Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Agencies
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Hamburger menu
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS

Erie Indemnity Reports Full Year and Fourth Quarter 2014 Results

Net Income per Diluted Share is $3.18, up $0.10 for the Year

Erie Insurance.

News provided by

Erie Indemnity Company

Feb 26, 2015, 04:15 ET

Share this article

Share toX

Share this article

Share toX

ERIE, Pa., Feb. 26, 2015 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the full year and the quarter ending December 31, 2014.  Net income per diluted share was $3.18 for the full year 2014 compared to $3.08 for 2013.  Net income per diluted share in the fourth quarter of 2014 was $0.48 compared to $0.67 in the fourth quarter of 2013.

"ERIE continues to achieve strong results through sound execution of our business strategy and the steadfast commitment of our Agents, Customers and Employees," said Terry Cavanaugh, President and CEO.  "As we celebrate our 90th anniversary in 2015, we are well positioned for continued long-term growth and value creation."

4Q and Total Year 2014 - Results of Indemnity Shareholder Interest


(dollars in millions)

4Q'13

4Q'14


2013


2014




Management operations

$41


$35



$209


$223




Investment operations

13


2



38


28




Income before income taxes

54


37



247


251




Provision for income taxes

18


11



84


83




Net income

$36


$26



$163


$168




Gross margin from management operations

13.2%


10.5%



16.1%


15.8%




Return on equity






23.6%


23.3%




2014 Total Year Highlights

Income from management operations before taxes increased $14 million, or 6.5 percent, in 2014 compared to the prior year.

  • Revenue from management operations increased $110 million, or 8.5 percent.  Direct written premium from the property and casualty insurance operations, upon which the management fee is calculated, increased 8.6 percent for the year due to a 4.3 percent increase in policies in force and a 4.2 percent increase in the year-over-year average premium per policy at December 31, 2014.  
  • Commissions increased $73 million, or 10.3 percent, in 2014 compared to the prior year primarily due to the 8.6 percent increase in direct written premium from the property and casualty insurance operations.  Commission growth outpaced direct premium written growth primarily due to an increase in agent incentive costs related to profitable growth.
  • Non-commission expense increased $23 million, or 6.2 percent, in 2014 compared to 2013.  Information technology costs increased $13 million, which included $6 million of professional fees, $4 million of personnel costs, and $3 million of hardware and software costs.  Underwriting and policy processing costs increased $7 million due to the increased cost of underwriting reports, postage, and printing costs related to increased volume.  Customer service costs increased $4 million due to an increase of $2 million in credit card processing fees and $2 million in personnel costs.  All other operating costs decreased $1 million.

Income from investment operations before taxes totaled $28 million in 2014 compared to $38 million in the prior year.  Earnings from limited partnerships were $11 million in 2014 compared to earnings of $22 million in 2013.

In 2014, Indemnity returned $119 million to shareholders as dividends and $20 million through share repurchases of Class A nonvoting common stock.

4Q 2014 Highlights

Income from management operations before taxes decreased $6 million, or 13.3 percent, in the fourth quarter of 2014 compared to the fourth quarter of 2013.

  • Revenue from management operations increased $28 million, or 9.1 percent, in the fourth quarter of 2014 compared to the fourth quarter of 2013. 
  • Commissions increased $24 million, or 13.3 percent, in the fourth quarter of 2014 compared to the fourth quarter of 2013 primarily due to the 9.0 percent increase in direct written premium from the property and casualty insurance operations.  Commission growth outpaced direct premium written growth primarily due to an increase in agent incentive costs related to profitable growth.
  • Non-commission expense increased $10 million, or 11.1 percent, in the fourth quarter of 2014 compared to the fourth quarter of 2013.  Administrative and other costs increased $5 million in the quarter, primarily due to increased costs associated with the long term incentive plan and the Director's deferred compensation plan.  These plans include a component based on Indemnity share price and the share price increased substantially during the fourth quarter of 2014.  Additionally, certain employee incentive plan costs increased due to the improved underwriting results in the quarter.  Information technology costs increased $3 million, which included a $1 million increase in professional fees, personnel costs and hardware and software costs.  All other operating costs increased $2 million.

Income from investment operations before taxes totaled $2 million in the fourth quarter of 2014, compared to $13 million in the fourth quarter of 2013.  Losses from limited partnerships were $2 million in the fourth quarter of 2014 compared to earnings of $9 million in the fourth quarter of 2013.

Webcast Information

Indemnity has scheduled a conference call and live audio broadcast on the Web for 10:00 AM ET on February 27, 2015.  Investors may access the live audio broadcast by logging on to www.erieinsurance.com.  Indemnity recommends visiting the website at least 15 minutes prior to the Webcast to download and install any necessary software.  A Webcast audio replay will be available on the Investor Relations page of the Erie Insurance Group's website by 12:30 PM ET.

About the Erie Insurance Group

According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 11th largest homeowners insurer and 12th largest automobile insurer in the United States based on direct premiums written and the 16th largest property/casualty insurer in the United States based on total lines net premium written.  The Group, rated A+ (Superior) by A.M. Best Company, has nearly 5.0 million policies in force and operates in 12 states and the District of Columbia.  Erie Insurance Group is a FORTUNE 500 and Barron's 500 company.  Erie Insurance is proud to have received the J.D. Power award for "Highest in Customer Satisfaction with the Auto Insurance Purchase Experience" two years in a row.  ERIE has also been recognized by Forbes as one of America's 50 Most Trustworthy Financial Companies and is on the list of Ward's 50 Group of top performing insurance companies, which analyzes the financial performance of 3,000 property and casualty companies and recognizes the top performers for achieving outstanding results in safety, consistency and financial performance over a five-year period (2009-2013).

News releases and more information about Erie Insurance Group are available at www.erieinsurance.com.

***

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Statements contained herein that are not historical fact are forward-looking statements and, as such, are subject to risks and uncertainties that could cause actual events and results to differ, perhaps materially, from those discussed herein. Forward-looking statements relate to future trends, events or results and include, without limitation, statements and assumptions on which such statements are based that are related to our plans, strategies, objectives, expectations, intentions and adequacy of resources. Examples of forward-looking statements are discussions relating to premium and investment income, expenses, operating results, agency relationships, and compliance with contractual and regulatory requirements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

Among the risks and uncertainties, in addition to those set forth in our filings with the Securities and Exchange Commission, that could cause actual results and future events to differ from those set forth or contemplated in the forward-looking statements include the following:

Risk factors related to the Indemnity shareholder interest:

  • dependence on Indemnity's relationship with the Exchange and the management fee under the agreement with the subscribers at the Exchange;
  • costs of providing services to the Exchange under the subscriber's agreement;
  • ability to attract and retain talented management and employees;
  • ability to maintain uninterrupted business operations;
  • factors affecting the quality and liquidity of Indemnity's investment portfolio;
  • credit risk from the Exchange;
  • Indemnity's ability to meet liquidity needs and access capital; and
  • outcome of pending and potential litigation.

Risk factors related to the non-controlling interest owned by the Exchange, which includes the Property and Casualty Group and EFL:

  • general business and economic conditions;
  • dependence upon the independent agency system;
  • ability to maintain our reputation for customer service;
  • factors affecting insurance industry competition;
  • changes in government regulation of the insurance industry;
  • premium rates and reserves must be established from forecasts of ultimate costs;
  • emerging claims, coverage issues in the industry, and changes in reserve estimates related to the property and casualty business;
  • changes in reserve estimates related to the life business;
  • severe weather conditions or other catastrophic losses, including terrorism and pandemic events;
  • the Exchange's ability to acquire reinsurance coverage and collectability from reinsurers;
  • factors affecting the quality and liquidity of the Exchange's investment portfolio;
  • the Exchange's ability to meet liquidity needs and access capital;
  • the Exchange's ability to maintain acceptable financial strength ratings;
  • outcome of pending and potential litigation; and
  • dependence upon the service provided by Indemnity.

A forward-looking statement speaks only as of the date on which it is made and reflects Indemnity's analysis only as of that date. Indemnity undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changes in assumptions, or otherwise.

(ERIE-F)

Erie Indemnity Company

Consolidated Statements of Operations

(dollars in millions, except per share data)





Three months ended
December 31,


Twelve months ended
December 31,



2014


2013


2014


2013

Revenues


(Unaudited)



Premiums earned


$

1,382



$

1,267



$

5,344



$

4,898


Net investment income


111



106



446



422


Net realized investment gains


89



270



193



771


Net impairment losses recognized in earnings


(3)



(3)



(4)



(13)


Equity in earnings of limited partnerships


2



49



113



161


Other income


8



8



32



32


Total revenues


1,589



1,697



6,124



6,271


Benefits and expenses













Insurance losses and loss expenses


863



896



3,958



3,467


Policy acquisition and underwriting expenses


349



331



1,336



1,237


Total benefits and expenses


1,212



1,227



5,294



4,704















Income from operations before income taxes and noncontrolling interest


377



470



830



1,567


Provision for income taxes


124



156



257



519


Net income


$

253



$

314



$

573



$

1,048















Less: Net income attributable to noncontrolling interest in consolidated entity – Exchange


227



278



405



885















Net income attributable to Indemnity


$

26



$

36



$

168



$

163




























Earnings Per Share













Net income attributable to Indemnity per share













Class A common stock – basic


$

0.54



$

0.75



$

3.59



$

3.46


Class A common stock – diluted


$

0.48



$

0.67



$

3.18



$

3.08


Class B common stock – basic


$

81



$

113



$

539



$

520


Class B common stock – diluted


$

81



$

113



$

538



$

519















Weighted average shares outstanding attributable to Indemnity – Basic













Class A common stock


46,189,068



46,520,232



46,247,876



46,660,651


Class B common stock


2,542



2,542



2,542



2,542















Weighted average shares outstanding attributable to Indemnity – Diluted













Class A common stock


52,601,010



52,715,338



52,616,234



52,855,757


Class B common stock


2,542



2,542



2,542



2,542















Dividends declared per share













Class A common stock


$

0.6810



$

0.6350



$

2.5860



$

2.4125


Class B common stock


$

102.1500



$

95.2500



$

387.9000



$

361.8750


Erie Indemnity Company

Results of the Erie Insurance Group's Operations by Interest (Unaudited)

(in millions)




Indemnity

shareholder interest


Noncontrolling interest

(Exchange)


Eliminations of related
party transactions


Erie Insurance Group



Three months ended
December 31,


Three months ended
December 31,


Three months ended
December 31,


Three months ended
December 31,



2014

2013


2014

2013


2014

2013


2014

2013

Management operations:





















Management fee revenue, net


$

329


$

301



$

—


$

—



$

(329)


$

(301)



$

—


$

—


Service agreement revenue


8


8



—


—



—


—



8


8


Total revenue from management operations


337


309



—


—



(329)


(301)



8


8


Cost of management operations


302


268



—


—



(302)


(268)



—


—


Income from management operations before taxes


35


41



—


—



(27)


(33)



8


8


Property and casualty insurance operations:





















Net premiums earned


—


—



1,361


1,247



—


—



1,361


1,247


Losses and loss expenses


—


—



843


870



(2)


(1)



841


869


Policy acquisition and underwriting expenses


—


—



370


355



(31)


(36)



339


319


Income from property and casualty insurance operations before taxes


—


—



148


22



33


37



181


59


Life insurance operations: (1)





















Total revenue


—


—



48


53



(1)


0



47


53


Total benefits and expenses


—


—



32


39



0


0



32


39


Income from life insurance operations before taxes


—


—



16


14



(1)


0



15


14


Investment operations: (1)





















Net investment income


4


4



87


82



(5)


(4)



86


82


Net realized gains on investments


0


0



88


261



—


—



88


261


Net impairment losses recognized in earnings


0


0



(3)


(3)



—


—



(3)


(3)


Equity in (losses) earnings of limited partnerships


(2)


9



4


40



—


—



2


49


Income from investment operations before taxes


2


13



176


380



(5)


(4)



173


389


Income from operations before income taxes and noncontrolling interest


37


54



340


416



—


—



377


470


Provision for income taxes


11


18



113


138



—


—



124


156


Net income


$

26


$

36



$

227


$

278



$

—


$

—



$

253


$

314



(1) Earnings on life insurance related invested assets are integral to the evaluation of the life insurance operations because of the long duration of life products. On that basis, for presentation purposes, the life insurance operations in the table above include life insurance related investment results.

Erie Indemnity Company

Results of the Erie Insurance Group's Operations by Interest

(in millions)




Indemnity

shareholder interest


Noncontrolling interest

(Exchange)


Eliminations of related
party transactions


Erie Insurance Group



Twelve months ended
December 31,


Twelve months ended
December 31,


Twelve months ended
December 31,


Twelve months ended
December 31,



2014

2013


2014

2013


2014

2013


2014

2013

Management operations:





















Management fee revenue, net


$

1,376


$

1,266



$

—


$

—



$

(1,376)


$

(1,266)



$

—


$

—


Service agreement revenue


31


31



—


—



—


—



31


31


Total revenue from management operations


1,407


1,297



—


—



(1,376)


(1,266)



31


31


Cost of management operations


1,184


1,088



—


—



(1,184)


(1,088)



—


—


Income from management operations before taxes


223


209



—


—



(192)


(178)



31


31


Property and casualty insurance operations:





















Net premiums earned


—


—



5,260


4,820



—


—



5,260


4,820


Losses and loss expenses


—


—



3,859


3,365



(6)


(5)



3,853


3,360


Policy acquisition and underwriting expenses


—


—



1,502


1,387



(204)


(187)



1,298


1,200


(Loss) income from property and casualty insurance operations before taxes


—


—



(101)


68



210


192



109


260


Life insurance operations: (1)





















Total revenue


—


—



192


192



(2)


(2)



190


190


Total benefits and expenses


—


—



143


144



0


0



143


144


Income from life insurance operations before taxes


—


—



49


48



(2)


(2)



47


46


Investment operations: (1)





















Net investment income


16


15



350


325



(16)


(12)



350


328


Net realized gains on investments


1


1



183


753



—


—



184


754


Net impairment losses recognized in earnings


0


0



(3)


(12)



—


—



(3)


(12)


Equity in earnings of limited partnerships


11


22



101


138



—


—



112


160


Income from investment operations before taxes


28


38



631


1,204



(16)


(12)



643


1,230


Income from operations before income taxes and noncontrolling interest


251


247



579


1,320



—


—



830


1,567


Provision for income taxes


83


84



174


435



—


—



257


519


Net income


$

168


$

163



$

405


$

885



$

—


$

—



$

573


$

1,048



(1) Earnings on life insurance related invested assets are integral to the evaluation of the life insurance operations because of the long duration of life products. On that basis, for presentation purposes, the life insurance operations in the table above include life insurance related investment results.

Erie Indemnity Company
Reconciliation of Operating Income to Net Income

Reconciliation of operating income to net income

We disclose operating income, a non-GAAP financial measure, to enhance our investors' understanding of our performance related to the Indemnity shareholder interest.  Our method of calculating this measure may differ from those used by other companies, and therefore comparability may be limited.

Indemnity defines operating income as net income excluding realized capital gains and losses, impairment losses and related federal income taxes.

Indemnity uses operating income to evaluate the results of its operations.  It reveals trends that may be obscured by the net effects of realized capital gains and losses including impairment losses.  Realized capital gains and losses, including impairment losses, may vary significantly between periods and are generally driven by business decisions and economic developments such as capital market conditions which are not related to our ongoing operations.  We are aware that the price to earnings multiple commonly used by investors as a forward-looking valuation technique uses operating income as the denominator.  Operating income should not be considered as a substitute for net income prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and does not reflect Indemnity's overall profitability.

The following table reconciles operating income and net income for the Indemnity shareholder interest:



Indemnity Shareholder Interest



Three months ended
December 31,


Twelve months ended
December 31,

(in millions, except per share data)


2014


2013


2014


2013



(Unaudited)



Operating income attributable to Indemnity


$

26



$

36



$

167



$

162


Net realized gains and impairments on investments


0



0



1



1


Income tax expense


0



0



0



0


Realized gains and impairments, net of income taxes


0



0



1



1


Net income attributable to Indemnity


$

26



$

36



$

168



$

163















Per Indemnity Class A common share-diluted:













Operating income attributable to Indemnity


$

0.48



$

0.67



$

3.17



$

3.07


Net realized gains and impairments on investments


0.00



0.00



0.02



0.01


Income tax expense


0.00



0.00



(0.01)



0.00


Realized gains and impairments, net of income taxes


0.00



0.00



0.01



0.01


Net income attributable to Indemnity


$

0.48



$

0.67



$

3.18



$

3.08


Erie Indemnity Company

Consolidated Statements of Financial Position

(in millions)




December 31, 2014


December 31, 2013








Assets







Investments – Indemnity







Available-for-sale securities, at fair value:







Fixed maturities


$

564



$

526


Equity securities


25



50


Limited partnerships


113



146


Other invested assets


1



1


Investments – Exchange







Available-for-sale securities, at fair value:







Fixed maturities


9,007



8,162


Equity securities


850



819


Trading securities, at fair value


3,223



3,202


Limited partnerships


866



940


Other invested assets


20



20


Total investments


14,669



13,866









Cash and cash equivalents (Exchange portion of $422 and $403, respectively)


514



452


Premiums receivable from policyholders – Exchange


1,281



1,167


Reinsurance recoverable – Exchange


161



172


Deferred income taxes – Indemnity


37



2


Deferred acquisition costs – Exchange


595



566


Other assets (Exchange portion of $374 and $337, respectively)


501



451


Total assets


$

17,758



$

16,676









Liabilities and shareholders' equity







Liabilities







Indemnity liabilities







Other liabilities


$

611



$

476


Exchange liabilities







Losses and loss expense reserves


3,853



3,747


Life policy and deposit contract reserves


1,812



1,758


Unearned premiums


2,834



2,598


Deferred income taxes


490



450


Other liabilities


175



97


Total liabilities


9,775



9,126









Indemnity's shareholders' equity


703



734









Noncontrolling interest in consolidated entity – Exchange


7,280



6,816


Total equity


7,983



7,550


Total liabilities, shareholders' equity and noncontrolling interest


$

17,758



$

16,676


Logo - http://photos.prnewswire.com/prnh/20041112/ERIELOGO

SOURCE Erie Indemnity Company

Related Links

http://www.erieinsurance.com

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

icon3
440k+
Newsrooms &
Influencers
icon1
9k+
Digital Media
Outlets
icon2
270k+
Journalists
Opted In
GET STARTED

Modal title

Also from this source

Erie Indemnity Reports Second Quarter 2025 Results

Erie Indemnity Reports Second Quarter 2025 Results

Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and six months ending June 30, 2025. Net income was $174.7...

Erie Indemnity to host second quarter 2025 pre-recorded conference call and webcast

Erie Indemnity to host second quarter 2025 pre-recorded conference call and webcast

Erie Indemnity Company (NASDAQ: ERIE) will host a pre-recorded audio webcast with the financial community providing financial results for the second...

More Releases From This Source

Explore

Banking & Financial Services

Banking & Financial Services

Insurance

Insurance

Earnings

Earnings

Earnings

Earnings

News Releases in Similar Topics

Contact PR Newswire

  • Call PR Newswire at 888-776-0942
    from 8 AM - 9 PM ET
  • Chat with an Expert
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Italy
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom
  • Vietnam

My Services

  • All New Releases
  • Platform Login
  • ProfNet
  • Data Privacy

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Platform Login
  • ProfNet
Call PR Newswire at
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookies
Copyright © 2025 Cision US Inc.