4th Quarter 2023 Earnings Supplemental

ERIE INDEMNITY COMPANY

Investor Supplement

Fourth Quarter 2023

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 - Fourth Quarter 2023

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 - Fourth Quarter 2023

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 catastrophe loss 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 - Fourth Quarter 2023

(dollars in thousands, except per share data)

Operating revenue

Indemnity

Income Statements

	Three Months Ended (Unaudited)			Twelve Months Ended
December 31,	September 30,	June 30,	March 31,	December 31,	December 31,	December 31,
2023	2023	2023	2023	2022	2023	2022

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

Service agreement revenue Total operating revenue

$	601,595	$	649,049	$	633,339	$	558,090	$	503,633
	16,693		16,151		15,636		15,189		14,877
	192,728		187,118		184,466		172,827		175,613
	6,651		6,620		6,429		6,359		6,512
	817,667		858,938		839,870		752,465		700,635

2,442,073 $ 2,087,846
63,669 58,323

737,139 668,268

26,059 25,687

3,268,940 2,840,124

Operating expenses CommissionsNon-commissionexpenses

Cost of operations - policy issuance and renewal services Cost of operations - administrative services

Total operating expenses Operating income

Investment income

Interest and dividend income, net

Equity in (losses) earnings of limited partnerships Net investment income

Net realized and unrealized investment gains (losses) Net impairment losses recognized in earnings

Total investment income (loss) Interest expense

Other income

Income before income taxes Income tax expense

Net income

Net income per share - diluted

	334,409		354,169		351,144		308,808		281,354
	163,446		169,180		170,102		160,287		162,238
	497,855		523,349		521,246		469,095		443,592
	192,728		187,118		184,466		172,827		175,613
	690,583		710,467		705,712		641,922		619,205
	127,084		148,471		134,158		110,543		81,430
	14,795		14,655		13,495		12,935		12,267
	(583)		(13)		40		(10,752)		(8,288)
	14,212		14,642		13,535		2,183		3,979
	3,408		(2,227)		(1,737)		(5,282)		(3,453)
	(7,849)		(113)		(171)		(1,633)		(238)
	9,771		12,302		11,627		(4,732)		288
	-		-		-		-		-
	3,069		3,001		3,305		3,337		243
	139,924		163,774		149,090		109,148		81,961
	28,996		32,734		31,238		22,907		16,471
$	110,928	$	131,040	$	117,852	$	86,241	$	65,490

$	2.12	$	2.51	$	2.25	$	1.65	$	1.25

	1,348,530		1,179,569
	663,015		616,073
	2,011,545		1,795,642
	737,139		668,268
	2,748,684		2,463,910
	520,256		376,214
	55,880		39,031
	(11,308)		(10,446)
	44,572		28,585
	(5,838)		(27,286)
	(9,766)		(667)
	28,968		632
	-		2,009
	12,712		1,615
	561,936		376,452
	115,875		77,883
$	446,061	$	298,569

$	8.53	$	5.71

Erie Indemnity Company

Investor Supplement - Fourth Quarter 2023

						Indemnity
					Balance Sheet Information
						(Unaudited)
(in thousands)	December 31,		September 30,		June 30,		March 31,		December 31,
	2023			2023		2023		2023			2022
Assets
Cash, cash equivalents, and restricted cash	$	144,055	$	102,873	$	142,996	$	122,376	$	142,090
Receivables from Erie Insurance Exchange and affiliates, net		625,338			620,683		591,008		533,306			524,937
Investments (1)		1,068,520			1,011,949		1,016,700		1,006,581			997,732
Fixed assets, net		442,610			434,975		422,903		417,339			413,874
Agent loans, net		67,787			68,192		68,903		68,054			69,476
Defined benefit pension plan		34,320			65,163		0		0			0
Other assets, net (1)		89,334			90,714		83,001		76,313			91,347
Total assets	$	2,471,964		$	2,394,549	$	2,325,511	$	2,223,969		$	2,239,456
Liabilities and shareholders' equity
Liabilities
Commissions payable	$	353,709	$	357,614	$	347,795	$	322,910	$	300,028
Agent incentive compensation		68,077			50,252		37,443		20,565			95,166
Defined benefit pension plans		26,260			27,744		55,075		53,522			51,224
Contract liability		61,120			60,484		57,938		55,329			54,442
Other liabilities		299,963			286,566		282,348		284,676			290,188
Total liabilities		809,129			782,660		780,599		737,002			791,048
Shareholders' equity		1,662,835			1,611,889		1,544,912		1,486,967			1,448,408
Total liabilities and shareholders' equity	$	2,471,964		$	2,394,549	$	2,325,511	$	2,223,969		$	2,239,456

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

Erie Indemnity Company

Investor Supplement - Fourth Quarter 2023 (Unaudited)

					Property and Casualty Group
					Direct Written Premium Growth Measures
				Three Months Ended						Twelve Months Ended
(dollars in thousands)	December 31,	September 30,	June 30,		March 31,	December 31,		December 31,	December 31,
	2023		2023	2023		2023		2022			2023		2022
Direct written premiums of the P&C Group
Private passenger auto	$	1,037,831	$	1,143,337	$ 1,080,607	$	978,743	$	850,960	$	4,240,518	$	3,593,961
Homeowners		689,679		767,335	721,339		542,308		565,413			2,720,661		2,263,514
Commercial multi-peril		356,948		346,600	369,770		346,162		300,050			1,419,480		1,206,609
Workers compensation		105,105		121,333	128,575		143,971		108,410			498,984		497,737
Commercial auto		212,116		219,119	235,242		224,540		185,403			891,017		788,268
All other lines of business		67,620		72,462	77,598		68,144		56,728			285,824		245,871
P&C Group direct written premiums - total	$	2,469,299	$	2,670,186	$ 2,613,131	$	2,303,868	$	2,066,964		$	10,056,484	$	8,595,960


				Property and Casualty Group
			Direct Written Premium Growth Measures

	December 31,	September 30,	June 30,		March 31,	December 31,
12 month growth rate policies in force		2023		2023	2023		2023		2022

Total all lines		6.9 %		6.1 %	5.2 %		4.4 %		3.6 %
Total personal lines		7.4 %		6.6 %	5.6 %		4.8 %		3.9 %
Total commercial lines		3.2 %		2.7 %	2.3 %		2.1 %		2.0 %
Retention trends (1)
Total all lines		91.2 %		91.1 %	90.8 %		90.6 %		90.5 %
Total personal lines		92.1 %		91.9 %	91.6 %		91.3 %		91.2 %
Total commercial lines		85.3 %		85.4 %	85.6 %		85.7 %		85.7 %
12 month % change average premiums
Total all lines		9.4 %		8.7 %	7.6 %		6.4 %		5.4 %
Total personal lines		10.5 %		9.2 %	7.4 %		5.8 %		4.4 %
Total commercial lines		9.5 %		10.0 %	10.1 %		9.5 %		9.0 %

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 - Fourth Quarter 2023 (Unaudited)

						Property and Casualty Group
				Statutory Basis Combined Ratio - Direct Business

			Three Months Ended December 31, 2023					Three Months Ended December 31, 2022
			Prior Year	Current		Current					Prior Year	Current		Current
			Reserve	Accident		Accident					Reserve	Accident		Accident
			Development	Year		Year					Development	Year		Year
Direct business only	Calendar	Deficiency	Catastrophe	Excluding			Calendar	Deficiency	Catastrophe		Excluding
Year		(Redundancy)	Losses		Catastrophes			Year		(Redundancy)	Losses		Catastrophes
Private passenger auto	133.4	%	(1.2) %	0.2	%	134.4	%		146.3	%	1.9 %	0.7	%	143.7	%
Homeowners	79.7	%	0.7 %	0.0	%	79.0	%	111.0	%	2.6 %	25.3	%	83.1	%
Other personal lines	135.9	%	1.7 %	0.1	%	134.1	%	113.8	%	(0.2) %	0.1	%	113.9	%
Total personal lines	112.8 %	(0.4)%	0.1 %	113.1 %	132.4 %	2.1 %	10.0 %	120.3 %
Commercial multi-peril	88.4	%	6.1 %	11.3	%	71.0	%	88.9	%	7.1 %	6.5	%	75.3	%
Commercial auto	127.1	%	4.4 %	0.2	%	122.5	%	136.6	%	10.7 %	0.5	%	125.4	%
Workers compensation	90.5	%	(12.9) %	0.0	%	103.4	%	117.0	%	3.3 %	0.0	%	113.7	%
Other commercial lines	165.5	%	45.9 %	0.0	%	119.6	%	128.7	%	8.2 %	0.0	%	120.5	%
Total commercial lines	104.6 %	4.6 %	5.5 %	94.5 %	110.6 %	7.5 %	3.1 %	100.0 %
Grand total	110.4 %	1.1 %	1.7 %	107.6 %	125.7 %	3.8 %	7.9 %	114.0 %

		Twelve Months Ended December 31, 2023					Twelve Months Ended December 31, 2022
			Prior Year	Current		Current					Prior Year	Current		Current
			Reserve	Accident		Accident					Reserve	Accident		Accident
			Development	Year		Year					Development	Year		Year
Direct business only	Calendar	Deficiency	Catastrophe	Excluding			Calendar	Deficiency	Catastrophe		Excluding
Year		(Redundancy)	Losses		Catastrophes			Year		(Redundancy)	Losses		Catastrophes
Private passenger auto	126.9	%	0.1 %	1.4	%	125.4	%		128.9	%	3.7 %	0.9	%	124.3	%
Homeowners	125.0	%	2.5 %	38.6	%	83.9	%	113.3	%	2.0 %	27.4	%	83.9	%
Other personal lines	97.8	%	(4.2) %	0.5	%	101.5	%	94.7	%	1.6 %	0.5	%	92.6	%
Total personal lines	125.6 %	0.9 %	15.6 %	109.1 %	122.5 %	3.0 %	10.8 %	108.7 %
Commercial multi-peril	106.1	%	11.9 %	13.3	%	80.9	%	94.3	%	4.8 %	5.3	%	84.2	%
Commercial auto	121.9	%	5.2 %	1.0	%	115.7	%	118.7	%	3.5 %	0.3	%	114.9	%
Workers compensation	80.2	%	(14.2) %	0.0	%	94.4	%	96.5	%	(4.9) %	0.0	%	101.4	%
Other commercial lines	104.8	%	(7.7) %	0.0	%	112.5	%	101.5	%	(7.7) %	0.0	%	109.2	%
Total commercial lines	106.1 %	4.1 %	6.5 %	95.5 %	102.4 %	1.9 %	2.5 %	98.0 %
Grand total	119.8 %	1.9 %	12.8 %	105.1 %	116.3 %	2.7 %	8.2 %	105.4 %

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Erie Indemnity Company published this content on 27 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 February 2024 18:49:40 UTC.

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