Erie Indemnity (ERIE) 8-K Erie Indemnity Reports Third Quarter 2021 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,
	2021		2020		2021		2020
	(Unaudited)				(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services	$	504,891	$	484,551	$	1,462,880	$	1,412,096
Management fee revenue - administrative services	14,471		14,910		43,985		44,494
Administrative services reimbursement revenue	162,410		147,710		473,133		451,229
Service agreement revenue	6,067		6,310		18,048		19,418
Total operating revenue	687,839		653,481		1,998,046		1,927,237
Operating expenses
Cost of operations - policy issuance and renewal services	430,326		409,546		1,268,650		1,202,903
Cost of operations - administrative services	162,410		147,710		473,133		451,229
Total operating expenses	592,736		557,256		1,741,783		1,654,132
Operating income	95,103		96,225		256,263		273,105
Investment income
Net investment income	18,858		10,645		49,605		20,353
Net realized investment gains	1,610		5,915		5,183		1,635
Net impairment recoveries (losses) recognized in earnings	130		(122)		216		(3,192)
Total investment income	20,598		16,438		55,004		18,796
Interest expense, net	1,034		3		3,082		8
Other expense	541		964		1,608		1,588
Income before income taxes	114,126		111,696		306,577		290,305
Income tax expense	23,903		22,480		63,759		59,786
Net income	$	90,223	$	89,216	$	242,818	$	230,519
Net income per share
Class A common stock – basic	$	1.94	$	1.92	$	5.21	$	4.95
Class A common stock – diluted	$	1.72	$	1.71	$	4.64	$	4.41
Class B common stock – basic and diluted	$	291	$	287	$	782	$	742
Weighted average shares outstanding – Basic
Class A common stock	46,189,035		46,189,030		46,188,729		46,188,544
Class B common stock	2,542		2,542		2,542		2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,305,245		52,310,429		52,307,859		52,312,588
Class B common stock	2,542		2,542		2,542		2,542
Dividends declared per share
Class A common stock	$	1.035	$	0.965	$	3.105	$	2.895
Class B common stock	$	155.25	$	144.75	$	465.75	$	434.25

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Erie Indemnity Company

Statements of Financial Position

(in thousands)

	September 30, 2021		December 31, 2020
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	235,996	$	161,240
Available-for-sale securities	30,627		17,697
Equity securities	10		19
Receivables from Erie Insurance Exchange and affiliates, net	503,413		494,637
Prepaid expenses and other current assets	55,003		52,561
Accrued investment income	6,104		6,146
Total current assets	831,153		732,300
Available-for-sale securities, net	906,877		910,539
Equity securities	86,270		94,071
Fixed assets, net	277,939		265,341
Agent loans, net	59,462		62,449
Deferred income taxes, net	17,153		12,341
Other assets	57,704		40,081
Total assets	$	2,236,558	$	2,117,122
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	280,540	$	262,338
Agent bonuses	88,556		110,158
Accounts payable and accrued liabilities	148,282		150,706
Dividends payable	48,200		48,200
Contract liability	35,853		36,917
Deferred executive compensation	10,757		17,319
Current portion of long-term borrowings	2,075		2,031
Total current liabilities	614,263		627,669
Defined benefit pension plans	192,808		164,346
Long-term borrowings	92,273		93,833
Contract liability	18,098		18,878
Deferred executive compensation	14,477		14,904
Other long-term liabilities	17,783		9,444
Total liabilities	949,702		929,074
Shareholders’ equity	1,286,856		1,188,048
Total liabilities and shareholders’ equity	$	2,236,558	$	2,117,122

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