# ERIE INDEMNITY CO (ERIE)

Informational only - not investment advice.

CIK: 0000922621
SIC: 6411 Insurance Agents, Brokers & Service
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [SIC Major Group 64](/major-group/64/) > [SIC 6411 Insurance Agents, Brokers & Service](/industry/6411/)
Latest 10-K filed: 2026-02-23
SEC page: https://www.sec.gov/edgar/browse/?CIK=922621
Filing source: https://www.sec.gov/Archives/edgar/data/922621/000162828026010666/erie-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-23 · accession 0001628280-26-010666 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000922621.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 4,067,258,000 USD | 2025 | verified |
| Net income | 559,335,000 USD | 2025 | verified |
| Assets | 3,355,481,000 USD | 2025 | verified |
| Free cash flow | 570,965,000 USD | 2025 | computed |
| Net margin | 13.75% | 2025 | computed |
| Operating margin | 17.63% | 2025 | computed |
| Revenue YoY | +7.17% | 2025 | computed |
| ROE | 24.50% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | ERIE | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 13.8% | 10.7% | 64 | 15 |
| Operating margin | 17.6% | 17.6% | 50 | 9 |
| Revenue growth | 7.2% | 8.3% | 43 | 15 |
| FCF margin | 14.0% | 14.0% | 50 | 13 |
| ROE | 24.5% | 13.5% | 64 | 15 |
| ROA | 16.7% | 3.8% | 93 | 15 |
| Liabilities / equity | 0.47 | 2.36 | 8 | 14 |
| Current ratio | 1.27 | 1.16 | 67 | 13 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6411 Insurance Agents, Brokers & Service, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 4067258000 | USD | 2025 | 2026-02-23 |
| Net income | 559335000 | USD | 2025 | 2026-02-23 |
| Assets | 3355481000 | USD | 2025 | 2026-02-23 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000922621.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 1,596,631,000 | 1,691,774,000 | 2,382,212,000 | 2,477,298,000 | 2,536,489,000 | 2,633,977,000 | 2,840,124,000 | 3,268,940,000 | 3,795,115,000 | 4,067,258,000 |
| Net income | 210,366,000 | 196,999,000 | 288,224,000 | 316,821,000 | 293,304,000 | 297,860,000 | 298,569,000 | 446,061,000 | 600,314,000 | 559,335,000 |
| Operating income | 293,517,000 | 290,252,000 | 344,343,000 | 357,339,000 | 338,157,000 | 318,097,000 | 376,214,000 | 520,256,000 | 676,455,000 | 717,184,000 |
| Operating cash flow | 254,336,000 | 197,126,000 | 263,585,000 | 364,527,000 | 342,595,000 | 402,794,000 | 366,152,000 | 381,205,000 | 611,249,000 | 686,657,000 |
| Capital expenditures | 25,208,000 | 28,927,000 | 56,297,000 | 102,039,000 | 55,528,000 | 148,800,000 | 67,204,000 | 92,647,000 | 124,845,000 | 115,692,000 |
| Dividends paid | 135,985,000 | 145,765,000 | 156,474,000 | 167,651,000 | 272,902,000 | 192,801,000 | 206,772,000 | 221,675,000 | 237,508,000 | 254,275,000 |
| Assets | 1,548,955,000 | 1,665,859,000 | 1,778,327,000 | 2,016,240,000 | 2,117,122,000 | 2,242,057,000 | 2,239,456,000 | 2,471,964,000 | 2,888,614,000 | 3,355,481,000 |
| Liabilities | 732,045,000 | 808,515,000 | 804,655,000 | 882,987,000 | 929,074,000 | 899,579,000 | 791,048,000 | 809,129,000 | 901,356,000 | 1,072,107,000 |
| Stockholders' equity | 816,910,000 | 857,344,000 | 973,672,000 | 1,133,253,000 | 1,188,048,000 | 1,342,478,000 | 1,448,408,000 | 1,662,835,000 | 1,987,258,000 | 2,283,374,000 |
| Free cash flow | 229,128,000 | 168,199,000 | 207,288,000 | 262,488,000 | 287,067,000 | 253,994,000 | 298,948,000 | 288,558,000 | 486,404,000 | 570,965,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 13.18% | 11.64% | 12.10% | 12.79% | 11.56% | 11.31% | 10.51% | 13.65% | 15.82% | 13.75% |
| Operating margin | 18.38% | 17.16% | 14.45% | 14.42% | 13.33% | 12.08% | 13.25% | 15.92% | 17.82% | 17.63% |
| Return on equity | 25.75% | 22.98% | 29.60% | 27.96% | 24.69% | 22.19% | 20.61% | 26.83% | 30.21% | 24.50% |
| Return on assets | 13.58% | 11.83% | 16.21% | 15.71% | 13.85% | 13.29% | 13.33% | 18.04% | 20.78% | 16.67% |
| Liabilities / equity | 0.90 | 0.94 | 0.83 | 0.78 | 0.78 | 0.67 | 0.55 | 0.49 | 0.45 | 0.47 |
| Current ratio | 1.42 | 1.57 | 2.14 | 1.52 | 1.17 | 1.21 | 1.17 | 1.31 | 1.43 | 1.27 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000922621.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q3 | 2023-06-30 |  | 117,852,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 858,938,000 |  |  | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 817,667,000 | 110,928,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 880,701,000 | 124,552,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | 124,552,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 990,438,000 |  |  | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | 163,903,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 999,886,000 |  |  | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 924,090,000 | 152,029,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 989,399,000 | 138,417,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | 138,417,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 1,060,097,000 |  |  | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 174,685,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,066,739,000 |  |  | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 951,023,000 | 63,380,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 1,011,911,000 | 150,474,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-03-31 |  | 150,474,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 1,089,796,000 |  |  | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ERIE's latest 10-K: [/company/ERIE/business/](/company/ERIE/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ERIE's latest 10-K: [/company/ERIE/risk-factors/](/company/ERIE/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/922621/000162828026051079/erie-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-07-30
Report date: 2026-06-30

ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of financial condition and results of operations highlights significant factors influencing Erie Indemnity Company ("Indemnity", "we", "us", "our").  This discussion should be read in conjunction with the historical consolidated financial statements and the related notes thereto included in Part I, Item 1. "Financial Statements" of this Quarterly Report on Form 10-Q, and with Part II, Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations" for the year ended December 31, 2025, as contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 23, 2026.

INDEX

[[GREPCENT_TABLE]]
[["","Page Number"],["Cautionary Statement Regarding Forward-Looking Information","25"],["Recent Accounting Standards","26"],["Operating Overview","26"],["Results of Operations","29"],["Financial Condition","35"],["Liquidity and Capital Resources","36"],["Critical Accounting Estimates","38"]]
[[/GREPCENT_TABLE]]

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

"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;

25

Table of Contents

•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.

RECENT ACCOUNTING STANDARDS

See Part I, Item 1. "Financial Statements - Note 2, Significant Accounting Policies, of Notes to Consolidated Financial Statements" contained within this report for a discussion of recently issued accounting standards, and the impact on our consolidated financial statements if known.

OPERATING OVERVIEW

Overview

We serve as the attorney-in-fact for the subscribers (policyholders) at the Exchange, a reciprocal insurer that writes property and casualty insurance. Our primary function as attorney-in-fact is to perform policy issuance and renewal services on behalf of the subscribers at the Exchange. We also act as attorney-in-fact on behalf of the subscribers at the Exchange, as well as the service provider for the Exchange's insurance subsidiaries, with respect to all administrative services.

The Exchange is a reciprocal insurance exchange, which is an unincorporated association of individuals, partnerships, and corporations that agree to insure one another. Each applicant for insurance (a subscriber) to the Exchange signs a subscriber's agreement, which contains an appointment of Indemnity as their attorney-in-fact to transact the business of the Exchange on their behalf. In accordance with the subscriber’s agreement for acting as attorney-in-fact in these two capacities, we retain a management fee calculated as a percentage of the direct and affiliated assumed premiums written by the Exchange.

Our earnings are primarily driven by the management fee revenue generated for the services we provide on behalf of the subscribers at the Exchange. The policy issuance and renewal services we provide are related to the sales, underwriting, and issuance of policies. The sales related services we provide include agent compensation and certain sales and advertising support services. Agent compensation includes scheduled commissions to agents based upon premiums written as well as incentive compensation, which is earned by achieving targeted measures. Agent compensation generally comprises approximately two-thirds of our policy issuance and renewal expenses. The underwriting services we provide include underwriting and policy processing. The remaining services we provide include customer service and administrative support. We also provide information technology services that support all the functions listed above. See Part I, Item 1. "Financial Statements - Note 4, Segment Information, of Notes to Consolidated Financial Statements" contained within this report for the significant expense categories related to providing these services. Included in expenses for these services are allocations of costs for departments that support these policy issuance and renewal functions.

Consistent with its legal structure as a reciprocal insurer, the Exchange does not have any employees or officers. Therefore, it enters into contractual relationships by and through the subscribers' attorney-in-fact. Indemnity serves as the attorney-in-fact on behalf of the subscribers at the Exchange with respect to its administrative services as enumerated in the subscriber's agreement. The Exchange's insurance subsidiaries also utilize Indemnity for these services in accordance with the service agreements between each of the subsidiaries and Indemnity. Claims handling services include costs incurred in the claims process, including the adjustment, investigation, defense, recording, and payment functions. Life insurance management services include costs incurred in the management and processing of life insurance business. Investment management services are related to investment trading activity, accounting, and all other functions attributable to the investment of funds. In 2025, approximately 71% of the administrative services expenses were entirely attributable to the respective administrative functions (claims handling, life insurance management, and investment management), while the remaining 29% of these expenses were allocations of costs for departments that support these administrative functions. The expenses we incur and related reimbursements we receive for administrative services are presented gross in our Consolidated Statements of Operations. The subscriber's agreement and service agreements provide for reimbursement of amounts incurred for these services to Indemnity. Reimbursements are settled at cost on a monthly basis. State insurance regulations require that intercompany service agreements and any material amendments be approved in advance by the state insurance department.

26

Table of Contents

Our results of operations are tied to the growth and financial condition of the Exchange as the Exchange is our sole customer, and our earnings are largely generated from management fees based on the direct and affiliated assumed premiums written by the Exchange. The Exchange generates revenue by insuring preferred and standard risks, with personal lines comprising 71% of the 2025 direct and affiliated assumed written premiums and commercial lines comprising the remaining 29%.  The principal personal lines products are private passenger automobile and homeowners.  The principal commercial lines products are commercial multi-peril, commercial automobile, and workers compensation.

Information security incident

In 2025, we experienced an information security incident that has been remediated and did not have a material impact on our consolidated financial condition, results of operations, or cash flows. As of June 30, 2026, we continue to pursue recovery of a portion of lost income due to business interruption and related expenses from our cybersecurity insurance policy.

Financial Overview

[[GREPCENT_TABLE]]
[["","","Three months ended June 30,","","Six months ended June 30,"],["(dollars in thousands, except per share data)","","2026","","2025","","% Change","","2026","","2025","","% Change"],["","","(Unaudited)","","","","","(Unaudited)"],["Operating income","","$","204,123","","","$","199,173","","","2.5","","%","","$","370,910","","","$","350,549","","","5.8","","%"],["Total investment income","","22,553","","","19,600","","","15.1","","","","44,672","","","39,136","","","14.1"],["Other income","","1,401","","","1,974","","","(29.0)","","","","2,821","","","5,808","","","(51.4)"],["Income before income taxes","","228,077","","","220,747","","","3.3","","","","418,403","","","395,493","","","5.8"],["Income tax expense","","47,783","","","46,062","","","3.7","","","","87,635","","","82,391","","","6.4"],["Net income","","$","180,294","","","$","174,685","","","3.2","","%","","$","330,768","","","$","313,102","","","5.6","","%"],["Net income per share \u2013 diluted","","$","3.45","","","$","3.34","","","3.2","","%","","$","6.32","","","$","5.99","","","5.7","","%"]]
[[/GREPCENT_TABLE]]

Operating income increased in both the second quarter and six months ended June 30, 2026, compared to the same periods in 2025. Management fee revenue for policy issuance and renewal services increased 4.7% to $862.9 million in the second quarter of 2026 and 4.5% to $1.6 billion for the six months ended June 30, 2026, compared to the same periods in 2025. Management fee revenue is based upon the management fee rate we ch

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/922621/000162828026010666/erie-20251231.htm
Complete FY 2025 MD&A: /company/ERIE/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-23
Report date: 2025-12-31

ITEM 7.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of financial condition and results of operations highlights significant factors influencing Erie Indemnity Company ("Indemnity", "we", "us", "our"). This discussion should be read in conjunction with the audited financial statements and related notes and all other items contained within this Annual Report on Form 10-K as these contain important information helpful in evaluating our financial condition and results of operations. This section of the Form 10-K generally discusses 2025 and 2024 results and year-to-year comparisons between 2025 and 2024. For a discussion of 2023 results and year-to-year comparisons between 2024 and 2023 refer to Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" for the year ended December 31, 2024 as contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2025.

INDEX

[[GREPCENT_TABLE]]
[["","Page Number"],["Cautionary Statement Regarding Forward-Looking Information","18"],["Recent Accounting Standards","19"],["Operating Overview","19"],["Critical Accounting Estimates","22"],["Results of Operations","24"],["Financial Condition","30"],["Investments","30"],["Shareholders' Equity","31"],["Liquidity and Capital Resources","32"],["Transactions/Agreements with Related Parties","34"]]
[[/GREPCENT_TABLE]]

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

"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;

18

Table of Contents

•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.

RECENT ACCOUNTING STANDARDS

See Item 8. "Financial Statements and Supplementary Data - Note 2, Significant Accounting Policies, of Notes to Consolidated Financial Statements" contained within this report for a discussion of recently adopted and issued accounting standards and the impact on our consolidated financial statements if known.

OPERATING OVERVIEW

Overview

We are a Pennsylvania business corporation that since 1925 has been the managing attorney-in-fact for the subscribers (policyholders) at the Exchange, a reciprocal insurer that writes property and casualty insurance. Our primary function as attorney-in-fact is to perform policy issuance and renewal services on behalf of the subscribers at the Exchange. We also act as attorney-in-fact on behalf of the subscribers at the Exchange, as well as the service provider for the Exchange's insurance subsidiaries, with respect to all administrative services.

The Exchange is a reciprocal insurance exchange, which is an unincorporated association of individuals, partnerships, and corporations that agree to insure one another. Each applicant for insurance (a subscriber) to the Exchange signs a subscriber's agreement, which contains an appointment of Indemnity as their attorney-in-fact to transact the business of the Exchange on their behalf.

In accordance with the subscriber's agreement for acting as attorney-in-fact in these two capacities, we retain a management fee. Management fee revenue is based upon all direct and affiliated assumed premiums written by the Exchange and the management fee rate, which is not to exceed 25%. Our Board of Directors sets the management fee rate at least annually, generally in December for the following year.  The process of setting the management fee rate includes, but is not limited to, the evaluation of current year operating results compared to both prior year and industry estimated results for both Indemnity and the Exchange, and consideration of several factors for both entities including, but not limited to: their relative financial strength and capital position; projected revenue, expense and earnings for the subsequent year; future capital needs; as well as competitive position. The management fee rate was set at 25% for 2025 and 2024.  Based on analysis of the foregoing factors, our Board of Directors set the 2026 management fee rate again at 25%.

Our earnings are primarily driven by the management fee revenue generated for the services we provide on behalf of the subscribers at the Exchange.  The policy issuance and renewal services we provide are related to the sales, underwriting, and issuance of policies. The sales related services we provide include agent compensation and certain sales and advertising support services. Agent compensation includes scheduled commissions to agents based upon premiums written as well as incentive compensation, which is earned by achieving targeted measures. Agent compensation comprised approximately 71% of our 2025 policy issuance and renewal expenses. The underwriting services we provide include underwriting and policy processing and comprised approximately 8% of our 2025 policy issuance and renewal expenses. The remaining services we provide include customer service and administrative support. We also provide information technology services that support all the functions listed above that comprised approximately 10% of our 2025 policy issuance and renewal expenses. Included in these expenses are allocations of costs for departments that support these policy issuance and renewal functions.

Consistent with its legal structure as a reciprocal insurer, the Exchange does not have any employees or officers. Therefore, it enters into contractual relationships by and through the subscribers' attorney-in-fact. Indemnity serves as the attorney-in-fact on

19

Table of Contents

behalf of the subscribers at the Exchange with respect to its administrative services as enumerated in the subscriber's agreement. The Exchange's insurance subsidiaries also utilize Indemnity for these services in accordance with the service agreements between each of the subsidiaries and Indemnity. Claims handling services include costs incurred in the claims process, including the adjustment, investigation, defense, recording, and payment functions. Life insurance management services include costs incurred in the management and processing of life insurance business. Investment management services are related to investment trading activity, accounting, and all other functions attributable to the investment of funds. In 2025, approximately 71% of the administrative services expenses were entirely attributable to the respective administrative functions (claims handling, life insurance management, and investment management), while the remaining 29% of these expenses were allocations of costs for departments that support these administrative functions. The expenses we incur and related reimbursements we receive for administrative services are presented gross in our Consolidated Statements of Operations. The subscriber's agreement and service agreements provide for reimbursement of amounts incurred for these services to Indemnity. Reimbursements are settled at cost on a monthly basis. State insurance regulations require that intercompany service agreements and any material amendments be approved in advance by the state insurance department.

Our results of operations are tied to the growth and financial condition of the Exchange as the Exchange is our sole customer, and our earnings are largely generated from management fees based on the direct and affiliated assumed premiums written by the Exchange. The Exchange generates revenue by insuring preferred and standard risks, with personal lines comprising 71% of the 2025 direct and affiliated assumed written premiums and commercial lines comprising the remaining 29%.  The principal personal lines products are private passenger automobile and homeowners.  The principal commercial lines products are commercial multi-peril, commercial automobile, and workers compensation.

We generate investment income from our fixed maturity and equity security portfolios. Our portfolios are managed with the objective of maximizing after-tax returns on a risk-adjusted basis. We actively evaluate the fixed maturity portfolios for securities in an unrealized loss position and record impairment write-downs on investments in instances where we have the intent to sell or it's more likely than not that we would be required to sell the security. Impairments resulting from a credit loss are recognized in earnings with a corresponding allowance on the Consolidated Statements of Financial Position.

Information security incident

Earlier in the year, we experienced an information security incident that has since been remediated and d

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/ERIE/mda/fy2025/
All MD&A years: /company/ERIE/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/ERIE/mda/fy2024/): filed 2025-02-27; accession 0000922621-25-000004 (https://www.sec.gov/Archives/edgar/data/922621/000092262125000004/erie-20241231.htm)
- [FY 2023 MD&A](/company/ERIE/mda/fy2023/): filed 2024-02-26; accession 0000922621-24-000006 (https://www.sec.gov/Archives/edgar/data/922621/000092262124000006/erie-20231231.htm)
- [FY 2022 MD&A](/company/ERIE/mda/fy2022/): filed 2023-03-01; accession 0000922621-23-000007 (https://www.sec.gov/Archives/edgar/data/922621/000092262123000007/erie-20221231.htm)
- [FY 2021 MD&A](/company/ERIE/mda/fy2021/): filed 2022-02-24; accession 0000922621-22-000013 (https://www.sec.gov/Archives/edgar/data/922621/000092262122000013/erie-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6411 Insurance Agents, Brokers & Service) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [M2SL](/indicator/M2SL/): M2
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ERIE.md · JSON record: /company/ERIE.json · verified financials: /company/ERIE/financials.json / /company/ERIE/financials.csv · machine TOC for the whole site: /llms.txt