Erie Indemnity (ERIE) 8-K Erie Indemnity Reports Third Quarter 2022 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,
	2022		2021		2022		2021
	(Unaudited)				(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services	$	551,666	$	504,891	$	1,584,213	$	1,462,880
Management fee revenue - administrative services	14,657		14,471		43,446		43,985
Administrative services reimbursement revenue	168,653		162,410		492,655		473,133
Service agreement revenue	6,260		6,067		19,175		18,048
Total operating revenue	741,236		687,839		2,139,489		1,998,046
Operating expenses
Cost of operations - policy issuance and renewal services	466,111		430,326		1,352,050		1,268,650
Cost of operations - administrative services	168,653		162,410		492,655		473,133
Total operating expenses	634,764		592,736		1,844,705		1,741,783
Operating income	106,472		95,103		294,784		256,263
Investment income
Net investment income	5,834		18,858		24,606		49,605
Net realized and unrealized investment (losses) gains	(6,230)		1,610		(23,833)		5,183
Net impairment (losses) recoveries recognized in earnings	(175)		130		(429)		216
Total investment (loss) income	(571)		20,598		344		55,004
Interest expense	115		1,034		2,009		3,082
Other income (expense)	562		(541)		1,372		(1,608)
Income before income taxes	106,348		114,126		294,491		306,577
Income tax expense	22,035		23,903		61,412		63,759
Net income	$	84,313	$	90,223	$	233,079	$	242,818
Net income per share
Class A common stock – basic	$	1.81	$	1.94	$	5.00	$	5.21
Class A common stock – diluted	$	1.61	$	1.72	$	4.46	$	4.64
Class B common stock – basic and diluted	$	272	$	291	$	751	$	782
Weighted average shares outstanding – Basic
Class A common stock	46,189,025		46,189,035		46,188,878		46,188,729
Class B common stock	2,542		2,542		2,542		2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,296,411		52,305,245		52,297,685		52,307,859
Class B common stock	2,542		2,542		2,542		2,542
Dividends declared per share
Class A common stock	$	1.11	$	1.035	$	3.33	$	3.105
Class B common stock	$	166.50	$	155.25	$	499.50	$	465.75

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Erie Indemnity Company

Statements of Financial Position

(in thousands)

	September 30, 2022		December 31, 2021
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	97,664	$	183,702
Available-for-sale securities	25,750		38,396
Receivables from Erie Insurance Exchange and affiliates, net	544,353		479,123
Prepaid expenses and other current assets	49,360		56,206
Accrued investment income	7,352		6,303
Total current assets	724,479		763,730
Available-for-sale securities, net	848,937		907,689
Equity securities	68,969		87,743
Fixed assets, net	408,750		374,802
Agent loans, net	60,673		58,683
Deferred income taxes, net	20,859		145
Other assets	45,085		49,265
Total assets	$	2,177,752	$	2,242,057
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	310,225	$	270,746
Agent bonuses	77,609		120,437
Accounts payable and accrued liabilities	149,020		138,317
Dividends payable	51,693		51,693
Contract liability	36,786		34,935
Deferred executive compensation	8,859		12,637
Current portion of long-term borrowings	—		2,098
Total current liabilities	634,192		630,863
Defined benefit pension plans	131,222		130,383
Long-term borrowings	—		91,734
Contract liability	18,024		17,686
Deferred executive compensation	11,441		14,571
Other long-term liabilities	26,294		14,342
Total liabilities	821,173		899,579
Shareholders’ equity	1,356,579		1,342,478
Total liabilities and shareholders’ equity	$	2,177,752	$	2,242,057

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