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, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||||
Management fee revenue - policy issuance and renewal services | $ | 760,886 | $ | 633,339 | $ | 1,426,572 | $ | 1,191,429 | ||||||||||||||||||
Management fee revenue - administrative services | 17,051 | 15,636 | 33,985 | 30,825 | ||||||||||||||||||||||
Administrative services reimbursement revenue | 206,028 | 184,466 | 397,595 | 357,293 | ||||||||||||||||||||||
Service agreement revenue | 6,473 | 6,429 | 12,987 | 12,788 | ||||||||||||||||||||||
Total operating revenue | 990,438 | 839,870 | 1,871,139 | 1,592,335 | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Cost of operations - policy issuance and renewal services | 594,202 | 521,246 | 1,144,524 | 990,341 | ||||||||||||||||||||||
Cost of operations - administrative services | 206,028 | 184,466 | 397,595 | 357,293 | ||||||||||||||||||||||
Total operating expenses | 800,230 | 705,712 | 1,542,119 | 1,347,634 | ||||||||||||||||||||||
Operating income | 190,208 | 134,158 | 329,020 | 244,701 | ||||||||||||||||||||||
Investment income | ||||||||||||||||||||||||||
Net investment income | 16,010 | 13,535 | 31,913 | 15,718 | ||||||||||||||||||||||
Net realized and unrealized investment (losses) gains | (1,795) | (1,737) | 58 | (7,019) | ||||||||||||||||||||||
Net impairment losses recognized in earnings | (388) | (171) | (3,065) | (1,804) | ||||||||||||||||||||||
Total investment income | 13,827 | 11,627 | 28,906 | 6,895 | ||||||||||||||||||||||
Other income | 3,292 | 3,305 | 6,703 | 6,642 | ||||||||||||||||||||||
Income before income taxes | 207,327 | 149,090 | 364,629 | 258,238 | ||||||||||||||||||||||
Income tax expense | 43,424 | 31,238 | 76,174 | 54,145 | ||||||||||||||||||||||
Net income | $ | 163,903 | $ | 117,852 | $ | 288,455 | $ | 204,093 | ||||||||||||||||||
Net income per share | ||||||||||||||||||||||||||
Class A common stock – basic | $ | 3.52 | $ | 2.53 | $ | 6.19 | $ | 4.38 | ||||||||||||||||||
Class A common stock – diluted | $ | 3.13 | $ | 2.25 | $ | 5.52 | $ | 3.90 | ||||||||||||||||||
Class B common stock – basic and diluted | $ | 528 | $ | 380 | $ | 929 | $ | 657 | ||||||||||||||||||
Weighted average shares outstanding – Basic | ||||||||||||||||||||||||||
Class A common stock | 46,189,042 | 46,189,026 | 46,189,028 | 46,188,923 | ||||||||||||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||||||||||||
Weighted average shares outstanding – Diluted | ||||||||||||||||||||||||||
Class A common stock | 52,305,299 | 52,299,974 | 52,303,551 | 52,298,298 | ||||||||||||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||||||||||||
Dividends declared per share | ||||||||||||||||||||||||||
Class A common stock | $ | 1.275 | $ | 1.19 | $ | 2.55 | $ | 2.38 | ||||||||||||||||||
Class B common stock | $ | 191.25 | $ | 178.50 | $ | 382.50 | $ | 357.00 |
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Erie Indemnity Company
Statements of Financial Position
(in thousands)
June 30, 2024 | December 31, 2023 | |||||||||||||
(Unaudited) | ||||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents (includes restricted cash of $14,027 and $12,542, respectively) | $ | 170,634 | $ | 144,055 | ||||||||||
Available-for-sale securities | 47,734 | 82,017 | ||||||||||||
Receivables from Erie Insurance Exchange and affiliates, net | 708,171 | 625,338 | ||||||||||||
Prepaid expenses and other current assets | 83,529 | 69,321 | ||||||||||||
Accrued investment income | 10,204 | 9,458 | ||||||||||||
Total current assets | 1,020,272 | 930,189 | ||||||||||||
Available-for-sale securities, net | 946,525 | 879,224 | ||||||||||||
Available-for-sale securities lent | 6,125 | 0 | ||||||||||||
Equity securities | 80,128 | 84,253 | ||||||||||||
Fixed assets, net | 469,145 | 442,610 | ||||||||||||
Agent loans, net | 56,813 | 58,434 | ||||||||||||
Defined benefit pension plan | 65,221 | 34,320 | ||||||||||||
Other assets, net | 47,731 | 42,934 | ||||||||||||
Total assets | $ | 2,691,960 | $ | 2,471,964 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Commissions payable | $ | 413,205 | $ | 353,709 | ||||||||||
Agent incentive compensation | 44,870 | 68,077 | ||||||||||||
Accounts payable and accrued liabilities | 198,689 | 175,622 | ||||||||||||
Dividends payable | 59,377 | 59,377 | ||||||||||||
Contract liability | 41,570 | 41,210 | ||||||||||||
Deferred executive compensation | 8,216 | 10,982 | ||||||||||||
Securities lending payable | 6,345 | 0 | ||||||||||||
Total current liabilities | 772,272 | 708,977 | ||||||||||||
Defined benefit pension plan | 26,591 | 26,260 | ||||||||||||
Contract liability | 20,645 | 19,910 | ||||||||||||
Deferred executive compensation | 16,341 | 20,936 | ||||||||||||
Deferred income taxes, net | 5,192 | 11,481 | ||||||||||||
Other long-term liabilities | 22,106 | 21,565 | ||||||||||||
Total liabilities | 863,147 | 809,129 | ||||||||||||
Shareholders’ equity | 1,828,813 | 1,662,835 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 2,691,960 | $ | 2,471,964 |
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