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4th Quarter 2024 Earnings Supplemental

ERIE INDEMNITY COMPANY

Investor Supplement

Fourth 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 2024.

Erie Indemnity Company

Investor Supplement - Fourth Quarter 2024

Table of Contents

Definitions

Page

1

Indemnity Consolidated Income Statements

2

Indemnity Consolidated 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 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 insurance 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.

1

Erie Indemnity Company

Investor Supplement - Fourth Quarter 2024

(dollars in thousands, except per share data)

Operating revenue

Indemnity

Consolidated Income Statements

Three Months Ended (Unaudited)

Twelve Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

2024

2024

2024

2024

2023

2024

2023

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

Service agreement revenue Total operating revenue

$

698,340

$

769,162

$

760,886

$

665,686

$

601,595

17,216

17,154

17,051

16,934

16,693

201,987

206,754

206,028

191,567

192,728

6,547

6,816

6,473

6,514

6,651

924,090

999,886

990,438

880,701

817,667
  • 2,894,074 $ 2,442,073
    68,355 63,669

806,336 737,139

26,350 26,059

3,795,115 3,268,940

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 earnings (losses) of limited partnerships Net investment income

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

Total investment income

Other income

Income before income taxes Income tax expense

Net income

Net income per share - diluted

385,174

420,516

419,951

375,760

334,409

169,619

192,491

174,251

174,562

163,446

554,793

613,007

594,202

550,322

497,855

201,987

206,754

206,028

191,567

192,728

756,780

819,761

800,230

741,889

690,583

167,310

180,125

190,208

138,812

127,084

19,083

17,449

16,274

15,378

14,795

1,837

(127)

(264)

525

(583)

20,920

17,322

16,010

15,903

14,212

246

2,925

(1,795)

1,853

3,408

(361)

(698)

(388)

(2,677)

(7,849)

20,805

19,549

13,827

15,079

9,771

3,693

1,168

3,292

3,411

3,069

191,808

200,842

207,327

157,302

139,924

39,779

41,012

43,424

32,750

28,996

$

152,029

$

159,830

$

163,903

$

124,552

$

110,928

$

2.91

$

3.06

$

3.13

$

2.38

$

2.12

1,601,401

1,348,530

710,923

663,015

2,312,324

2,011,545

806,336

737,139

3,118,660

2,748,684

676,455

520,256

68,184

55,880

1,971

(11,308)

70,155

44,572

3,229

(5,838)

(4,124)

(9,766)

69,260

28,968

11,564

12,712

757,279

561,936

156,965

115,875

$

600,314

$

446,061

$

11.48

$

8.53

2

Erie Indemnity Company

Investor Supplement - Fourth Quarter 2024

Indemnity

Consolidated Balance Sheet Information

(Unaudited)

(in thousands)

December 31,

September 30,

June 30,

March 31,

December 31,

2024

2024

2024

2024

2023

Assets

Cash, cash equivalents and restricted cash

$

298,397

$

221,213

$

170,634

$

144,872

$

144,055

Receivables from Erie Insurance Exchange and affiliates, net

707,060

736,973

708,171

641,691

625,338

Investments, net

1,159,116

1,169,600

1,108,139

1,084,597

1,068,520

Fixed assets, net

513,494

480,707

469,145

461,914

442,610

Agent loans, net

92,731

91,636

66,280

67,448

67,787

Defined benefit pension plan

21,311

64,172

65,221

66,270

34,320

Other assets, net

96,505

99,846

104,370

89,002

89,334

Total assets

$

2,888,614

$

2,864,147

$

2,691,960

$

2,555,794

$

2,471,964

Liabilities and shareholders' equity

Liabilities

Commissions payable

$

408,309

$

426,341

$

413,205

$

384,613

$

353,709

Agent incentive compensation

75,458

60,073

44,870

26,968

68,077

Defined benefit pension plan

28,070

27,757

26,591

23,792

26,260

Contract liability

63,931

63,974

62,215

60,555

61,120

Other liabilities

325,588

338,047

316,266

333,686

299,963

Total liabilities

901,356

916,192

863,147

829,614

809,129

Shareholders' equity

1,987,258

1,947,955

1,828,813

1,726,180

1,662,835

Total liabilities and shareholders' equity

$

2,888,614

$

2,864,147

$

2,691,960

$

2,555,794

$

2,471,964

3

Erie Indemnity Company

Investor Supplement - Fourth Quarter 2024 (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,

2024

2024

2024

2024

2023

2024

2023

Direct written premiums of the P&C Group

Private passenger auto

$

1,178,433

$

1,339,707

$ 1,287,418

$

1,154,951

$

1,037,831

$

4,960,509

$

4,240,518

Homeowners

843,405

956,385

917,549

680,642

689,679

3,397,981

2,720,661

Commercial multi-peril

415,996

414,132

438,806

418,799

356,948

1,687,733

1,419,480

Workers compensation

99,842

111,935

123,369

138,986

105,105

474,132

498,984

Commercial auto

246,062

250,801

272,548

263,055

212,116

1,032,466

891,017

All other lines of business

81,513

89,342

95,496

84,587

67,620

350,938

285,824

P&C Group direct written premiums - total

$

2,865,251

$

3,162,302

$ 3,135,186

$

2,741,020

$

2,469,299

$

11,903,759

$

10,056,484

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

2024

2024

2024

2024

2023

Total all lines

4.8 %

6.0 %

6.8 %

7.1 %

6.9 %

Total personal lines

4.8 %

6.2 %

7.1 %

7.5 %

7.4 %

Total commercial lines

4.6 %

4.8 %

4.9 %

4.2 %

3.2 %

Retention trends (1)

Total all lines

90.4 %

90.8 %

91.1 %

91.2 %

91.2 %

Total personal lines

91.6 %

91.9 %

92.1 %

92.2 %

92.1 %

Total commercial lines

82.0 %

82.7 %

83.5 %

84.6 %

85.3 %

12 month % change average premiums

Total all lines

13.4 %

12.8 %

11.9 %

10.6 %

9.4 %

Total personal lines

15.1 %

14.7 %

13.7 %

12.0 %

10.5 %

Total commercial lines

9.4 %

9.3 %

9.0 %

9.4 %

9.5 %
  1. 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.

4

Erie Indemnity Company

Investor Supplement - Fourth Quarter 2024 (Unaudited)

Property and Casualty Group

Statutory Basis Combined Ratio - Direct Business

Three Months Ended December 31, 2024

Three Months Ended December 31, 2023

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

127.7

%

0.8

%

0.1

%

126.8

%

133.4

%

(1.2) %

0.2

%

134.4

%

Homeowners

74.1

%

1.1

%

4.8

%

68.2

%

79.7

%

0.7 %

0.0

%

79.0

%

Other personal lines

120.3

%

0.5

%

1.5

%

118.3

%

135.9

%

1.7 %

0.1

%

134.1

%

Total personal lines

106.4 %

0.9 %

2.0 %

103.5 %

112.8 %

(0.4)%

0.1 %

113.1 %

Commercial multi-peril

74.0

%

0.0

%

3.5

%

70.5

%

88.4

%

6.1 %

11.3

%

71.0

%

Commercial auto

118.1

%

0.9

%

0.4

%

116.8

%

127.1

%

4.4 %

0.2

%

122.5

%

Workers compensation

106.5

%

4.0

%

0.0

%

102.5

%

90.5

%

(12.9) %

0.0

%

103.4

%

Other commercial lines

137.2

%

5.7

%

0.0

%

131.5

%

165.5

%

45.9 %

0.0

%

119.6

%

Total commercial lines

95.8 %

1.2 %

1.8 %

92.8 %

104.6 %

4.6 %

5.5 %

94.5 %

Grand total

103.4 %

1.0 %

1.9 %

100.5 %

110.4 %

1.1 %

1.7 %

107.6 %

Twelve Months Ended December 31, 2024

Twelve Months Ended December 31, 2023

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

119.9

%

(0.7) %

1.1

%

119.5

%

126.9

%

0.1 %

1.4

%

125.4

%

Homeowners

104.7

%

(1.5) %

28.3

%

77.9

%

125.0

%

2.5 %

38.6

%

83.9

%

Other personal lines

129.7

%

16.1

%

0.9

%

112.7

%

97.8

%

(4.2) %

0.5

%

101.5

%

Total personal lines

114.2 %

(0.7)%

11.7 %

103.2 %

125.6 %

0.9 %

15.6 %

109.1 %

Commercial multi-peril

88.9

%

(1.1) %

9.6

%

80.4

%

106.1

%

11.9 %

13.3

%

80.9

%

Commercial auto

122.8

%

6.5

%

0.8

%

115.5

%

121.9

%

5.2 %

1.0

%

115.7

%

Workers compensation

91.2

%

(10.9) %

0.0

%

102.1

%

80.2

%

(14.2) %

0.0

%

94.4

%

Other commercial lines

133.9

%

10.4

%

0.0

%

123.5

%

104.8

%

(7.7) %

0.0

%

112.5

%

Total commercial lines

102.1 %

0.4 %

5.0 %

96.7 %

106.1 %

4.1 %

6.5 %

95.5 %

Grand total

110.7 %

(0.4)%

9.7 %

101.4 %

119.8 %

1.9 %

12.8 %

105.1 %

5

Disclaimer

Erie Indemnity Company published this content on February 28, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 28, 2025 at 12:26:51.430.

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