Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ERIE INDEMNITY CO | erie8-k06302017.htm |
| EX-99.1 - EXHIBIT 99.1 - ERIE INDEMNITY CO | ex-99106302017.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, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Operating revenue | ||||||||||||||||
Management fee revenue, net | $ | 441,319 | $ | 416,665 | $ | 833,377 | $ | 784,123 | ||||||||
Service agreement revenue | 7,245 | 7,219 | 14,503 | 14,489 | ||||||||||||
Total operating revenue | 448,564 | 423,884 | 847,880 | 798,612 | ||||||||||||
Operating expenses | ||||||||||||||||
Commissions | 251,383 | 235,794 | 471,861 | 444,508 | ||||||||||||
Salaries and employee benefits | 60,774 | 55,025 | 120,514 | 108,314 | ||||||||||||
All other operating expenses | 53,363 | 47,306 | 105,927 | 92,366 | ||||||||||||
Total operating expenses | 365,520 | 338,125 | 698,302 | 645,188 | ||||||||||||
Operating income | 83,044 | 85,759 | 149,578 | 153,424 | ||||||||||||
Investment income | ||||||||||||||||
Net investment income | 6,236 | 4,891 | 12,214 | 9,553 | ||||||||||||
Net realized investment gains (losses) | 124 | 399 | 640 | (689 | ) | |||||||||||
Net impairment losses recognized in earnings | (61 | ) | 0 | (182 | ) | (345 | ) | |||||||||
Equity in earnings of limited partnerships | 149 | 2,114 | 362 | 1,444 | ||||||||||||
Total investment income | 6,448 | 7,404 | 13,034 | 9,963 | ||||||||||||
Interest expense, net | 257 | — | 423 | — | ||||||||||||
Income before income taxes | 89,235 | 93,163 | 162,189 | 163,387 | ||||||||||||
Income tax expense | 30,708 | 31,854 | 55,786 | 56,183 | ||||||||||||
Net income | $ | 58,527 | $ | 61,309 | $ | 106,403 | $ | 107,204 | ||||||||
Earnings Per Share | ||||||||||||||||
Net income per share | ||||||||||||||||
Class A common stock – basic | $ | 1.26 | $ | 1.32 | $ | 2.28 | $ | 2.30 | ||||||||
Class A common stock – diluted | $ | 1.12 | $ | 1.17 | $ | 2.03 | $ | 2.04 | ||||||||
Class B common stock – basic and diluted | $ | 189 | $ | 197 | $ | 343 | $ | 345 | ||||||||
Class B common stock – diluted | $ | 188 | $ | 197 | $ | 343 | $ | 345 | ||||||||
Weighted average shares outstanding – Basic | ||||||||||||||||
Class A common stock | 46,180,852 | 46,188,867 | 46,184,666 | 46,188,967 | ||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||
Weighted average shares outstanding – Diluted | ||||||||||||||||
Class A common stock | 52,299,395 | 52,392,862 | 52,355,214 | 52,458,394 | ||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||
Dividends declared per share | ||||||||||||||||
Class A common stock | $ | 0.7825 | $ | 0.7300 | $ | 1.565 | $ | 1.460 | ||||||||
Class B common stock | $ | 117.3750 | $ | 109.5000 | $ | 234.750 | $ | 219.000 | ||||||||
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Erie Indemnity Company
Statements of Financial Position
(in thousands)
June 30, 2017 | December 31, 2016 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 144,709 | $ | 189,072 | ||||
Available-for-sale securities | 72,057 | 56,138 | ||||||
Receivables from Erie Insurance Exchange and affiliates | 411,422 | 378,540 | ||||||
Prepaid expenses and other current assets | 36,023 | 30,169 | ||||||
Federal income taxes recoverable | 0 | 5,260 | ||||||
Accrued investment income | 6,874 | 6,337 | ||||||
Total current assets | 671,085 | 665,516 | ||||||
Available-for-sale securities | 672,625 | 657,153 | ||||||
Limited partnership investments | 53,230 | 58,159 | ||||||
Fixed assets, net | 71,119 | 69,142 | ||||||
Deferred income taxes, net | 51,811 | 53,889 | ||||||
Note receivable from Erie Family Life Insurance Company | 25,000 | 25,000 | ||||||
Other assets | 22,355 | 20,096 | ||||||
Total assets | $ | 1,567,225 | $ | 1,548,955 | ||||
Liabilities and shareholders' equity | ||||||||
Current liabilities: | ||||||||
Commissions payable | $ | 232,905 | $ | 210,559 | ||||
Agent bonuses | 62,845 | 114,772 | ||||||
Accounts payable and accrued liabilities | 86,844 | 88,153 | ||||||
Dividends payable | 36,441 | 36,441 | ||||||
Deferred executive compensation | 9,898 | 19,675 | ||||||
Federal income taxes payable | 2,088 | 0 | ||||||
Total current liabilities | 431,021 | 469,600 | ||||||
Defined benefit pension plans | 219,972 | 221,827 | ||||||
Employee benefit obligations | 462 | 756 | ||||||
Deferred executive compensation | 11,810 | 13,233 | ||||||
Long-term borrowings | 49,742 | 24,766 | ||||||
Other long-term liabilities | 1,004 | 1,863 | ||||||
Total liabilities | 714,011 | 732,045 | ||||||
Shareholders’ equity | 853,214 | 816,910 | ||||||
Total liabilities and shareholders’ equity | $ | 1,567,225 | $ | 1,548,955 | ||||
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