Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - ERIE INDEMNITY CO | ex-99109302017.htm |
| 8-K - 8-K - ERIE INDEMNITY CO | erie8-k09302017.htm |
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, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Operating revenue | ||||||||||||||||
Management fee revenue, net | $ | 435,214 | $ | 411,139 | $ | 1,268,591 | $ | 1,195,262 | ||||||||
Service agreement revenue | 7,278 | 7,267 | 21,781 | 21,756 | ||||||||||||
Total operating revenue | 442,492 | 418,406 | 1,290,372 | 1,217,018 | ||||||||||||
Operating expenses | ||||||||||||||||
Commissions | 248,677 | 232,455 | 720,538 | 676,963 | ||||||||||||
Salaries and employee benefits | 60,499 | 53,265 | 181,013 | 161,579 | ||||||||||||
All other operating expenses | 52,480 | 50,431 | 158,407 | 142,797 | ||||||||||||
Total operating expenses | 361,656 | 336,151 | 1,059,958 | 981,339 | ||||||||||||
Operating income | 80,836 | 82,255 | 230,414 | 235,679 | ||||||||||||
Investment income | ||||||||||||||||
Net investment income | 5,970 | 5,331 | 18,184 | 14,884 | ||||||||||||
Net realized investment gains | 899 | 718 | 1,539 | 29 | ||||||||||||
Net impairment losses recognized in earnings | 0 | 0 | (182 | ) | (345 | ) | ||||||||||
Equity in earnings (losses) of limited partnerships | 1,537 | (1,723 | ) | 1,899 | (279 | ) | ||||||||||
Total investment income | 8,406 | 4,326 | 21,440 | 14,289 | ||||||||||||
Interest expense, net | 377 | — | 800 | — | ||||||||||||
Income before income taxes | 88,865 | 86,581 | 251,054 | 249,968 | ||||||||||||
Income tax expense | 30,322 | 29,205 | 86,108 | 85,388 | ||||||||||||
Net income | $ | 58,543 | $ | 57,376 | $ | 164,946 | $ | 164,580 | ||||||||
Earnings Per Share | ||||||||||||||||
Net income per share | ||||||||||||||||
Class A common stock – basic | $ | 1.26 | $ | 1.23 | $ | 3.54 | $ | 3.53 | ||||||||
Class A common stock – diluted | $ | 1.12 | $ | 1.09 | $ | 3.15 | $ | 3.14 | ||||||||
Class B common stock – basic | $ | 189 | $ | 185 | $ | 531 | $ | 530 | ||||||||
Class B common stock – diluted | $ | 189 | $ | 185 | $ | 531 | $ | 529 | ||||||||
Weighted average shares outstanding – Basic | ||||||||||||||||
Class A common stock | 46,188,949 | 46,188,980 | 46,186,109 | 46,188,971 | ||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||
Weighted average shares outstanding – Diluted | ||||||||||||||||
Class A common stock | 52,316,876 | 52,411,303 | 52,342,450 | 52,442,697 | ||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||
Dividends declared per share | ||||||||||||||||
Class A common stock | $ | 0.7825 | $ | 0.7300 | $ | 2.3475 | $ | 2.1900 | ||||||||
Class B common stock | $ | 117.375 | $ | 109.500 | $ | 352.125 | $ | 328.500 | ||||||||
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Erie Indemnity Company
Statements of Financial Position
(in thousands)
September 30, 2017 | December 31, 2016 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 184,628 | $ | 189,072 | ||||
Available-for-sale securities | 65,318 | 56,138 | ||||||
Receivables from Erie Insurance Exchange and affiliates | 428,500 | 378,540 | ||||||
Prepaid expenses and other current assets | 35,797 | 30,169 | ||||||
Federal income taxes recoverable | 0 | 5,260 | ||||||
Accrued investment income | 6,435 | 6,337 | ||||||
Total current assets | 720,678 | 665,516 | ||||||
Available-for-sale securities | 683,948 | 657,153 | ||||||
Limited partnership investments | 49,451 | 58,159 | ||||||
Fixed assets, net | 75,370 | 69,142 | ||||||
Deferred income taxes, net | 47,558 | 53,889 | ||||||
Note receivable from Erie Family Life Insurance Company | 25,000 | 25,000 | ||||||
Other assets | 29,424 | 20,096 | ||||||
Total assets | $ | 1,631,429 | $ | 1,548,955 | ||||
Liabilities and shareholders' equity | ||||||||
Current liabilities: | ||||||||
Commissions payable | $ | 236,056 | $ | 210,559 | ||||
Agent bonuses | 93,448 | 114,772 | ||||||
Accounts payable and accrued liabilities | 99,331 | 88,153 | ||||||
Dividends payable | 36,441 | 36,441 | ||||||
Deferred executive compensation | 12,794 | 19,675 | ||||||
Federal income taxes payable | 5,331 | 0 | ||||||
Total current liabilities | 483,401 | 469,600 | ||||||
Defined benefit pension plans | 208,528 | 221,827 | ||||||
Employee benefit obligations | 330 | 756 | ||||||
Deferred executive compensation | 12,777 | 13,233 | ||||||
Long-term borrowings | 49,734 | 24,766 | ||||||
Other long-term liabilities | 1,509 | 1,863 | ||||||
Total liabilities | 756,279 | 732,045 | ||||||
Shareholders’ equity | 875,150 | 816,910 | ||||||
Total liabilities and shareholders’ equity | $ | 1,631,429 | $ | 1,548,955 | ||||
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