Three months ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(Unaudited) | ||||||||||||||
Operating revenue | ||||||||||||||
Management fee revenue - policy issuance and renewal services | $ | 487,992 | $ | 455,718 | ||||||||||
Management fee revenue - administrative services | 14,313 | 14,847 | ||||||||||||
Administrative services reimbursement revenue | 163,327 | 153,533 | ||||||||||||
Service agreement revenue | 6,478 | 6,079 | ||||||||||||
Total operating revenue | 672,110 | 630,177 | ||||||||||||
Operating expenses | ||||||||||||||
Cost of operations - policy issuance and renewal services | 424,471 | 400,549 | ||||||||||||
Cost of operations - administrative services | 163,327 | 153,533 | ||||||||||||
Total operating expenses | 587,798 | 554,082 | ||||||||||||
Operating income | 84,312 | 76,095 | ||||||||||||
Investment income | ||||||||||||||
Net investment income | 10,504 | 17,097 | ||||||||||||
Net realized and unrealized investment (losses) gains | (7,279) | 804 | ||||||||||||
Net impairment (losses) recoveries recognized in earnings | (216) | 87 | ||||||||||||
Total investment income | 3,009 | 17,988 | ||||||||||||
Interest expense | 999 | 1,009 | ||||||||||||
Other income (expense) | 473 | (519) | ||||||||||||
Income before income taxes | 86,795 | 92,555 | ||||||||||||
Income tax expense | 18,176 | 18,989 | ||||||||||||
Net income | $ | 68,619 | $ | 73,566 | ||||||||||
Net income per share | ||||||||||||||
Class A common stock – basic | $ | 1.47 | $ | 1.58 | ||||||||||
Class A common stock – diluted | $ | 1.31 | $ | 1.41 | ||||||||||
Class B common stock – basic and diluted | $ | 221 | $ | 237 | ||||||||||
Weighted average shares outstanding – Basic | ||||||||||||||
Class A common stock | 46,188,761 | 46,188,860 | ||||||||||||
Class B common stock | 2,542 | 2,542 | ||||||||||||
Weighted average shares outstanding – Diluted | ||||||||||||||
Class A common stock | 52,300,501 | 52,315,958 | ||||||||||||
Class B common stock | 2,542 | 2,542 | ||||||||||||
Dividends declared per share | ||||||||||||||
Class A common stock | $ | 1.110 | $ | 1.035 | ||||||||||
Class B common stock | $ | 166.50 | $ | 155.25 |
March 31, 2022 | December 31, 2021 | |||||||||||||
(Unaudited) | ||||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 141,305 | $ | 183,702 | ||||||||||
Available-for-sale securities | 46,155 | 38,396 | ||||||||||||
Receivables from Erie Insurance Exchange and affiliates, net | 478,754 | 479,123 | ||||||||||||
Prepaid expenses and other current assets | 78,877 | 56,206 | ||||||||||||
Accrued investment income | 6,255 | 6,303 | ||||||||||||
Total current assets | 751,346 | 763,730 | ||||||||||||
Available-for-sale securities, net | 877,165 | 907,689 | ||||||||||||
Equity securities | 78,069 | 87,743 | ||||||||||||
Fixed assets, net | 396,072 | 374,802 | ||||||||||||
Agent loans, net | 61,579 | 58,683 | ||||||||||||
Deferred income taxes, net | 9,818 | 145 | ||||||||||||
Other assets | 49,804 | 49,265 | ||||||||||||
Total assets | $ | 2,223,853 | $ | 2,242,057 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Commissions payable | $ | 287,989 | $ | 270,746 | ||||||||||
Agent bonuses | 31,507 | 120,437 | ||||||||||||
Accounts payable and accrued liabilities | 186,386 | 138,317 | ||||||||||||
Dividends payable | 51,693 | 51,693 | ||||||||||||
Contract liability | 34,872 | 34,935 | ||||||||||||
Deferred executive compensation | 6,752 | 12,637 | ||||||||||||
Current portion of long-term borrowings | 2,132 | 2,098 | ||||||||||||
Total current liabilities | 601,331 | 630,863 | ||||||||||||
Defined benefit pension plans | 139,231 | 130,383 | ||||||||||||
Long-term borrowings | 91,177 | 91,734 | ||||||||||||
Contract liability | 17,493 | 17,686 | ||||||||||||
Deferred executive compensation | 13,821 | 14,571 | ||||||||||||
Other long-term liabilities | 26,600 | 14,342 | ||||||||||||
Total liabilities | 889,653 | 899,579 | ||||||||||||
Shareholders’ equity | 1,334,200 | 1,342,478 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 2,223,853 | $ | 2,242,057 |