Attached files
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EX-99.1 - EX-99.1 - ERIE INDEMNITY CO | ex-99109302020.htm |
8-K - 8-K - ERIE INDEMNITY CO | erie-20201029.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, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(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, net | 14,910 | 14,430 | 44,494 | 42,576 | ||||||||||||||||||||||
Administrative services reimbursement revenue | 147,710 | 142,730 | 451,229 | 431,305 | ||||||||||||||||||||||
Service agreement revenue | 6,310 | 7,155 | 19,418 | 20,754 | ||||||||||||||||||||||
Total operating revenue | 653,481 | 638,742 | 1,927,237 | 1,880,558 | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Cost of operations - policy issuance and renewal services | 409,546 | 390,105 | 1,202,903 | 1,160,614 | ||||||||||||||||||||||
Cost of operations - administrative services | 147,710 | 142,730 | 451,229 | 431,305 | ||||||||||||||||||||||
Total operating expenses | 557,256 | 532,835 | 1,654,132 | 1,591,919 | ||||||||||||||||||||||
Operating income | 96,225 | 105,907 | 273,105 | 288,639 | ||||||||||||||||||||||
Investment income | ||||||||||||||||||||||||||
Net investment income | 7,030 | 8,652 | 22,772 | 25,199 | ||||||||||||||||||||||
Net realized investment gains | 5,915 | 1,696 | 1,635 | 5,501 | ||||||||||||||||||||||
Net impairment losses recognized in earnings | (122) | (31) | (3,192) | (193) | ||||||||||||||||||||||
Equity in earnings (losses) of limited partnerships | 3,615 | 3,289 | (2,419) | 2,546 | ||||||||||||||||||||||
Total investment income | 16,438 | 13,606 | 18,796 | 33,053 | ||||||||||||||||||||||
Interest expense, net | 3 | 111 | 8 | 832 | ||||||||||||||||||||||
Other (expense) income | (964) | 100 | (1,588) | 195 | ||||||||||||||||||||||
Income before income taxes | 111,696 | 119,502 | 290,305 | 321,055 | ||||||||||||||||||||||
Income tax expense | 22,480 | 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 stock | 46,189,030 | 46,189,006 | 46,188,544 | 46,188,767 | ||||||||||||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||||||||||||
Weighted average shares outstanding – Diluted | ||||||||||||||||||||||||||
Class A common stock | 52,310,429 | 52,325,125 | 52,312,588 | 52,317,275 | ||||||||||||||||||||||
Class B common stock | 2,542 | 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, 2020 | December 31, 2019 | |||||||||||||
(Unaudited) | ||||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 216,355 | $ | 336,739 | ||||||||||
Available-for-sale securities | 13,429 | 32,810 | ||||||||||||
Equity securities | 0 | 2,381 | ||||||||||||
Receivables from Erie Insurance Exchange and affiliates, net | 501,192 | 468,636 | ||||||||||||
Prepaid expenses and other current assets | 52,008 | 44,943 | ||||||||||||
Federal income taxes recoverable | 3,965 | 462 | ||||||||||||
Accrued investment income | 5,973 | 5,433 | ||||||||||||
Total current assets | 792,922 | 891,404 | ||||||||||||
Available-for-sale securities, net | 894,625 | 697,891 | ||||||||||||
Equity securities | 94,435 | 64,752 | ||||||||||||
Limited partnership investments | 10,006 | 26,775 | ||||||||||||
Fixed assets, net | 254,908 | 221,379 | ||||||||||||
Agent loans, net | 58,339 | 60,978 | ||||||||||||
Deferred income taxes, net | 21,618 | 17,186 | ||||||||||||
Other assets | 32,489 | 35,875 | ||||||||||||
Total assets | $ | 2,159,342 | $ | 2,016,240 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Commissions payable | $ | 275,594 | $ | 262,963 | ||||||||||
Agent bonuses | 85,709 | 96,053 | ||||||||||||
Accounts payable and accrued liabilities | 148,075 | 134,957 | ||||||||||||
Dividends payable | 44,940 | 44,940 | ||||||||||||
Contract liability | 37,420 | 35,938 | ||||||||||||
Deferred executive compensation | 12,701 | 10,882 | ||||||||||||
Current portion of long-term borrowings | 2,021 | 1,979 | ||||||||||||
Total current liabilities | 606,460 | 587,712 | ||||||||||||
Defined benefit pension plans | 169,358 | 145,659 | ||||||||||||
Long-term borrowings | 94,337 | 95,842 | ||||||||||||
Contract liability | 19,140 | 18,435 | ||||||||||||
Deferred executive compensation | 11,335 | 13,734 | ||||||||||||
Other long-term liabilities | 11,495 | 21,605 | ||||||||||||
Total liabilities | 912,125 | 882,987 | ||||||||||||
Shareholders’ equity | 1,247,217 | 1,133,253 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 2,159,342 | $ | 2,016,240 |
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