Erie Indemnity (ERIE) 8-K Erie Indemnity Reports Full Year and Fourth Quarter 2021 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,
	2021		2020		2021		2020
	(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services	$	450,286	$	429,698	$	1,913,166	$	1,841,794
Management fee revenue - administrative services	14,301		14,969		58,286		59,463
Administrative services reimbursement revenue	165,350		158,206		638,483		609,435
Service agreement revenue	5,994		6,379		24,042		25,797
Total operating revenue	635,931		609,252		2,633,977		2,536,489
Operating expenses
Cost of operations - policy issuance and renewal services	408,747		385,994		1,677,397		1,588,897
Cost of operations - administrative services	165,350		158,206		638,483		609,435
Total operating expenses	574,097		544,200		2,315,880		2,198,332
Operating income	61,834		65,052		318,097		338,157
Investment income
Net investment income	12,572		9,400		62,177		29,753
Net realized and unrealized investment (losses) gains	(237)		4,757		4,946		6,392
Net impairment (losses) recoveries recognized in earnings	(7)		(86)		209		(3,278)
Total investment income	12,328		14,071		67,332		32,867
Interest expense, net	1,050		723		4,132		731
Other expense	3,285		190		4,893		1,778
Income before income taxes	69,827		78,210		376,404		368,515
Income tax expense	14,785		15,425		78,544		75,211
Net income	$	55,042	$	62,785	$	297,860	$	293,304
Earnings Per Share
Net income per share
Class A common stock – basic	$	1.18	$	1.35	$	6.40	$	6.30
Class A common stock – diluted	$	1.05	$	1.20	$	5.69	$	5.61
Class B common stock – basic and diluted	$	177	$	202	$	959	$	945
Weighted average shares outstanding – Basic
Class A common stock	46,189,068		49,189,001		46,188,806		46,188,659
Class B common stock	2,542		2,542		2,542		2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,305,628		52,315,670		52,307,302		52,313,360
Class B common stock	2,542		2,542		2,542		2,542
Dividends declared per share
Class A common stock	$	1.110	$	3.035	$	4.215	$	5.930
Class B common stock	$	166.50	$	455.25	$	632.25	$	889.50

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Erie Indemnity Company

Statements of Financial Position

(in thousands)

	December 31, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	183,702	$	161,240
Available-for-sale securities	38,396		17,697
Equity securities	0		19
Receivables from Erie Insurance Exchange and affiliates, net	479,123		494,637
Prepaid expenses and other current assets	56,206		52,561
Accrued investment income	6,303		6,146
Total current assets	763,730		732,300
Available-for-sale securities, net	907,689		910,539
Equity securities	87,743		94,071
Fixed assets, net	374,802		265,341
Agent loans, net	58,683		62,449
Deferred income taxes, net	145		12,341
Other assets	49,265		40,081
Total assets	$	2,242,057	$	2,117,122
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	270,746	$	262,338
Agent bonuses	120,437		110,158
Accounts payable and accrued liabilities	138,317		150,706
Dividends payable	51,693		48,200
Contract liability	34,935		36,917
Deferred executive compensation	12,637		17,319
Current portion of long-term borrowings	2,098		2,031
Total current liabilities	630,863		627,669
Defined benefit pension plan	130,383		164,346
Long-term borrowings	91,734		93,833
Contract liability	17,686		18,878
Deferred executive compensation	14,571		14,904
Other long-term liabilities	14,342		9,444
Total liabilities	899,579		929,074
Shareholders' equity	1,342,478		1,188,048
Total liabilities and shareholders' equity	$	2,242,057	$	2,117,122

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