Erie Indemnity Reports Third Quarter 2026 Results

Nine-month earnings increased despite a softer third quarter, while declared dividends per share exceeded the prior-year amounts.

Rhea-AI Summary

Erie Indemnity (NASDAQ: ERIE) reported third-quarter 2026 net income of $182.0 million, slightly below the year-earlier quarter. Diluted earnings per share fell to $3.48 from $3.50. Operating income declined 0.7% to $207.4 million as policy issuance and renewal management fees rose 2.6%, while commissions increased $24.0 million. Investment income fell to $19.9 million from $21.6 million.

For the nine months ended September 30, 2026, net income rose to $512.8 million from $496.0 million, and diluted earnings per share increased to $9.80 from $9.48. Operating income rose 3.4% to $578.3 million. Policy issuance and renewal management fees increased 3.8%, while commissions rose $96.6 million. Lower underwriting support, professional fees and administrative costs helped offset higher personnel and technology costs. Cash and cash equivalents reached $362.688 million, versus $345.874 million at December 31, 2025.

13 points · 0 major

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0 major · 11 points

How the balance works

Positive

• Moderate pointNine-month net income rose to $512.8 million from $496.0 million; diluted EPS increased to $9.80 from $9.48.
• Moderate pointNine-month operating income increased 3.4% to $578.292 million from $559.470 million.
• Moderate pointPolicy issuance and renewal management fees rose 2.6% in Q3 and 3.8% over nine months versus 2025.
• Moderate pointShareholders' equity increased to $2,552.710 million at September 30, 2026, from $2,283.374 million at December 31, 2025.
• Minor pointAdministrative management fees increased $0.9 million in Q3 and $4.0 million over nine months versus 2025.

8 minor points

• Minor pointNet investment income rose to $25.399 million in Q3 and $71.546 million over nine months, from $21.033 million and $61.011 million.
• Minor pointInvestment impairment losses narrowed to $72,000 in Q3 and $1.339 million over nine months, from $810,000 and $2.633 million.
• Minor pointAcquisition and underwriting support costs decreased $5.8 million in Q3 and $11.5 million over nine months versus 2025.
• Minor pointNine-month professional fees decreased $12.1 million, primarily from reduced third-party services related to technology initiatives.
• Minor pointAdministrative and other costs decreased $5.5 million in Q3 and $9.2 million over nine months versus 2025.
• Minor pointOther income increased to $5.496 million in Q3 and $8.317 million over nine months, from $2.286 million and $8.094 million.
• Minor pointQ3 Class A dividends declared rose to $1.4625 per share from $1.365; Class B rose to $219.375 from $204.75.
• Minor pointCash and cash equivalents increased to $362.688 million at September 30, 2026, from $345.874 million at December 31, 2025.

Negative

• Moderate pointCommissions increased $24.0 million in Q3 and $96.6 million over nine months versus 2025.
• Minor pointQ3 net income fell to $182.0 million from $182.9 million; diluted EPS declined to $3.48 from $3.50.
• Minor pointQ3 operating income decreased 0.7% to $207.382 million from $208.921 million.
• Minor pointRealized and unrealized investment results shifted to Q3 losses of $5.450 million from gains of $1.331 million.
• Minor pointNine-month realized and unrealized investment results shifted to losses of $5.658 million from gains of $2.312 million.

6 minor points

• Minor pointTechnology and infrastructure costs increased $6.9 million in Q3 and $7.4 million over nine months versus 2025.
• Minor pointPersonnel costs increased $1.6 million in Q3 and $6.7 million over nine months versus 2025.
• Minor pointQ3 sales and advertising costs increased $1.8 million, primarily from higher agent-related costs.
• Minor pointService agreement revenue declined to $5.655 million in Q3 and $17.340 million over nine months, from $6.939 million and $18.675 million.
• Minor pointIncome tax expense increased to $50.766 million in Q3 and $138.401 million over nine months, from $49.908 million and $132.299 million.
• Minor pointTotal liabilities increased to $1,109.786 million at September 30, 2026, from $1,072.107 million at December 31, 2025.

News Explained

Erie Indemnity reports a declared third-quarter Class A dividend of $1.4625 per share, compared with $1.365 in the year-earlier quarter, increasing the amount declared per share for Class A holders.

Key Figures

Third-quarter net income: $182.0 million vs. $182.9 million Third-quarter diluted EPS: $3.48 vs. $3.50 Nine-month net income: $512.8 million vs. $496.0 million +3 more

Third-quarter net income

$182.0 million vs. $182.9 million

Third quarter 2026 vs. third quarter 2025

Third-quarter diluted EPS

$3.48 vs. $3.50

Third quarter 2026 vs. third quarter 2025

Nine-month net income

$512.8 million vs. $496.0 million

First nine months of 2026 vs. first nine months of 2025

Nine-month diluted EPS

$9.80 vs. $9.48

First nine months of 2026 vs. first nine months of 2025

Third-quarter operating income before taxes

Decreased $1.5 million, or 0.7%

Third quarter 2026 vs. third quarter 2025

Nine-month operating income before taxes

Increased $18.8 million, or 3.4%

First nine months of 2026 vs. first nine months of 2025

Previous Earnings Reports

3 past events · Latest: Apr 23

Same Type 3 events

1. Apr 23

   First-quarter earnings

   24h Move

   -6.1%

   Net income and diluted EPS increased year over year.

2. Jul 30

   Second-quarter earnings

   24h Move

   +3.6%

   Net income and diluted EPS increased year over year.

3. Oct 30

   Third-quarter earnings

   24h Move

   -5.5%

   Reported third-quarter and nine-month results used as current-year comparisons.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

available-for-sale securities, weighted average shares outstanding, impairment losses

3 terms

available-for-sale securities financial

"Available-for-sale securities | | 60,913 | | 33,902"

Available-for-sale securities are investments in stocks, bonds or similar instruments that a company does not intend to trade frequently but may sell before they mature. They matter to investors because changes in the market value of these holdings show up as paper gains or losses on the company's balance sheet rather than immediately in profit, so they can affect reported net worth and the timing of income without changing day-to-day earnings. Think of them like items on a household shelf you might sell later: their value moves with the market even if you haven’t cashed out.

weighted average shares outstanding financial

"Weighted average shares outstanding"

The weighted average shares outstanding is the average number of a company’s common shares that were available during a reporting period, adjusted so each change (like new shares issued or shares bought back) counts only for the portion of the period it was in effect. Investors use it to calculate per-share measures such as earnings per share, so it shows how ownership dilution or buybacks affect what each share is entitled to—like averaging how many people were at a potluck over time to determine each person’s share of the food.

impairment losses financial

"Net impairment losses recognized in earnings"

An impairment loss is an accounting write-down when a company determines an asset (like equipment, buildings, patents, or goodwill) is worth less than its recorded value, so its book value is reduced. For investors, impairments matter because they lower reported profits and asset balance, similar to recognizing that a car is worth far less than you expected; frequent or large impairments can signal poor returns on investments or deteriorating business prospects.

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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

 

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SOURCE Erie Indemnity Company

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Erie Indemnity's third-quarter 2026 earnings?

Erie Indemnity earned $182.0 million, or $3.48 per diluted share, in the third quarter of 2026. That compares with $182.9 million, or $3.50 per diluted share, in the third quarter of 2025.

How much did Erie Indemnity earn in the first nine months of 2026?

Erie Indemnity reported nine-month net income of $512.8 million, or $9.80 per diluted share, compared with $496.0 million, or $9.48 per diluted share, in the first nine months of 2025.

Why did Erie Indemnity's technology costs rise in the third quarter of 2026?

Erie Indemnity attributed the $6.9 million increase primarily to costs associated with technology initiatives, including internal-use software impairments, depreciation and amortization expense, and cloud usage costs.

What drove Erie Indemnity's higher commissions in 2026?

Erie Indemnity attributed higher commissions primarily to increased agent incentive compensation and growth in direct and affiliated assumed written premium. Commissions increased $24.0 million in the third quarter and $96.6 million in the first nine months compared with the corresponding 2025 periods.