ERIE, Pa., Dec. 7, 2016 /PRNewswire/ -- At its regular
meeting held Dec. 6, 2016, the Board
of Directors of Erie Indemnity Company (NASDAQ: ERIE) set the management fee rate charged to
Erie Insurance Exchange, approved an increase in shareholder
dividends and declared the quarterly dividend.
The Board agreed to maintain the current management fee rate
paid to Erie Indemnity Company by Erie Insurance Exchange at 25
percent, effective Jan. 1,
2017. The management fee rate was 25 percent for the period
Jan. 1 through Dec. 31, 2016.
The Board has the authority under the agreement with the
subscribers (policyholders) at Erie Insurance Exchange to set the
management fee rate at its discretion; however, the maximum fee
rate permissible by the agreement is 25 percent. This action
was taken based on the Board's consideration and review of the
relative financial positions of Erie Insurance Exchange and Erie
Indemnity Company.
The Board also agreed to increase the regular quarterly cash
dividend from $0.73 to $0.7825 on each Class A share and from
$109.50 to $117.375 on each Class B share. This
represents a 7.2 percent increase in the payout per share over the
current dividend rate. The next quarterly dividend is payable
Jan. 20, 2017, to shareholders of
record as of Jan. 5, 2017, with a
dividend ex-date of Jan. 3,
2017. Erie Indemnity Company has paid regular shareholder
dividends since 1933.
About Erie Insurance
According to A.M. Best
Company, Erie Insurance Group, based in Erie,
Pennsylvania, is the 10th largest
homeowners insurer and 12th largest automobile insurer in the
United States based on direct premiums written and the 15th
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.
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, 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:
- dependence upon our relationship with the Erie Insurance
Exchange ("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;
- credit risk from the Exchange;
- dependence upon our relationship with the Exchange and the
growth of the Exchange, including:
- general business and economic conditions;
- factors affecting insurance industry competition;
- dependence upon the independent agency system; and
- ability to maintain our reputation for customer service;
- dependence upon our relationship with the Exchange and the
financial condition of the Exchange, including:
- the Exchange's ability to maintain acceptable financial
strength ratings;
- factors affecting the quality and liquidity of the Exchange's
investment portfolio;
- changes in government regulation of the insurance
industry;
- emerging claims and coverage issues in the industry; and
- severe weather conditions or other catastrophic losses,
including terrorism;
- ability to attract and retain talented management and
employees;
- ability to maintain uninterrupted business operations;
- factors affecting the quality and liquidity of our investment
portfolio;
- our ability to meet liquidity needs and access capital;
and
- outcome of pending and potential litigation.
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-F)
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SOURCE Erie Insurance