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

Exhibit 99.2

Erie Indemnity Company

Statements of Operations

(dollars in thousands, except per share data)

	Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018
	(Unaudited)						(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services, net	$	480,513		$	454,572		$	911,496		$	860,550
Management fee revenue - administrative services, net	14,195			13,299			28,146			26,373
Administrative services reimbursement revenue	146,095			146,507			288,575			292,470
Service agreement revenue	6,907			7,080			13,599			14,225
Total operating revenue	647,710			621,458			1,241,816			1,193,618
Operating expenses
Cost of operations - policy issuance and renewal services	405,005			379,628			770,509			728,258
Cost of operations - administrative services	146,095			146,507			288,575			292,470
Total operating expenses	551,100			526,135			1,059,084			1,020,728
Operating income	96,610			95,323			182,732			172,890
Investment income
Net investment income	8,030			7,104			16,547			13,924
Net realized investment gains (losses)	1,302			(32		)	3,805			(497		)
Net impairment losses recognized in earnings	(84		)	(646		)	(162		)	(646		)
Equity in earnings (losses) of limited partnerships	404			(219		)	(743		)	(411		)
Total investment income	9,652			6,207			19,447			12,370
Interest expense, net	272			602			721			1,155
Other income	48			58			95			102
Income before income taxes	106,038			100,986			201,553			184,207
Income tax expense	18,284			21,280			38,488			38,743
Net income	$	87,754		$	79,706		$	163,065		$	145,464
Net income per share
Class A common stock – basic	$	1.88		$	1.71		$	3.50		$	3.12
Class A common stock – diluted	$	1.68		$	1.52		$	3.12		$	2.78
Class B common stock – basic	$	283		$	257		$	525		$	469
Class B common stock – diluted	$	283		$	257		$	525		$	468
Weighted average shares outstanding – Basic
Class A common stock	46,188,994			46,188,705			46,188,668			46,188,309
Class B common stock	2,542			2,542			2,542			2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,314,700			52,312,849			52,313,371			52,311,741
Class B common stock	2,542			2,542			2,542			2,542
Dividends declared per share
Class A common stock	$	0.90		$	0.84		$	1.80		$	1.68
Class B common stock	$	135.00		$	126.00		$	270.00		$	252.00

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Erie Indemnity Company

Statements of Financial Position

(in thousands)

	June 30, 2019		December 31, 2018
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	338,262	$	266,417
Available-for-sale securities	61,210		402,339
Receivables from Erie Insurance Exchange and affiliates	483,319		449,873
Prepaid expenses and other current assets	42,300		36,892
Federal income taxes recoverable	7,791		8,162
Accrued investment income	4,365		5,263
Total current assets	937,247		1,168,946
Available-for-sale securities	627,898		346,184
Equity securities	12,445		11,853
Limited partnership investments	30,344		34,821
Fixed assets, net	173,055		130,832
Deferred income taxes, net	19,090		24,101
Other assets	89,568		61,590
Total assets	$	1,889,647	$	1,778,327
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	267,403	$	241,573
Agent bonuses	51,357		103,462
Accounts payable and accrued liabilities	124,794		111,291
Dividends payable	41,913		41,910
Contract liability	35,374		33,854
Deferred executive compensation	12,605		13,107
Current portion of long-term borrowings	1,914		1,870
Total current liabilities	535,360		547,067
Defined benefit pension plans	129,674		116,866
Long-term borrowings	96,860		97,860
Contract liability	18,339		17,873
Deferred executive compensation	13,199		13,075
Other long-term liabilities	32,761		11,914
Total liabilities	826,193		804,655
Shareholders’ equity	1,063,454		973,672
Total liabilities and shareholders’ equity	$	1,889,647	$	1,778,327

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