Erie Indemnity (ERIE) 8-K Erie Indemnity Reports First Quarter 2020 Results

Exhibit 99.2

Erie Indemnity Company

Statements of Operations

(dollars in thousands, except per share data)

	Three months ended March 31,
	2020			2019
	(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services, net	$	443,750		$	430,983
Management fee revenue - administrative services, net	14,771			13,951
Administrative services reimbursement revenue	151,554			142,480
Service agreement revenue	6,662			6,692
Total operating revenue	616,737			594,106
Operating expenses
Cost of operations - policy issuance and renewal services	379,492			365,504
Cost of operations - administrative services	151,554			142,480
Total operating expenses	531,046			507,984
Operating income	85,691			86,122
Investment income
Net investment income	8,369			8,517
Net realized investment (losses) gains	(10,806		)	2,503
Net impairment losses recognized in earnings	(3,053		)	(78		)
Equity in losses of limited partnerships	(3,705		)	(1,147		)
Total investment (loss) income	(9,195		)	9,795
Interest expense, net	3			449
Other (expense) income	(366		)	47
Income before income taxes	76,127			95,515
Income tax expense	16,801			20,204
Net income	$	59,326		$	75,311
Net income per share
Class A common stock – basic	$	1.27		$	1.62
Class A common stock – diluted	$	1.13		$	1.44
Class B common stock – basic and diluted	$	191		$	243
Weighted average shares outstanding – Basic
Class A common stock	46,188,789			46,188,337
Class B common stock	2,542			2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,324,350			52,312,036
Class B common stock	2,542			2,542
Dividends declared per share
Class A common stock	$	0.965		$	0.90
Class B common stock	$	144.75		$	135.00

1

Erie Indemnity Company

Statements of Financial Position

(in thousands)

	March 31, 2020		December 31, 2019
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	228,646	$	336,739
Available-for-sale securities	34,818		32,810
Equity securities	0		2,381
Receivables from Erie Insurance Exchange and affiliates, net	482,238		468,636
Prepaid expenses and other current assets	58,715		44,943
Federal income taxes recoverable	0		462
Accrued investment income	5,657		5,433
Total current assets	810,074		891,404
Available-for-sale securities, net	716,835		697,891
Equity securities	58,014		64,752
Limited partnership investments	22,492		26,775
Fixed assets, net	238,296		221,379
Agent loans, net	59,877		60,978
Deferred income taxes, net	19,281		17,186
Other assets	32,624		35,875
Total assets	$	1,957,493	$	2,016,240
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	270,328	$	262,963
Agent bonuses	29,661		96,053
Accounts payable and accrued liabilities	130,035		134,957
Dividends payable	44,940		44,940
Contract liability	35,810		35,938
Deferred executive compensation	10,910		10,882
Federal income taxes payable	18,040		0
Current portion of long-term borrowings	2,000		1,979
Total current liabilities	541,724		587,712
Defined benefit pension plans	153,558		145,659
Long-term borrowings	95,342		95,842
Contract liability	18,461		18,435
Deferred executive compensation	11,983		13,734
Other long-term liabilities	19,433		21,605
Total liabilities	840,501		882,987
Shareholders’ equity	1,116,992		1,133,253
Total liabilities and shareholders’ equity	$	1,957,493	$	2,016,240

2