Exhibit 99.2
Erie Indemnity Company
Statements of Operations
(dollars in thousands, except per share data)
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
(Unaudited) | ||||||||
Operating revenue | ||||||||
Management fee revenue - policy issuance and renewal services, net | $ | 430,983 | $ | 405,978 | ||||
Management fee revenue - administrative services, net | 13,951 | 13,074 | ||||||
Administrative services reimbursement revenue | 142,480 | 145,963 | ||||||
Service agreement revenue | 6,692 | 7,145 | ||||||
Total operating revenue | 594,106 | 572,160 | ||||||
Operating expenses | ||||||||
Cost of operations - policy issuance and renewal services | 365,504 | 348,630 | ||||||
Cost of operations - administrative services | 142,480 | 145,963 | ||||||
Total operating expenses | 507,984 | 494,593 | ||||||
Operating income | 86,122 | 77,567 | ||||||
Investment income | ||||||||
Net investment income | 8,517 | 6,820 | ||||||
Net realized investment gains (losses) | 2,503 | (465 | ) | |||||
Net impairment losses recognized in earnings | (78 | ) | 0 | |||||
Equity in losses of limited partnerships | (1,147 | ) | (192 | ) | ||||
Total investment income | 9,795 | 6,163 | ||||||
Interest expense, net | 449 | 553 | ||||||
Other income | 47 | 44 | ||||||
Income before income taxes | 95,515 | 83,221 | ||||||
Income tax expense | 20,204 | 17,463 | ||||||
Net income | $ | 75,311 | $ | 65,758 | ||||
Net income per share | ||||||||
Class A common stock – basic | $ | 1.62 | $ | 1.41 | ||||
Class A common stock – diluted | $ | 1.44 | $ | 1.26 | ||||
Class B common stock – basic and diluted | $ | 243 | $ | 212 | ||||
Weighted average shares outstanding – Basic | ||||||||
Class A common stock | 46,188,337 | 46,187,908 | ||||||
Class B common stock | 2,542 | 2,542 | ||||||
Weighted average shares outstanding – Diluted | ||||||||
Class A common stock | 52,312,036 | 52,310,628 | ||||||
Class B common stock | 2,542 | 2,542 | ||||||
Dividends declared per share | ||||||||
Class A common stock | $ | 0.90 | $ | 0.84 | ||||
Class B common stock | $ | 135.00 | $ | 126.00 |
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Erie Indemnity Company
Statements of Financial Position
(in thousands)
March 31, 2019 | December 31, 2018 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 312,045 | $ | 266,417 | ||||
Available-for-sale securities | 139,994 | 402,339 | ||||||
Receivables from Erie Insurance Exchange and affiliates | 456,135 | 449,873 | ||||||
Prepaid expenses and other current assets | 49,997 | 36,892 | ||||||
Federal income taxes recoverable | 0 | 8,162 | ||||||
Accrued investment income | 4,220 | 5,263 | ||||||
Total current assets | 962,391 | 1,168,946 | ||||||
Available-for-sale securities | 534,925 | 346,184 | ||||||
Equity securities | 12,410 | 11,853 | ||||||
Limited partnership investments | 30,038 | 34,821 | ||||||
Fixed assets, net | 144,652 | 130,832 | ||||||
Deferred income taxes, net | 22,180 | 24,101 | ||||||
Other assets | 92,860 | 61,590 | ||||||
Total assets | $ | 1,799,456 | $ | 1,778,327 | ||||
Liabilities and shareholders' equity | ||||||||
Current liabilities: | ||||||||
Commissions payable | $ | 253,002 | $ | 241,573 | ||||
Agent bonuses | 26,129 | 103,462 | ||||||
Accounts payable and accrued liabilities | 123,179 | 111,291 | ||||||
Dividends payable | 41,913 | 41,910 | ||||||
Contract liability | 34,116 | 33,854 | ||||||
Deferred executive compensation | 10,346 | 13,107 | ||||||
Federal income taxes payable | 11,946 | 0 | ||||||
Current portion of long-term borrowings | 1,891 | 1,870 | ||||||
Total current liabilities | 502,522 | 547,067 | ||||||
Defined benefit pension plans | 123,270 | 116,866 | ||||||
Long-term borrowings | 97,382 | 97,860 | ||||||
Contract liability | 17,907 | 17,873 | ||||||
Deferred executive compensation | 16,817 | 13,075 | ||||||
Other long-term liabilities | 27,754 | 11,914 | ||||||
Total liabilities | 785,652 | 804,655 | ||||||
Shareholders’ equity | 1,013,804 | 973,672 | ||||||
Total liabilities and shareholders’ equity | $ | 1,799,456 | $ | 1,778,327 |
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