Erie Indemnity (ERIE) 8-K Erie Indemnity Reports First Quarter 2019 Results

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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