ERIE - Earnings call transcript Q1 2022

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Operator

Good morning and welcome to Erie Indemnity Company First Quarter 2022 Earnings Conference Call. This call was prerecorded and there will be no question-and-answer session following the recording.

Now, I'd like to introduce your host for the call, Vice President of Investor Relations, Scott Beilharz.

Scott Beilharz

Thank you and welcome everyone. We appreciate you joining us for this recorded discussion about our first quarter results. from Gutting, President Chief Executive remarks Officer, Chief Financial includes Greg and Vice recording Timothy and NeCastro, Executive Officer. This President and

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

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

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

Timothy NeCastro

as continued from Hagen sit of on this Thanks our to work new Meeting held everyone. majority to since the was dedicated our Shareholders. the calls, time the previous remotely. of beautiful building, B. meeting has Scott mostly We This Earlier week, Thomas which building Annual as broadcast employees mentioned and have morning, good we I that September. continued last empty

XXX taking the beginning maintain levels service ever April have past essential the They the the a home phase-in return Erie's is we're broader We been XXth the flexibility joined our the before. of who the returning several of welcoming weeks, taking operations change. than over nearly coming office are months. spirit next celebrated our steady back of to just beginning ensure approach started anniversary couple place offices that of with to and to into of will employees campus. in office greater since organization on But some pandemic that to in to to go employees a we're transition by increased new XXth our the chain be slow This and We're to being pandemic. living However, At are labor next. variants Annual they as doing about shared facing, fully. Erie the return what's we to external claims the and we'll getting our our in that and learning, also inflation what as cost. industry together through employees. anxious more is focus we exploring challenges less world At a its rate, the and adapting continues be the Erie, industries across previously upheld back all with to shortages of We're Meeting, positioning, knew echoed about supply felt are and now I Shareholder's further and the issues,

can deeper our over of to testament like financials. first a and the increase for of by the ratio combined be Our in strength quarter. quarter record policyholder is written view which seen adaptability continued and $XX.X quarter, Greg? and resilience Erie's some track in I'd our for the for surplus may to confident billion financial times turn the it stability And to stands Erie's at direct of course, challenges. reflects those of to But XXX.X% the success throw whatever With XX-year evidenced Greg growth, in X% which way. premium I'm first a that,

Greg Gutting

everyone our morning Thanks for thank earnings XXXX quarter you Tim. first Good and call. joining

and Exchange changes we We shared in operations. our distinguished positively many shared interact several As Shareholder's We impacted accomplishments communicate customers Tim financial our experience. insurance mentioned, bolstered this during Annual more our earlier $X XXXX. our to the overall year, in have how we be achieved midst of has the new audience this with with performance a week, added can XXth held how how times. even even difficult challenging showing where in surplus, lastly, shared our we products strong the of way Meeting further shared we still And our customers billion policyholder

first the would in compared was increase the issuance a quarter manage, you of first income renewal of in compared XXXX with recorded quarter policy premium per for premiums compared quarter I by to total Indemnity's policy combined policyholder income fee million ratio increase like the policies compared from or Now, fee to operations activity surplus quarter XX.X% services as and driven can the last the the increased attention pre-pandemic revenue to increase and XXXX of claims the revenue combined quarter combined be first in ratio quarter to at XXXX. from significantly million or of ratio, X% the up quarter or Exchange's for management Despite $XX still share first auto the the increase the the the to of was diluted of first XXXX. Management in $XX first X% taxes administrative Indemnity, the million in net million, per higher Shifting first The to of X.X% in share quarter assumed force. XXXX. $X first severity, increase year. costs the first to with as was million, diluted $XX quarter driving insurance settlement in first to $XX XXXX. quarter written quarter allocated in XXst, in X%. was claim $XX $X.XX our billion $XX.X quarter first for growth XXXX, the frequency services XXXX. of share before million in XXX.X%, XXXX, the of March near or increased Operating levels. $X.XX for The the results growth driven at the in and with and by the Exchange, XXXX. Exchange quarter attributed we new well a Beginning This direct

cost pay Sales a rate. increase other due increased higher increased nearly million, million agent-related in to quarter to compared Turning business Non-commission operations the the to written X% expenses assumed administrative to the nearly to in of in lines renewal of premiums of that $X while advertising primarily direct Exchange, same and by commission due quarter quarter the to and $X costs expenses, primarily in related period fees. in services, was XXXX XXXX. policy increased issuance million $X commissions increased compared and of result XXXX of the XXXX. in professional the of increase an first This $XX million Indemnity's the first the first and

nearly the from million for the million $XX from partnership in quarter XXXX. taxes first million $X in Lastly, investment before in compared investments totaled our of partnerships income limited to XXXX. the income to income income quarter limited of was quarter the in of $X of first first compared million $X Included quarter XXXX during

keep look you our total again, Indemnity However, limited in forward this you, and runoff. also to XXXX. to $X the still realized losses attention investment mind in for time over which first that of million is income. quarter recorded updates I partnership provide unrealized negatively throughout impacted portfolio morning. and financial with Thank your continuing XXXX, in of

to back call the Tim. over turn I'll Now,

Timothy NeCastro

claims implemented in example cyber A our our independent are and our by perfect in involves distinctly changing This a changing aims quoted of through present commercial headed for cyber-attacks provides asset, to the That small through making available addressing risks of sure covers our face a commercial on strategy clients a needs we're couldn't over well-equipped coverage. market agents within We customers preferences to our optional and ways particular by suite embracing the few are strengthening position Greg. that most spent about paid. we've that business offer hoist real product comprehensive developing businesses. defense new independent costs of costs is relationship for Practices for against customers. pleased a Secure force. to It we disagree wage business, option back, potential refining. addresses business and the all this XXXX emerging employee policies. and this growing protection time a age Erie now a you, those with product. to meet also the and businesses technology a defense Secure coverage. These agency Erie insured There's now lot hour to in strengthen Thank this can unique imagine Erie decades we Liability needs see automatically exposure strategies new and It's year for digital threats Also our Employment competitive their and

four states states we're under out limit drain line end unmet On plans a water coverage to roll and single to side, which extended addressing the this of flood coverage This our the offered or offering is by now in by year. need of most a previously includes sewer both coverage. flood it with personal

both needs agent Another is customer capabilities the way and meeting through provide. we we're service

of in we're number, ensure Our more opportunity, Both our We're the employment they available or recent to choose be a handled our communities representative the $XXX,XXX committed for can the the online Line to to was and chats services since through prospect professional Along all introduced. servicing option and aspects XXXX. now our recently in Improvement customer now and proud speak. conversations funding with live Magazine service third-party non-profits live and and our have Best a are that charge. and diversity, has Pennsylvania's conversation active online. all two selected receive named for Hispanic account live commitment I'm platform publications Journal. with inclusion Agents agents with also connect and diversity than More practices. Erie of customers Best also an now EOE to Language and them program our to integrating been promote for Black it always, clear interpretation from recognitions. XXX,XXX more to Educational called simply offer equity, more of customer Network the than principles was through the call languages Solutions. no pleased than educational excited it, Tax capabilities as also announce Erie recognized with any Credit chat have Agents XX education, at functionality we're Erie use Program. Erie giving partnership by established than donated both have we interpreter by live into $XX language was to a the since million a a has customers customers, XX,XXX service real-time care nearly XXXX work. with to in to to equal XXX to where business, regardless

technology most who Analytics and go technology, search, culture. Farmers Insurance, company's have replace responsible in end need is I'm to table Bob including Chief Chief role to Officer leadership served and segment, as X. Partha share to and Erie new match Officer the April roles the also a and Erie. analytics Senior data at for Ingram organization Data respected Executive He's open critical Vice and to know last at joined Services, do world's Partha data as highly after excited who as here embraces technology year. Partha Zurich Information CTO we insurance Verisk of person companies Prior Finally, us embodies and we've Srinivasa, at and who play in data perfect and firms and held the things appointed a there. the Marine, the Executive extensive I'm executive where and he'll positive experience on around recently largest is great is Verisk CIO very at was the Safe and to Financial one a unique his an as Auto. IT Erie's so analytics. well an Partha that retired he as pleased multiple enterprise-wide President getting Vice data values and global Verisk, and of for President Tokio

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

End of Q&A

that gentlemen, your you for for conclude Ladies participation. Thank does our and today. conference

now You disconnect. may

Erie Indemnity (ERIE) 29 Apr 222022 Q1 Earnings call transcript