Erie Indemnity Company: Erie Indemnity Reports Third Quarter 2026 Results

Net Income per Diluted Share was $3.48 for the Quarter and $9.80 for the Nine Months of 2026

ERIE, Pa., Oct. 29, 2026 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and nine months ending September 30, 2026. Net income was $182.0 million, or $3.48 per diluted share, in the third quarter of 2026, compared to $182.9 million, or $3.50 per diluted share, in the third quarter of 2025. Net income was $512.8 million, or $9.80 per diluted share, in the first nine months of 2026, compared to $496.0 million, or $9.48 per diluted share, in the first nine months of 2025.

3Q and Nine Months 2026
(in thousands)	3Q'26	3Q'25	2026	2025
Operating income	$ 207,382	$ 208,921	$ 578,292	$ 559,470
Investment income	19,877	21,554	64,549	60,690
Other income	5,496	2,286	8,317	8,094
Income before income taxes	232,755	232,761	651,158	628,254
Income tax expense	50,766	49,908	138,401	132,299
Net income	$ 181,989	$ 182,853	$ 512,757	$ 495,955

3Q 2026 Highlights

Operating income before taxes decreased $1.5 million, or 0.7 percent, in the third quarter of 2026 compared to the third quarter of 2025.

• Management fee revenue - policy issuance and renewal services increased $21.7 million, or 2.6 percent, in the third quarter of 2026 compared to the third quarter of 2025.
• Management fee revenue - administrative services increased $0.9 million, or 4.7 percent, in the third quarter of 2026 compared to the third quarter of 2025.
• Cost of operations - policy issuance and renewal services
  • Commissions increased $24.0 million in the third quarter of 2026, compared to the third quarter of 2025, primarily driven by an increase in agent incentive compensation and the growth in direct and affiliated assumed written premium.
  • Non-commission expense decreased $1.1 million in the third quarter of 2026 compared to the third quarter of 2025. Personnel costs increased $1.6 million primarily due to higher healthcare costs. Sales and advertising increased $1.8 million primarily due to an increase in agent-related costs. Acquisition and underwriting support costs decreased $5.8 million primarily due to lower postage and underwriting report costs. Technology and infrastructure costs increased $6.9 million primarily due to higher costs associated with technology initiatives, including internal-use software impairments, depreciation and amortization expense, and cloud usage costs. Administrative and other costs decreased $5.5 million primarily due to lower credit card processing fees.

Income from investments before taxes totaled $19.9 million in the third quarter of 2026 compared to $21.6 million in the third quarter of 2025. Net investment income was $25.4 million in the third quarter of 2026 compared to $21.0 million in the third quarter of 2025. Net realized and unrealized investment losses were $5.4 million in the third quarter of 2026 compared to gains of $1.3 million in the third quarter of 2025.

Nine Months 2026 Highlights

Operating income before taxes increased $18.8 million, or 3.4 percent, in the first nine months of 2026 compared to the first nine months of 2025.

• Management fee revenue - policy issuance and renewal services increased $92.1 million, or 3.8 percent, in the first nine months of 2026 compared to the first nine months of 2025.
• Management fee revenue - administrative services increased $4.0 million, or 7.4 percent, in the first nine months of 2026 compared to the first nine months of 2025.
• Cost of operations - policy issuance and renewal services
  • Commissions increased $96.6 million in the first nine months of 2026 compared to the first nine months of 2025, primarily driven by an increase in agent incentive compensation and the growth in direct and affiliated assumed written premium.
  • Non-commission expense decreased $20.7 million in the first nine months of 2026 compared to the first nine months of 2025. Personnel costs increased $6.7 million primarily due to increased incentive compensation driven by stronger performance metrics, and higher base compensation. The increase is partially offset by bonuses awarded to all employees in 2025 in recognition of our 100th anniversary. Acquisition and underwriting support costs decreased $11.5 million primarily due to lower underwriting report and postage costs. Technology and infrastructure costs increased $7.4 million primarily due to higher depreciation and amortization expense from technology initiatives. Professional fees decreased $12.1 million primarily due to reduced use of third-party services related to technology initiatives. Administrative and other costs decreased $9.2 million primarily due to lower credit card processing fees and charitable contributions related to the transition of charitable giving through the Erie Insurance Foundation.

Income from investments before taxes totaled $64.5 million in the first nine months of 2026 compared to $60.7 million in the first nine months of 2025. Net investment income was $71.5 million in the first nine months of 2026 compared to $61.0 million in the first nine months of 2025. Net realized and unrealized losses were $5.7 million in the first nine months of 2026 compared to gains of $2.3 million in the first nine months of 2025. Net impairment losses recognized in earnings were $1.3 million in the first nine months of 2026 compared to $2.6 million in the first nine months of 2025.

Webcast Information
Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on October 30, 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 10^th largest homeowners insurer, 11^th largest automobile insurer, and 9^th 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 16^th 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 September 30,				Nine months ended September 30,
		2026		2025		2026		2025
		(Unaudited)				(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services		$ 846,980		$ 825,275		$ 2,496,258		$ 2,404,177
Management fee revenue - administrative services		19,720		18,831		58,814		54,772
Administrative services reimbursement revenue		197,562		215,694		599,212		638,611
Service agreement revenue		5,655		6,939		17,340		18,675
Total operating revenue		1,069,917		1,066,739		3,171,624		3,116,235
Operating expenses
Cost of operations - policy issuance and renewal services		664,973		642,124		1,994,120		1,918,154
Cost of operations - administrative services		197,562		215,694		599,212		638,611
Total operating expenses		862,535		857,818		2,593,332		2,556,765
Operating income		207,382		208,921		578,292		559,470
Investment income
Net investment income		25,399		21,033		71,546		61,011
Net realized and unrealized investment (losses) gains		(5,450)		1,331		(5,658)		2,312
Net impairment losses recognized in earnings		(72)		(810)		(1,339)		(2,633)
Total investment income		19,877		21,554		64,549		60,690
Other income		5,496		2,286		8,317		8,094
Income before income taxes		232,755		232,761		651,158		628,254
Income tax expense		50,766		49,908		138,401		132,299
Net income		$ 181,989		$ 182,853		$ 512,757		$ 495,955
Net income per share
Class A common stock - basic		$ 3.91		$ 3.93		$ 11.01		$ 10.65
Class A common stock - diluted		$ 3.48		$ 3.50		$ 9.80		$ 9.48
Class B common stock - basic		$ 586		$ 589		$ 1,652		$ 1,597
Class B common stock - diluted		$ 586		$ 589		$ 1,651		$ 1,597
Weighted average shares outstanding - Basic
Class A common stock		46,189,049		46,189,068		46,188,978		46,189,012
Class B common stock		2,542		2,542		2,542		2,542
Weighted average shares outstanding - Diluted
Class A common stock		52,300,931		52,305,599		52,299,936		52,304,797
Class B common stock		2,542		2,542		2,542		2,542
Dividends declared per share
Class A common stock		$ 1.4625		$ 1.365		$ 4.3875		$ 4.095
Class B common stock		$ 219.375		$ 204.75		$ 658.125		$ 614.25

Erie Indemnity Company Consolidated Statements of Financial Position (in thousands)
		September 30, 2026		December 31, 2025
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents (includes restricted cash of $39,764 and $30,189, respectively)		$ 362,688		$ 345,874
Available-for-sale securities		60,913		33,902
Available-for-sale securities lent		0		3,436
Receivables from Erie Insurance Exchange and affiliates, net		781,239		735,589
Prepaid expenses and other current assets, net		93,190		66,061
Accrued investment income		14,853		14,311
Total current assets		1,312,883		1,199,173
Available-for-sale securities, net		1,308,211		1,286,566
Equity securities		152,674		70,624
Available-for-sale and equity securities lent		56,373		61,063
Fixed assets, net		594,183		571,476
Agent loans, net		99,708		93,953
Defined benefit pension plan		87,575		24,137
Other assets, net		50,889		48,489
Total assets		$ 3,662,496		$ 3,355,481
Liabilities and shareholders' equity
Current liabilities:
Commissions payable		$ 452,559		$ 425,320
Agent incentive compensation		161,335		132,560
Accounts payable and accrued liabilities		207,405		200,701
Dividends payable		68,109		68,109
Contract liability		49,049		47,561
Deferred executive compensation		12,450		9,400
Securities lending payable		54,307		61,936
Total current liabilities		1,005,214		945,587
Defined benefit pension plan		35,382		33,410
Contract liability		23,307		23,274
Deferred executive compensation		19,874		22,050
Deferred income taxes, net		11,172		24,788
Other long-term liabilities		14,837		22,998
Total liabilities		1,109,786		1,072,107
Shareholders' equity		2,552,710		2,283,374
Total liabilities and shareholders' equity		$ 3,662,496		$ 3,355,481

SOURCE Erie Indemnity Company