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

Exhibit 99.2

Erie Indemnity Company

Statements of Operations

(dollars in thousands, except per share data)

	Three months ended September 30,					Nine months ended September 30,
	2019			2018		2019			2018
	(Unaudited)					(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services, net	$	474,427		$	451,361	$	1,385,923		$	1,311,911
Management fee revenue - administrative services, net	14,430			13,521		42,576			39,894
Administrative services reimbursement revenue	142,730			140,172		431,305			432,642
Service agreement revenue	7,155			7,072		20,754			21,297
Total operating revenue	638,742			612,126		1,880,558			1,805,744
Operating expenses
Cost of operations - policy issuance and renewal services	390,105			375,259		1,160,614			1,103,517
Cost of operations - administrative services	142,730			140,172		431,305			432,642
Total operating expenses	532,835			515,431		1,591,919			1,536,159
Operating income	105,907			96,695		288,639			269,585
Investment income
Net investment income	8,652			7,659		25,199			21,583
Net realized investment gains (losses)	1,696			0		5,501			(497		)
Net impairment losses recognized in earnings	(31		)	0		(193		)	(646		)
Equity in earnings of limited partnerships	3,289			772		2,546			361
Total investment income	13,606			8,431		33,053			20,801
Interest expense, net	111			709		832			1,864
Other income	100			54		195			156
Income before income taxes	119,502			104,471		321,055			288,678
Income tax expense	25,333			24,025		63,821			62,768
Net income	$	94,169		$	80,446	$	257,234		$	225,910
Net income per share
Class A common stock – basic	$	2.02		$	1.73	$	5.52		$	4.85
Class A common stock – diluted	$	1.80		$	1.54	$	4.92		$	4.32
Class B common stock – basic	$	303		$	259	$	829		$	728
Class B common stock – diluted	$	303		$	259	$	828		$	727
Weighted average shares outstanding – Basic
Class A common stock	46,189,006			46,188,941		46,188,767			46,188,522
Class B common stock	2,542			2,542		2,542			2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,325,125			52,317,438		52,317,275			52,313,642
Class B common stock	2,542			2,542		2,542			2,542
Dividends declared per share
Class A common stock	$	0.90		$	0.84	$	2.70		$	2.52
Class B common stock	$	135.00		$	126.00	$	405.00		$	378.00

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Erie Indemnity Company

Statements of Financial Position

(in thousands)

	September 30, 2019		December 31, 2018
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	344,872	$	266,417
Available-for-sale securities	32,984		402,339
Receivables from Erie Insurance Exchange and affiliates	497,985		449,873
Prepaid expenses and other current assets	47,712		36,892
Federal income taxes recoverable	6,075		8,162
Accrued investment income	5,267		5,263
Total current assets	934,895		1,168,946
Available-for-sale securities	647,649		346,184
Equity securities	55,052		11,853
Limited partnership investments	32,171		34,821
Fixed assets, net	194,170		130,832
Deferred income taxes, net	15,505		24,101
Other assets	95,138		61,590
Total assets	$	1,974,580	$	1,778,327
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	272,932	$	241,573
Agent bonuses	73,921		103,462
Accounts payable and accrued liabilities	131,453		111,291
Dividends payable	41,913		41,910
Contract liability	36,318		33,854
Deferred executive compensation	10,328		13,107
Current portion of long-term borrowings	1,959		1,870
Total current liabilities	568,824		547,067
Defined benefit pension plans	136,078		116,866
Long-term borrowings	96,346		97,860
Contract liability	18,648		17,873
Deferred executive compensation	13,017		13,075
Other long-term liabilities	22,396		11,914
Total liabilities	855,309		804,655
Shareholders’ equity	1,119,271		973,672
Total liabilities and shareholders’ equity	$	1,974,580	$	1,778,327

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