Erie Indemnity Reports Second Quarter 2026 Results
Rhea-AI Summary
Erie Indemnity (NASDAQ: ERIE) reported second quarter 2026 net income of $180.3 million, up from $174.7 million a year earlier, with diluted EPS rising to $3.45 from $3.34. For the first half of 2026, net income was $330.8 million versus $313.1 million in 2025, and diluted EPS increased to $6.32 from $5.99.
Operating income before taxes grew 2.5% in Q2 to $204.1 million and 5.8% in the first half to $370.9 million. Total operating revenue rose to $1.09 billion in Q2 and $2.10 billion year-to-date. Management fee revenue for policy issuance and renewal services increased 4.7% in Q2 and 4.5% year-to-date, while administrative services management fees grew 7.2% in Q2 and 8.8% for the first half.
Net investment income rose to $22.6 million in Q2 and $46.1 million year-to-date. Q2 dividends declared per Class A share increased to $1.4625 from $1.365. Shareholders' equity grew to $2.47 billion at June 30, 2026, from $2.28 billion at December 31, 2025.
Positive
- Net income up to $180.3M in Q2 and $330.8M in 1H26
- Diluted EPS increased to $3.45 in Q2 and $6.32 in 1H26
- Operating income before taxes up 2.5% in Q2 and 5.8% in 1H26
- Management fee revenue for policy issuance and renewal up 4.7% in Q2
- Net investment income increased to $22.6M in Q2 and $46.1M in 1H26
- Shareholders' equity rose to $2.47B from $2.28B at year-end 2025
- Class A dividend per share raised to $1.4625 in Q2 from $1.365
Negative
- Cost of operations – policy issuance and renewal increased to $684.1M in Q2
- Commissions expense rose $44.7M in Q2 and $72.7M in 1H26
- Administrative services reimbursement revenue declined year-to-date to $401.7M from $422.9M
- Net realized and unrealized investment result swung to a $0.2M loss in 1H26 from a $1.0M gain
- Cash and cash equivalents decreased to $282.9M from $345.9M at December 31, 2025
News Explained
The report shows Erie Indemnity held cash and cash equivalents, including restricted cash, of
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 23 | 1Q26 earnings | Positive | -6.1% | Quarterly net income and diluted EPS increased year over year. |
| Feb 23 | FY/Q4 2025 earnings | Positive | -2.6% | Operating income and investment income increased despite a charitable contribution. |
| Oct 30 | 3Q25 earnings | Positive | -5.5% | Quarterly operating income, fee revenue, and investment income increased. |
| Aug 07 | 2Q25 earnings | Positive | +1.3% | Quarterly and first-half net income increased year over year. |
| Apr 24 | 1Q25 earnings | Positive | -11.5% | Quarterly net income, operating income, fee revenue, and investment income increased. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings announcements were followed by negative 24-hour reactions in 4 of 5 prior events despite generally positive reported results.
Key Terms
available-for-sale securities financial
net impairment losses financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Net Income per Diluted Share was
2Q and First Half 2026 | ||||
(in thousands) | 2Q'26 | 2Q'25 | 1H'26 | 1H'25 |
Operating income | $ 204,123 | $ 199,173 | $ 370,910 | $ 350,549 |
Investment income | 22,553 | 19,600 | 44,672 | 39,136 |
Other income | 1,401 | 1,974 | 2,821 | 5,808 |
Income before income taxes | 228,077 | 220,747 | 418,403 | 395,493 |
Income tax expense | 47,783 | 46,062 | 87,635 | 82,391 |
Net income | $ 180,294 | $ 174,685 | $ 330,768 | $ 313,102 |
2Q 2026 Highlights |
Operating income before taxes increased
- Management fee revenue - policy issuance and renewal services increased
$39.0 million - Management fee revenue - administrative services increased
$1.3 million - Cost of operations - policy issuance and renewal services
- Commissions increased
$44.7 million - Non-commission expense decreased
$8.8 million $3.0 million $1.7 million $3.9 million $5.0 million $2.1 million
- Commissions increased
Income from investments before taxes totaled
First Half 2026 Highlights |
Operating income before taxes increased
- Management fee revenue - policy issuance and renewal services increased
$70.4 million - Management fee revenue - administrative services increased
$3.2 million - Cost of operations - policy issuance and renewal services
- Commissions increased
$72.7 million - Non-commission expense decreased
$19.5 million $5.1 million $3.7 million $5.7 million $12.0 million $3.7 million
- Commissions increased
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 July 31, 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,
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 June 30, | Six months ended June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
(Unaudited) | (Unaudited) | |||||||
Operating revenue | ||||||||
Management fee revenue - policy issuance and renewal services | $ 862,879 | $ 823,853 | $ 1,649,278 | $ 1,578,902 | ||||
Management fee revenue - administrative services | 19,619 | 18,296 | 39,094 | 35,941 | ||||
Administrative services reimbursement revenue | 201,554 | 212,644 | 401,650 | 422,917 | ||||
Service agreement revenue | 5,744 | 5,304 | 11,685 | 11,736 | ||||
Total operating revenue | 1,089,796 | 1,060,097 | 2,101,707 | 2,049,496 | ||||
Operating expenses | ||||||||
Cost of operations - policy issuance and renewal services | 684,119 | 648,280 | 1,329,147 | 1,276,030 | ||||
Cost of operations - administrative services | 201,554 | 212,644 | 401,650 | 422,917 | ||||
Total operating expenses | 885,673 | 860,924 | 1,730,797 | 1,698,947 | ||||
Operating income | 204,123 | 199,173 | 370,910 | 350,549 | ||||
Investment income | ||||||||
Net investment income | 22,587 | 20,030 | 46,147 | 39,978 | ||||
Net realized and unrealized investment gains (losses) | 557 | 479 | (208) | 981 | ||||
Net impairment losses recognized in earnings | (591) | (909) | (1,267) | (1,823) | ||||
Total investment income | 22,553 | 19,600 | 44,672 | 39,136 | ||||
Other income | 1,401 | 1,974 | 2,821 | 5,808 | ||||
Income before income taxes | 228,077 | 220,747 | 418,403 | 395,493 | ||||
Income tax expense | 47,783 | 46,062 | 87,635 | 82,391 | ||||
Net income | $ 180,294 | $ 174,685 | $ 330,768 | $ 313,102 | ||||
Net income per share | ||||||||
Class A common stock – basic | $ 3.87 | $ 3.75 | $ 7.10 | $ 6.72 | ||||
Class A common stock – diluted | $ 3.45 | $ 3.34 | $ 6.32 | $ 5.99 | ||||
Class B common stock – basic and diluted | $ 581 | $ 563 | $ 1,065 | $ 1,008 | ||||
Weighted average shares outstanding – Basic | ||||||||
Class A common stock | 46,189,033 | 46,189,063 | 46,188,942 | 46,188,984 | ||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||
Weighted average shares outstanding – Diluted | ||||||||
Class A common stock | 52,298,697 | 52,304,407 | 52,299,440 | 52,304,397 | ||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||
Dividends declared per share | ||||||||
Class A common stock | $ 1.4625 | $ 1.365 | $ 2.925 | $ 2.73 | ||||
Class B common stock | $ 219.375 | $ 204.75 | $ 438.75 | $ 409.50 | ||||
Erie Indemnity Company Consolidated Statements of Financial Position (in thousands)
| ||||
June 30, | December 31, | |||
(Unaudited) | ||||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents (includes restricted cash of | $ 282,902 | $ 345,874 | ||
Available-for-sale securities | 61,715 | 33,902 | ||
Available-for-sale securities lent | 1,973 | 3,436 | ||
Receivables from Erie Insurance Exchange and affiliates, net | 753,245 | 735,589 | ||
Prepaid expenses and other current assets, net | 92,533 | 66,061 | ||
Accrued investment income | 14,194 | 14,311 | ||
Total current assets | 1,206,562 | 1,199,173 | ||
Available-for-sale securities, net | 1,327,084 | 1,286,566 | ||
Equity securities | 150,516 | 70,624 | ||
Available-for-sale and equity securities lent | 67,939 | 61,063 | ||
Fixed assets, net | 593,365 | 571,476 | ||
Agent loans, net | 100,680 | 93,953 | ||
Defined benefit pension plan | 62,096 | 24,137 | ||
Other assets, net | 48,774 | 48,489 | ||
Total assets | $ 3,557,016 | $ 3,355,481 | ||
Liabilities and shareholders' equity | ||||
Current liabilities: | ||||
Commissions payable | $ 457,211 | $ 425,320 | ||
Agent incentive compensation | 116,570 | 132,560 | ||
Accounts payable and accrued liabilities | 205,760 | 200,701 | ||
Dividends payable | 68,109 | 68,109 | ||
Contract liability | 48,457 | 47,561 | ||
Deferred executive compensation | 9,154 | 9,400 | ||
Securities lending payable | 63,157 | 61,936 | ||
Total current liabilities | 968,418 | 945,587 | ||
Defined benefit pension plan | 34,703 | 33,410 | ||
Contract liability | 23,148 | 23,274 | ||
Deferred executive compensation | 21,018 | 22,050 | ||
Deferred income taxes, net | 19,085 | 24,788 | ||
Other long-term liabilities | 23,538 | 22,998 | ||
Total liabilities | 1,089,910 | 1,072,107 | ||
Shareholders' equity | 2,467,106 | 2,283,374 | ||
Total liabilities and shareholders' equity | $ 3,557,016 | $ 3,355,481 | ||
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SOURCE Erie Indemnity Company