Erie Indemnity (ERIE) 8-K Erie Indemnity Reports Third Quarter 2020 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,
	2020		2019		2020		2019
	(Unaudited)						(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services, net	$	484,551	$	474,427	$	1,412,096	$	1,385,923
Management fee revenue - administrative services, net	14,910		14,430		44,494		42,576
Administrative services reimbursement revenue	147,710		142,730		451,229		431,305
Service agreement revenue	6,310		7,155		19,418		20,754
Total operating revenue	653,481		638,742		1,927,237		1,880,558
Operating expenses
Cost of operations - policy issuance and renewal services	409,546		390,105		1,202,903		1,160,614
Cost of operations - administrative services	147,710		142,730		451,229		431,305
Total operating expenses	557,256		532,835		1,654,132		1,591,919
Operating income	96,225		105,907		273,105		288,639
Investment income
Net investment income	7,030		8,652		22,772		25,199
Net realized investment gains	5,915		1,696		1,635		5,501
Net impairment losses recognized in earnings	(122)		(31)		(3,192)		(193)
Equity in earnings (losses) of limited partnerships	3,615		3,289		(2,419)		2,546
Total investment income	16,438		13,606		18,796		33,053
Interest expense, net	3		111		8		832
Other (expense) income	(964)		100		(1,588)		195
Income before income taxes	111,696		119,502		290,305		321,055
Income tax expense	22,480		25,333		59,786		63,821
Net income	$	89,216	$	94,169	$	230,519	$	257,234
Net income per share
Class A common stock – basic	$	1.92	$	2.02	$	4.95	$	5.52
Class A common stock – diluted	$	1.71	$	1.80	$	4.41	$	4.92
Class B common stock – basic	$	287	$	303	$	742	$	829
Class B common stock – diluted	$	287	$	303	$	742	$	828
Weighted average shares outstanding – Basic
Class A common stock	46,189,030		46,189,006		46,188,544		46,188,767
Class B common stock	2,542		2,542		2,542		2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,310,429		52,325,125		52,312,588		52,317,275
Class B common stock	2,542		2,542		2,542		2,542
Dividends declared per share
Class A common stock	$	0.965	$	0.90	$	2.895	$	2.70
Class B common stock	$	144.75	$	135.00	$	434.25	$	405.00

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Erie Indemnity Company

Statements of Financial Position

(in thousands)

	September 30, 2020		December 31, 2019
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	216,355	$	336,739
Available-for-sale securities	13,429		32,810
Equity securities	0		2,381
Receivables from Erie Insurance Exchange and affiliates, net	501,192		468,636
Prepaid expenses and other current assets	52,008		44,943
Federal income taxes recoverable	3,965		462
Accrued investment income	5,973		5,433
Total current assets	792,922		891,404
Available-for-sale securities, net	894,625		697,891
Equity securities	94,435		64,752
Limited partnership investments	10,006		26,775
Fixed assets, net	254,908		221,379
Agent loans, net	58,339		60,978
Deferred income taxes, net	21,618		17,186
Other assets	32,489		35,875
Total assets	$	2,159,342	$	2,016,240
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	275,594	$	262,963
Agent bonuses	85,709		96,053
Accounts payable and accrued liabilities	148,075		134,957
Dividends payable	44,940		44,940
Contract liability	37,420		35,938
Deferred executive compensation	12,701		10,882
Current portion of long-term borrowings	2,021		1,979
Total current liabilities	606,460		587,712
Defined benefit pension plans	169,358		145,659
Long-term borrowings	94,337		95,842
Contract liability	19,140		18,435
Deferred executive compensation	11,335		13,734
Other long-term liabilities	11,495		21,605
Total liabilities	912,125		882,987
Shareholders’ equity	1,247,217		1,133,253
Total liabilities and shareholders’ equity	$	2,159,342	$	2,016,240

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