Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - ERIE INDEMNITY CO | ex-99112312019.htm |
| 8-K - 8-K - ERIE INDEMNITY CO | erie8-k12312019.htm |
Exhibit 99.2
Erie Indemnity Company
Statements of Operations
(dollars in thousands, except per share data)
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Unaudited) | ||||||||||||||||
Operating revenue | ||||||||||||||||
Management fee revenue - policy issuance and renewal services, net | $ | 424,534 | $ | 407,656 | $ | 1,810,457 | $ | 1,719,567 | ||||||||
Management fee revenue - administrative services, net | 14,628 | 13,738 | 57,204 | 53,632 | ||||||||||||
Administrative services reimbursement revenue | 150,705 | 147,694 | 582,010 | 580,336 | ||||||||||||
Service agreement revenue | 6,873 | 7,380 | 27,627 | 28,677 | ||||||||||||
Total operating revenue | 596,740 | 576,468 | 2,477,298 | 2,382,212 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of operations - policy issuance and renewal services | 377,335 | 354,016 | 1,537,949 | 1,457,533 | ||||||||||||
Cost of operations - administrative services | 150,705 | 147,694 | 582,010 | 580,336 | ||||||||||||
Total operating expenses | 528,040 | 501,710 | 2,119,959 | 2,037,869 | ||||||||||||
Operating income | 68,700 | 74,758 | 357,339 | 344,343 | ||||||||||||
Investment income | ||||||||||||||||
Net investment income | 8,200 | 8,626 | 33,399 | 30,209 | ||||||||||||
Net realized investment gains (losses) | 602 | (1,513 | ) | 6,103 | (2,010 | ) | ||||||||||
Net impairment losses recognized in earnings | (2 | ) | (935 | ) | (195 | ) | (1,581 | ) | ||||||||
Equity in (losses) earnings of limited partnerships | (1,886 | ) | (1,183 | ) | 660 | (822 | ) | |||||||||
Total investment income | 6,914 | 4,995 | 39,967 | 25,796 | ||||||||||||
Interest expense, net | 24 | 596 | 856 | 2,460 | ||||||||||||
Other income | 60 | 3,485 | 255 | 3,641 | ||||||||||||
Income before income taxes | 75,650 | 82,642 | 396,705 | 371,320 | ||||||||||||
Income tax expense | 16,063 | 20,328 | 79,884 | 83,096 | ||||||||||||
Net income | $ | 59,587 | $ | 62,314 | $ | 316,821 | $ | 288,224 | ||||||||
Earnings Per Share | ||||||||||||||||
Net income per share | ||||||||||||||||
Class A common stock – basic | $ | 1.28 | $ | 1.34 | $ | 6.80 | $ | 6.19 | ||||||||
Class A common stock – diluted | $ | 1.14 | $ | 1.19 | $ | 6.06 | $ | 5.51 | ||||||||
Class B common stock – basic and diluted | $ | 192 | $ | 201 | $ | 1,020 | $ | 928 | ||||||||
Weighted average shares outstanding – Basic | ||||||||||||||||
Class A common stock | 46,189,033 | 46,188,978 | 46,188,836 | 46,188,637 | ||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||
Weighted average shares outstanding – Diluted | ||||||||||||||||
Class A common stock | 52,327,607 | 52,319,918 | 52,319,860 | 52,315,213 | ||||||||||||
Class B common stock | 2,542 | 2,542 | 2,542 | 2,542 | ||||||||||||
Dividends declared per share | ||||||||||||||||
Class A common stock | $ | 0.9650 | $ | 0.9000 | $ | 3.6650 | $ | 3.4200 | ||||||||
Class B common stock | $ | 144.750 | $ | 135.000 | $ | 549.750 | $ | 513.000 | ||||||||
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Erie Indemnity Company
Statements of Financial Position
(in thousands)
December 31, 2019 | December 31, 2018 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 336,739 | $ | 266,417 | ||||
Available-for-sale securities | 32,810 | 402,339 | ||||||
Equity securities | 2,381 | — | ||||||
Receivables from Erie Insurance Exchange and affiliates | 468,636 | 449,873 | ||||||
Prepaid expenses and other current assets | 44,943 | 36,892 | ||||||
Federal income taxes recoverable | 462 | 8,162 | ||||||
Accrued investment income | 5,433 | 5,263 | ||||||
Total current assets | 891,404 | 1,168,946 | ||||||
Available-for-sale securities | 697,891 | 346,184 | ||||||
Equity securities | 64,752 | 11,853 | ||||||
Limited partnership investments | 26,775 | 34,821 | ||||||
Fixed assets, net | 221,379 | 130,832 | ||||||
Deferred income taxes, net | 17,186 | 24,101 | ||||||
Other assets | 96,853 | 61,590 | ||||||
Total assets | $ | 2,016,240 | $ | 1,778,327 | ||||
Liabilities and shareholders' equity | ||||||||
Current liabilities: | ||||||||
Commissions payable | $ | 262,963 | $ | 241,573 | ||||
Agent bonuses | 96,053 | 103,462 | ||||||
Accounts payable and accrued liabilities | 134,957 | 111,291 | ||||||
Dividends payable | 44,940 | 41,910 | ||||||
Contract liability | 35,938 | 33,854 | ||||||
Deferred executive compensation | 10,882 | 13,107 | ||||||
Current portion of long-term borrowings | 1,979 | 1,870 | ||||||
Total current liabilities | 587,712 | 547,067 | ||||||
Defined benefit pension plan | 145,659 | 116,866 | ||||||
Contract liability | 18,435 | 17,873 | ||||||
Deferred executive compensation | 13,734 | 13,075 | ||||||
Long-term borrowings | 95,842 | 97,860 | ||||||
Other long-term liabilities | 21,605 | 11,914 | ||||||
Total liabilities | 882,987 | 804,655 | ||||||
Shareholders' equity | 1,133,253 | 973,672 | ||||||
Total liabilities and shareholders' equity | $ | 2,016,240 | $ | 1,778,327 | ||||
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