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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):February 22, 2024

ERIE INDEMNITY COMPANY
(Exact name of registrant as specified in its charter)

Pennsylvania0-2400025-0466020
(State or other jurisdiction(Commission(IRS Employer
of incorporation)File Number)Identification No.)

100 Erie Insurance Place,Erie,Pennsylvania16530
(Address of principal executive offices)(Zip Code)

Registrant’s telephone number, including area code:814870-2000

Not applicable
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Class A common stock, stated value $0.0292 per shareERIENASDAQ Stock Market, LLC
(Title of each class)(Trading Symbol)(Name of each exchange on which registered)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Item 2.02 Results of Operations and Financial Condition.

On February 26, 2024, Erie Indemnity Company (the "Company") issued a press release announcing financial results for the quarter and year ended December 31, 2023. Copies of the press release and financial information are attached hereto and are incorporated herein by reference as Exhibit 99.1 and Exhibit 99.2, respectively.

On February 27, 2024 at 10:00 a.m. the Company will provide a pre-recorded Webcast that is complementary to the press release announcing financial results for the quarter and year ended December 31, 2023.



Item 8.01 Other Events.

At its meeting on February 22, 2024, the Company's Board of Directors approved the following quarterly dividend on shares of Erie Indemnity Company Class A common stock:

Dividend Number: 375
Class A Rate Per Share: $1.275
Declaration Date: February 22, 2024
Ex-Dividend Date: April 8, 2024
Record Date: April 9, 2024
Payable Date: April 23, 2024



Item 9.01 Financial Statements and Exhibits.

Exhibit 99.1 Press Release
Exhibit 99.2 Financial Information
Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

Exhibit Index

   
Exhibit No. Description
 
99.1 
99.2 
104Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
     
  Erie Indemnity Company
      
February 26, 2024 By: /s/ Julie M. Pelkowski
   Name: Julie M. Pelkowski
    Title: Executive Vice President & CFO



Exhibit 99.1
ex991image12312021.gif

Erie Indemnity Reports Full Year and Fourth Quarter 2023 Results
Net Income per Diluted Share was $2.12 for the Quarter and $8.53 for the Year

Erie, Pa. - February 26, 2024 - Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the full year and quarter ending December 31, 2023. Net income was $446.1 million, or $8.53 per diluted share, in 2023, compared to $298.6 million, or $5.71 per diluted share, in 2022. Net income was $110.9 million, or $2.12 per diluted share, in the fourth quarter of 2023, compared to $65.5 million, or $1.25 per diluted share, in the fourth quarter of 2022.
4Q and Full Year 2023
(in thousands)4Q'234Q'2220232022
Operating income$127,084 $81,430 $520,256 $376,214 
Investment income9,771 288 28,968 632 
Interest expense and other (income), net(3,069)(243)(12,712)394 
Income before income taxes
139,924 81,961 561,936 376,452 
Income tax expense28,996 16,471 115,875 77,883 
Net income
$110,928 $65,490 $446,061 $298,569 

2023 Full Year Highlights
Operating income before taxes increased $144.0 million, or 38.3 percent, in 2023 compared to 2022.
◦Management fee revenue - policy issuance and renewal services increased $354.2 million, or 17.0 percent, in 2023 compared to 2022.
◦Management fee revenue - administrative services increased $5.3 million, or 9.2% in 2023 compared to 2022.
◦Cost of operations - policy issuance and renewal services
–Commissions increased $169.0 million in 2023 compared to 2022 primarily driven by the growth in direct and affiliated assumed written premium, partially offset by a decrease in agent incentive compensation.
–Non-commission expense increased $46.9 million in 2023 compared to 2022. Underwriting and policy processing costs increased $9.4 million primarily due to policies in force growth. Information technology costs increased $18.6 million primarily due to increased professional fees, personnel costs, and hardware and software costs. Administrative and other expenses increased $20.0 million primarily due to an increase in personnel costs. Personnel costs in 2023 were impacted by increased compensation including higher estimated costs for incentive plan awards, partially offset by lower pension costs due to an increase in the discount rate compared to 2022. Increases in incentive plan costs
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were driven by improved direct written premium and policies in force growth and Indemnity's higher stock price at year-end 2023 compared to 2022.
◦The administrative services reimbursement revenue and corresponding cost of operations increased both total operating revenue and total operating expenses by $737.1 million in 2023 and $668.3 million in 2022, but had no net impact on operating income.

Income from investments before taxes totaled $29.0 million in 2023 compared to $0.6 million in 2022. Net investment income was $44.6 million in 2023 compared to $28.6 million in 2022. Net investment income included limited partnership losses of $11.3 million in 2023 compared to $10.4 million in 2022. Net realized and unrealized losses on investments were $5.8 million in 2023 compared to $27.3 million in 2022. Net impairment losses recognized in earnings were $9.8 million in 2023 compared to $0.7 million in 2022.


4Q 2023 Highlights
Operating income before taxes increased $45.7 million, or 56.1 percent, in the fourth quarter of 2023 compared to the fourth quarter of 2022.
◦Management fee revenue - policy issuance and renewal services increased $98.0 million, or 19.5 percent, in the fourth quarter of 2023 compared to the fourth quarter of 2022.
◦Management fee revenue - administrative services increased $1.8 million, or 12.2 percent in the fourth quarter of 2023 compared to the fourth quarter of 2022.
◦Cost of operations - policy issuance and renewal services
–Commissions increased $53.1 million in the fourth quarter of 2023 compared to the fourth quarter of 2022 primarily driven by the growth in direct and affiliated assumed written premium.
–Non-commission expense increased $1.2 million in the fourth quarter of 2023 compared to the fourth quarter of 2022. Information technology costs increased $2.9 million primarily due to increased professional fees and personnel costs. Sales and advertising costs decreased $2.4 million primarily due to decreased advertising expenses. Customer service costs increased $0.8 million primarily due to increased bank charges and personnel costs.
◦The administrative services reimbursement revenue and corresponding cost of operations increased both total operating revenue and total operating expenses by $192.7 million in the fourth quarter of 2022 and $175.6 million in the fourth quarter of 2022, but had no net impact on operating income.

Income from investments before taxes totaled $9.8 million in the fourth quarter of 2023 compared to $0.3 million in the fourth quarter of 2022. Net investment income was $14.2 million in the fourth quarter of 2023 compared to $4.0 million in the fourth quarter of 2022. Net investment income included limited partnership losses of $0.6 million in the fourth quarter of 2023 compared to $8.3 million in the fourth quarter of 2022. Net realized and unrealized gains on investments were $3.4 million in the fourth quarter of 2023 compared to losses of $3.5 million in the fourth quarter of 2022. Net impairment losses recognized in earnings were $7.8 million in the fourth quarter of 2023 compared to $0.2 million in the fourth quarter of 2022.


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Webcast Information
Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on February 27, 2024.  Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.


Erie Insurance Group
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, including technological innovations;
◦dependence upon the independent agency system; and
◦ability to maintain our brand, including 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;
◦emergence of significant unexpected events, including pandemics and economic or social 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 subscribers at 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;
•compliance with complex and evolving laws and regulations and outcome of pending and potential litigation;
•factors affecting the quality and liquidity of our investment portfolio; and
•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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Exhibit 99.2

Erie Indemnity Company
Statements of Operations
(dollars in thousands, except per share data)
Three months ended December 31,Twelve months ended December 31,
2023202220232022
(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services$601,595 $503,633 $2,442,073 $2,087,846 
Management fee revenue - administrative services16,693 14,877 63,669 58,323 
Administrative services reimbursement revenue192,728 175,613 737,139 668,268 
Service agreement revenue6,651 6,512 26,059 25,687 
Total operating revenue817,667 700,635 3,268,940 2,840,124 
Operating expenses
Cost of operations - policy issuance and renewal services497,855 443,592 2,011,545 1,795,642 
Cost of operations - administrative services192,728 175,613 737,139 668,268 
Total operating expenses690,583 619,205 2,748,684 2,463,910 
Operating income
127,084 81,430 520,256 376,214 
Investment income
Net investment income14,212 3,979 44,572 28,585 
Net realized and unrealized investment gains (losses)3,408 (3,453)(5,838)(27,286)
Net impairment losses recognized in earnings(7,849)(238)(9,766)(667)
Total investment income
9,771 288 28,968 632 
Interest expense— — — 2,009 
Other income3,069 243 12,712 1,615 
Income before income taxes139,924 81,961 561,936 376,452 
Income tax expense28,996 16,471 115,875 77,883 
Net income
$110,928 $65,490 $446,061 $298,569 
Earnings Per Share
Net income per share
Class A common stock – basic$2.38 $1.41 $9.58 $6.41 
Class A common stock – diluted$2.12 $1.25 $8.53 $5.71 
Class B common stock – basic and diluted$357 $211 $1,437 $962 
Weighted average shares outstanding – Basic
Class A common stock46,189,041 46,189,028 46,188,981 46,188,916 
Class B common stock2,542 2,542 2,542 2,542 
Weighted average shares outstanding – Diluted
Class A common stock52,301,676 52,298,903 52,299,411 52,297,990 
Class B common stock2,542 2,542 2,542 2,542 
Dividends declared per share
Class A common stock$1.275 $1.190 $4.845 $4.520 
Class B common stock$191.25 $178.50 $726.75 $678.00 



1

Erie Indemnity Company
Statements of Financial Position
(in thousands)
December 31, 2023December 31, 2022
Assets
Current assets:
Cash and cash equivalents (includes restricted cash of $12,542 and $11,932, respectively)$144,055 $142,090 
Available-for-sale securities82,017 24,267 
Receivables from Erie Insurance Exchange and affiliates, net625,338 524,937 
Prepaid expenses and other current assets69,321 79,201 
Accrued investment income9,458 8,301 
Total current assets930,189 778,796 
Available-for-sale securities, net879,224 870,394 
Equity securities84,253 72,560 
Fixed assets, net442,610 413,874 
Agent loans, net58,434 60,537 
Defined benefit pension plan34,320 0 
Other assets, net42,934 43,295 
Total assets$2,471,964 $2,239,456 
Liabilities and shareholders' equity
Current liabilities:
Commissions payable$353,709 $300,028 
Agent incentive compensation68,077 95,166 
Accounts payable and accrued liabilities175,622 165,915 
Dividends payable59,377 55,419 
Contract liability41,210 36,547 
Deferred executive compensation10,982 12,036 
Total current liabilities708,977 665,111 
Defined benefit pension plans26,260 51,224 
Contract liability19,910 17,895 
Deferred executive compensation20,936 13,724 
Deferred income taxes, net11,481 14,075 
Other long-term liabilities21,565 29,019 
Total liabilities809,129 791,048 
Shareholders' equity1,662,835 1,448,408 
Total liabilities and shareholders' equity$2,471,964 $2,239,456 


2
v3.24.0.1
Document and Entity Information
Feb. 22, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 22, 2024
Entity Registrant Name ERIE INDEMNITY COMPANY
Entity Incorporation, State or Country Code PA
Entity File Number 0-24000
Entity Tax Identification Number 25-0466020
Entity Address, Address Line One 100 Erie Insurance Place,
Entity Address, City or Town Erie,
Entity Address, State or Province PA
Entity Address, Postal Zip Code 16530
City Area Code 814
Local Phone Number 870-2000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A common stock,
Trading Symbol ERIE
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000922621
Amendment Flag false
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