ERIE, Pa., Dec. 9, 2021 /PRNewswire/ -- At its regular
meeting held Dec. 7, 2021, the Board
of Directors of Erie Indemnity Company (NASDAQ: ERIE) appointed a new executive vice
president, set the management fee rate charged to Erie Insurance
Exchange, approved an increase in shareholder dividends and
declared the regular quarterly dividend. Erie Indemnity Company has
paid regular shareholder dividends since 1933.
The Board appointed Brian W.
Bolash an executive vice president of the company. Bolash
has been with the company for 21 years and currently serves as
senior vice president, secretary and general counsel, with
responsibility for the Law Division and Internal Audit. The
appointment is effective Jan. 1,
2022, after which he will continue to serve as the company's
general counsel and corporate secretary. Bolash is a graduate of
Gannon University and The Dickinson
School of Law of The Pennsylvania State
University.
The Board also agreed to maintain the current management fee
rate paid to Erie Indemnity Company by Erie Insurance Exchange at
25%, effective Jan. 1, 2022. The
management fee rate was 25% for the period Jan. 1 through Dec. 31, 2021. 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%. This action was taken based on various factors
including 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 $1.035 to $1.11 on each Class A share and from $155.25 to $166.50
on each Class B share. This represents a 7.2% increase in the
payout per share over the current dividend rate. The next quarterly
dividend is payable Jan. 20, 2022, to
shareholders of record as of Jan. 5,
2022, with a dividend ex-date of Jan.
4, 2022.
About Erie Insurance
Erie Insurance Group
According to A.M. Best Company, Erie Insurance Group, based in
Erie, Pennsylvania, is the 12th
largest homeowners insurer, 13th largest automobile insurer and
13th largest commercial lines insurer in the United States based on direct premiums
written. Founded in 1925, Erie Insurance is a Fortune 500
company and the 16th largest property/casualty insurer in
the United States based on total
lines net premium written. Rated A+ (Superior) by A.M. Best,
ERIE has more than 6 million
policies in force and operates in 12 states and the District of
Columbia. 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;
- 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;
- litigation and regulatory actions;
- emerging claims and coverage issues in the industry; and
- severe weather conditions or other catastrophic losses,
including terrorism;
- potential impacts of the COVID-19 pandemic on the growth and
financial condition of the Exchange;
- costs of providing policy issuance and renewal services to the
Exchange under the subscriber's agreement;
- ability to attract and retain talented management and
employees;
- ability to ensure system availability and effectively manage
technology initiatives;
- difficulties with technology or data security breaches,
including cyber attacks;
- ability to maintain uninterrupted business operations;
- outcome of pending and potential litigation;
- potential impacts of the COVID-19 pandemic on our operations,
the business operations of our customers and/or independent agents,
or our third-party vendor operations;
- factors affecting the quality and liquidity of our investment
portfolio; and
- our ability to meet liquidity needs and access capital.
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.
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SOURCE Erie Indemnity Company