Net Income per Diluted Share was $1.21 for the Quarter and $10.69 for the Year
ERIE, Pa., Feb. 23, 2026 /PRNewswire/ — Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the full year and quarter ending December 31, 2025. Net income was $559.3 million, or $10.69 per diluted share, in 2025, compared to $600.3 million, or $11.48 per diluted share, in 2024. Net income was $63.4 million, or $1.21 per diluted share, in the fourth quarter of 2025, compared to $152.0 million, or $2.91 per diluted share, in the fourth quarter of 2024. Net income was reduced by $80.6 million, or $1.54 per diluted share, in the fourth quarter and year ended December 31, 2025, reflecting the after-tax impact of a $100 million charitable contribution made to the Erie Insurance Foundation, a tax-exempt private charitable foundation formed in 2025 to create long-term sustainability for charitable contributions and grantmaking.
4Q and Full Year 2025
(in thousands)
4Q’25
4Q’24
2025
2024
Operating income
$Â Â Â Â Â 157,714
$Â Â Â Â Â 167,310
$Â Â Â Â Â 717,184
$Â Â Â Â Â 676,455
Investment income
24,171
20,805
84,861
69,260
Other income
464
3,693
8,558
11,564
Contribution to charitable foundation
(100,000)
—
(100,000)
—
Income before income taxes
82,349
191,808
710,603
757,279
Income tax expense
18,969
39,779
151,268
156,965
Net income
$Â Â Â Â Â Â Â 63,380
$Â Â Â Â Â 152,029
$Â Â Â Â Â 559,335
$Â Â Â Â Â 600,314
2025 Full Year Highlights
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Operating income before taxes increased $40.7 million, or 6.0 percent, in 2025 compared to 2024.
Management fee revenue – policy issuance and renewal services increased $237.7 million, or 8.2 percent, in 2025 compared to 2024.Management fee revenue – administrative services increased $5.7 million, or 8.3 percent in 2025 compared to 2024.Cost of operations – policy issuance and renewal servicesCommissions – Commissions increased $175.6 million in 2025 compared to 2024, primarily driven by the growth in direct and affiliated assumed written premium and an increase in agent incentive compensation due to improved property and casualty underwriting profitability for the three-year period ended 2025 compared to the three-year period ended 2024.Non-commission expense increased $25.5 million in 2025 compared to 2024. Underwriting and policy processing expense increased $4.8 million primarily due to increased postage and personnel costs, partially offset by a decrease in underwriting report costs. Information technology costs increased $24.3 million primarily due to an increase in personnel costs and hardware and software costs. Customer service costs increased $3.5 million primarily due to increased credit card processing fees and personnel costs. Administrative and other costs decreased $7.1 million primarily due to decreased professional fees and personnel costs. Personnel costs in 2025 were impacted by increased healthcare costs compared to 2024. Personnel costs in 2025 were also impacted by decreased incentive compensation compared to 2024. Decreases in incentive plan costs were primarily driven by lower performance metrics compared to 2024 and a decrease in company stock price during 2025 compared to an increase during 2024.The administrative services reimbursement revenue and corresponding cost of operations increased both total operating revenue and total operating expenses by $836.6 million in 2025 and $806.3 million in 2024, but had no net impact on operating income.Â
Income from investments before taxes totaled $84.9 million in 2025 compared to $69.3 million in 2024. Net investment income was $85.8 million in 2025 compared to $70.2 million in 2024. Net investment income included limited partnership earnings of $3.5 million in 2025 compared to $2.0 million in 2024. Net realized and unrealized gains on investments were $2.3 million in 2025 compared to $3.2 million in 2024. Net impairment losses recognized in earnings were $3.3 million in 2025 compared to $4.1 million in 2024.Â
             4Q 2025 Highlights              
Operating income before taxes decreased $9.6 million, or 5.7 percent, in the fourth quarter of 2025 compared to the fourth quarter of 2024.
Management fee revenue – policy issuance and renewal services increased $29.3 million, or 4.2 percent, in the fourth quarter of 2025 compared to the fourth quarter of 2024.Management fee revenue – administrative services increased $2.1 million, or 12.0 percent in the fourth quarter of 2025 compared to the fourth quarter of 2024.Cost of operations – policy issuance and renewal servicesCommissions increased $30.1 million in the fourth quarter of 2025 compared to the fourth quarter of 2024, primarily driven by the growth in direct and affiliated assumed written premium and an increase in agent incentive compensation due to improved property and casualty underwriting profitability for the three-year period ended 2025 compared to the three-year period ended 2024.Non-commission expense increased $10.4 million in the fourth quarter of 2025 compared to the fourth quarter of 2024. Underwriting and policy processing expense decreased $1.2 million primarily due to a decrease in underwriting report costs, partially offset by an increase in personnel costs. Information technology costs increased $4.5 million primarily due to an increase in personnel costs and hardware and software costs. Sales and advertising expense increased $1.4 million primarily due to increased costs from community development initiatives. Administrative and other costs increased $5.8 million primarily due to increased personnel costs, partially offset by decreased professional fees. Personnel costs in the fourth quarter of 2025 were impacted by increased incentive compensation compared to the fourth quarter of 2024. Increases in incentive plan costs were primarily driven by improved performance metrics in the fourth quarter of 2025 compared to the fourth quarter of 2024.The administrative services reimbursement revenue and corresponding cost of operations increased both total operating revenue and total operating expenses by $198.0 million in the fourth quarter of 2025 and $202.0 million in the fourth quarter of 2024, but had no net impact on operating income.Â
Income from investments before taxes totaled $24.2 million in the fourth quarter of 2025 compared to $20.8 million in the fourth quarter of 2024. Net investment income was $24.8 million in the fourth quarter of 2025 compared to $20.9 million in the fourth quarter of 2024. Net investment income included limited partnership earnings of $2.3 million in the fourth quarter of 2025 compared to $1.8 million in the fourth quarter of 2024. Net impairment losses recognized in earnings were $0.7 million in the fourth quarter of 2025 compared to $0.4 million in the fourth quarter of 2024.
Webcast Information
Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on February 24, 2026. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.
Erie Insurance Group
Erie Insurance Group, based in Erie, Pennsylvania, is the 11th largest homeowners insurer, 12th largest automobile insurer and 10th largest commercial lines insurer in the United States based on direct premiums written, according to AM Best Company. Founded in 1925, Erie Insurance is a Fortune 500 company and the 16th largest property/casualty insurer in the United States based on net premiums written. Rated A (Excellent) by AM Best, ERIE has more than 7 million policies in force and operates in 12 states and the District of Columbia.
News releases and more information are available on ERIE’s website at www.erieinsurance.com.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
Statements contained herein that are not historical fact are forward-looking statements and, as such, are subject to risks and uncertainties that could cause actual events and results to differ, perhaps materially, from those discussed herein. Forward-looking statements relate to future trends, events or results and include, without limitation, statements and assumptions on which such statements are based that are related to our plans, strategies, objectives, expectations, intentions, and adequacy of resources. Examples of forward-looking statements are discussions relating to premium and investment income, expenses, operating results, and compliance with contractual and regulatory requirements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Among the risks and uncertainties, in addition to those set forth in our filings with the Securities and Exchange Commission, that could cause actual results and future events to differ from those set forth or contemplated in the forward-looking statements include the following:
dependence upon our relationship with the Erie Insurance Exchange (“Exchange”) and the management fee under the agreement with the subscribers at the Exchange;dependence upon our relationship with the Exchange and the growth of the Exchange, including:general business and economic conditions;factors impacting the timing of premium rates charged for policies;factors affecting insurance industry competition, including technological innovations;dependence upon the independent agency system; andability to maintain our brand, including our reputation for customer service;dependence upon our relationship with the Exchange and the financial condition of the Exchange, including:the Exchange’s ability to maintain acceptable financial strength ratings;factors affecting the quality and liquidity of the Exchange’s investment portfolio;changes in government regulation of the insurance industry;litigation and regulatory actions;emergence of significant unexpected events, including pandemics, economic or social inflation, and changes in tariff policies;emerging claims and coverage issues in the industry; andsevere weather conditions or other catastrophic losses, including terrorism;costs of providing policy issuance and renewal services to the subscribers at the Exchange under the subscriber’s agreement;ability to attract, develop, retain, and protect talented management and employees;ability to ensure system availability and effectively manage technology initiatives;difficulties with technology, data or network security breaches, including cyber attacks;ability to maintain uninterrupted business operations;compliance with complex and evolving laws and regulations and outcome of pending and potential litigation;factors affecting the quality and liquidity of our investment portfolio; andability to meet liquidity needs and access capital.
A forward-looking statement speaks only as of the date on which it is made and reflects our analysis only as of that date. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changes in assumptions, or otherwise.
Erie Indemnity Company
Consolidated Statements of Operations
(dollars in thousands, except per share data)
Three months ended
December 31,
Twelve months ended
December 31,
2025
2024
2025
2024
(Unaudited)
Operating revenue
Management fee revenue – policy issuance and renewal services
$Â Â Â Â Â Â Â 727,629
$Â Â Â Â Â Â Â 698,340
$Â Â Â Â 3,131,806
$Â Â Â Â 2,894,074
Management fee revenue – administrative services
19,286
17,216
74,058
68,355
Administrative services reimbursement revenue
198,028
201,987
836,639
806,336
Service agreement revenue
6,080
6,547
24,755
26,350
Total operating revenue
951,023
924,090
4,067,258
3,795,115
Operating expenses
Cost of operations – policy issuance and renewal services
595,281
554,793
2,513,435
2,312,324
Cost of operations – administrative services
198,028
201,987
836,639
806,336
Total operating expenses
793,309
756,780
3,350,074
3,118,660
Operating income
157,714
167,310
717,184
676,455
Investment income
Net investment income
24,826
20,920
85,837
70,155
Net realized and unrealized investment gains
24
246
2,336
3,229
Net impairment losses recognized in earnings
(679)
(361)
(3,312)
(4,124)
Total investment income
24,171
20,805
84,861
69,260
Other income
464
3,693
8,558
11,564
Contribution to charitable foundation
(100,000)
—
(100,000)
—
Income before income taxes
82,349
191,808
710,603
757,279
Income tax expense
18,969
39,779
151,268
156,965
Net income
$Â Â Â Â Â Â Â Â Â 63,380
$Â Â Â Â Â Â Â 152,029
$Â Â Â Â Â Â Â 559,335
$Â Â Â Â Â Â Â 600,314
Net income per share
Class A common stock – basic
$Â Â Â Â Â Â Â Â Â Â Â Â Â 1.36
$Â Â Â Â Â Â Â Â Â Â Â Â Â 3.26
$Â Â Â Â Â Â Â Â Â Â Â 12.01
$Â Â Â Â Â Â Â Â Â Â Â 12.89
Class A common stock – diluted
$Â Â Â Â Â Â Â Â Â Â Â Â Â 1.21
$Â Â Â Â Â Â Â Â Â Â Â Â Â 2.91
$Â Â Â Â Â Â Â Â Â Â Â 10.69
$Â Â Â Â Â Â Â Â Â Â Â 11.48
Class B common stock – basic
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â 204
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â 490
$Â Â Â Â Â Â Â Â Â Â Â 1,802
$Â Â Â Â Â Â Â Â Â Â Â 1,934
Class B common stock – diluted
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â 204
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â 490
$Â Â Â Â Â Â Â Â Â Â Â 1,801
$Â Â Â Â Â Â Â Â Â Â Â 1,933
Weighted average shares outstanding – Basic
Class A common stock
46,189,058
46,189,060
46,189,024
46,189,044
Class B common stock
2,542
2,542
2,542
2,542
Weighted average shares outstanding – Diluted
Class A common stock
52,307,301
52,310,894
52,305,424
52,306,266
Class B common stock
2,542
2,542
2,542
2,542
Dividends declared per share
Class A common stock
$Â Â Â Â Â Â Â Â Â 1.4625
$Â Â Â Â Â Â Â Â Â Â Â 1.365
$Â Â Â Â Â Â Â Â Â 5.5575
$Â Â Â Â Â Â Â Â Â Â Â Â Â 5.19
Class B common stock
$Â Â Â Â Â Â Â 219.375
$Â Â Â Â Â Â Â Â Â 204.75
$Â Â Â Â Â Â Â 833.625
$Â Â Â Â Â Â Â Â Â 778.50
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Erie Indemnity Company
Consolidated Statements of Financial Position
(in thousands)
December 31, 2025
December 31, 2024
Assets
Current assets:
Cash and cash equivalents (includes restricted cash of $30,189 and $23,559, respectively)
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 345,874
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 298,397
Available-for-sale securities
33,902
44,604
Available-for-sale securities lent
3,436
0
Receivables from Erie Insurance Exchange and affiliates, net
735,589
707,060
Prepaid expenses and other current assets, net
66,061
83,902
Accrued investment income
14,311
11,069
Total current assets
1,199,173
1,145,032
Available-for-sale securities, net
1,286,566
991,726
Equity securities
70,624
85,891
Available-for-sale and equity securities lent
61,063
7,285
Fixed assets, net
571,476
513,494
Agent loans, net
93,953
80,597
Defined benefit pension plan
24,137
21,311
Other assets, net
48,489
43,278
Total assets
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 3,355,481
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2,888,614
Liabilities and shareholders’ equity
Current liabilities:
Commissions payable
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 425,320
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 408,309
Agent incentive compensation
132,560
75,458
Accounts payable and accrued liabilities
200,701
190,028
Dividends payable
68,109
63,569
Contract liability
47,561
42,761
Deferred executive compensation
9,400
14,874
Securities lending payable
61,936
7,513
Total current liabilities
945,587
802,512
Defined benefit pension plan
33,410
28,070
Contract liability
23,274
21,170
Deferred executive compensation
22,050
19,721
Deferred income taxes, net
24,788
6,418
Other long-term liabilities
22,998
23,465
Total liabilities
1,072,107
901,356
Shareholders’ equity
2,283,374
1,987,258
Total liabilities and shareholders’ equity
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 3,355,481
$Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2,888,614
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SOURCE Erie Indemnity Company