Net Income was $150.5 million, Earnings per Diluted Share was $2.88

ERIE, Pa., April 23, 2026 /PRNewswire/ — Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter ending March 31, 2026.  Net income was $150.5 million, or $2.88 per diluted share, in the first quarter of 2026, compared to $138.4 million, or $2.65 per diluted share, in the first quarter of 2025. 

1Q 2026


(in thousands)

1Q’26

1Q’25


Operating income

$      166,787

$      151,376


Investment income

22,119

19,536


Other income

1,420

3,834


Income before income taxes

190,326

174,746


Income tax expense

39,852

36,329


Net income

$      150,474

$      138,417










1Q 2026 Highlights

Operating income before taxes increased $15.4 million, or 10.2 percent, in the first quarter of 2026 compared to the first quarter of 2025.

Management fee revenue – policy issuance and renewal services increased $31.4 million, or 4.2 percent, in the first quarter of 2026 compared to the first quarter of 2025.
Management fee revenue – administrative services increased $1.8 million, or 10.4 percent, in the first quarter of 2026 compared to the first quarter of 2025.
Cost of operations – policy issuance and renewal services

Commissions increased $28.0 million in the first quarter of 2026, compared to the same period in 2025, primarily driven by an increase in agent incentive compensation and the growth in direct and affiliated assumed written premium.
Non-commission expense decreased $10.7 million in the first quarter of 2026 compared to the first quarter of 2025.  Personnel costs increased $2.1 million, primarily driven by higher pension costs and increased compensation.  Sales and advertising decreased $2.0 million primarily due to a decrease in advertising costs and community development initiative costs.  Acquisition and underwriting support costs decreased $1.9 million primarily due to lower underwriting report costs.  Professional fees decreased $7.0 million primarily due to reduced use of third-party services related to technology initiatives.  Administrative and other costs decreased $1.6 million primarily due to lower charitable contributions related to the transition of charitable giving through the Erie Insurance Foundation, partially offset by an increase in credit card processing fees.

Income from investments before taxes totaled $22.1 million in the first quarter of 2026 compared to $19.5 million in the first quarter of 2025.  Net investment income was $23.6 million in the first quarter of 2026 compared to $19.9 million in the first quarter of 2025.  Net realized and unrealized losses were $0.8 million in the first quarter of 2026 compared to gains of $0.5 million in the first quarter of 2025. 

Webcast Information

Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on April 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 nearly seven 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; and
ability 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; and
severe 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; and
ability 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 March 31,






2026


2025






(Unaudited)

Operating revenue










Management fee revenue – policy issuance and renewal services




$      786,399


$      755,049

Management fee revenue – administrative services




19,475


17,645

Administrative services reimbursement revenue




200,096


210,273

Service agreement revenue




5,941


6,432

Total operating revenue




1,011,911


989,399












Operating expenses










Cost of operations – policy issuance and renewal services




645,028


627,750

Cost of operations – administrative services




200,096


210,273

Total operating expenses




845,124


838,023

Operating income




166,787


151,376












Investment income










Net investment income




23,560


19,948

Net realized and unrealized investment (losses) gains




(765)


502

Net impairment losses recognized in earnings




(676)


(914)

Total investment income




22,119


19,536












Other income




1,420


3,834

Income before income taxes




190,326


174,746

Income tax expense




39,852


36,329

Net income




$      150,474


$      138,417












Net income per share










Class A common stock – basic




$          3.23


$          2.97

Class A common stock – diluted




$          2.88


$          2.65

Class B common stock – basic and diluted




$           485


$           446












Weighted average shares outstanding – Basic










Class A common stock




46,188,850


46,188,903

Class B common stock




2,542


2,542












Weighted average shares outstanding – Diluted










Class A common stock




52,300,180


52,304,384

Class B common stock




2,542


2,542












Dividends declared per share










Class A common stock




$       1.4625


$        1.365

Class B common stock




$      219.375


$       204.75

Erie Indemnity Company

Consolidated Statements of Financial Position

(in thousands)





March 31, 2026


December 31, 2025




(Unaudited)




Assets








Current assets:








Cash and cash equivalents (includes restricted cash of $39,549 and $30,189, respectively)


$      268,616


$      345,874

Available-for-sale securities


53,995


33,902

Available-for-sale securities lent


870


3,436

Receivables from Erie Insurance Exchange and affiliates, net


743,236


735,589

Prepaid expenses and other current assets, net


79,713


66,061

Accrued investment income


14,469


14,311

Total current assets


1,160,899


1,199,173










Available-for-sale securities, net


1,296,154


1,286,566

Equity securities


67,889


70,624

Available-for-sale and equity securities lent


54,417


61,063

Fixed assets, net


579,649


571,476

Agent loans, net


102,436


93,953

Defined benefit pension plan


66,617


24,137

Other assets, net


48,617


48,489

Total assets


$   3,376,678


$   3,355,481










Liabilities and shareholders’ equity








Current liabilities:








Commissions payable


$      440,465


$      425,320

Agent incentive compensation


58,393


132,560

Accounts payable and accrued liabilities


229,421


200,701

Dividends payable


68,109


68,109

Contract liability


47,432


47,561

Deferred executive compensation


6,466


9,400

Securities lending payable


49,621


61,936

Total current liabilities


899,907


945,587










Defined benefit pension plan


34,023


33,410

Contract liability


22,936


23,274

Deferred executive compensation


24,023


22,050

Deferred income taxes, net


19,982


24,788

Other long-term liabilities


22,286


22,998

Total liabilities


1,023,157


1,072,107










Shareholders’ equity


2,353,521


2,283,374

Total liabilities and shareholders’ equity


$   3,376,678


$   3,355,481

SOURCE Erie Indemnity Company