Erie Indemnity (ERIE) 26 Apr 242024 Q1 Earnings call transcript

Good morning, and welcome to the Erie Indemnity Company First Quarter 2024 Earnings Conference Call. This call was prerecorded, and there will be no question-and-answer session following the recording.

Now I'd like to introduce your host for the call, Vice President of Investor Relations, Scott Beilharz.

Thank you, and welcome, everyone. We appreciate you joining us for this recorded discussion about our first quarter results. remarks Julie NeCastro, and Pelkowski, Officer. include Executive and Chief will and Officer; Executive recording from President Tim Chief Financial This Vice President

earnings Investor Relations yesterday of our were closed Our are section financial erieinsurance.com. the and the after market issued within available website, and release afternoon supplement

known to assumptions I These to unexpected current today's views may and future everyone events. discussion subject reflect may These we begin, uncertainties remarks. those remind that company's Before contain are differ described the on based remarks to would like uncertainties. and and that forward-looking remarks from risks these materially about in risks results cause

with on safe of yesterday be by and the please Company. For factors release. reproduced cause may in see the Erie important related rebroadcast party harbor these of prerecorded property written our without the in may the press call is differences, It not consent or filing the other Indemnity prior SEC information statements This Erie filed that XX-Q Company. Indemnity any Form

With to Tim? Tim's on that, remarks. we'll move

to anniversary of founding. Thanks, on thanks XXXX. XX, week, in the first quarter all for company's and you of Last interest for April marked we Erie's of Scott, our performance XXth your the

less O.G. $XX,XXX H.O. year. men, a Now XXXX and young journey Crawford, the in after in held B. on been on meeting, Two Erie Hirt Insurance century. April premiums the in Thomas the than our a XX, Insurance and shareholders in remarkable for in doors person that on reflected opened we nearly and brought net first to Erie I the annual medium Hagen At has Building.

covering XXXth X I'm in financial I'm employees year and and than our the grown as we to in $XX has the and Columbia confident premium more with our force, our and XX,XXX and business X,XXX million almost states billion enter than than be of District stability Erie's leading company, independent agents. industry proud in plus more of in more policies business. the humbled position XX Today,

I'll a were first, quarter which a last look our In on significantly reported share negative claims weather-related business in our But financials. at minutes. our XXXX, combined workplace our in some had that let's up updates call, impact first and ratio. on we few

year, and So direction. far to right headed ratio the this a starting we're see turnaround in our is

now to Julie over discuss financial I'll detail. turn to in Julie? results our greater it

everyone. most Exchange, to a from have profitability in In Thank proactive fact We increases larger morning, significant talked were the XXXX, approach taken. the these rate we the XXXX, about policies. higher XX-month you, would and addressing that come impact Tim, that that the rate impact the given anticipated by a experienced and our of as good we increases challenge result

lower from with year, improvement improvement rate last Continued in were incremental that weather XXXX. in severity increases, drove an compared events first in the to the quarter coupled of of first profitability quarter

ratio the in XX.X in XXXX. quarter in the XXXX period quarter contributed to combined points to Weather last was first the compared X events combined the first in versus ratio XXX.X% to Our same of year. points the XXX% quarter first of

rate the The for well. to growth contribute as significant continue Exchange increases to

Strong year. compared to quarter, premium Total XX.X% same the growing assumed X.X%. new first of Exchange continues last grew XX%. and the force During policies direct with premium in written increased growth business the new period

billion the resulted XXXX. as XX, growth the the of a retention ratio high March also policy combined quarter Exchange solid growing with policyholder of million a more to ratio premium continued in favorable retention XX.X%. $XXX of surplus We strong in maintained and The along $X.X

share of $XX quarter for to $XXX increased $XXX share of revenue in in XXXX quarter in per million issuance and the just diluted of the quarter first fee of first compared the XX% or in compared assumed first to Indemnity. results to diluted first income XXXX. the XXXX, direct quarter quarter the million almost to Exchange. of XXXX line to the first Operating Shifting XXXX. income the $XXX quarter from in the or per services was Management compared to with over over policy the million Net and increased and XX.X% $X.XX written of premiums first $X.XX the renewal in million increase

commissions, $XX for are to for the period increased of first total same of from portion direct the premiums in and million Exchange. issuance quarter $XX the The most expenses of renewal quarter, the operations assumed cost XX.X% the first and XXXX written significant our of policy in million by increase compared grew services or The affiliated XXXX. driven

expenses technology our underwriting Technology just costs. quarter as investments capitalized first and costs significant premium same in were of costs well, as $XX increased grew in were driven policy primarily more to costs lower the quarter XXXX first support overall as XXXX. increases in compared such production Non-commission personnel The over million, the by in and development continue, although for drove the growth the processing. cost agent-related period Exchange's

$XX due totaled million of quarter compared to $X partnership of million just in million limited same period compared increased Income a quarter $XX higher to earnings first the nearly XXXX. Net year income loss last the bond investment in was to and the of investments $X from million in nearly first income.

a a the performance in take has sheet. approach shareholders first capital maintain of and we us our financial strong enabled XXXX, measured And $XX to our we always, As million for balance dividends. to months pay X over management,

Tim. back call the turn Tim? I'll over to that, With

Julie. Thanks,

As the as of been legacy we inefficiencies we're many management. to created another and of technology and XXXX. and tied Upgrades to work platforms working pleased delays can priority, the us,, This in key to those continues has systems. I'm sunset a to systems migrating also is it I've newer directly by successfully platforms share place, legacy be older for appropriate. calls, priority eliminate than more had expense and that in applications older our X/X mentioned we've top modernized in previous the

review with estimates. a times of Best due employees example and of customers, inspection method lack been for process for process agents cycle best to causing modernization tightened integration, resulted or delays thanks of One that's pinning long claims. often a to recently in the data review is

agents in account the Now of often their customers This Photo during and appropriate can use DRP cutting the method Direct and determine Appraisal established days claims within or tool online out Program the claims. process. times, inspection Repair auto results faster an their of list shops to

on us, challenges The pace of both that whether talking processes, people. about topic is energizes change platforms, and we're products a or

recall it's up announced a a into we're XX approach tune year, earnings of be how pleased hybrid we new XX% approach, have teams. with greater our this workforce our taking in to Hybrid to we'd now in you across our may vibrancy workdays that use If remote starting last each bank employees beginning collaboration calls, our of make in offices roughly workforce regularly who XXXX. new you January, Since create when year choose. helping they and to

how natural usage for us buildings to learn our improve efforts, share room new for and We track and conference changes including and we're and with to compares facility Erie in-office building, home our for top and including performance and the experience in accountable costs our installing employees, sustainability other the to continue of consumption. mind Employees our stay similar electricity, across each technology use energy of to water will to helping campus size, and support gas improvements commercial be keeping see workforce. energy office further to make able

Sustainability aspect citizen. is one of corporate commitment being to a our good

close low to began credit program. educational donated in business, do education will We $X it trust as for build where also education-focused million since Northwest totaling and ramp minority EITC to of us income in continue through programs we than students, tax to invest XX in has in prekindergarten million students XXXX. nonprofits we to and Pennsylvania. offer announced part and our underserved the Erie help helping service. grants and reinforce expand more $XX the program relationships XXth-grade communities Recently, Pennsylvania's The particular, improvement commitment to to nonprofits

Erie's underway support of the for Pennsylvania, Insurance plans a hometown revitalization with And in that offices and restaurants, project building, will Renaissance our landmark in provided recently in help million in support the plans at loan downtown to Center space State. future gatherings. renovate with tallest Funds to Penton transform work additional for this an a hotel $X public with Erie from into will Erie, an provide upscale

also at the downtown retain live success supported. and It's to can work our This so position work is high-quality aimed vibrant community century. for that in creating an for will we've that Erie to and diverse next exciting attract and talent all investments project and complements other continue and us a we underway

continued employee with and robust future. platforms book us we're proactive where we for our great prepared feel through and to planning poised agency and sense move and in in and technology impressive force will set devoted century the keeping and apart ways today. I pride strong into and live long-standing our business contemporary that next to principles to weather to of a are We're thoughtful a continue challenges of

interest As always, I'd like in in today for for your Erie. and listening to continued thank you