Net Income per Diluted Share was $3.45 for the Quarter and $6.32 for the Six Months of 2026
ERIE, Pa., July 30, 2026 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and six months ending June 30, 2026. Net income was $180.3 million, or $3.45 per diluted share, in the second quarter of 2026, compared to $174.7 million, or $3.34 per diluted share, in the second quarter of 2025. Net income was $330.8 million, or $6.32 per diluted share, in the first six months of 2026, compared to $313.1 million, or $5.99 per diluted share, in the first six months of 2025.
2Q and First Half 2026
(in thousands) 2Q'26 2Q'25 1H'26 1H'25
Operating income $204,123 $199,173 $370,910 $350,549
Investment income 22,553 19,600 44,672 39,136
Other income 1,401 1,974 2,821 5,808
Income before income taxes 228,077 220,747 418,403 395,493
Income tax expense 47,783 46,062 87,635 82,391
Net income $180,294 $174,685 $330,768 $313,102
2Q 2026 Highlights
Operating income before taxes increased $5.0 million, or 2.5 percent, in the second quarter of 2026 compared to the second quarter of 2025.
- Management fee revenue - policy issuance and renewal services increased $39.0 million, or 4.7 percent, in the second quarter of 2026 compared to the second quarter of 2025.
- Management fee revenue - administrative services increased $1.3 million, or 7.2 percent, in the second quarter of 2026 compared to the second quarter of 2025.
- Cost of operations - policy issuance and renewal services
- Commissions increased $44.7 million in the second quarter of 2026, compared to the same period in 2025, primarily driven by an increase in agent incentive compensation and the growth in direct and affiliated assumed written premium.
- Non-commission expense decreased $8.8 million in the second quarter of 2026 compared to the second quarter of 2025. Personnel costs increased $3.0 million, primarily due to increased incentive compensation driven by stronger performance metrics and a smaller decrease in company stock price. This increase was partially offset by bonuses awarded to all employees in 2025 in recognition of our 100th anniversary. Sales and advertising decreased $1.7 million primarily due to a decrease in agent-related and advertising costs. Acquisition and underwriting support costs decreased $3.9 million primarily due to lower underwriting report and postage costs. Professional fees decreased $5.0 million primarily due to reduced use of third-party services related to technology initiatives. Administrative and other costs decreased $2.1 million primarily due to lower credit card processing fees and charitable contributions related to the transition of charitable giving through the Erie Insurance Foundation.
Income from investments before taxes totaled $22.6 million in the second quarter of 2026 compared to $19.6 million in the second quarter of 2025. Net investment income was $22.6 million in the second quarter of 2026 compared to $20.0 million in the second quarter of 2025.
First Half 2026 Highlights
Operating income before taxes increased $20.4 million, or 5.8 percent, in the first six months of 2026 compared to the first six months of 2025.
- Management fee revenue - policy issuance and renewal services increased $70.4 million, or 4.5 percent, in the first six months of 2026 compared to the first six months of 2025.
- Management fee revenue - administrative services increased $3.2 million, or 8.8 percent, in the first six months of 2026 compared to the first six months of 2025.
- Cost of operations - policy issuance and renewal services
- Commissions increased $72.7 million in the first six months of 2026 compared to the first six months of 2025, primarily driven by an increase in agent incentive compensation and the growth in direct and affiliated assumed written premium.
- Non-commission expense decreased $19.5 million for the six months ended June 30, 2026 compared to the same period in 2025. Personnel costs increased $5.1 million, primarily due to increased incentive compensation driven by stronger performance metrics, and higher base compensation. The increase is partially offset by bonuses awarded to all employees in 2025 in recognition of our 100th anniversary. Sales and advertising decreased $3.7 million primarily due to a decrease in agent-related and advertising costs. Acquisition and underwriting support costs decreased $5.7 million primarily due to lower underwriting report costs. Professional fees decreased $12.0 million primarily due to reduced use of third-party services related to technology initiatives. Administrative and other costs decreased $3.7 million primarily due to lower charitable contributions related to the transition of charitable giving through the Erie Insurance Foundation and a decrease in credit card processing fees.
Income from investments before taxes totaled $44.7 million in the first six months of 2026 compared to $39.1 million in the first six months of 2025. Net investment income was $46.1 million in the first six months of 2026 compared to $40.0 million in the first six months of 2025. Net realized and unrealized losses were $0.2 million in the first six months of 2026 compared to gains of $1.0 million in the first six months of 2025. Net impairment losses recognized in earnings were $1.3 million in the first six months of 2026 compared to $1.8 million in the first six months of 2025.
Webcast Information
Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on July 31, 2026. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.
Erie Insurance Group
Erie Insurance Group, based in Erie, Pennsylvania, is the 10th largest homeowners insurer, 11th largest automobile insurer, and 9th largest commercial lines insurer in the United States based on direct premiums written, according to AM Best Company. Founded in 1925, Erie Insurance is a Fortune 500 company and the 16th largest property/casualty insurer in the United States based on net premiums written. Rated A (Excellent) by AM Best, ERIE has nearly seven 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 impacting the timing of premium rates charged for policies;
- 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, economic or social inflation, and changes in tariff policies;
- 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, develop, retain, and protect talented management and employees;
- ability to ensure system availability and effectively manage technology initiatives;
- difficulties with technology, data or network 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.
Erie Indemnity Company
Consolidated Statements of Operations
(dollars in thousands, except per share data)
Three months ended June 30, Six months ended June 30,
2026 2025 2026 2025
(Unaudited)
(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services $862,879 $823,853 $1,649,278 $1,578,902
Management fee revenue - administrative services 19,619 18,296 39,094 35,941
Administrative services reimbursement revenue 201,554 212,644 401,650 422,917
Service agreement revenue 5,744 5,304 11,685 11,736
Total operating revenue 1,089,796 1,060,097 2,101,707 2,049,496
Operating expenses
Cost of operations - policy issuance and renewal services 684,119 648,280 1,329,147 1,276,030
Cost of operations - administrative services 201,554 212,644 401,650 422,917
Total operating expenses 885,673 860,924 1,730,797 1,698,947
Operating income 204,123 199,173 370,910 350,549
Investment income
Net investment income 22,587 20,030 46,147 39,978
Net realized and unrealized investment gains (losses) 557 479 (208) 981
Net impairment losses recognized in earnings (591) (909) (1,267) (1,823)
Total investment income 22,553 19,600 44,672 39,136
Other income 1,401 1,974 2,821 5,808
Income before income taxes 228,077 220,747 418,403 395,493
Income tax expense 47,783 46,062 87,635 82,391
Net income $180,294 $174,685 $330,768 $313,102
Net income per share
Class A common stock - basic $3.87 $3.75 $7.10 $6.72
Class A common stock - diluted $3.45 $3.34 $6.32 $5.99
Class B common stock - basic and diluted $581 $563 $1,065 $1,008
Weighted average shares outstanding - Basic
Class A common stock 46,189,033 46,189,063 46,188,942 46,188,984
Class B common stock 2,542 2,542 2,542 2,542
Weighted average shares outstanding - Diluted
Class A common stock 52,298,697 52,304,407 52,299,440 52,304,397
Class B common stock 2,542 2,542 2,542 2,542
Dividends declared per share
Class A common stock $1.4625 $1.365 $2.925 $2.73
Class B common stock $219.375 $204.75 $438.75 $409.50
Erie Indemnity Company
Consolidated Statements of Financial Position
(in thousands)
June 30, December 31,
2026 2025
(Unaudited)
Assets
Current assets:
Cash and cash equivalents (includes restricted cash of $39,608 and $30,189, respectively) $282,902 $345,874
Available-for-sale securities 61,715 33,902
Available-for-sale securities lent 1,973 3,436
Receivables from Erie Insurance Exchange and affiliates, net 753,245 735,589
Prepaid expenses and other current assets, net 92,533 66,061
Accrued investment income 14,194 14,311
Total current assets 1,206,562 1,199,173
Available-for-sale securities, net 1,327,084 1,286,566
Equity securities 150,516 70,624
Available-for-sale and equity securities lent 67,939 61,063
Fixed assets, net 593,365 571,476
Agent loans, net 100,680 93,953
Defined benefit pension plan 62,096 24,137
Other assets, net 48,774 48,489
Total assets $3,557,016 $3,355,481
Liabilities and shareholders' equity
Current liabilities:
Commissions payable $457,211 $425,320
Agent incentive compensation 116,570 132,560
Accounts payable and accrued liabilities 205,760 200,701
Dividends payable 68,109 68,109
Contract liability 48,457 47,561
Deferred executive compensation 9,154 9,400
Securities lending payable 63,157 61,936
Total current liabilities 968,418 945,587
Defined benefit pension plan 34,703 33,410
Contract liability 23,148 23,274
Deferred executive compensation 21,018 22,050
Deferred income taxes, net 19,085 24,788
Other long-term liabilities 23,538 22,998
Total liabilities 1,089,910 1,072,107
Shareholders' equity 2,467,106 2,283,374
Total liabilities and shareholders' equity $3,557,016 $3,355,481
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SOURCE Erie Indemnity Company
