ERIE - Earnings call transcript Q1 2021

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Operator

[Call Starts Abruptly] …following the recording.

Now I would like to introduce your, Vice President of Investor Relations, Scott Beilharz.

Scott Beilharz

Thank you, and welcome, everyone. We appreciate you joining us for the recorded discussion about our 2021 First Quarter Results. This recording includes remarks from Tim NeCastro, President and Chief Executive Officer; and Greg Gutting, Executive Vice President and Chief Financial Officer.

financial and issued Investor are of website and the afternoon Relations release our closed market available erieinsurance.com. earnings supplement yesterday were after section Our within the

materially today’s like the risks reflect current and those and and on views from These risks remind would assumptions remarks events. company’s I uncertainties future uncertainties. results are begin, contain forward-looking These these we everyone Before to in may unexpected that remarks. remarks discussion about subject may that known differ to described cause based to

For Company. rebroadcast differences, XX, information filing Harbor our reproduced cause call the Indemnity to move the not on with property Tim’s important factors Company. Erie without party release. and now XX-Q XXXX, please statements may Tim? of by these other press Form April written Safe see that, prerecorded It related the or dated in consent the prior of SEC, on This remarks. With in Indemnity Erie be may will any we the is

Tim NeCastro

virtually more any the but the in advantages. and staying history. is includes our line of safety expected activity Thanks, are to due a COVID-XX are you That the something your shareholders, that anticipated, far in and the everyone. meeting to we of much do was hope and that than to time begin XX-year efforts than too considerations we our to in XXXX I us to are in ones return with has which conducted affected not morning, shifting more ahead Last second brighter semblance formats annual and loved held the healthy. productivity safe after returning company’s our good normalcy week, some employees never for lives longer That’s for Scott, workplace once with pandemic. hopeful and we offing. days normal

year, we most XXXX. our and results delivered that even are quarter, after report continue solid well-positioned in tumultuous pleased I’m that to again first to financial to Turning the performance strong

driving our income Erie net Indemnity reported of the to filed in saw your in contributed combined a diluted growth driven outstanding the retention by for the X.X%. on compared is $X.XX largely returns to weather continued you $XX expect going and first release This per puce market we in In first share in diluted pandemic Well, and The months or positions driving policies of was after strong quarter. of our As into press the combined the net we to It’s economy of by levels. more or important first events as of $X.XX rest increase per million income recovers of historic million of $XX us this share and XX.X%. closed total note X.X%. ratio and first the the quarter behaviors year. well XXXX, grew premium force normalize will three This footprint by ratio XXXX. quarter the that of impact an yesterday to

first our expand results. to Greg quarter to over call the turn Greg? I’ll Now

Greg Gutting

for Thanks, and to excited part I to with taking you Good Erie our Tim. of share time for you first call. am XXXX morning, thank financial the everyone, earnings quarter. quarter be Indemnity’s performance a the

held As meeting. Tim XXXX shareholders we mentioned, last week annual our

new in auto remains average connection by growth increased period year that quarter the our the and a you while and X.X% with And business we commercial we was premium new first personal rate for renewal policy first a direct XX.X% and in connecting our the the and third Shifting with at premiums end manage, quarter human quarter on surplus first quarter. per many XX.X% from driven strong operations billion sharing sharing attention to on X.X%, held today, forward billion, again $XX.X was the success Exchange, XXXX, meeting the our look of XXXX. premium up the the Starting of policies during and decreased $XX.X insurance written the Exchange’s maintained year’s a Indemnity. combined challenge very with in that the reductions the at to in quarter same setting, by our this ways ratio began holder XXXX, the shareholders I virtual of for objective policy Although we policies the XXXX. to compared established immensely. was touch

the per $XX First $XX XX.X% quarter compared $X.XX quarter income quarter or was from quarter compared the first first Indemnity’s nearly increased the to million flat for the to share million nearly revenue compared policy to million XXXX. in $XX of first per million was in $XX quarter X.X% administrative same first $XXX XXXX. Management in XXXX net the Operating nearly management of quarter of or first share, of diluted $X.XX million income decreased issuance the or quarter XXXX. $XX of or renewal of fee XXXX, diluted to services to first to the fee period revenue in allocated services XXXX, compared million XXXX, and XXXX.

first primarily commission to costs assumed of $X cost related of in to compensation. XXXX. increased This And increased increased first incentive policy business and million costs result quarter the in expense year. totaled to lesser the by last Income the tied due of increased of same of well compared the by first increase $XX from increase quarter in COVID-XX of of first the compared agent software to quarter written XXXX Information million, plan metrics that We to operations XXXX $X professional as loss issuance Administrative pay improved $X during before first million Non-commission in quarter as a the premiums extent Exchange, investments performance markets. increased $X XXXX. the compared the Indemnity’s expenses XXXX professional from X.X% and limited in increased and XXXX. in taxes hardware recognize on first results while a rate. million, higher the first XXXX, technology in were and fees. partnerships first of the to quarter quarter and on the direct fees Commissions quarter the lines for increased to incentive by an was accruals million primarily period the pandemic other to XXXX, financial primarily renewal increased driven to the of quarter Turning driven services. $XX million in of earnings of our quarter the $X compared impact million in a

this report XXXX forward with look can our you face this As morning, on, tell to year. and is head I our positioned success you to from well Indemnity sharing

to turn over call the Tim. Tim? back I’ll Now

Tim NeCastro

Thanks, Greg.

XXXX three them. capabilities. XXXX experience. most enhancing Online features that we’re do greater XXXX, our results momentum bolster position strong our last that confirmed, two And a us released I launched the In continued. in digital customers advancements this substantial financial talked months first again in gives As convenient ways to a with start focus to flexibility made competitive the customer account touch off augmenting in year. the many of call, on to March Erie’s further human our to On are new for distinctive in about business with are

faster opt lead being reduce a waste to will commitment feature preferences First, allows information over a store addresses payments each new a can steward to online means, supports customers pay, their of future will longer billing time. significant This reenter the and our customer to billing also of they good making other savings statements. out need also environmental and digital now they method resources. in feature card paperless paper number wallet. cost Customers payment time This and or securely It no account to credit payment easier.

West We which program into safe tracks use of Erie’s your driving drivers, drivers, continue including The me to program, available More Virginia. XX,XXX are Tennessee, Wisconsin than drivers in Virginia, Indiana, the demand. response my March, Maryland, to behaviors and expand now In our turn, already Pennsylvania. to telematics Ohio, wife and platform. telematics in registered expanded on consumer reward and

comes year, both will overall the value product Together, in all progress position our relationship Agents marketplace, an an and the survey. moving of with doubt to agents forward. enhancements in of to heels high our anticipate year competitive they in time of lead on impressive Our this reinforce quarter first our stronger gave the proposition agents every right satisfaction greater and we’re XX. the satisfaction boost our factor show results survey feedback response they strengthen across with fronts. year out Erie XX% they it This rating represent will and who made partnerships survey the customers with to measured of asked our XXXX. rate collaboration up value value This we significantly, to independent the how unprecedented ratings without all that The are success. and And proposition, rate on dedicated shared Erie. an agents, were proposition survey on track in even overall received nine. the recent reached X.X impressive And from a new are of Erie’s committed our our satisfaction reaffirms valuable and agent

to I’d Erie announce last that recognition third-party like we just close, Before received week.

needs efforts companies inclusive testament and now to done. This create us recognize to out a we’re in XXX of proud ranked to exciting is that list Nevertheless, most America’s to a Forbes ongoing there in America more to XXth say more employers companies. diversity equitable is lot for its and has named of XXXX. I’m best And our an workplace. diverse, a be recognition

are communities to work serve. the employees, continuing committed we best the We this of in investors, interest important and our

and gratitude support to listening to interest continued like in and service for being Erie. continued to your for our today their in to above trust. Thank I’d agents, and my our shareholders you all always, for commitment their express in and As employees

Operator

ladies you and for you, conference today’s participating. Thank gentlemen, concludes this call. Thank

now disconnect. may You

Erie Indemnity (ERIE) 30 Apr 212021 Q1 Earnings call transcript