ERIE,
Pa., Dec. 6, 2023 /PRNewswire/ -- At its
regular meeting held Dec. 5, 2023,
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 regular quarterly dividend.
Erie Indemnity Company has paid regular shareholder dividends since
1933.
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, 2024. The
management fee rate was 25 percent for the period Jan. 1 through Dec. 31, 2023. 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 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 $1.19 to $1.275 on each Class A share and from
$178.50 to $191.25 on each Class B share. This represents a
7.1 percent increase in the payout per share over the current
dividend rate. The next quarterly dividend is payable Jan. 23, 2024, to shareholders of record as of
Jan. 8, 2024, with a dividend ex-date
of Jan. 5, 2024.
About Erie
Insurance
According to A.M. Best Company, Erie Insurance Group, based in
Erie, Pennsylvania, is the 12th
largest homeowners insurer, 12th 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 19th 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 are available on ERIE's website 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;
- 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;
- emergence of significant unexpected events, including pandemics
and inflation;
- emerging claims and coverage issues in the industry; and
- severe weather conditions or other catastrophic losses,
including terrorism;
- 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;
- 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