Erie Indemnity Reports Third Quarter 2025 Results

Rhea-AI Summary

Erie Indemnity (NASDAQ: ERIE) reported third-quarter 2025 results with net income of $182.9 million ($3.50 diluted) and $496.0 million for the first nine months ($9.48 diluted). Operating income before taxes rose 16.0% in 3Q25 versus 3Q24. Management fee revenue for policy issuance and renewal increased to $825.3 million in 3Q25. Net investment income for the nine months totaled $61.0 million, higher than prior year. The company declared quarterly dividends of $1.365 per Class A share and scheduled a pre-recorded webcast for Oct 31, 2025 at 10:00 AM ET.

Positive

• Operating income before taxes +16.0% in 3Q25 vs 3Q24
• Net income of $182.9M in 3Q25 (+14.4% YoY)
• Nine-month net income $496.0M (+10.6% YoY)
• Net investment income $61.0M in first nine months of 2025 (+24% YoY)

Negative

• Commissions increased $145.6M in first nine months of 2025
• Information technology costs increased $19.8M in first nine months of 2025
• Securities lending payable rose to $54.3M as of Sept 30, 2025

Insights

Equity Financial Analyst

Erie delivered higher operating income and net income in 3Q and year-to-date, showing revenue and investment income gains.

Operating leverage came from higher management fee revenue for policy issuance and renewal services and controlled non-commission costs, driving operating income to $208,921 for 3Q'25 and $559,470 for the nine months. Net income rose to $182,853 in the quarter and $495,955 year-to-date, with diluted EPS of $3.50 and $9.48, respectively, reflecting both fee growth and increased net investment income.

Key dependencies and risks are explicitly company-level: continued fee revenue tied to the relationship with the Exchange, variability in commission and incentive costs tied to written premium and performance metrics, and investment income volatility. The company noted increased commissions and agent incentive compensation driving some expense growth, while non-commission and administrative costs declined in the quarter. Investment income improved to $21,554 in 3Q and $60,690 year-to-date, but realized/unrealized gains were modest.

Concrete items to watch near-term include the pre-recorded webcast at October 31, 2025, the reported dividend increases to $1.365 per Class A share for the quarter and $4.095 year-to-date, trends in commissions and incentive compensation as written premium changes flow through, and quarterly investment income and realized gains in the next reporting period. Monitor these items over the next one to two quarters to assess sustainability of margin improvements.

Net Income per Diluted Share was $3.50 for the Quarter and $9.48 for the Nine Months of 2025

ERIE, Pa., Oct. 30, 2025 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and nine months ending September 30, 2025.  Net income was $182.9 million, or $3.50 per diluted share, in the third quarter of 2025, compared to $159.8 million, or $3.06 per diluted share, in the third quarter of 2024.  Net income was $496.0 million, or $9.48 per diluted share, in the first nine months of 2025, compared to $448.3 million, or $8.57 per diluted share, in the first nine months of 2024.

3Q and Nine Months 2025
(in thousands)	3Q'25	3Q'24	2025	2024
Operating income	$      208,921	$      180,125	$      559,470	$      509,145
Investment income	21,554	19,549	60,690	48,455
Other income	2,286	1,168	8,094	7,871
Income before income taxes	232,761	200,842	628,254	565,471
Income tax expense	49,908	41,012	132,299	117,186
Net income	$      182,853	$      159,830	$      495,955	$      448,285
3Q 2025 Highlights

Operating income before taxes increased $28.8 million, or 16.0 percent, in the third quarter of 2025 compared to the third quarter of 2024.

• Management fee revenue - policy issuance and renewal services increased $56.1 million, or 7.3 percent, in the third quarter of 2025 compared to the third quarter of 2024.
• Management fee revenue - administrative services increased $1.7 million, or 9.8 percent, in the third quarter of 2025 compared to the third quarter of 2024.
• Cost of operations - policy issuance and renewal services
  • Commissions increased $41.0 million in the third quarter of 2025, compared to the third quarter of 2024, primarily driven by the growth in direct and affiliated assumed written premium and, to a lesser extent, an increase in agent incentive compensation.
  • Non-commission expense decreased $11.9 million in the third quarter of 2025 compared to the third quarter of 2024. Underwriting and policy processing expense increased $1.6 million primarily due to increased postage costs, partially offset by a decrease in underwriting report costs. Sales and advertising expense decreased $4.4 million primarily due to decreased agent-related costs and costs from community development initiatives. Administrative and other costs decreased $11.5 million primarily due to decreases in personnel costs and professional fees. Personnel costs were impacted by decreased incentive compensation compared to 2024. Decreased incentive plan costs were primarily driven by lower performance metrics compared to the third quarter of 2024 and a decrease in company stock price during the third quarter of 2025 compared to an increase during the third quarter of 2024.

Income from investments before taxes totaled $21.6 million in the third quarter of 2025 compared to $19.5 million in the third quarter of 2024.  Net investment income was $21.0 million in the third quarter of 2025 compared to $17.3 million in the third quarter of 2024.  Net realized and unrealized gains were $1.3 million in the third quarter of 2025 compared to $2.9 million in the third quarter of 2024. 

Nine Months 2025 Highlights

Operating income before taxes increased $50.3 million, or 9.9 percent, in the first nine months of 2025 compared to the first nine months of 2024.

• Management fee revenue - policy issuance and renewal services increased $208.4 million, or 9.5 percent, in the first nine months of 2025 compared to the first nine months of 2024.
• Management fee revenue - administrative services increased $3.6 million, or 7.1 percent, in the first nine months of 2025 compared to the first nine months of 2024.
• Cost of operations - policy issuance and renewal services
  • Commissions increased $145.6 million in the first nine months of 2025 compared to the first nine months of 2024, primarily driven by the growth in direct and affiliated assumed written premium and, to a lesser extent, an increase in agent incentive compensation.
  • Non-commission expense increased $15.0 million in the first nine months of 2025 compared to the first nine months of 2024. Underwriting and policy processing expense increased $5.9 million primarily due to increased postage and personnel costs. Information technology costs increased $19.8 million primarily due to an increase in personnel costs and hardware and software costs. Customer service costs increased $3.5 million primarily due to increased personnel costs and credit card processing fees. Administrative and other costs decreased $12.9 million primarily due to decreased personnel costs. Personnel costs were impacted by decreased incentive compensation and increased healthcare costs compared to 2024. Decreased incentive plan costs were primarily driven by lower performance metrics compared to the first nine months of 2024 and a decrease in company stock price during the first nine months of 2025 compared to an increase during the first nine months of 2024.

Income from investments before taxes totaled $60.7 million in the first nine months of 2025 compared to $48.5 million in the first nine months of 2024.  Net investment income was $61.0 million in the first nine months of 2025 compared to $49.2 million in the first nine months of 2024.  Net investment income included $1.3 million of limited partnership earnings in the first nine months of 2025 compared to $0.1 million in the first nine months of 2024.  Net realized and unrealized gains were $2.3 million in the first nine months of 2025 compared to $3.0 million in the first nine months of 2024.  Net impairment losses recognized in earnings were $2.6 million in the first nine months of 2025 compared to $3.8 million in the first nine months of 2024.

Webcast Information

Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on October 31, 2025.  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 11^th largest homeowners insurer, 12^th largest automobile insurer and 10^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 more than 7 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 and retain 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,
		2025		2024		2025		2024
		(Unaudited)				(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services		$       825,275		$       769,162		$    2,404,177		$    2,195,734
Management fee revenue - administrative services		18,831		17,154		54,772		51,139
Administrative services reimbursement revenue		215,694		206,754		638,611		604,349
Service agreement revenue		6,939		6,816		18,675		19,803
Total operating revenue		1,066,739		999,886		3,116,235		2,871,025
Operating expenses
Cost of operations - policy issuance and renewal services		642,124		613,007		1,918,154		1,757,531
Cost of operations - administrative services		215,694		206,754		638,611		604,349
Total operating expenses		857,818		819,761		2,556,765		2,361,880
Operating income		208,921		180,125		559,470		509,145
Investment income
Net investment income		21,033		17,322		61,011		49,235
Net realized and unrealized investment gains		1,331		2,925		2,312		2,983
Net impairment losses recognized in earnings		(810)		(698)		(2,633)		(3,763)
Total investment income		21,554		19,549		60,690		48,455
Other income		2,286		1,168		8,094		7,871
Income before income taxes		232,761		200,842		628,254		565,471
Income tax expense		49,908		41,012		132,299		117,186
Net income		$       182,853		$       159,830		$       495,955		$       448,285
Net income per share
Class A common stock – basic		$             3.93		$             3.43		$           10.65		$             9.63
Class A common stock – diluted		$             3.50		$             3.06		$             9.48		$             8.57
Class B common stock – basic and diluted		$              589		$              515		$           1,597		$           1,444
Weighted average shares outstanding – Basic
Class A common stock		46,189,068		46,189,059		46,189,012		46,189,038
Class B common stock		2,542		2,542		2,542		2,542
Weighted average shares outstanding – Diluted
Class A common stock		52,305,599		52,306,514		52,304,797		52,301,001
Class B common stock		2,542		2,542		2,542		2,542
Dividends declared per share
Class A common stock		$           1.365		$           1.275		$           4.095		$           3.825
Class B common stock		$         204.75		$         191.25		$         614.25		$         573.75

 

Erie Indemnity Company Consolidated Statements of Financial Position (in thousands)
		September 30, 2025		December 31, 2024
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents (includes restricted cash of $28,000 and $23,559, respectively)		$        568,551		$        298,397
Available-for-sale securities		59,833		44,604
Available-for-sale securities lent		4,318		0
Receivables from Erie Insurance Exchange and affiliates, net		780,473		707,060
Prepaid expenses and other current assets, net		73,779		83,902
Accrued investment income		10,937		11,069
Total current assets		1,497,891		1,145,032
Available-for-sale securities, net		970,160		991,726
Equity securities		54,378		85,891
Available-for-sale and equity securities lent		51,836		7,285
Fixed assets, net		557,607		513,494
Agent loans, net		94,740		80,597
Defined benefit pension plan		51,819		21,311
Other assets, net		45,897		43,278
Total assets		$     3,324,328		$     2,888,614
Liabilities and shareholders' equity
Current liabilities:
Commissions payable		$        425,310		$        408,309
Agent incentive compensation		99,717		75,458
Accounts payable and accrued liabilities		199,995		190,028
Dividends payable		63,569		63,569
Contract liability		47,949		42,761
Deferred executive compensation		6,700		14,874
Securities lending payable		54,325		7,513
Total current liabilities		897,565		802,512
Defined benefit pension plan		31,065		28,070
Contract liability		23,361		21,170
Deferred executive compensation		20,798		19,721
Deferred income taxes, net		19,776		6,418
Other long-term liabilities		22,885		23,465
Total liabilities		1,015,450		901,356
Shareholders' equity		2,308,878		1,987,258
Total liabilities and shareholders' equity		$     3,324,328		$     2,888,614

 

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SOURCE Erie Indemnity Company

FAQ

What were Erie Indemnity's net income and diluted EPS for 3Q 2025 (ERIE)?

Net income was $182.9 million, or $3.50 per diluted share for 3Q 2025.

How did Erie Indemnity's operating income before taxes change in 3Q 2025 (ERIE)?

Operating income before taxes increased 16.0% in 3Q 2025 versus 3Q 2024.

What is Erie Indemnity's year-to-date net income and diluted EPS for 2025 (ERIE)?

For the first nine months of 2025, net income was $496.0 million, or $9.48 per diluted share.

How much net investment income did Erie report in the first nine months of 2025 (ERIE)?

Net investment income totaled $61.0 million for the first nine months of 2025.

Did Erie Indemnity raise its dividend in 3Q 2025 (ERIE) and what is the amount?

Erie declared a quarterly Class A dividend of $1.365 per share for 3Q 2025.

When can investors access Erie Indemnity's 3Q 2025 webcast (ERIE)?

A pre-recorded audio webcast is scheduled for Oct 31, 2025 at 10:00 AM ET on the company website.