Erie Indemnity 8K Reports Second Quarter 2023 Results | ERIE 27 Jul 23

Exhibit 99.2

Erie Indemnity Company

Statements of Operations

(dollars in thousands, except per share data)


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	(Unaudited)				(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services	$	633,339	$	544,555	$	1,191,429	$	1,032,547
Management fee revenue - administrative services	15,636		14,476		30,825		28,789
Administrative services reimbursement revenue	184,466		160,675		357,293		324,002
Service agreement revenue	6,429		6,437		12,788		12,915
Total operating revenue	839,870		726,143		1,592,335		1,398,253

Operating expenses
Cost of operations - policy issuance and renewal services	521,246		461,468		990,341		885,939
Cost of operations - administrative services	184,466		160,675		357,293		324,002

Total operating expenses	705,712		622,143		1,347,634		1,209,941
Operating income	134,158		104,000		244,701		188,312

Investment income
Net investment income	13,535		8,268		15,718		18,772
Net realized and unrealized investment losses	(1,737)		(10,324)		(7,019)		(17,603)
Net impairment losses recognized in earnings	(171)		(38)		(1,804)		(254)

Total investment income (loss)	11,627		(2,094)		6,895		915

Interest expense	—		895		—		1,894
Other income	3,305		337		6,642		810
Income before income taxes	149,090		101,348		258,238		188,143
Income tax expense	31,238		21,201		54,145		39,377
Net income	$	117,852	$	80,147	$	204,093	$	148,766


Net income per share
Class A common stock – basic	$	2.53	$	1.72	$	4.38	$	3.19
Class A common stock – diluted	$	2.25	$	1.53	$	3.90	$	2.84
Class B common stock – basic and diluted	$	380	$	258	$	657	$	479


Weighted average shares outstanding – Basic
Class A common stock	46,189,026		46,188,845		46,188,923		46,188,803
Class B common stock	2,542		2,542		2,542		2,542

Weighted average shares outstanding – Diluted
Class A common stock	52,299,974		52,296,139		52,298,298		52,298,321
Class B common stock	2,542		2,542		2,542		2,542

Dividends declared per share
Class A common stock	$	1.19	$	1.11	$	2.38	$	2.22
Class B common stock	$	178.50	$	166.50	$	357.00	$	333.00

Erie Indemnity Company

Statements of Financial Position

(in thousands)


	June 30, 2023		December 31, 2022
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	142,996	$	142,090
Available-for-sale securities	63,510		24,267

Receivables from Erie Insurance Exchange and affiliates, net	591,008		524,937
Prepaid expenses and other current assets	66,399		79,201

Accrued investment income	8,890		8,301
Total current assets	872,803		778,796

Available-for-sale securities, net	857,442		870,394
Equity securities	77,220		72,560

Fixed assets, net	422,903		413,874
Agent loans, net	60,367		60,537

Other assets	34,776		43,295
Total assets	$	2,325,511	$	2,239,456

Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	347,795	$	300,028
Agent bonuses	37,443		95,166
Accounts payable and accrued liabilities	164,718		165,915
Dividends payable	55,419		55,419
Contract liability	39,046		36,547
Deferred executive compensation	7,672		12,036



Total current liabilities	652,093		665,111

Defined benefit pension plans	55,075		51,224

Contract liability	18,892		17,895
Deferred executive compensation	13,539		13,724
Deferred income taxes, net	15,647		14,075
Other long-term liabilities	25,353		29,019
Total liabilities	780,599		791,048










Shareholders’ equity	1,544,912		1,448,408
Total liabilities and shareholders’ equity	$	2,325,511	$	2,239,456

Erie Indemnity (ERIE) 8-KErie Indemnity Reports Second Quarter 2023 Results