Insurance management company Erie Indemnity (NASDAQ:ERIE) missed Wall Street’s revenue expectations in Q3 CY2025, but sales rose 6.7% year on year to $1.07 billion. Its GAAP profit of $3.50 per share was 3.9% above analysts’ consensus estimates.
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Revenue: $1.07 billion vs analyst estimates of $1.08 billion (6.7% year-on-year growth, 1.6% miss)
Pre-tax Profit: $232.8 million (21.8% margin, 15.9% year-on-year growth)
EPS (GAAP): $3.50 vs analyst estimates of $3.37 (3.9% beat)
Market Capitalization: $15.78 billion
Operating under a unique business model dating back to 1925, Erie Indemnity (NASDAQ:ERIE) serves as the attorney-in-fact for Erie Insurance Exchange, managing policy issuance, claims handling, and investment services for this reciprocal insurer.
Insurers earn revenue three ways. The core insurance business itself, often called underwriting and represented in the income statement as premiums earned, is one way. Investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities is the second way. Fees from various sources such as policy administration, annuities, or other value-added services is the third. Thankfully, Erie Indemnity’s 10.1% annualized revenue growth over the last five years was solid. Its growth surpassed the average insurance company and shows its offerings resonate with customers, a great starting point for our analysis.
Erie Indemnity Quarterly Revenue
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Erie Indemnity’s annualized revenue growth of 13.2% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.
Erie Indemnity Year-On-Year Revenue Growth
This quarter, Erie Indemnity’s revenue grew by 6.7% year on year to $1.07 billion, missing Wall Street’s estimates.
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