Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||||
Management fee revenue - policy issuance and renewal services | $ | 450,286 | $ | 429,698 | $ | 1,913,166 | $ | 1,841,794 | ||||||||||||||||||
Management fee revenue - administrative services | 14,301 | 14,969 | 58,286 | 59,463 | ||||||||||||||||||||||
Administrative services reimbursement revenue | 165,350 | 158,206 | 638,483 | 609,435 | ||||||||||||||||||||||
Service agreement revenue | 5,994 | 6,379 | 24,042 | 25,797 | ||||||||||||||||||||||
Total operating revenue | 635,931 | 609,252 | 2,633,977 | 2,536,489 | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Cost of operations - policy issuance and renewal services | 408,747 | 385,994 | 1,677,397 | 1,588,897 | ||||||||||||||||||||||
Cost of operations - administrative services | 165,350 | 158,206 | 638,483 | 609,435 | ||||||||||||||||||||||
Total operating expenses | 574,097 | 544,200 | 2,315,880 | 2,198,332 | ||||||||||||||||||||||
Operating income | 61,834 | 65,052 | 318,097 | 338,157 | ||||||||||||||||||||||
Investment income | ||||||||||||||||||||||||||
Net investment income | 12,572 | 9,400 | 62,177 | 29,753 | ||||||||||||||||||||||
Net realized and unrealized investment (losses) gains | (237) | 4,757 | 4,946 | 6,392 | ||||||||||||||||||||||
Net impairment (losses) recoveries recognized in earnings | (7) | (86) | 209 | (3,278) | ||||||||||||||||||||||
Total investment income | 12,328 | 14,071 | 67,332 | 32,867 | ||||||||||||||||||||||
Interest expense, net | 1,050 | 723 | 4,132 | 731 | ||||||||||||||||||||||
Other expense | 3,285 | 190 | 4,893 | 1,778 | ||||||||||||||||||||||
Income before income taxes | 69,827 | 78,210 | 376,404 | 368,515 | ||||||||||||||||||||||
Income tax expense | 14,785 | 15,425 | 78,544 | 75,211 | ||||||||||||||||||||||
Net income | $ | 55,042 | $ | 62,785 | $ | 297,860 | $ | 293,304 | ||||||||||||||||||
Earnings Per Share | ||||||||||||||||||||||||||
Net income per share | ||||||||||||||||||||||||||
Class A common stock – basic | $ | 1.18 | $ | 1.35 | $ | 6.40 | $ | 6.30 | ||||||||||||||||||
Class A common stock – diluted | $ | 1.05 | $ | 1.20 | $ | 5.69 | $ | 5.61 | ||||||||||||||||||
Class B common stock – basic and diluted | $ | 177 | $ | 202 | $ | 959 | $ | 945 | ||||||||||||||||||
Weighted average shares outstanding – Basic | ||||||||||||||||||||||||||
Class A common stock | 46,189,068 | 49,189,001 | 46,188,806 | 46,188,659 | ||||||||||||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||||||||||||
Weighted average shares outstanding – Diluted | ||||||||||||||||||||||||||
Class A common stock | 52,305,628 | 52,315,670 | 52,307,302 | 52,313,360 | ||||||||||||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||||||||||||
Dividends declared per share | ||||||||||||||||||||||||||
Class A common stock | $ | 1.110 | $ | 3.035 | $ | 4.215 | $ | 5.930 | ||||||||||||||||||
Class B common stock | $ | 166.50 | $ | 455.25 | $ | 632.25 | $ | 889.50 |
December 31, 2021 | December 31, 2020 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 183,702 | $ | 161,240 | ||||||||||
Available-for-sale securities | 38,396 | 17,697 | ||||||||||||
Equity securities | 0 | 19 | ||||||||||||
Receivables from Erie Insurance Exchange and affiliates, net | 479,123 | 494,637 | ||||||||||||
Prepaid expenses and other current assets | 56,206 | 52,561 | ||||||||||||
Accrued investment income | 6,303 | 6,146 | ||||||||||||
Total current assets | 763,730 | 732,300 | ||||||||||||
Available-for-sale securities, net | 907,689 | 910,539 | ||||||||||||
Equity securities | 87,743 | 94,071 | ||||||||||||
Fixed assets, net | 374,802 | 265,341 | ||||||||||||
Agent loans, net | 58,683 | 62,449 | ||||||||||||
Deferred income taxes, net | 145 | 12,341 | ||||||||||||
Other assets | 49,265 | 40,081 | ||||||||||||
Total assets | $ | 2,242,057 | $ | 2,117,122 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Commissions payable | $ | 270,746 | $ | 262,338 | ||||||||||
Agent bonuses | 120,437 | 110,158 | ||||||||||||
Accounts payable and accrued liabilities | 138,317 | 150,706 | ||||||||||||
Dividends payable | 51,693 | 48,200 | ||||||||||||
Contract liability | 34,935 | 36,917 | ||||||||||||
Deferred executive compensation | 12,637 | 17,319 | ||||||||||||
Current portion of long-term borrowings | 2,098 | 2,031 | ||||||||||||
Total current liabilities | 630,863 | 627,669 | ||||||||||||
Defined benefit pension plan | 130,383 | 164,346 | ||||||||||||
Long-term borrowings | 91,734 | 93,833 | ||||||||||||
Contract liability | 17,686 | 18,878 | ||||||||||||
Deferred executive compensation | 14,571 | 14,904 | ||||||||||||
Other long-term liabilities | 14,342 | 9,444 | ||||||||||||
Total liabilities | 899,579 | 929,074 | ||||||||||||
Shareholders' equity | 1,342,478 | 1,188,048 | ||||||||||||
Total liabilities and shareholders' equity | $ | 2,242,057 | $ | 2,117,122 |