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