Erie Indemnity (ERIE) 8-K Erie Indemnity Reports Second Quarter 2022 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,
	2022		2021		2022		2021
	(Unaudited)				(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services	$	544,555	$	502,271	$	1,032,547	$	957,989
Management fee revenue - administrative services	14,476		14,667		28,789		29,514
Administrative services reimbursement revenue	160,675		157,190		324,002		310,723
Service agreement revenue	6,437		5,902		12,915		11,981
Total operating revenue	726,143		680,030		1,398,253		1,310,207
Operating expenses
Cost of operations - policy issuance and renewal services	461,468		437,775		885,939		838,324
Cost of operations - administrative services	160,675		157,190		324,002		310,723
Total operating expenses	622,143		594,965		1,209,941		1,149,047
Operating income	104,000		85,065		188,312		161,160
Investment income
Net investment income	8,268		13,650		18,772		30,747
Net realized and unrealized investment (losses) gains	(10,324)		2,769		(17,603)		3,573
Net impairment (losses) recoveries recognized in earnings	(38)		(1)		(254)		86
Total investment (loss) income	(2,094)		16,418		915		34,406
Interest expense	895		1,039		1,894		2,048
Other income (expense)	337		(548)		810		(1,067)
Income before income taxes	101,348		99,896		188,143		192,451
Income tax expense	21,201		20,867		39,377		39,856
Net income	$	80,147	$	79,029	$	148,766	$	152,595
Net income per share
Class A common stock – basic	$	1.72	$	1.70	$	3.19	$	3.28
Class A common stock – diluted	$	1.53	$	1.51	$	2.84	$	2.92
Class B common stock – basic and diluted	$	258	$	255	$	479	$	491
Weighted average shares outstanding – Basic
Class A common stock	46,188,845		46,188,289		46,188,803		46,188,573
Class B common stock	2,542		2,542		2,542		2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,296,139		52,302,370		52,298,321		52,309,163
Class B common stock	2,542		2,542		2,542		2,542
Dividends declared per share
Class A common stock	$	1.11	$	1.035	$	2.22	$	2.070
Class B common stock	$	166.50	$	155.25	$	333.00	$	310.50

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Erie Indemnity Company

Statements of Financial Position

(in thousands)

	June 30, 2022		December 31, 2021
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	90,324	$	183,702
Available-for-sale securities	57,150		38,396
Receivables from Erie Insurance Exchange and affiliates, net	538,283		479,123
Prepaid expenses and other current assets	50,508		56,206
Accrued investment income	6,839		6,303
Total current assets	743,104		763,730
Available-for-sale securities, net	832,577		907,689
Equity securities	71,448		87,743
Fixed assets, net	402,475		374,802
Agent loans, net	61,865		58,683
Deferred income taxes, net	20,491		145
Other assets	48,262		49,265
Total assets	$	2,180,222	$	2,242,057
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	305,984	$	270,746
Agent bonuses	55,146		120,437
Accounts payable and accrued liabilities	141,861		138,317
Dividends payable	51,693		51,693
Contract liability	35,836		34,935
Deferred executive compensation	6,045		12,637
Short-term borrowings	40,000		—
Current portion of long-term borrowings	—		2,098
Total current liabilities	636,565		630,863
Defined benefit pension plans	148,078		130,383
Long-term borrowings	—		91,734
Contract liability	17,740		17,686
Deferred executive compensation	11,199		14,571
Other long-term liabilities	27,234		14,342
Total liabilities	840,816		899,579
Shareholders’ equity	1,339,406		1,342,478
Total liabilities and shareholders’ equity	$	2,180,222	$	2,242,057

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