Erie Indemnity Reports Third Quarter 2025 Results

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

Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and nine months ending September30, 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.

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3Q and Nine Months 2025(in thousands) 3Q'25 3Q'24 2025 2024Operating income $ 208,921 $ 180,125 $ 559,470 $ 509,145Investment income 21,554 19,549 60,690 48,455Other income 2,286 1,168 8,094 7,871Income before income taxes 232,761 200,842 628,254 565,471Income tax expense 49,908 41,012 132,299 117,186Net income $ 182,853 $ 159,830 $ 495,955 $ 448,2853Q 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 for10:00 AM ETon October31, 2025. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.

Erie Insurance Group

Erie Insurance Group, based inErie, Pennsylvania, is the 11thlargest homeowners insurer, 12th largest automobile insurer and 10th largest commercial lines insurer inthe United Statesbased on direct premiums written, according to AM Best Company. Founded in 1925, Erie Insurance is a Fortune 500 company and the 16th largest property/casualty insurer in the United States based on net premiums written. Rated A (Excellent) byAM Best, ERIE has more than 7 million policies in force and operates in 12 states and theDistrict of Columbia.

News releases and more information are available on ERIE's website atwww.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 CompanyConsolidated 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 revenueManagement fee revenue – policy issuance and renewal services $ 825,275 $ 769,162 $ 2,404,177 $ 2,195,734Management fee revenue – administrative services 18,831 17,154 54,772 51,139Administrative services reimbursement revenue 215,694 206,754 638,611 604,349Service agreement revenue 6,939 6,816 18,675 19,803Total operating revenue 1,066,739 999,886 3,116,235 2,871,025Operating expensesCost of operations – policy issuance and renewal services 642,124 613,007 1,918,154 1,757,531Cost of operations – administrative services 215,694 206,754 638,611 604,349Total operating expenses 857,818 819,761 2,556,765 2,361,880Operating income 208,921 180,125 559,470 509,145Investment incomeNet investment income 21,033 17,322 61,011 49,235Net realized and unrealized investment gains 1,331 2,925 2,312 2,983Net impairment losses recognized in earnings (810) (698) (2,633) (3,763)Total investment income 21,554 19,549 60,690 48,455Other income 2,286 1,168 8,094 7,871Income before income taxes 232,761 200,842 628,254 565,471Income tax expense 49,908 41,012 132,299 117,186Net income $ 182,853 $ 159,830 $ 495,955 $ 448,285Net income per shareClassA common stock – basic $ 3.93 $ 3.43 $ 10.65 $ 9.63ClassA common stock – diluted $ 3.50 $ 3.06 $ 9.48 $ 8.57ClassB common stock – basic and diluted $ 589 $ 515 $ 1,597 $ 1,444Weighted average shares outstanding – BasicClassA common stock 46,189,068 46,189,059 46,189,012 46,189,038ClassB common stock 2,542 2,542 2,542 2,542Weighted average shares outstanding – DilutedClassA common stock 52,305,599 52,306,514 52,304,797 52,301,001ClassB common stock 2,542 2,542 2,542 2,542Dividends declared per shareClassA common stock $ 1.365 $ 1.275 $ 4.095 $ 3.825ClassB common stock $ 204.75 $ 191.25 $ 614.25 $ 573.75

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

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SOURCE Erie Indemnity Company

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