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Published: 2021-02-25 16:21:12 ET
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EX-99.2 3 ex-99212312020.htm EX-99.2 Document

Exhibit 99.2

Erie Indemnity Company
Statements of Operations
(dollars in thousands, except per share data)
Three months ended December 31,Twelve months ended December 31,
2020201920202019
(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services, net$429,698 $424,534 $1,841,794 $1,810,457 
Management fee revenue - administrative services, net14,969 14,628 59,463 57,204 
Administrative services reimbursement revenue158,206 150,705 609,435 582,010 
Service agreement revenue6,379 6,873 25,797 27,627 
Total operating revenue609,252 596,740 2,536,489 2,477,298 
Operating expenses
Cost of operations - policy issuance and renewal services385,994 377,335 1,588,897 1,537,949 
Cost of operations - administrative services158,206 150,705 609,435 582,010 
Total operating expenses544,200 528,040 2,198,332 2,119,959 
Operating income
65,052 68,700 338,157 357,339 
Investment income
Net investment income9,400 6,314 29,753 34,059 
Net realized investment gains4,757 602 6,392 6,103 
Net impairment losses recognized in earnings(86)(2)(3,278)(195)
Total investment income
14,071 6,914 32,867 39,967 
Interest expense, net723 24 731 856 
Other (expense) income(190)60 (1,778)255 
Income before income taxes78,210 75,650 368,515 396,705 
Income tax expense15,425 16,063 75,211 79,884 
Net income
$62,785 $59,587 $293,304 $316,821 
Earnings Per Share
Net income per share
Class A common stock – basic$1.35 $1.28 $6.30 $6.80 
Class A common stock – diluted$1.20 $1.14 $5.61 $6.06 
Class B common stock – basic and diluted$202 $192 $945 $1,020 
Weighted average shares outstanding – Basic
Class A common stock49,189,001 46,189,033 46,188,659 46,188,836 
Class B common stock2,542 2,542 2,542 2,542 
Weighted average shares outstanding – Diluted
Class A common stock52,315,670 52,327,607 52,313,360 52,319,860 
Class B common stock2,542 2,542 2,542 2,542 
Dividends declared per share
Class A common stock$3.035 $0.965 $5.930 $3.665 
Class B common stock$455.25 $144.75 $889.50 $549.75 



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Erie Indemnity Company
Statements of Financial Position
(in thousands)
December 31, 2020December 31, 2019
Assets
Current assets:
Cash and cash equivalents$161,240 $336,739 
Available-for-sale securities17,697 32,810 
Equity securities19 2,381 
Receivables from Erie Insurance Exchange and affiliates, net494,637 468,636 
Prepaid expenses and other current assets49,897 44,943 
Federal income taxes recoverable2,664 462 
Accrued investment income6,146 5,433 
Total current assets732,300 891,404 
Available-for-sale securities, net910,539 697,891 
Equity securities94,071 64,752 
Fixed assets, net265,341 221,379 
Agent loans, net62,449 60,978 
Deferred income taxes, net12,341 17,186 
Other assets40,081 62,650 
Total assets$2,117,122 $2,016,240 
Liabilities and shareholders' equity
Current liabilities:
Commissions payable$262,338 $262,963 
Agent bonuses110,158 96,053 
Accounts payable and accrued liabilities150,706 134,957 
Dividends payable48,200 44,940 
Contract liability36,917 35,938 
Deferred executive compensation17,319 10,882 
Current portion of long-term borrowings2,031 1,979 
Total current liabilities627,669 587,712 
Defined benefit pension plan164,346 145,659 
Long-term borrowings93,833 95,842 
Contract liability18,878 18,435 
Deferred executive compensation14,904 13,734 
Other long-term liabilities9,444 21,605 
Total liabilities929,074 882,987 
Shareholders' equity1,188,048 1,133,253 
Total liabilities and shareholders' equity$2,117,122 $2,016,240 


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