Erie Indemnity Q4 operating income rises 32% to $167.3 million
By Isha Marathe
Feb 28 - (The Insurer) - Erie Indemnity Company, which manages the Erie Insurance Exchange reciprocal, has reported its net operating income before taxes increased 31.7% in the fourth quarter of 2024 to $167.3 million compared to the $127.1 million in the fourth quarter of 2023.
Operating income increased $40.2 million to $167.3 million in Q4 2024
Management fee revenue increased $96.7 million, or 16.1% in Q4 2024
Premiums written increased 18.4% to $11.9 billion for the full-year 2024
Net income of $152 million, or $2.91 per diluted share in Q4 2024 (beat estimate)
Erie reported net income of $152 million, or $2.91 per diluted share in Q4 2024, compared to $110.9 million, or $2.12 per diluted share in Q4 2023.
Erie announced that its management fee revenue for policy issuance and renewal services increased $452 million, or 18.5%, in 2024 compared to 2023, and increased $96.7 million, or 16.1% in Q4 2024 compared to Q4 2023.
Commissions increased in Q4 2024 compared to Q4 2023 by $50.8 million, and were primarily driven by the growth in direct and affiliated assumed written premium.
Net investment income was $20.9 million in Q4 2024 compared to $14.2 million in Q4 2023.
For the full year 2024, net income was $600.3 million, or $11.48 per diluted share as compared to $446.1 million, or $8.53 per diluted share in 2023. The company posted an increase of operating income before taxes by $156.2 million, or 30%, in 2024 compared to 2023.
According to its 10-K filing, operating income increased in 2024 compared to 2023 as growth in operating revenue outpaced the growth in operating expenses. Management fee revenue is based upon the management fee rate it charges, which was 25% in the past three years, and the direct and affiliated assumed premiums written by the exchange.
The direct and affiliated assumed premiums written by the exchange increased 18.4% to $11.9 billion in 2024, compared to an increase of 17.0% to $10.1 billion in 2023.
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