ERIE, Pa., Oct. 29, 2015
/PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for
the quarter ending September 30, 2015. Net income
attributable to Indemnity was $50
million, or $0.94 per diluted
share, in the third quarter of 2015, compared to $47 million, or $0.90 per diluted share, in the third quarter of
2014. Net income attributable to Indemnity was $145 million, or $2.75 per diluted share, in the first nine months
of 2015, compared to $142 million, or
$2.71 per diluted share, in the first
nine months of 2014. For the third quarter of 2015, the
growth was driven by increased revenue from management
operations.
"We are very pleased with our third quarter results and the
progress we are making with our strategic objectives. We
remain committed to driving value for our agents, customers,
employees and shareholders," said Terry
Cavanaugh, President and CEO.
3Q and Nine Months
2015 - Results of Indemnity Shareholder Interest
|
|
(dollars in
millions)
|
3Q'14
|
3Q'15
|
|
2014
|
2015
|
|
|
Management
operations
|
$62
|
|
$68
|
|
|
$188
|
|
$191
|
|
|
|
Investment
operations
|
8
|
|
7
|
|
|
26
|
|
29
|
|
|
|
Income before income
taxes
|
70
|
|
75
|
|
|
214
|
|
220
|
|
|
|
Provision for income
taxes
|
23
|
|
25
|
|
|
72
|
|
75
|
|
|
|
Net income
|
$47
|
|
$50
|
|
|
$142
|
|
$145
|
|
|
|
Gross margin from
management operations
|
16.5
|
%
|
17.2
|
%
|
|
17.5
|
%
|
16.6
|
%
|
|
|
Management Operations
Income from management operations before taxes increased
$6 million, or 11.8 percent, in the
third quarter of 2015 compared to the third quarter of 2014.
- Revenue from management operations increased $26 million, or 7.3 percent, in the third quarter
of 2015 compared to the third quarter of 2014.
- Commissions increased $15 million
in the third quarter of 2015, compared to the same period in
2014. The majority of the increase was driven by the 7.5
percent increase in direct written premiums of the Property and
Casualty Group.
- Non-commission expense increased $5
million in the third quarter of 2015 compared to the third
quarter of 2014. Underwriting and policy processing
costs increased $3 million due to
increased personnel costs. Information technology costs
decreased $4 million, which included
$5 million in decreased professional
fees offset by $1 million in
increased hardware and software costs. Administrative and
other expenses increased $5 million,
which included $4 million in
personnel costs and $1 million in
professional fees. Personnel costs in all expense categories
include increases of $1 million in
pension costs, $2 million in medical
costs and $4 million in the estimate
for incentive plan compensation related to the underwriting
performance in the third quarter of 2015 compared to the same
period in 2014.
- The gross margin in the third quarter of 2015 was 17.2 percent,
compared to 16.5 percent in the third quarter of 2014.
Investment Operations
Income from investment operations before taxes totaled $7 million in the third quarter of 2015, compared
to $8 million in the third quarter of
2014.
Nine Months 2015
Highlights
|
Management Operations
Income from management operations before taxes increased
$3 million, or 1.7 percent, in the
first nine months of 2015 compared to the first nine months of
2014.
- Revenue from management operations increased $79 million, or 7.4 percent, in the first nine
months of 2015 compared to the first nine months of
2014.
- Commissions increased $54 million
in the first nine months of 2015, compared to the same period in
2014. The majority of the increase was driven by the 7.6
percent increase in direct written premiums of the Property and
Casualty Group, while about one-third of the increase was due to an
increase in agent incentive costs related to profitable
growth. The estimated agent incentive payout, at the end of
each quarter, is based on actual underwriting results for the two
prior years and the current year-to-date period. Therefore,
fluctuations in the current quarter underwriting results can impact
the estimated incentive payout on a quarter-to-quarter basis.
- Non-commission expense increased $22
million in the nine months ended September 30, 2015
compared to the nine months ended September 30, 2014.
Sales and advertising costs increased $2 million due to increased personnel
costs. Underwriting and policy processing costs increased
$6 million due to increased personnel
costs. Information technology costs increased $3 million, which included $2 million in hardware and software costs and
$1 million in personnel costs.
Administrative and other expenses increased $9 million, which included $6 million in personnel costs and $3 million in professional fees. Personnel
costs in all expense categories include increases of $4 million in pension costs, $3 million in medical costs and $5 million in the estimate for incentive plan
compensation related to the underwriting performance in the first
nine months of 2015 compared to the same period in 2014.
- The gross margin for the first nine months of 2015 was 16.6
percent, compared to 17.5 percent for the first nine months of
2014. The 0.9 point decrease in gross margin for the first
nine months of 2015 was driven primarily by the increased estimated
agent incentive payout discussed above.
Investment Operations
Income from investment operations before taxes totaled $29 million in the first nine months of 2015,
compared to $26 million in the first
nine months of 2014. Earnings from limited partnerships were
$17 million in the first nine months
of 2015 compared to earnings of $13
million in the first nine months of 2014.
Webcast Information
Indemnity has scheduled a conference call and live audio
broadcast on the Web for 10:00 AM ET on October 30,
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 more than 5 million policies in force and operates in
12 states and the District of
Columbia. Erie Insurance Group is a FORTUNE 500 company, a
Barron's 500 company and has been recognized by Forbes as one of
America's 50 Most Trustworthy Financial Companies.
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 Erie Indemnity Company ("Indemnity")
shareholder interest:
- dependence upon 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 Erie Insurance Exchange ("Exchange"), which includes the
Property and Casualty Group and Erie Family Life Insurance
Company:
- 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 our analysis only as of that date. We
undertake 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 Indemnity
Company
|
Consolidated
Statements of Operations
|
(dollars in
millions, except per share data)
|
|
|
|
|
|
|
Three months
ended
September 30,
|
Nine months ended
September 30,
|
|
|
2015
|
|
2014
|
2015
|
|
2014
|
Revenues
|
|
(Unaudited)
|
(Unaudited)
|
Premiums
earned
|
|
$
|
1,472
|
|
|
$
|
1,355
|
|
$
|
4,308
|
|
|
$
|
3,962
|
|
Net investment
income
|
|
120
|
|
|
115
|
|
360
|
|
|
335
|
|
Net realized
investment (losses) gains
|
|
(292)
|
|
|
(85)
|
|
(243)
|
|
|
104
|
|
Net impairment losses
recognized in earnings
|
|
(4)
|
|
|
(1)
|
|
(8)
|
|
|
(1)
|
|
Equity in earnings of
limited partnerships
|
|
43
|
|
|
34
|
|
143
|
|
|
111
|
|
Other
income
|
|
7
|
|
|
8
|
|
23
|
|
|
24
|
|
Total
revenues
|
|
1,346
|
|
|
1,426
|
|
4,583
|
|
|
4,535
|
|
Benefits and
expenses
|
|
|
|
|
|
|
|
Insurance losses and
loss expenses
|
|
939
|
|
|
935
|
|
2,975
|
|
|
3,095
|
|
Policy acquisition
and underwriting expenses
|
|
367
|
|
|
341
|
|
1,076
|
|
|
987
|
|
Total benefits
and expenses
|
|
1,306
|
|
|
1,276
|
|
4,051
|
|
|
4,082
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes and noncontrolling
interest
|
|
40
|
|
|
150
|
|
532
|
|
|
453
|
|
Provision for income
taxes
|
|
7
|
|
|
42
|
|
166
|
|
|
133
|
|
Net
income
|
|
$
|
33
|
|
|
$
|
108
|
|
$
|
366
|
|
|
$
|
320
|
|
|
|
|
|
|
|
|
|
Less: Net (loss)
income attributable to noncontrolling interest in consolidated
entity – Exchange
|
|
(17)
|
|
|
61
|
|
221
|
|
|
178
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Indemnity
|
|
$
|
50
|
|
|
$
|
47
|
|
$
|
145
|
|
|
$
|
142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
Net income
attributable to Indemnity per share
|
|
|
|
|
|
|
|
Class A common
stock – basic
|
|
$
|
1.06
|
|
|
$
|
1.01
|
|
$
|
3.10
|
|
|
$
|
3.05
|
|
Class A
common stock – diluted
|
|
$
|
0.94
|
|
|
$
|
0.90
|
|
$
|
2.75
|
|
|
$
|
2.71
|
|
Class B common
stock – basic and diluted
|
|
$
|
160
|
|
|
$
|
151
|
|
$
|
466
|
|
|
$
|
458
|
|
Class B common
stock – diluted
|
|
$
|
159
|
|
|
$
|
151
|
|
$
|
465
|
|
|
$
|
457
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding attributable to Indemnity
–
Basic
|
|
|
|
|
|
|
|
Class A common
stock
|
|
46,189,068
|
|
|
46,189,068
|
|
46,189,068
|
|
|
46,267,694
|
|
Class B common
stock
|
|
2,542
|
|
|
2,542
|
|
2,542
|
|
|
2,542
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding attributable to Indemnity
– Diluted
|
|
|
|
|
|
|
|
Class A common
stock
|
|
52,602,083
|
|
|
52,387,164
|
|
52,599,783
|
|
|
52,465,790
|
|
Class B common
stock
|
|
2,542
|
|
|
2,542
|
|
2,542
|
|
|
2,542
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
|
|
|
|
|
|
|
Class A common
stock
|
|
$
|
0.6810
|
|
|
$
|
0.6350
|
|
$
|
2.0430
|
|
|
$
|
1.9050
|
|
Class B common
stock
|
|
$
|
102.1500
|
|
|
$
|
95.2500
|
|
$
|
306.4500
|
|
|
$
|
285.7500
|
|
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
September 30,
|
|
Three months ended
September 30,
|
|
Three months
ended
September 30,
|
|
Three months ended
September 30,
|
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
Management
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
revenue, net
|
|
$
|
389
|
|
$
|
362
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
(389)
|
|
$
|
(362)
|
|
|
$
|
—
|
|
$
|
—
|
|
Service agreement
revenue
|
|
7
|
|
8
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
7
|
|
8
|
|
Total revenue from
management operations
|
|
396
|
|
370
|
|
|
—
|
|
—
|
|
|
(389)
|
|
(362)
|
|
|
7
|
|
8
|
|
Cost of management
operations
|
|
328
|
|
308
|
|
|
—
|
|
—
|
|
|
(328)
|
|
(308)
|
|
|
—
|
|
—
|
|
Income from
management operations before taxes
|
|
68
|
|
62
|
|
|
—
|
|
—
|
|
|
(61)
|
|
(54)
|
|
|
7
|
|
8
|
|
Property and
casualty insurance operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums
earned
|
|
—
|
|
—
|
|
|
1,447
|
|
1,333
|
|
|
—
|
|
—
|
|
|
1,447
|
|
1,333
|
|
Losses and loss
expenses
|
|
—
|
|
—
|
|
|
912
|
|
908
|
|
|
(1)
|
|
(1)
|
|
|
911
|
|
907
|
|
Policy acquisition and
underwriting expenses
|
|
—
|
|
—
|
|
|
420
|
|
387
|
|
|
(63)
|
|
(56)
|
|
|
357
|
|
331
|
|
Income from
property and casualty insurance operations before
taxes
|
|
—
|
|
—
|
|
|
115
|
|
38
|
|
|
64
|
|
57
|
|
|
179
|
|
95
|
|
Life insurance
operations: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
—
|
|
—
|
|
|
49
|
|
48
|
|
|
0
|
|
0
|
|
|
49
|
|
48
|
|
Total benefits and
expenses
|
|
—
|
|
—
|
|
|
38
|
|
38
|
|
|
0
|
|
0
|
|
|
38
|
|
38
|
|
Income from life
insurance operations before taxes
|
|
—
|
|
—
|
|
|
11
|
|
10
|
|
|
0
|
|
0
|
|
|
11
|
|
10
|
|
Investment
operations: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
|
|
4
|
|
4
|
|
|
95
|
|
90
|
|
|
(3)
|
|
(3)
|
|
|
96
|
|
91
|
|
Net realized
investment losses
|
|
0
|
|
0
|
|
|
(292)
|
|
(88)
|
|
|
—
|
|
—
|
|
|
(292)
|
|
(88)
|
|
Net impairment losses
recognized in earnings
|
|
(1)
|
|
0
|
|
|
(3)
|
|
0
|
|
|
—
|
|
—
|
|
|
(4)
|
|
0
|
|
Equity in earnings of
limited partnerships
|
|
4
|
|
4
|
|
|
39
|
|
30
|
|
|
—
|
|
—
|
|
|
43
|
|
34
|
|
Income (loss)
from investment operations before taxes
|
|
7
|
|
8
|
|
|
(161)
|
|
32
|
|
|
(3)
|
|
(3)
|
|
|
(157)
|
|
37
|
|
Income (loss) from
operations before income taxes and noncontrolling
interest
|
|
75
|
|
70
|
|
|
(35)
|
|
80
|
|
|
—
|
|
—
|
|
|
40
|
|
150
|
|
Provision for income
taxes
|
|
25
|
|
23
|
|
|
(18)
|
|
19
|
|
|
—
|
|
—
|
|
|
7
|
|
42
|
|
Net income
(loss)
|
|
$
|
50
|
|
$
|
47
|
|
|
$
|
(17)
|
|
$
|
61
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
33
|
|
$
|
108
|
|
(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
(Unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
Indemnity
shareholder interest
|
|
Noncontrolling interest
(Exchange)
|
|
Eliminations of
related party transactions
|
Erie Insurance
Group
|
|
|
Nine months ended
September 30,
|
|
Nine months ended
September 30,
|
|
Nine months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
Management
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
revenue, net
|
|
$
|
1,127
|
|
$
|
1,047
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
(1,127)
|
|
$
|
(1,047)
|
|
|
$
|
—
|
|
$
|
—
|
|
Service agreement
revenue
|
|
22
|
|
23
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
22
|
|
23
|
|
Total revenue from
management operations
|
|
1,149
|
|
1,070
|
|
|
—
|
|
—
|
|
|
(1,127)
|
|
(1,047)
|
|
|
22
|
|
23
|
|
Cost of management
operations
|
|
958
|
|
882
|
|
|
—
|
|
—
|
|
|
(958)
|
|
(882)
|
|
|
—
|
|
—
|
|
Income from
management operations before taxes
|
|
191
|
|
188
|
|
|
—
|
|
—
|
|
|
(169)
|
|
(165)
|
|
|
22
|
|
23
|
|
Property and
casualty insurance operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums
earned
|
|
—
|
|
—
|
|
|
4,239
|
|
3,899
|
|
|
—
|
|
—
|
|
|
4,239
|
|
3,899
|
|
Losses and loss
expenses
|
|
—
|
|
—
|
|
|
2,897
|
|
3,016
|
|
|
(3)
|
|
(4)
|
|
|
2,894
|
|
3,012
|
|
Policy acquisition and
underwriting expenses
|
|
—
|
|
—
|
|
|
1,222
|
|
1,132
|
|
|
(175)
|
|
(173)
|
|
|
1,047
|
|
959
|
|
Income (loss)
from property and casualty insurance operations before
taxes
|
|
—
|
|
—
|
|
|
120
|
|
(249)
|
|
|
178
|
|
177
|
|
|
298
|
|
(72)
|
|
Life insurance
operations: (1)
|
|
|
|
|
|
|
|
|
|
|
144
|
143
|
Total
revenue
|
|
—
|
|
—
|
|
|
144
|
|
144
|
|
|
0
|
|
(1)
|
|
|
144
|
|
143
|
|
Total benefits and
expenses
|
|
—
|
|
—
|
|
|
110
|
|
111
|
|
|
0
|
|
0
|
|
|
110
|
|
111
|
|
Income from life
insurance operations before taxes
|
|
—
|
|
—
|
|
|
34
|
|
33
|
|
|
0
|
|
(1)
|
|
|
34
|
|
32
|
|
Investment
operations: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
|
|
13
|
|
12
|
|
|
284
|
|
263
|
|
|
(9)
|
|
(11)
|
|
|
288
|
|
264
|
|
Net realized
investment gains (losses)
|
|
0
|
|
1
|
|
|
(244)
|
|
95
|
|
|
—
|
|
—
|
|
|
(244)
|
|
96
|
|
Net impairment losses
recognized in earnings
|
|
(1)
|
|
0
|
|
|
(7)
|
|
0
|
|
|
—
|
|
—
|
|
|
(8)
|
|
0
|
|
Equity in earnings of
limited partnerships
|
|
17
|
|
13
|
|
|
125
|
|
97
|
|
|
—
|
|
—
|
|
|
142
|
|
110
|
|
Income from
investment operations before taxes
|
|
29
|
|
26
|
|
|
158
|
|
455
|
|
|
(9)
|
|
(11)
|
|
|
178
|
|
470
|
|
Income from
operations before income taxes and
noncontrolling interest
|
|
220
|
|
214
|
|
|
312
|
|
239
|
|
|
—
|
|
—
|
|
|
532
|
|
453
|
|
Provision for income
taxes
|
|
75
|
|
72
|
|
|
91
|
|
61
|
|
|
—
|
|
—
|
|
|
166
|
|
133
|
|
Net
income
|
|
$
|
145
|
|
$
|
142
|
|
|
$
|
221
|
|
$
|
178
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
366
|
|
$
|
320
|
|
(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
(unaudited)
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
September 30,
|
|
Nine months
ended
September 30,
|
(in millions, except per share data)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Operating income
attributable to Indemnity
|
|
$
|
51
|
|
|
$
|
47
|
|
|
$
|
146
|
|
|
$
|
141
|
|
Net realized
investment (losses) gains and impairments
|
|
(1)
|
|
|
0
|
|
|
(1)
|
|
|
1
|
|
Income tax benefit
(expense)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
Realized (losses)
gains and impairments, net of income taxes
|
|
(1)
|
|
|
0
|
|
|
(1)
|
|
|
1
|
|
Net income
attributable to Indemnity
|
|
$
|
50
|
|
|
$
|
47
|
|
|
$
|
145
|
|
|
$
|
142
|
|
|
|
|
|
|
|
|
|
|
Per Indemnity
Class A common share-diluted:
|
|
|
|
|
|
|
|
|
Operating income
attributable to Indemnity
|
|
$
|
0.95
|
|
|
$
|
0.90
|
|
|
$
|
2.76
|
|
|
$
|
2.70
|
|
Net realized
investment (losses) gains and impairments
|
|
(0.01)
|
|
|
0.00
|
|
|
(0.01)
|
|
|
0.02
|
|
Income tax benefit
(expense)
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
(0.01)
|
|
Realized (losses)
gains and impairments, net of income taxes
|
|
(0.01)
|
|
|
0.00
|
|
|
(0.01)
|
|
|
0.01
|
|
Net income
attributable to Indemnity
|
|
$
|
0.94
|
|
|
$
|
0.90
|
|
|
$
|
2.75
|
|
|
$
|
2.71
|
|
Erie Indemnity
Company
|
Consolidated
Statements of Financial Position
|
(in
millions)
|
|
|
|
|
|
|
|
September 30,
2015
|
|
December 31,
2014
|
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
|
Investments –
Indemnity
|
|
|
|
|
Available-for-sale
securities, at fair value:
|
|
|
|
|
Fixed
maturities
|
|
$
|
588
|
|
|
$
|
564
|
|
Equity
securities
|
|
20
|
|
|
25
|
|
Limited
partnerships
|
|
95
|
|
|
113
|
|
Other invested
assets
|
|
1
|
|
|
1
|
|
Investments –
Exchange
|
|
|
|
|
Available-for-sale
securities, at fair value:
|
|
|
|
|
Fixed
maturities
|
|
9,392
|
|
|
9,007
|
|
Equity
securities
|
|
720
|
|
|
850
|
|
Trading securities,
at fair value
|
|
2,981
|
|
|
3,223
|
|
Limited
partnerships
|
|
832
|
|
|
866
|
|
Other invested
assets
|
|
21
|
|
|
20
|
|
Total
investments
|
|
14,650
|
|
|
14,669
|
|
|
|
|
|
|
Cash and cash
equivalents (Exchange portion of $496 and $422,
respectively)
|
|
618
|
|
|
514
|
|
Premiums receivable
from policyholders – Exchange
|
|
1,417
|
|
|
1,281
|
|
Reinsurance
recoverable – Exchange
|
|
162
|
|
|
161
|
|
Deferred income taxes
– Indemnity
|
|
51
|
|
|
37
|
|
Deferred acquisition
costs – Exchange
|
|
656
|
|
|
595
|
|
Other assets
(Exchange portion of $451 and $374, respectively)
|
|
561
|
|
|
501
|
|
Total
assets
|
|
$
|
18,115
|
|
|
$
|
17,758
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Liabilities
|
|
|
|
|
Indemnity
liabilities
|
|
|
|
|
Other
liabilities
|
|
$
|
644
|
|
|
$
|
611
|
|
Exchange
liabilities
|
|
|
|
|
Losses and loss
expense reserves
|
|
3,923
|
|
|
3,853
|
|
Life policy and
deposit contract reserves
|
|
1,848
|
|
|
1,812
|
|
Unearned
premiums
|
|
3,109
|
|
|
2,834
|
|
Deferred income
taxes
|
|
283
|
|
|
490
|
|
Other
liabilities
|
|
183
|
|
|
175
|
|
Total
liabilities
|
|
9,990
|
|
|
9,775
|
|
|
|
|
|
|
Indemnity's
shareholders' equity
|
|
750
|
|
|
703
|
|
|
|
|
|
|
Noncontrolling
interest in consolidated entity – Exchange
|
|
7,375
|
|
|
7,280
|
|
Total
equity
|
|
8,125
|
|
|
7,983
|
|
Total liabilities,
shareholders' equity and noncontrolling interest
|
|
$
|
18,115
|
|
|
$
|
17,758
|
|
(ERIE-F)
Logo - http://photos.prnewswire.com/prnh/20041112/ERIELOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/erie-indemnity-reports-third-quarter-2015-results-300168166.html
SOURCE Erie Indemnity Company