Erie Indemnity (ERIE) 8-K Erie Indemnity Reports Full Year and Fourth Quarter 2020 Results

Exhibit 99.2

Erie Indemnity Company

Statements of Operations

(dollars in thousands, except per share data)

	Three months ended December 31,				Twelve months ended December 31,
	2020		2019		2020		2019
	(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services, net	$	429,698	$	424,534	$	1,841,794	$	1,810,457
Management fee revenue - administrative services, net	14,969		14,628		59,463		57,204
Administrative services reimbursement revenue	158,206		150,705		609,435		582,010
Service agreement revenue	6,379		6,873		25,797		27,627
Total operating revenue	609,252		596,740		2,536,489		2,477,298
Operating expenses
Cost of operations - policy issuance and renewal services	385,994		377,335		1,588,897		1,537,949
Cost of operations - administrative services	158,206		150,705		609,435		582,010
Total operating expenses	544,200		528,040		2,198,332		2,119,959
Operating income	65,052		68,700		338,157		357,339
Investment income
Net investment income	9,400		6,314		29,753		34,059
Net realized investment gains	4,757		602		6,392		6,103
Net impairment losses recognized in earnings	(86)		(2)		(3,278)		(195)
Total investment income	14,071		6,914		32,867		39,967
Interest expense, net	723		24		731		856
Other (expense) income	(190)		60		(1,778)		255
Income before income taxes	78,210		75,650		368,515		396,705
Income tax expense	15,425		16,063		75,211		79,884
Net income	$	62,785	$	59,587	$	293,304	$	316,821
Earnings Per Share
Net income per share
Class A common stock – basic	$	1.35	$	1.28	$	6.30	$	6.80
Class A common stock – diluted	$	1.20	$	1.14	$	5.61	$	6.06
Class B common stock – basic and diluted	$	202	$	192	$	945	$	1,020
Weighted average shares outstanding – Basic
Class A common stock	49,189,001		46,189,033		46,188,659		46,188,836
Class B common stock	2,542		2,542		2,542		2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,315,670		52,327,607		52,313,360		52,319,860
Class B common stock	2,542		2,542		2,542		2,542
Dividends declared per share
Class A common stock	$	3.035	$	0.965	$	5.930	$	3.665
Class B common stock	$	455.25	$	144.75	$	889.50	$	549.75

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Erie Indemnity Company

Statements of Financial Position

(in thousands)

	December 31, 2020		December 31, 2019
Assets
Current assets:
Cash and cash equivalents	$	161,240	$	336,739
Available-for-sale securities	17,697		32,810
Equity securities	19		2,381
Receivables from Erie Insurance Exchange and affiliates, net	494,637		468,636
Prepaid expenses and other current assets	49,897		44,943
Federal income taxes recoverable	2,664		462
Accrued investment income	6,146		5,433
Total current assets	732,300		891,404
Available-for-sale securities, net	910,539		697,891
Equity securities	94,071		64,752
Fixed assets, net	265,341		221,379
Agent loans, net	62,449		60,978
Deferred income taxes, net	12,341		17,186
Other assets	40,081		62,650
Total assets	$	2,117,122	$	2,016,240
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	262,338	$	262,963
Agent bonuses	110,158		96,053
Accounts payable and accrued liabilities	150,706		134,957
Dividends payable	48,200		44,940
Contract liability	36,917		35,938
Deferred executive compensation	17,319		10,882
Current portion of long-term borrowings	2,031		1,979
Total current liabilities	627,669		587,712
Defined benefit pension plan	164,346		145,659
Long-term borrowings	93,833		95,842
Contract liability	18,878		18,435
Deferred executive compensation	14,904		13,734
Other long-term liabilities	9,444		21,605
Total liabilities	929,074		882,987
Shareholders' equity	1,188,048		1,133,253
Total liabilities and shareholders' equity	$	2,117,122	$	2,016,240

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