Three months ended March 31, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
(Unaudited) | |||||||||||||||||
Operating revenue | |||||||||||||||||
Management fee revenue - policy issuance and renewal services, net | $ | 455,718 | $ | 443,750 | |||||||||||||
Management fee revenue - administrative services, net | 14,847 | 14,771 | |||||||||||||||
Administrative services reimbursement revenue | 153,533 | 151,554 | |||||||||||||||
Service agreement revenue | 6,079 | 6,662 | |||||||||||||||
Total operating revenue | 630,177 | 616,737 | |||||||||||||||
Operating expenses | |||||||||||||||||
Cost of operations - policy issuance and renewal services | 400,549 | 379,492 | |||||||||||||||
Cost of operations - administrative services | 153,533 | 151,554 | |||||||||||||||
Total operating expenses | 554,082 | 531,046 | |||||||||||||||
Operating income | 76,095 | 85,691 | |||||||||||||||
Investment income | |||||||||||||||||
Net investment income | 17,097 | 4,664 | |||||||||||||||
Net realized investment gains (losses) | 804 | (10,806) | |||||||||||||||
Net impairment recoveries (losses) recognized in earnings | 87 | (3,053) | |||||||||||||||
Total investment income (loss) | 17,988 | (9,195) | |||||||||||||||
Interest expense, net | 1,009 | 3 | |||||||||||||||
Other expense | 519 | 366 | |||||||||||||||
Income before income taxes | 92,555 | 76,127 | |||||||||||||||
Income tax expense | 18,989 | 16,801 | |||||||||||||||
Net income | $ | 73,566 | $ | 59,326 | |||||||||||||
Net income per share | |||||||||||||||||
Class A common stock – basic | $ | 1.58 | $ | 1.27 | |||||||||||||
Class A common stock – diluted | $ | 1.41 | $ | 1.13 | |||||||||||||
Class B common stock – basic and diluted | $ | 237 | $ | 191 | |||||||||||||
Weighted average shares outstanding – Basic | |||||||||||||||||
Class A common stock | 46,188,860 | 46,188,789 | |||||||||||||||
Class B common stock | 2,542 | 2,542 | |||||||||||||||
Weighted average shares outstanding – Diluted | |||||||||||||||||
Class A common stock | 52,315,958 | 52,324,350 | |||||||||||||||
Class B common stock | 2,542 | 2,542 | |||||||||||||||
Dividends declared per share | |||||||||||||||||
Class A common stock | $ | 1.035 | $ | 0.965 | |||||||||||||
Class B common stock | $ | 155.25 | $ | 144.75 |
March 31, 2021 | December 31, 2020 | |||||||||||||
(Unaudited) | ||||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 135,192 | $ | 161,240 | ||||||||||
Available-for-sale securities | 16,847 | 17,697 | ||||||||||||
Equity securities | 146 | 19 | ||||||||||||
Receivables from Erie Insurance Exchange and affiliates, net | 481,481 | 494,637 | ||||||||||||
Prepaid expenses and other current assets | 62,401 | 52,561 | ||||||||||||
Accrued investment income | 5,860 | 6,146 | ||||||||||||
Total current assets | 701,927 | 732,300 | ||||||||||||
Available-for-sale securities, net | 901,475 | 910,539 | ||||||||||||
Equity securities | 92,785 | 94,071 | ||||||||||||
Fixed assets, net | 282,268 | 265,341 | ||||||||||||
Agent loans, net | 59,916 | 62,449 | ||||||||||||
Deferred income taxes, net | 16,454 | 12,341 | ||||||||||||
Other assets | 44,273 | 40,081 | ||||||||||||
Total assets | $ | 2,099,098 | $ | 2,117,122 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Commissions payable | $ | 272,670 | $ | 262,338 | ||||||||||
Agent bonuses | 30,766 | 110,158 | ||||||||||||
Accounts payable and accrued liabilities | 168,127 | 150,706 | ||||||||||||
Dividends payable | 48,200 | 48,200 | ||||||||||||
Contract liability | 35,799 | 36,917 | ||||||||||||
Deferred executive compensation | 13,825 | 17,319 | ||||||||||||
Current portion of long-term borrowings | 2,053 | 2,031 | ||||||||||||
Total current liabilities | 571,440 | 627,669 | ||||||||||||
Defined benefit pension plans | 174,228 | 164,346 | ||||||||||||
Long-term borrowings | 93,311 | 93,833 | ||||||||||||
Contract liability | 18,276 | 18,878 | ||||||||||||
Deferred executive compensation | 16,648 | 14,904 | ||||||||||||
Other long-term liabilities | 17,062 | 9,444 | ||||||||||||
Total liabilities | 890,965 | 929,074 | ||||||||||||
Shareholders’ equity | 1,208,133 | 1,188,048 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 2,099,098 | $ | 2,117,122 |