Erie Indemnity (ERIE) 8-K Erie Indemnity Reports Second Quarter 2020 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,
	2020		2019		2020		2019
	(Unaudited)						(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services, net	$	483,795	$	480,513	$	927,545	$	911,496
Management fee revenue - administrative services, net	14,813		14,195		29,584		28,146
Administrative services reimbursement revenue	151,965		146,095		303,519		288,575
Service agreement revenue	6,446		6,907		13,108		13,599
Total operating revenue	657,019		647,710		1,273,756		1,241,816
Operating expenses
Cost of operations - policy issuance and renewal services	413,865		405,005		793,357		770,509
Cost of operations - administrative services	151,965		146,095		303,519		288,575
Total operating expenses	565,830		551,100		1,096,876		1,059,084
Operating income	91,189		96,610		176,880		182,732
Investment income
Net investment income	7,373		8,030		15,742		16,547
Net realized investment gains (losses)	6,526		1,302		(4,280)		3,805
Net impairment losses recognized in earnings	(17)		(84)		(3,070)		(162)
Equity in (losses) earnings of limited partnerships	(2,329)		404		(6,034)		(743)
Total investment income	11,553		9,652		2,358		19,447
Interest expense, net	2		272		5		721
Other (expense) income	(258)		48		(624)		95
Income before income taxes	102,482		106,038		178,609		201,553
Income tax expense	20,505		18,284		37,306		38,488
Net income	$	81,977	$	87,754	$	141,303	$	163,065
Net income per share
Class A common stock – basic	$	1.76	$	1.88	$	3.03	$	3.50
Class A common stock – diluted	$	1.57	$	1.68	$	2.70	$	3.12
Class B common stock – basic and diluted	$	264	$	283	$	455	$	525
Weighted average shares outstanding – Basic
Class A common stock	46,187,808		46,188,994		46,188,299		46,188,668
Class B common stock	2,542		2,542		2,542		2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,302,981		52,314,700		52,313,667		52,313,371
Class B common stock	2,542		2,542		2,542		2,542
Dividends declared per share
Class A common stock	$	0.965	$	0.90	$	1.93	$	1.80
Class B common stock	$	144.75	$	135.00	$	289.50	$	270.00

1

Erie Indemnity Company

Statements of Financial Position

(in thousands)

	June 30, 2020		December 31, 2019
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	257,738	$	336,739
Available-for-sale securities	27,409		32,810
Equity securities	1,416		2,381
Receivables from Erie Insurance Exchange and affiliates, net	506,690		468,636
Prepaid expenses and other current assets	60,668		44,943
Federal income taxes recoverable	0		462
Accrued investment income	5,317		5,433
Total current assets	859,238		891,404
Available-for-sale securities, net	777,416		697,891
Equity securities	73,973		64,752
Limited partnership investments	15,463		26,775
Fixed assets, net	246,572		221,379
Agent loans, net	58,602		60,978
Deferred income taxes, net	18,895		17,186
Other assets	32,702		35,875
Total assets	$	2,082,861	$	2,016,240
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	282,436	$	262,963
Agent bonuses	60,264		96,053
Accounts payable and accrued liabilities	137,745		134,957
Dividends payable	44,940		44,940
Contract liability	36,625		35,938
Deferred executive compensation	9,674		10,882
Federal income taxes payable	15,441		0
Current portion of long-term borrowings	1,998		1,979
Total current liabilities	589,123		587,712
Defined benefit pension plans	161,458		145,659
Long-term borrowings	94,849		95,842
Contract liability	18,826		18,435
Deferred executive compensation	9,571		13,734
Other long-term liabilities	14,895		21,605
Total liabilities	888,722		882,987
Shareholders’ equity	1,194,139		1,133,253
Total liabilities and shareholders’ equity	$	2,082,861	$	2,016,240

2