Exhibit

EX-99.2 3 ex-99203312020.htm EXHIBIT 99.2 Exhibit

Exhibit 99.2

Erie Indemnity Company

Statements of Operations

(dollars in thousands, except per share data)



		Three months ended March 31,
		2020				2019
		(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services, net		$	443,750			$	430,983
Management fee revenue - administrative services, net		14,771				13,951
Administrative services reimbursement revenue		151,554				142,480
Service agreement revenue		6,662				6,692
Total operating revenue		616,737				594,106

Operating expenses
Cost of operations - policy issuance and renewal services		379,492				365,504
Cost of operations - administrative services		151,554				142,480
Total operating expenses		531,046				507,984
Operating income		85,691				86,122

Investment income
Net investment income		8,369				8,517
Net realized investment (losses) gains		(10,806		)		2,503
Net impairment losses recognized in earnings		(3,053		)		(78		)
Equity in losses of limited partnerships		(3,705		)		(1,147		)
Total investment (loss) income		(9,195		)		9,795

Interest expense, net		3				449
Other (expense) income		(366		)		47
Income before income taxes		76,127				95,515
Income tax expense		16,801				20,204
Net income		$	59,326			$	75,311

Net income per share
Class A common stock – basic		$	1.27			$	1.62
Class A common stock – diluted		$	1.13			$	1.44
Class B common stock – basic and diluted		$	191			$	243

Weighted average shares outstanding – Basic
Class A common stock		46,188,789				46,188,337
Class B common stock		2,542				2,542

Weighted average shares outstanding – Diluted
Class A common stock		52,324,350				52,312,036
Class B common stock		2,542				2,542

Dividends declared per share
Class A common stock		$	0.965			$	0.90
Class B common stock		$	144.75			$	135.00

1

Erie Indemnity Company

Statements of Financial Position

(in thousands)



		March 31, 2020				December 31, 2019
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	228,646			$	336,739
Available-for-sale securities		34,818				32,810
Equity securities		0				2,381
Receivables from Erie Insurance Exchange and affiliates, net		482,238				468,636
Prepaid expenses and other current assets		58,715				44,943
Federal income taxes recoverable		0				462
Accrued investment income		5,657				5,433
Total current assets		810,074				891,404

Available-for-sale securities, net		716,835				697,891
Equity securities		58,014				64,752
Limited partnership investments		22,492				26,775
Fixed assets, net		238,296				221,379
Agent loans, net		59,877				60,978
Deferred income taxes, net		19,281				17,186
Other assets		32,624				35,875
Total assets		$	1,957,493			$	2,016,240

Liabilities and shareholders' equity
Current liabilities:
Commissions payable		$	270,328			$	262,963
Agent bonuses		29,661				96,053
Accounts payable and accrued liabilities		130,035				134,957
Dividends payable		44,940				44,940
Contract liability		35,810				35,938
Deferred executive compensation		10,910				10,882
Federal income taxes payable		18,040				0
Current portion of long-term borrowings		2,000				1,979
Total current liabilities		541,724				587,712

Defined benefit pension plans		153,558				145,659
Long-term borrowings		95,342				95,842
Contract liability		18,461				18,435
Deferred executive compensation		11,983				13,734
Other long-term liabilities		19,433				21,605
Total liabilities		840,501				882,987

Shareholders’ equity		1,116,992				1,133,253
Total liabilities and shareholders’ equity		$	1,957,493			$	2,016,240

2