Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - ERIE INDEMNITY CO | ex-99106302018.htm |
| 8-K - 8-K - ERIE INDEMNITY CO | erie8-k06302018.htm |
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, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Operating revenue | ||||||||||||||||
Management fee revenue - policy issuance and renewal services, net | $ | 454,572 | $ | 441,319 | $ | 860,550 | $ | 833,377 | ||||||||
Management fee revenue - administrative services, net | 13,299 | — | 26,373 | — | ||||||||||||
Administrative services reimbursement revenue | 146,507 | — | 292,470 | — | ||||||||||||
Service agreement revenue | 7,080 | 7,245 | 14,225 | 14,503 | ||||||||||||
Total operating revenue | 621,458 | 448,564 | 1,193,618 | 847,880 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of operations - policy issuance and renewal services | 379,628 | 365,116 | 728,258 | 697,492 | ||||||||||||
Cost of operations - administrative services | 146,507 | — | 292,470 | — | ||||||||||||
Total operating expenses | 526,135 | 365,116 | 1,020,728 | 697,492 | ||||||||||||
Operating income | 95,323 | 83,448 | 172,890 | 150,388 | ||||||||||||
Investment income | ||||||||||||||||
Net investment income | 7,104 | 6,239 | 13,924 | 12,220 | ||||||||||||
Net realized investment (losses) gains | (32 | ) | 124 | (497 | ) | 640 | ||||||||||
Net impairment losses recognized in earnings | (646 | ) | (61 | ) | (646 | ) | (182 | ) | ||||||||
Equity in (losses) earnings of limited partnerships | (219 | ) | 149 | (411 | ) | 362 | ||||||||||
Total investment income | 6,207 | 6,451 | 12,370 | 13,040 | ||||||||||||
Interest expense, net | 602 | 257 | 1,155 | 423 | ||||||||||||
Other income (expense) | 58 | (407 | ) | 102 | (816 | ) | ||||||||||
Income before income taxes | 100,986 | 89,235 | 184,207 | 162,189 | ||||||||||||
Income tax expense | 21,280 | 30,708 | 38,743 | 55,786 | ||||||||||||
Net income | $ | 79,706 | $ | 58,527 | $ | 145,464 | $ | 106,403 | ||||||||
Net income per share | ||||||||||||||||
Class A common stock – basic | $ | 1.71 | $ | 1.26 | $ | 3.12 | $ | 2.28 | ||||||||
Class A common stock – diluted | $ | 1.52 | $ | 1.12 | $ | 2.78 | $ | 2.03 | ||||||||
Class B common stock – basic | $ | 257 | $ | 189 | $ | 469 | $ | 343 | ||||||||
Class B common stock – diluted | $ | 257 | $ | 188 | $ | 468 | $ | 343 | ||||||||
Weighted average shares outstanding – Basic | ||||||||||||||||
Class A common stock | 46,188,705 | 46,180,852 | 46,188,309 | 46,184,666 | ||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||
Weighted average shares outstanding – Diluted | ||||||||||||||||
Class A common stock | 52,312,849 | 52,299,395 | 52,311,741 | 52,355,214 | ||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||
Dividends declared per share | ||||||||||||||||
Class A common stock | $ | 0.8400 | $ | 0.7825 | $ | 1.6800 | $ | 1.5650 | ||||||||
Class B common stock | $ | 126.000 | $ | 117.375 | $ | 252.000 | $ | 234.750 | ||||||||
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Erie Indemnity Company
Statements of Financial Position
(in thousands)
June 30, 2018 | December 31, 2017 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 198,412 | $ | 215,721 | ||||
Available-for-sale securities | 107,369 | 71,190 | ||||||
Receivables from Erie Insurance Exchange and affiliates | 445,211 | 418,328 | ||||||
Prepaid expenses and other current assets | 45,426 | 34,890 | ||||||
Federal income taxes recoverable | 0 | 29,900 | ||||||
Note receivable from Erie Family Life Insurance Company | 25,000 | 25,000 | ||||||
Accrued investment income | 6,647 | 6,853 | ||||||
Total current assets | 828,065 | 801,882 | ||||||
Available-for-sale securities | 598,059 | 687,523 | ||||||
Equity securities | 12,488 | — | ||||||
Limited partnership investments | 39,651 | 45,122 | ||||||
Fixed assets, net | 94,651 | 83,149 | ||||||
Deferred income taxes, net | 31,527 | 19,390 | ||||||
Other assets | 47,834 | 28,793 | ||||||
Total assets | $ | 1,652,275 | $ | 1,665,859 | ||||
Liabilities and shareholders' equity | ||||||||
Current liabilities: | ||||||||
Commissions payable | $ | 253,328 | $ | 228,124 | ||||
Agent bonuses | 56,482 | 122,528 | ||||||
Accounts payable and accrued liabilities | 97,139 | 104,533 | ||||||
Dividends payable | 39,119 | 39,116 | ||||||
Contract liability | 33,137 | — | ||||||
Deferred executive compensation | 8,801 | 15,605 | ||||||
Federal income taxes payable | 8,933 | 0 | ||||||
Current portion of long-term borrowings | 925 | 0 | ||||||
Total current liabilities | 497,864 | 509,906 | ||||||
Defined benefit pension plans | 145,667 | 207,530 | ||||||
Employee benefit obligations | 194 | 423 | ||||||
Contract liability | 17,452 | — | ||||||
Deferred executive compensation | 11,688 | 14,452 | ||||||
Long-term borrowings | 98,800 | 74,728 | ||||||
Other long-term liabilities | 422 | 1,476 | ||||||
Total liabilities | 772,087 | 808,515 | ||||||
Shareholders’ equity | 880,188 | 857,344 | ||||||
Total liabilities and shareholders’ equity | $ | 1,652,275 | $ | 1,665,859 | ||||
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