Erie Indemnity Posts Significant Growth in 2024 Earnings

ERIE, Pa., Feb. 27, 2025 /PRNewswire/ — Erie Indemnity Company (NASDAQ: ERIE) has reported strong financial results for the year 2024, highlighting a robust increase in net income and a significant rise in direct written premiums. The company’s net income reached $600.3 million, translating to $11.48 per diluted share, compared to $446.1 million, or $8.53 per diluted share, for 2023.

The results reflect a 34.6% uptick in profitability, with the fourth quarter of 2024 showing particularly strong performance. Net income for Q4 was reported at $152.0 million, up from $110.9 million during the same quarter a year prior, marking a 37.1% increase.

Julie Pelkowski, Executive Vice President and Chief Financial Officer, noted that the company benefitted from a 16% increase in direct written premiums during the fourth quarter, while experiencing over 18% growth for the entire year compared to 2023.

The reported operating income before taxes increased 30% year-over-year, reaching $676.5 million. Pelkowski attributed this growth largely to the rise in management fee revenue, which soared by 18.5% to $452.0 million, increasing from policy issuance and renewal services.

“Our performance reflects the operational efficiency and strong market position of Erie Insurance Exchange, which we manage and derive significant revenue from,” Pelkowski stated during the earnings call.

Timothy Necastro, CEO of Erie Indemnity, emphasized the company’s focus on technology modernization as a strategic initiative for future growth. This includes migrating legacy systems to cloud-based platforms, introducing new service offerings like Business Auto 2.0, and expanding workers’ compensation coverage.

Despite the positive results, some challenges were identified. Operating expenses rose 15% for the full year, fueled by elevated commissions and other costs. This could pose concerns regarding future profitability if expense trends continue.

“We are adapting to the current economic and legal landscape challenges by maintaining a focus on expense management and technological improvements,” Necastro added.

Erie Indemnity also reported a decrease in catastrophe losses from weather events, contributing positively to its combined ratio, which improved to 105.7 in Q4 from 111.4 a year earlier. The company’s policyholder surplus remained stable at $9.3 billion, aided by effective rate actions mitigating potential impacts from events such as Hurricane Helene.

Looking ahead, Erie Indemnity has forecasted continued growth, with direct written premiums for the Erie Insurance Exchange expected to increase further. The average premium per policy rose by 13%, while the policyholder retention rate stood strong at 90.4%. The board announced a 7.1% increase in dividends for 2025, reflecting confidence in the company’s financial resilience.

As Erie Indemnity looks to navigate the intricacies of its industry, the emphasis on modernization alongside a commitment to operational excellence positions it for ongoing success in an evolving market landscape.