million, based upon trade date, in conjunction with its current stock repurchase program.  For the year through February 14, 2014, 58,838 shares were repurchased under this program at a total cost of $4.1 million.  In October 2011, Indemnity's Board of Directors approved a continuation of the current stock repurchase program for a total of $150 million, with no time limitation.  This repurchase authority included, and was not in addition to, any unspent amounts remaining under the prior authorization.  As of February 14, 2014, Indemnity had approximately $33 million in repurchase authority remaining under the program.

According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 14th largest homeowners insurer and 12th largest automobile insurer in the United States based on direct premiums written and the 18th largest property/casualty insurer in the United States based on total lines net premium written. The Group, rated A+ (Superior) by A.M. Best Company, has nearly 4.8 million policies in force and operates in 11 states and the District of Columbia. Erie Insurance Group is a FORTUNE 500 and Barron's 500 company. Erie Insurance is proud to have received the J.D. Power and Associates' award for "Highest in Customer Satisfaction with the Auto Insurance Purchase Experience." Erie Insurance is also recognized on the list of Ward's 50 Group of top performing insurance companies, which analyzes the financial performance of 3,000 property and casualty companies and recognizes the top performers for achieving outstanding results in safety, consistency and financial performance over a five-year period (2008-2012).

News releases and more information about Erie Insurance Group are available 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, agency relationships, 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:

Risk factors related to the Indemnity shareholder interest:

  • dependence on Indemnity's relationship with the Exchange and the management fee under the agreement with the subscribers at the Exchange;
  • costs of providing services to the Exchange under the subscriber's agreement;
  • ability to attract and retain talented management and employees;
  • ability to maintain uninterrupted business operations;
  • factors affecting the quality and liquidity of Indemnity's investment portfolio;
  • credit risk from the Exchange;
  • Indemnity's ability to meet liquidity needs and access capital; and
  • outcome of pending and potential litigation against Indemnity.

Risk factors related to the non-controlling interest owned by the Exchange, which includes the Property and Casualty Group and EFL:

  • general business and economic conditions;
  • dependence upon the independent agency system;
  • ability to maintain our reputation for customer service;
  • factors affecting insurance industry competition;
  • changes in government regulation of the insurance industry;
  • premium rates and reserves must be established from forecasts of ultimate costs;
  • emerging claims, coverage issues in the industry, and changes in reserve estimates related to the property and casualty business;
  • changes in reserve estimates related to the life business;
  • severe weather conditions or other catastrophic losses, including terrorism;
  • the Exchange's ability to acquire reinsurance coverage and collectability from reinsurers;
  • factors affecting the quality and liquidity of the Exchange's investment portfolio;
  • the Exchange's ability to meet liquidity needs and access capital;
  • the Exchange's ability to maintain acceptable financial strength rating;
  • outcome of pending and potential litigation against the Exchange; and
  • dependence upon the service provided by Indemnity.

A forward-looking statement speaks only as of the date on which it is made and reflects Indemnity's analysis only as of that date. Indemnity undertakes 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 millions, except per share data)

 
   

Three months ended

December 31,

 

Twelve months ended

December 31,

   

2013

 

2012

 

2013

 

2012

Revenues

 

(Unaudited)

   

Premiums earned

 

$

1,267

   

$

1,160

   

$

4,898

   

$

4,493

 

Net investment income

 

106

   

112

   

422

   

438

 

Net realized investment gains

 

270

   

60

   

771

   

418

 

Net impairment losses recognized in earnings

 

(3)

   

0

   

(13)

   

0

 

Equity in earnings of limited partnerships

 

49

   

32

   

161

   

131

 

Other income

 

8

   

8

   

32

   

32

 

  Total revenues

 

1,697

   

1,372

   

6,271

   

5,512

 

Benefits and expenses

               

Insurance losses and loss expenses

 

896

   

909

   

3,467

   

3,480

 

Policy acquisition and underwriting expenses

 

331

   

298

   

1,237

   

1,133

 

  Total benefits and expenses

 

1,227

   

1,207

   

4,704

   

4,613

 
                 

Income from operations before income taxesand noncontrolling interest

 

470

   

165

   

1,567

   

899

 

Provision for income taxes

 

156

   

46

   

519

   

280

 

Net income

 

$

314

   

$

119

   

$

1,048

   

$

619

 
                 

Less: Net income attributable to noncontrollinginterest in consolidated

entity – Exchange

 

278

   

89

   

885

   

459

 
                 

Net income attributable to Indemnity

 

$

36

   

$

30

   

$

163

   

$

160

 
                 
                 

Earnings Per Share

               

Net income attributable to Indemnity per share

               

Class A common stock – basic

 

$

0.75

   

$

0.63

   

$

3.46

   

$

3.38

 

Class A common stock – diluted

 

$

0.67

   

$

0.56

   

$

3.08

   

$

2.99

 

Class B common stock – basic

 

$

113

   

$

94

   

$

520

   

$

505

 

Class B common stock – diluted

 

$

113

   

$

94

   

$

519

   

$

505

 
                 

Weighted average shares outstanding attributable toIndemnity – Basic

               

Class A common stock

 

46,520,232

   

47,006,247

   

46,660,651

   

47,357,836

 

Class B common stock

 

2,542

   

2,543

   

2,542

   

2,544

 
                 

Weighted average shares outstanding attributable toIndemnity – Diluted

               

Class A common stock

 

52,715,338

   

53,193,844

   

52,855,757

   

53,547,833

 

Class B common stock

 

2,542

   

2,543

   

2,542

   

2,544

 
                 

Dividends declared per share

               

Class A common stock

 

$

0.6350

   

$

2.5925

   

$

2.4125

   

$

4.2500

 

Class B common stock

 

$

95.2500

   

$

388.8750

   

$

361.8750

   

$

637.5000

 

 

 

 

Erie Indemnity Company

Results of the Erie Insurance Group's Operations by Interest (Unaudited)

(in millions)

 
   

Indemnity

shareholder interest

 

Noncontrolling interest

(Exchange)

 

Eliminations of related

party transactions

Erie Insurance Group

   

Three months ended

December 31,

 

Three months ended

December 31,

 

Three months ended

December 31,

 

Three months ended

December 31,

   

2013

2012

 

2013

2012

 

2013

2012

 

2013

2012

Management operations:

                       

Management fee revenue, net

 

$

301

 

$

275

   

$

 

$

   

$

(301)

 

$

(275)

   

$

 

$

 

Service agreement revenue

 

8

 

8

   

 

   

 

   

8

 

8

 

Total revenue from management operations

 

309

 

283

   

 

   

(301)

 

(275)

   

8

 

8

 

Cost of management operations

 

268

 

249

   

 

   

(268)

 

(249)

   

 

 

   Income from management operations before taxes

 

41

 

34

   

 

   

(33)

 

(26)

   

8

 

8

 

Property and casualty insurance operations:

                       

Net premiums earned

 

 

   

1,247

 

1,143

   

 

   

1,247

 

1,143

 

Losses and loss expenses

 

 

   

870

 

883

   

(1)

 

(1)

   

869

 

882

 

Policy acquisition and underwriting expenses

 

 

   

355

 

321

   

(36)

 

(29)

   

319

 

292

 

   Income (loss) from property and casualty insurance

      operations before taxes

 

 

   

22

 

(61)

   

37

 

30

   

59

 

(31)

 

Life insurance operations: (1)

                       

Total revenue

 

 

   

53

 

45

   

0

 

(1)

   

53

 

44

 

Total benefits and expenses

 

 

   

39

 

33

   

0

 

0

   

39

 

33

 

   Income from life insurance operations before taxes

 

 

   

14

 

12

   

0

 

(1)

   

14

 

11

 

Investment operations: (1)

                       

Net investment income

 

4

 

4

   

82

 

87

   

(4)

 

(3)

   

82

 

88

 

Net realized gains on investments

 

0

 

1

   

261

 

56

   

 

   

261

 

57

 

Net impairment losses recognized in earnings

 

0

 

0

   

(3)

 

0

   

 

   

(3)

 

0

 

Equity in earnings of limited partnerships

 

9

 

5

   

40

 

27

   

 

   

49

 

32

 

   Income from investment operations before taxes

 

13

 

10

   

380

 

170

   

(4)

 

(3)

   

389

 

177

 

Income from operations beforeincome taxes and

   noncontrollinginterest

 

54

 

44

   

416

 

121

   

 

   

470

 

165

 

Provision for income taxes

 

18

 

14

   

138

 

32

   

 

   

156

 

46

 

Net income

 

$

36

 

$

30

   

$

278

 

$

89

   

$

 

$

   

$

314

 

$

119

 
   

(1)

Earnings on life insurance related invested assets are integral to the evaluation of the life insurance operations because of the long duration of life products. On that basis, for presentation purposes, the life insurance operations in the table above include life insurance related investment results.

 

 

 

Erie Indemnity Company

Results of the Erie Insurance Group's Operations by Interest

(in millions)

 
   

Indemnity

shareholder interest

 

Noncontrolling interest

(Exchange)

 

Eliminations of related

party transactions

Erie Insurance Group

   

Years ended

 December 31,

 

Years ended

 December 31,

 

Years ended

 December 31,

 

Years ended

 December 31,

   

2013

2012

 

2013

2012

 

2013

2012

 

2013

2012

Management operations:

                       

Management fee revenue, net

 

$

1,266

 

$

1,157

   

$

 

$

   

$

(1,266)

 

$

(1,157)

   

$

 

$

 

Service agreement revenue

 

31

 

31

   

 

   

 

   

31

 

31

 

Total revenue from management operations

 

1,297

 

1,188

   

 

   

(1,266)

 

(1,157)

   

31

 

31

 

Cost of management operations

 

1,088

 

983

   

 

   

(1,088)

 

(983)

   

 

 

   Income from management operations before taxes

 

209

 

205

   

 

   

(178)

 

(174)

   

31

 

31

 

Property and casualty insurance operations:

                       

Net premiums earned

 

 

   

4,820

 

4,422

   

 

   

4,820

 

4,422

 

Losses and loss expenses

 

 

   

3,365

 

3,384

   

(5)

 

(5)

   

3,360

 

3,379

 

Policy acquisition and underwriting expenses

 

 

   

1,387

 

1,284

   

(187)

 

(182)

   

1,200

 

1,102

 

   Income (loss) from property and casualty insurance

      operations before taxes

 

 

   

68

 

(246)

   

192

 

187

   

260

 

(59)

 

Life insurance operations: (1)

                       

Total revenue

 

 

   

192

 

178

   

(2)

 

(2)

   

190

 

176

 

Total benefits and expenses

 

 

   

144

 

132

   

0

 

0

   

144

 

132

 

   Income from life insurance operations before taxes

 

 

   

48

 

46

   

(2)

 

(2)

   

46

 

44

 

Investment operations: (1)

                       

Net investment income

 

15

 

16

   

325

 

338

   

(12)

 

(11)

   

328

 

343

 

Net realized gains on investments

 

1

 

5

   

753

 

404

   

 

   

754

 

409

 

Net impairment losses recognized in earnings

 

0

 

0

   

(12)

 

0

   

 

   

(12)

 

0

 

Equity in earnings of limited partnerships

 

22

 

15

   

138

 

116

   

 

   

160

 

131

 

   Income from investment operations before taxes

 

38

 

36

   

1,204

 

858

   

(12)

 

(11)

   

1,230

 

883

 

Income from operations beforeincome taxes and

   noncontrollinginterest

 

247

 

241

   

1,320

 

658

   

 

   

1,567

 

899

 

Provision for income taxes

 

84

 

81

   

435

 

199

   

 

   

519

 

280

 

Net income

 

$

163

 

$

160

   

$

885

 

$

459

   

$

 

$

   

$

1,048

 

$

619

 
   

(1)

Earnings on life insurance related invested assets are integral to the evaluation of the life insurance operations because of the long duration of life products. On that basis, for presentation purposes, the life insurance operations in the table above include life insurance related investment results.

 

Erie Indemnity Company
Reconciliation of Operating Income to Net Income

Reconciliation of operating income to net income

We disclose operating income, a non-GAAP financial measure, to enhance our investors' understanding of our performance related to the Indemnity shareholder interest.  Our method of calculating this measure may differ from those used by other companies, and therefore comparability may be limited.

Indemnity defines operating income as net income excluding realized capital gains and losses, impairment losses and related federal income taxes.

Indemnity uses operating income to evaluate the results of its operations.  It reveals trends that may be obscured by the net effects of realized capital gains and losses including impairment losses.  Realized capital gains and losses, including impairment losses, may vary significantly between periods and are generally driven by business decisions and economic developments such as capital market conditions which are not related to our ongoing operations.  We are aware that the price to earnings multiple commonly used by investors as a forward-looking valuation technique uses operating income as the denominator.  Operating income should not be considered as a substitute for net income prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and does not reflect Indemnity's overall profitability.

The following table reconciles operating income and net income for the Indemnity shareholder interest:

 

   

Indemnity Shareholder Interest

   

Three months ended

December 31,

 

Years ended

December 31,

(in millions, except per share data)

 

2013

 

2012

 

2013

 

2012

   

(Unaudited)

   

Operating income attributable to Indemnity

 

$

36

   

$

29

   

$

162

   

$

157

 

Net realized gains and impairments on investments

 

0

   

1

   

1

   

5

 

Income tax expense

 

0

   

0

   

0

   

(2)

 

  Realized gains and impairments, net of income taxes

 

0

   

1

   

1

   

3

 

Net income attributable to Indemnity

 

$

36

   

$

30

   

$

163

   

$

160

 
                 

Per Indemnity Class A common share-diluted:

               

Operating income attributable to Indemnity

 

$

0.67

   

$

0.54

   

$

3.07

   

$

2.92

 

Net realized gains and impairments on investments

 

0.00

   

0.02

   

0.01

   

0.10

 

Income tax expense

 

0.00

   

0.00

   

0.00

   

(0.03)

 

  Realized gains and impairments, net of income taxes

 

0.00

   

0.02

   

0.01

   

0.07

 

Net income attributable to Indemnity

 

$

0.67

   

$

0.56

   

$

3.08

   

$

2.99

 

 

 

Erie Indemnity Company

Consolidated Statements of Financial Position

(in millions)

 
   

December 31,

2013

 

December 31,

2012

         

Assets

       

Investments – Indemnity

       

Available-for-sale securities, at fair value:

       

   Fixed maturities

 

$

526

   

$

452

 

   Equity securities

 

50

   

55

 

Limited partnerships

 

146

   

180

 

Other invested assets

 

1

   

1

 

Investments – Exchange

       

Available-for-sale securities, at fair value:

       

   Fixed maturities

 

8,162

   

7,707

 

   Equity securities

 

819

   

945

 

Trading securities, at fair value

 

3,202

   

2,417

 

Limited partnerships

 

940

   

1,037

 

Other invested assets

 

20

   

20

 

      Total investments

 

13,866

   

12,814

 
         

Cash and cash equivalents (Exchange portion of $403 and $388, respectively)

 

452

   

400

 

Premiums receivable from policyholders – Exchange

 

1,167

   

1,062

 

Reinsurance recoverable – Exchange

 

172

   

168

 

Deferred income taxes – Indemnity

 

2

   

37

 

Deferred acquisition costs – Exchange

 

566

   

504

 

Other assets (Exchange portion of $337 and $339, respectively)

 

451

   

456

 

      Total assets

 

$

16,676

   

$

15,441

 
         

Liabilities and shareholders' equity

       

Liabilities

       

Indemnity liabilities

       

   Other liabilities

 

$

476

   

$

515

 

Exchange liabilities

       

   Losses and loss expense reserves

 

3,747

   

3,598

 

   Life policy and deposit contract reserves

 

1,758

   

1,708

 

   Unearned premiums

 

2,598

   

2,365

 

   Deferred income taxes

 

450

   

365

 

   Other liabilities

 

97

   

99

 

      Total liabilities

 

9,126

   

8,650

 
         

Indemnity's shareholders' equity

 

734

   

642

 
         

Noncontrolling interest in consolidated entity – Exchange

 

6,816

   

6,149

 

      Total equity

 

7,550

   

6,791

 

      Total liabilities, shareholders' equity and noncontrolling interest

 

$

16,676

   

$

15,441

 

 

Logo: http://photos.prnewswire.com/prnh/20041112/ERIELOGO

SOURCE Erie Indemnity Company

Wordcount:  3773

 



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