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Published: 2021-07-29 16:21:18 ET
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EX-99.2 3 ex-99206302021.htm EX-99.2 Document

Exhibit 99.2
Erie Indemnity Company
Statements of Operations
(dollars in thousands, except per share data)
Three months ended June 30,Six months ended June 30,
2021202020212020
(Unaudited)(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services$502,271 $483,795 $957,989 $927,545 
Management fee revenue - administrative services14,667 14,813 29,514 29,584 
Administrative services reimbursement revenue157,190 151,965 310,723 303,519 
Service agreement revenue5,902 6,446 11,981 13,108 
Total operating revenue680,030 657,019 1,310,207 1,273,756 
Operating expenses
Cost of operations - policy issuance and renewal services437,775 413,865 838,324 793,357 
Cost of operations - administrative services157,190 151,965 310,723 303,519 
Total operating expenses594,965 565,830 1,149,047 1,096,876 
Operating income85,065 91,189 161,160 176,880 
Investment income
Net investment income13,650 5,044 30,747 9,708 
Net realized investment gains (losses)2,769 6,526 3,573 (4,280)
Net impairment (losses) recoveries recognized in earnings(1)(17)86 (3,070)
Total investment income16,418 11,553 34,406 2,358 
Interest expense, net1,039 2 2,048 5 
Other expense548 258 1,067 624 
Income before income taxes99,896 102,482 192,451 178,609 
Income tax expense20,867 20,505 39,856 37,306 
Net income$79,029 $81,977 $152,595 $141,303 
Net income per share
Class A common stock – basic$1.70 $1.76 $3.28 $3.03 
Class A common stock – diluted$1.51 $1.57 $2.92 $2.70 
Class B common stock – basic and diluted$255 $264 $491 $455 
Weighted average shares outstanding – Basic
Class A common stock46,188,289 46,187,808 46,188,573 46,188,299 
Class B common stock2,542 2,542 2,542 2,542 
Weighted average shares outstanding – Diluted
Class A common stock52,302,370 52,302,981 52,309,163 52,313,667 
Class B common stock2,542 2,542 2,542 2,542 
Dividends declared per share
Class A common stock$1.035 $0.965 $2.070 $1.930 
Class B common stock$155.25 $144.75 $310.50 $289.50 
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Erie Indemnity Company
Statements of Financial Position
(in thousands)
June 30, 2021December 31, 2020
(Unaudited)
Assets
Current assets:
Cash and cash equivalents$156,038 $161,240 
Available-for-sale securities20,856 17,697 
Equity securities207 19 
Receivables from Erie Insurance Exchange and affiliates, net504,013 494,637 
Prepaid expenses and other current assets59,574 52,561 
Accrued investment income6,121 6,146 
Total current assets746,809 732,300 
Available-for-sale securities, net915,942 910,539 
Equity securities93,798 94,071 
Fixed assets, net280,402 265,341 
Agent loans, net60,070 62,449 
Deferred income taxes, net17,971 12,341 
Other assets48,652 40,081 
Total assets$2,163,644 $2,117,122 
Liabilities and shareholders' equity
Current liabilities:
Commissions payable$284,234 $262,338 
Agent bonuses62,694 110,158 
Accounts payable and accrued liabilities150,346 150,706 
Dividends payable48,200 48,200 
Contract liability35,742 36,917 
Deferred executive compensation8,581 17,319 
Current portion of long-term borrowings2,064 2,031 
Total current liabilities591,861 627,669 
Defined benefit pension plans184,111 164,346 
Long-term borrowings92,795 93,833 
Contract liability18,135 18,878 
Deferred executive compensation13,773 14,904 
Other long-term liabilities17,867 9,444 
Total liabilities918,542 929,074 
Shareholders’ equity1,245,102 1,188,048 
Total liabilities and shareholders’ equity$2,163,644 $2,117,122 
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