Exhibit 99.2
Erie Indemnity Company
Statements of Operations
(dollars in thousands, except per share data)
Three months ended March 31, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||||
Management fee revenue - policy issuance and renewal services | $ | 558,090 | $ | 487,992 | ||||||||||||||||||||||
Management fee revenue - administrative services | 15,189 | 14,313 | ||||||||||||||||||||||||
Administrative services reimbursement revenue | 172,827 | 163,327 | ||||||||||||||||||||||||
Service agreement revenue | 6,359 | 6,478 | ||||||||||||||||||||||||
Total operating revenue | 752,465 | 672,110 | ||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Cost of operations - policy issuance and renewal services | 469,095 | 424,471 | ||||||||||||||||||||||||
Cost of operations - administrative services | 172,827 | 163,327 | ||||||||||||||||||||||||
Total operating expenses | 641,922 | 587,798 | ||||||||||||||||||||||||
Operating income | 110,543 | 84,312 | ||||||||||||||||||||||||
Investment income | ||||||||||||||||||||||||||
Net investment income | 2,183 | 10,504 | ||||||||||||||||||||||||
Net realized and unrealized investment losses | (5,282) | (7,279) | ||||||||||||||||||||||||
Net impairment losses recognized in earnings | (1,633) | (216) | ||||||||||||||||||||||||
Total investment (loss) income | (4,732) | 3,009 | ||||||||||||||||||||||||
Interest expense | — | 999 | ||||||||||||||||||||||||
Other income | 3,337 | 473 | ||||||||||||||||||||||||
Income before income taxes | 109,148 | 86,795 | ||||||||||||||||||||||||
Income tax expense | 22,907 | 18,176 | ||||||||||||||||||||||||
Net income | $ | 86,241 | $ | 68,619 | ||||||||||||||||||||||
Net income per share | ||||||||||||||||||||||||||
Class A common stock – basic | $ | 1.85 | $ | 1.47 | ||||||||||||||||||||||
Class A common stock – diluted | $ | 1.65 | $ | 1.31 | ||||||||||||||||||||||
Class B common stock – basic and diluted | $ | 278 | $ | 221 | ||||||||||||||||||||||
Weighted average shares outstanding – Basic | ||||||||||||||||||||||||||
Class A common stock | 46,188,819 | 46,188,761 | ||||||||||||||||||||||||
Class B common stock | 2,542 | 2,542 | ||||||||||||||||||||||||
Weighted average shares outstanding – Diluted | ||||||||||||||||||||||||||
Class A common stock | 52,296,621 | 52,300,501 | ||||||||||||||||||||||||
Class B common stock | 2,542 | 2,542 | ||||||||||||||||||||||||
Dividends declared per share | ||||||||||||||||||||||||||
Class A common stock | $ | 1.19 | $ | 1.11 | ||||||||||||||||||||||
Class B common stock | $ | 178.50 | $ | 166.50 |
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Erie Indemnity Company
Statements of Financial Position
(in thousands)
March 31, 2023 | December 31, 2022 | |||||||||||||
(Unaudited) | ||||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 122,376 | $ | 142,090 | ||||||||||
Available-for-sale securities | 57,470 | 24,267 | ||||||||||||
Receivables from Erie Insurance Exchange and affiliates, net | 533,306 | 524,937 | ||||||||||||
Prepaid expenses and other current assets | 62,738 | 79,201 | ||||||||||||
Accrued investment income | 8,191 | 8,301 | ||||||||||||
Total current assets | 784,081 | 778,796 | ||||||||||||
Available-for-sale securities, net | 858,196 | 870,394 | ||||||||||||
Equity securities | 72,963 | 72,560 | ||||||||||||
Fixed assets, net | 417,339 | 413,874 | ||||||||||||
Agent loans, net | 59,315 | 60,537 | ||||||||||||
Other assets | 32,075 | 43,295 | ||||||||||||
Total assets | $ | 2,223,969 | $ | 2,239,456 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Commissions payable | $ | 322,910 | $ | 300,028 | ||||||||||
Agent bonuses | 20,565 | 95,166 | ||||||||||||
Accounts payable and accrued liabilities | 168,142 | 165,915 | ||||||||||||
Dividends payable | 55,419 | 55,419 | ||||||||||||
Contract liability | 37,187 | 36,547 | ||||||||||||
Deferred executive compensation | 7,345 | 12,036 | ||||||||||||
Total current liabilities | 611,568 | 665,111 | ||||||||||||
Defined benefit pension plans | 53,522 | 51,224 | ||||||||||||
Contract liability | 18,142 | 17,895 | ||||||||||||
Deferred executive compensation | 12,634 | 13,724 | ||||||||||||
Deferred income taxes, net | 16,081 | 14,075 | ||||||||||||
Other long-term liabilities | 25,055 | 29,019 | ||||||||||||
Total liabilities | 737,002 | 791,048 | ||||||||||||
Shareholders’ equity | 1,486,967 | 1,448,408 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 2,223,969 | $ | 2,239,456 |
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