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Published: 2020-10-29 16:20:52 ET
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EX-99.2 3 ex-99209302020.htm EX-99.2 Document

Exhibit 99.2
Erie Indemnity Company
Statements of Operations
(dollars in thousands, except per share data)
Three months ended September 30,Nine months ended September 30,
2020201920202019
(Unaudited)(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services, net$484,551 $474,427 $1,412,096 $1,385,923 
Management fee revenue - administrative services, net14,910 14,430 44,494 42,576 
Administrative services reimbursement revenue147,710 142,730 451,229 431,305 
Service agreement revenue6,310 7,155 19,418 20,754 
Total operating revenue653,481 638,742 1,927,237 1,880,558 
Operating expenses
Cost of operations - policy issuance and renewal services409,546 390,105 1,202,903 1,160,614 
Cost of operations - administrative services147,710 142,730 451,229 431,305 
Total operating expenses557,256 532,835 1,654,132 1,591,919 
Operating income96,225 105,907 273,105 288,639 
Investment income
Net investment income7,030 8,652 22,772 25,199 
Net realized investment gains5,915 1,696 1,635 5,501 
Net impairment losses recognized in earnings(122)(31)(3,192)(193)
Equity in earnings (losses) of limited partnerships3,615 3,289 (2,419)2,546 
Total investment income16,438 13,606 18,796 33,053 
Interest expense, net3 111 8 832 
Other (expense) income(964)100 (1,588)195 
Income before income taxes111,696 119,502 290,305 321,055 
Income tax expense22,480 25,333 59,786 63,821 
Net income$89,216 $94,169 $230,519 $257,234 
Net income per share
Class A common stock – basic$1.92 $2.02 $4.95 $5.52 
Class A common stock – diluted$1.71 $1.80 $4.41 $4.92 
Class B common stock – basic$287 $303 $742 $829 
Class B common stock – diluted$287 $303 $742 $828 
Weighted average shares outstanding – Basic
Class A common stock46,189,030 46,189,006 46,188,544 46,188,767 
Class B common stock2,542 2,542 2,542 2,542 
Weighted average shares outstanding – Diluted
Class A common stock52,310,429 52,325,125 52,312,588 52,317,275 
Class B common stock2,542 2,542 2,542 2,542 
Dividends declared per share
Class A common stock$0.965 $0.90 $2.895 $2.70 
Class B common stock$144.75 $135.00 $434.25 $405.00 
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Erie Indemnity Company
Statements of Financial Position
(in thousands)
September 30, 2020December 31, 2019
(Unaudited)
Assets
Current assets:
Cash and cash equivalents$216,355 $336,739 
Available-for-sale securities13,429 32,810 
Equity securities0 2,381 
Receivables from Erie Insurance Exchange and affiliates, net501,192 468,636 
Prepaid expenses and other current assets52,008 44,943 
Federal income taxes recoverable3,965 462 
Accrued investment income5,973 5,433 
Total current assets792,922 891,404 
Available-for-sale securities, net894,625 697,891 
Equity securities94,435 64,752 
Limited partnership investments10,006 26,775 
Fixed assets, net254,908 221,379 
Agent loans, net58,339 60,978 
Deferred income taxes, net21,618 17,186 
Other assets32,489 35,875 
Total assets$2,159,342 $2,016,240 
Liabilities and shareholders' equity
Current liabilities:
Commissions payable$275,594 $262,963 
Agent bonuses85,709 96,053 
Accounts payable and accrued liabilities148,075 134,957 
Dividends payable44,940 44,940 
Contract liability37,420 35,938 
Deferred executive compensation12,701 10,882 
Current portion of long-term borrowings2,021 1,979 
Total current liabilities606,460 587,712 
Defined benefit pension plans169,358 145,659 
Long-term borrowings94,337 95,842 
Contract liability19,140 18,435 
Deferred executive compensation11,335 13,734 
Other long-term liabilities11,495 21,605 
Total liabilities912,125 882,987 
Shareholders’ equity1,247,217 1,133,253 
Total liabilities and shareholders’ equity$2,159,342 $2,016,240 
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