3rd Quarter 2024 Earnings Supplemental

U.S. Markets via PUBT

ERIE INDEMNITY COMPANY

Investor Supplement

Third Quarter 2024

This report is for informational purposes only and includes financial statements and financial exhibits that are unaudited. This report should be read in conjunction with documents filed with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K for 2023.

Erie Indemnity Company

Investor Supplement - Third Quarter 2024

Table of Contents

Definitions	Page
1
Indemnity Income Statements	2
Indemnity Balance Sheet Information	3
Property and Casualty Group Direct Written Premium Growth Measures	4
Property and Casualty Group Statutory Basis Combined Ratio - Direct Business	5

Erie Indemnity Company

Investor Supplement - Third Quarter 2024

Definitions

Indemnityis a publicly held Pennsylvania business corporation that has since its incorporation in 1925 served as the attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange ("Exchange"). Our primary function as attorney-in-fact is to perform policy issuance and renewal services on behalf of the subscribers at the Exchange. We also act as attorney-in-fact on behalf of the subscribers at the Exchange with respect to all claims handling and investment management services, as well as the service provider for all claims handling, life insurance, and investment management services for the Exchange's insurance subsidiaries, collectively referred to as "administrative services".

Exchange, which also commenced business in 1925, is a Pennsylvania-domiciled reciprocal insurer that writes property and casualty insurance.

Property and Casualty Group

The Property and Casualty Group ("P&C Group") is a regional insurance group operating in 12 Midwestern, Mid-Atlantic, and Southeastestates and the District of Columbia. The P&C Group is comprised of the Exchange and its wholly owned property and casualty subsidiaries. Certain operating and statistical measures have been incorporated herein to provide supplemental data that indicate current trends in the P&C Group's business. These measures include revenue, policies in-force and policyholder retention. Policyholder retention is defined as renewal policies in the current period divided by total policies in the prior period.

The P&C Group, along with others in the property and casualty insurance industry, use statutory underwriting ratios as measures of performance. The loss and loss expense ratio is the ratio of incurred losses and loss adjustment expenses to earned premiums. The statutory underwriting expense ratio is the ratio of underwriting expenses to written premiums. The combined ratio is the sum of the loss and loss expense ratio, the underwriting expense ratio and the policyholder dividend ratio. A combined ratio below 100% demonstrates underwriting profit; a combined ratio above 100% demonstrates underwriting losses.

The calendar year ratio represents the combined ratio for the current calendar year.
Loss reserve development is the increase or decrease in incurred losses and loss adjustment expenses as a result of the re-estimation of loss and loss adjustment expense reserves at successive valuation dates for a group of claims. Loss reserve development may be related to one or more prior years. The prior year reserve development ratio represents the ratio of prior years' incurred losses and loss adjustment expenses to earned premiums.
The current accident year catastrophe loss ratio represents the ratio of current accident year incurred catastrophe losses and loss adjustment expenses to earned premiums.
The current accident year excluding catastrophes ratio represents the sum of the current accident year incurred losses and loss adjustment expenses to earned premiums ratio, the underwriting expense ratio, and the policyholder dividend ratio.

Erie Indemnity Company

Investor Supplement - Third Quarter 2024 (Unaudited)

Indemnity

Income Statements

(dollars in thousands, except per share data)

Operating revenue

Management fee revenue - policy issuance and renewal services Management fee revenue - administrative services Administrative services reimbursement revenue

Service agreement revenue Total operating revenue

Three Months Ended

September 30,		June 30,		March 31,	December 31,	September 30,
	2024		2024		2024		2023		2023
$	769,162	$	760,886	$	665,686	$	601,595	$	649,049
	17,154		17,051		16,934		16,693		16,151
	206,754		206,028		191,567		192,728		187,118
	6,816		6,473		6,514		6,651		6,620
	999,886		990,438		880,701		817,667		858,938

Nine Months Ended

September 30,	September 30,
	2024		2023
$	2,195,734	$	1,840,478
	51,139		46,976
	604,349		544,411
	19,803		19,408
	2,871,025		2,451,273

Operating expenses		420,516		419,951		375,760		334,409		354,169			1,216,227		1,014,121
Commissions
Non-commission expenses		192,491		174,251		174,562		163,446		169,180			541,304		499,569
Cost of operations - policy issuance and renewal services		613,007		594,202		550,322		497,855		523,349			1,757,531		1,513,690
Cost of operations - administrative services		206,754		206,028		191,567		192,728		187,118			604,349		544,411
Total operating expenses		819,761		800,230		741,889		690,583		710,467			2,361,880		2,058,101
Operating income		180,125		190,208		138,812		127,084		148,471			509,145		393,172
Investment income
Interest and dividend income, net		17,449		16,274		15,378		14,795		14,655			49,101		41,085
Equity in (losses) earnings of limited partnerships		(127)		(264)		525		(583)		(13)			134		(10,725)
Net investment income		17,322		16,010		15,903		14,212		14,642			49,235		30,360
Net realized and unrealized investment gains (losses)		2,925		(1,795)		1,853		3,408		(2,227)			2,983		(9,246)
Net impairment losses recognized in earnings		(698)		(388)		(2,677)		(7,849)		(113)			(3,763)		(1,917)
Total investment income		19,549		13,827		15,079		9,771		12,302			48,455		19,197
Other income		1,168		3,292		3,411		3,069		3,001			7,871		9,643
Income before income taxes		200,842		207,327		157,302		139,924		163,774			565,471		422,012
Income tax expense		41,012		43,424		32,750		28,996		32,734			117,186		86,879
Net income	$	159,830	$	163,903	$	124,552	$	110,928	$	131,040		$	448,285	$	335,133
Net income per share - diluted
$	3.06	$	3.13	$	2.38	$	2.12	$	2.51	$	8.57	$	6.41

Erie Indemnity Company

Investor Supplement - Third Quarter 2024 (Unaudited)

Indemnity

Balance Sheet Information

(in thousands)	September 30,		June 30,		March 31,	December 31,	September 30,
	2024		2024		2024		2023		2023
Assets
Cash, cash equivalents and restricted cash	$	221,213	$	170,634	$	144,872	$	144,055	$	102,873
Receivables from Erie Insurance Exchange and affiliates, net		736,973		708,171		641,691		625,338		620,683
Investments, net (1)		1,169,600		1,108,139		1,084,597		1,068,520		1,011,949
Fixed assets, net		480,707		469,145		461,914		442,610		434,975
Agent loans, net		91,636		66,280		67,448		67,787		68,192
Defined benefit pension plan		64,172		65,221		66,270		34,320		65,163
Other assets, net (1)		99,846		104,370		89,002		89,334		90,714
Total assets	$	2,864,147	$	2,691,960	$	2,555,794	$	2,471,964	$	2,394,549
Liabilities and shareholders' equity
Liabilities
Commissions payable	$	426,341	$	413,205	$	384,613	$	353,709	$	357,614
Agent incentive compensation		60,073		44,870		26,968		68,077		50,252
Defined benefit pension plan		27,757		26,591		23,792		26,260		27,744
Contract liability		63,974		62,215		60,555		61,120		60,484
Other liabilities		338,047		316,266		333,686		299,963		286,566
Total liabilities		916,192		863,147		829,614		809,129		782,660
Shareholders' equity		1,947,955		1,828,813		1,726,180		1,662,835		1,611,889
Total liabilities and shareholders' equity	$	2,864,147	$	2,691,960	$	2,555,794	$	2,471,964	$	2,394,549

(1) Historical periods have been restated to conform to current period presentation.

Erie Indemnity Company

Investor Supplement - Third Quarter 2024 (Unaudited)

						Property and Casualty Group
						Direct Written Premium Growth Measures
					Three Months Ended						Nine Months Ended
(dollars in thousands)	September 30,		June 30,		March 31,	December 31,	September 30,		September 30,	September 30,
	2024		2024		2024		2023		2023			2024		2023
Direct written premiums of the P&C Group
Private passenger auto	$	1,339,707	$	1,287,418	$	1,154,951	$	1,037,831	$	1,143,337	$	3,782,076	$	3,202,687
Homeowners		956,385		917,549		680,642		689,679		767,335			2,554,576		2,030,982
Commercial multi-peril		414,132		438,806		418,799		356,948		346,600			1,271,737		1,062,532
Workers compensation		111,935		123,369		138,986		105,105		121,333			374,290		393,879
Commercial auto		250,801		272,548		263,055		212,116		219,119			786,404		678,901
All other lines of business		89,342		95,496		84,587		67,620		72,462			269,425		218,204
P&C Group direct written premiums - total	$	3,162,302	$	3,135,186	$	2,741,020	$	2,469,299	$	2,670,186		$	9,038,508	$	7,587,185

Property and Casualty Group

Direct Written Premium Growth Measures

	September 30,	June 30,	March 31,	December 31,	September 30,
12 month growth rate policies in force	2024	2024	2024	2023	2023

Total all lines	6.0 %	6.8 %	7.1 %	6.9 %	6.1 %
Total personal lines	6.2 %	7.1 %	7.5 %	7.4 %	6.6 %
Total commercial lines	4.8 %	4.9 %	4.2 %	3.2 %	2.7 %
Retention trends (1)
Total all lines	90.8 %	91.1 %	91.2 %	91.2 %	91.1 %
Total personal lines	91.9 %	92.1 %	92.2 %	92.1 %	91.9 %
Total commercial lines	82.7 %	83.5 %	84.6 %	85.3 %	85.4 %
12 month % change average premiums
Total all lines	12.8 %	11.9 %	10.6 %	9.4 %	8.7 %
Total personal lines	14.7 %	13.7 %	12.0 %	10.5 %	9.2 %
Total commercial lines	9.3 %	9.0 %	9.4 %	9.5 %	10.0 %

Policyholder retention rates are impacted when a policyholder cancels an existing policy and enters into a new policy due to various factors, including buying a new home or changing the policy type. When this occurs, the cancelled policy reduces the reported retention rate.

Erie Indemnity Company

Investor Supplement - Third Quarter 2024 (Unaudited)

							Property and Casualty Group
					Statutory Basis Combined Ratio - Direct Business

		Three Months Ended September 30, 2024				Three Months Ended September 30, 2023
			Prior Year		Current		Current					Prior Year		Current		Current
			Reserve		Accident		Accident					Reserve		Accident		Accident
			Development		Year		Year					Development	Year		Year
	Calendar	Deficiency		Catastrophe	Excluding			Calendar	Deficiency		Catastrophe	Excluding
Direct business only	Year		(Redundancy)	Losses		Catastrophes		Year		(Redundancy)	Losses		Catastrophes
Private passenger auto	116.9	%	0.4	%	1.6	%	114.9	%		129.4	%	(1.0) %	2.7	%	127.7	%
Homeowners	111.3	%	(1.2) %	32.4	%	80.1	%	139.5	%	0.1	%	54.9	%	84.5	%
Other personal lines	129.1	%	4.9	%	1.0	%	123.2	%	83.0	%	(10.8) %	0.5	%	93.3	%
Total personal lines	114.9 %	(0.2)%	13.6 %	101.5 %	132.5 %	(0.7)%	22.6 %	110.6 %
Commercial multi-peril	98.5	%	1.5	%	14.2	%	82.8	%	103.6	%	5.2	%	15.6	%	82.8	%
Commercial auto	141.4	%	15.0	%	0.8	%	125.6	%	124.0	%	8.8	%	2.0	%	113.2	%
Workers compensation	99.4	%	(15.9) %	0.0	%	115.3	%	88.4	%	(1.2) %	0.0	%	89.6	%
Other commercial lines	157.7	%	30.4	%	0.0	%	127.3	%	104.9	%	(12.8) %	0.0	%	117.7	%
Total commercial lines	115.1 %	4.7 %	7.2 %	103.2 %	107.2 %	4.2 %	7.9 %	95.1 %
Grand total	115.0 %	1.2 %	11.8 %	102.0 %	124.9 %	0.7 %	18.2 %	106.0 %

		Nine Months Ended September 30, 2024				Nine Months Ended September 30, 2023
			Prior Year		Current		Current					Prior Year		Current		Current
			Reserve		Accident		Accident					Reserve		Accident		Accident
			Development		Year		Year					Development	Year		Year
	Calendar	Deficiency		Catastrophe	Excluding			Calendar	Deficiency		Catastrophe	Excluding
Direct business only	Year		(Redundancy)	Losses		Catastrophes		Year		(Redundancy)	Losses		Catastrophes
Private passenger auto	117.1	%	(1.2) %	1.4	%	116.9	%		124.5	%	0.6	%	1.8	%	122.1	%
Homeowners	116.2	%	(2.5) %	37.1	%	81.6	%	141.7	%	3.1	%	52.8	%	85.8	%
Other personal lines	133.1	%	21.7	%	0.7	%	110.7	%	84.3	%	(6.3) %	0.7	%	89.9	%
Total personal lines	117.0 %	(1.3)%	15.2 %	103.1 %	130.3 %	1.4 %	21.2 %	107.7 %
Commercial multi-peril	94.3	%	(1.5) %	11.9	%	83.9	%	112.5	%	13.9	%	13.9	%	84.7	%
Commercial auto	124.5	%	8.6	%	0.9	%	115.0	%	120.1	%	5.5	%	1.2	%	113.4	%
Workers compensation	86.2	%	(15.8) %	0.0	%	102.0	%	76.9	%	(14.7) %	0.0	%	91.6	%
Other commercial lines	132.7	%	12.2	%	0.0	%	120.5	%	82.9	%	(27.1) %	0.0	%	110.0	%
Total commercial lines	104.4 %	0.1 %	6.1 %	98.2 %	106.7 %	4.0 %	6.8 %	95.9 %
Grand total	113.4 %	(0.9)%	12.6 %	101.7 %	123.2 %	2.2 %	16.9 %	104.1 %

Attachments

Disclaimer

Erie Indemnity Company published this content on November 01, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 01, 2024 at 11:37:35.570.