Erie Indemnity Reports Full Year and Fourth Quarter 2025 Results
Rhea-AI Summary
Erie Indemnity (NASDAQ: ERIE) reported full-year 2025 net income of $559.3 million ($10.69 diluted EPS) and fourth-quarter net income of $63.4 million ($1.21 diluted EPS).
Results were reduced by an $100 million charitable contribution to a newly formed Erie Insurance Foundation, which lowered 2025 after-tax net income by $80.6 million. Operating income before taxes rose to $717.2 million and net investment income increased to $85.8 million in 2025.
Positive
- Net investment income increased to $85.8 million in 2025
- Available-for-sale securities rose to $1.287 billion at year-end
- Shareholders' equity increased to $2.283 billion at year-end
Negative
- One-time $100 million charitable contribution reduced net income by $80.6 million
- Fourth-quarter net income fell to $63.4 million from $152.0 million year-ago
- Agent incentive compensation rose to $132.6 million at year-end
- Securities lending payable increased to $61.9 million at year-end
Key Figures
Market Reality Check
Peers on Argus
ERIE slipped 0.58% while key insurance brokers like BRO (-0.61%), AJG (-1.66%), and MMC (-1.36%) also traded lower, but sector momentum scanners only flagged one peer, suggesting a more stock-specific setup into earnings.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 30 | Quarterly earnings | Positive | +2.6% | Q3 2025 net income and operating income growth with higher fees. |
| Aug 07 | Quarterly earnings | Positive | +1.3% | Q2 2025 net income and management fee revenue growth with stronger investments. |
| Apr 24 | Quarterly earnings | Positive | -11.5% | Q1 2025 net income and operating income increases across key lines. |
| Feb 27 | Annual earnings | Positive | +5.7% | Full-year 2024 net income and operating income up sharply vs 2023. |
| Oct 31 | Quarterly earnings | Positive | -7.5% | Q3 2024 net income and operating income growth with higher fees. |
Earnings releases have generally been received positively but with notable instances of selloffs despite strong reported fundamentals.
Across the last five earnings releases from Feb 2024 through Oct 2025, Erie Indemnity consistently reported higher net income and growing management fee revenue, alongside improving investment income. Price reactions have been mixed: some quarters with strong growth, such as Q3 2025 and full-year 2024, saw positive moves, while Q1 2025 and Q3 2024 experienced declines. Today’s full-year and Q4 2025 report continues this cadence of detailed financial updates and operating metrics.
Historical Comparison
Over the last five earnings releases, ERIE’s average next-day move was -1.87%, indicating that earnings updates have often been followed by meaningful but mixed share reactions.
The earnings series shows progression from strong Q1–Q3 2025 results and robust full-year 2024 performance into today’s full-year and Q4 2025 release, with recurring themes of growing management fee revenue and improving investment income.
Market Pulse Summary
This announcement details full-year and Q4 2025 results, with net income of $559.3M and diluted EPS of $10.69, both below 2024 levels, largely reflecting a $100M charitable contribution. At the same time, operating income, management fee revenue, and net investment income all increased year over year. Investors may focus on the durability of fee growth, trends in commission and technology costs, and how frequently one-time items affect reported earnings.
Key Terms
available-for-sale securities financial
securities lending payable financial
deferred executive compensation financial
deferred income taxes financial
forward-looking statements regulatory
AI-generated analysis. Not financial advice.
Net Income per Diluted Share was
4Q and Full Year 2025 | |||||
(in thousands) | 4Q'25 | 4Q'24 | 2025 | 2024 | |
Operating income | $ 157,714 | $ 167,310 | $ 717,184 | $ 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 | $ 63,380 | $ 152,029 | $ 559,335 | $ 600,314 | |
2025 Full Year Highlights | |||||
Operating income before taxes increased
- Management fee revenue - policy issuance and renewal services increased
$237.7 million - Management fee revenue - administrative services increased
$5.7 million - Cost of operations - policy issuance and renewal services
- Commissions – Commissions increased
$175.6 million - Non-commission expense increased
$25.5 million $4.8 million $24.3 million $3.5 million $7.1 million
- Commissions – Commissions increased
- The administrative services reimbursement revenue and corresponding cost of operations increased both total operating revenue and total operating expenses by
$836.6 million $806.3 million
Income from investments before taxes totaled
4Q 2025 Highlights |
Operating income before taxes decreased
- Management fee revenue - policy issuance and renewal services increased
$29.3 million - Management fee revenue - administrative services increased
$2.1 million - Cost of operations - policy issuance and renewal services
- Commissions increased
$30.1 million - Non-commission expense increased
$10.4 million $1.2 million $4.5 million $1.4 million $5.8 million
- Commissions increased
- The administrative services reimbursement revenue and corresponding cost of operations increased both total operating revenue and total operating expenses by
$198.0 million $202.0 million
Income from investments before taxes totaled
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
News releases and more information are available on
"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 | Twelve months ended | |||||||
2025 | 2024 | 2025 | 2024 | |||||
(Unaudited) | ||||||||
Operating revenue | ||||||||
Management fee revenue - policy issuance and renewal services | $ 727,629 | $ 698,340 | $ 3,131,806 | $ 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 | $ 63,380 | $ 152,029 | $ 559,335 | $ 600,314 | ||||
Net income per share | ||||||||
Class A common stock – basic | $ 1.36 | $ 3.26 | $ 12.01 | $ 12.89 | ||||
Class A common stock – diluted | $ 1.21 | $ 2.91 | $ 10.69 | $ 11.48 | ||||
Class B common stock – basic | $ 204 | $ 490 | $ 1,802 | $ 1,934 | ||||
Class B common stock – diluted | $ 204 | $ 490 | $ 1,801 | $ 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 | $ 1.4625 | $ 1.365 | $ 5.5575 | $ 5.19 | ||||
Class B common stock | $ 219.375 | $ 204.75 | $ 833.625 | $ 778.50 | ||||
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 | $ 345,874 | $ 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 | $ 3,355,481 | $ 2,888,614 | ||
Liabilities and shareholders' equity | ||||
Current liabilities: | ||||
Commissions payable | $ 425,320 | $ 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 | $ 3,355,481 | $ 2,888,614 | ||
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SOURCE Erie Indemnity Company
FAQ
What was Erie Indemnity's full-year 2025 net income and diluted EPS (ERIE)?
How did the $100 million donation affect Erie Indemnity's 2025 earnings (ERIE)?
Why did Erie Indemnity's fourth-quarter 2025 net income decline versus Q4 2024 (ERIE)?
Did Erie Indemnity's investment income change in 2025 and how (ERIE)?
What dividend did Erie Indemnity declare per Class A share in Q4 2025 (ERIE)?
When and how can investors access Erie Indemnity's 2025 earnings webcast (ERIE)?
