ERIE INDEMNITY CO Q1 FY2025 earnings call

• Celebrated the 100th anniversary of Erie Insurance. Provided each employee $100 to contribute to a charity of their choice, with nearly $0.5 million allocated to various nonprofits. - Progress in modernizing legacy platforms, with Business Auto 2.0 rolled out to several states after a pilot in Indiana, and rollout to the remainder of the footprint expected to continue through the third quarter.

Erie Insurance Exchange

• Direct and assumed written premiums grew by nearly 14% in the first quarter of 2025 compared to the prior year. Average premium per policy increased by 13.2%. Policies in force grew 3.2% in the first quarter of 2025 compared to the first quarter of 2024. Policy retention ratio decreased slightly to 89.9%. First quarter combined ratio was 108.1%, and if excluding catastrophe losses and the effects of prior accident year reserve development, the direct current year non-catastrophe loss ratio would have been 95.4%. Policyholder surplus decreased from $9.3 billion at December 2024 to $9.2 billion at March 2025.

Indemnity

• Net income was $138.4 million, or $2.65 per diluted share in the first quarter of 2025 compared to $124.6 million or $2.38 per diluted share in the first quarter of 2024. Operating income increased 9% to more than $151 million for the first quarter of 2025 compared to the first quarter of 2024. Management fee revenue from policy issuance and renewal services increased over 13% to $755 million in the first quarter of 2025 compared to the prior year. The total cost of operations from policy issuance and renewal services increased $77 million, or about 14%. Commissions grew $61 million, or about 16%. Non-commission expenses grew just over $16 million, with the biggest driver being an $11 million increase in technology investments.

• External pressures related to economic instability, dynamic political environment, and increase in severe weather. - Significant catastrophe loss in March 2025 that contributed to the increase in the Exchange's first quarter combined ratio.

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