Erie Indemnity Company
- Open
- 259.68
- Day high
- 262.83
- Day low
- 256.93
- Prev close
- 258.41
- Volume
- 35K
- Mkt cap
- $13.6B
- P/E (TTM)
- 20.9
- EPS (TTM)
- $12.39
- P/B
- 5.5
- P/S
- 3.3
- Yield
- 2.22%
- Per share
- $5.75
Erie Indemnity Company (ERIE) is a Financial Services company listed on NASDAQ. The stock is down 21% over the past year. Drillr has 1 published research article covering ERIE.
Erie Indemnity Company (ERIE) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ERIE earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 31, 2026 | $3.35 | $3.45 | +3.0% | $1.1B | +0.1% |
| Apr 24, 2026 | $3.06 | $2.88 | -5.9% | $1.0B | -7.0% |
| Oct 30, 2025 | $3.37 | $3.50 | +3.9% | $1.3B | +33.7% |
| Aug 7, 2025 | $3.48 | $3.34 | -4.0% | $1.1B | -2.6% |
| Apr 24, 2025 | $3.11 | $2.65 | -14.8% | $989M | +0.8% |
| Feb 27, 2025 | $2.76 | $2.91 | +5.4% | $339M | -63.4% |
| Oct 31, 2024 | $3.02 | $3.06 | +1.3% | $1000M | +1.5% |
| Jul 25, 2024 | $2.58 | $3.13 | +21.3% | $988M | +5.8% |
| Apr 25, 2024 | $2.29 | $2.38 | +3.9% | $881M | +5.4% |
| Oct 26, 2023 | $2.06 | $2.51 | +22.0% | $859M | +10.9% |
| Jul 27, 2023 | $1.91 | $2.25 | +18.1% | $851M | +1.8% |
| Apr 27, 2023 | $1.48 | $1.65 | +11.7% | $748M | +6.0% |
ERIE insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 3, 2026 | Vorsheck Elizabeth Adirector, 10 percent owner: | Grant | 65 | — |
| Jul 23, 2026 | Vorsheck Elizabeth Adirector, 10 percent owner: | Grant | 100 | — |
| Jun 4, 2026 | Vorsheck Elizabeth Adirector, 10 percent owner: | Buy | 1,000 | $211.50 |
| Jun 4, 2026 | Vorsheck Elizabeth Adirector, 10 percent owner: | Buy | 2,000 | $211.00 |
| Jun 4, 2026 | Vorsheck Elizabeth Adirector, 10 percent owner: | Buy | 4,000 | $200.00 |
| May 13, 2026 | DaBreo Anthonyofficer: Senior Vice President, Life | Sell | 465 | $217.10 |
| Apr 22, 2026 | Vorsheck Elizabeth Adirector, 10 percent owner: | Grant | 83 | — |
| Apr 22, 2026 | Vorsheck Elizabeth Adirector, 10 percent owner: | Grant | 39 | — |
| Feb 3, 2026 | Vorsheck Elizabeth Adirector, 10 percent owner: | Grant | 39 | — |
| Feb 2, 2026 | DaBreo Anthonyofficer: Senior Vice President, Life | Grant | 500 | $280.87 |
| Jan 23, 2026 | Vorsheck Elizabeth Adirector, 10 percent owner: | Grant | 75 | — |
| Nov 3, 2025 | Vorsheck Elizabeth Adirector, 10 percent owner: | Grant | 39 | — |
| Oct 22, 2025 | Vorsheck Elizabeth Adirector, 10 percent owner: | Grant | 60 | — |
| Aug 1, 2025 | Vorsheck Elizabeth Adirector, 10 percent owner: | Grant | 39 | — |
| Jul 23, 2025 | Vorsheck Elizabeth Adirector, 10 percent owner: | Grant | 53 | — |
Source: ERIE SEC Form 4 filings, latest Aug 3, 2026. For informational purposes only — not investment advice.
See the full ERIE insider & 13F page →Erie Indemnity Company company profile
Overview
Erie Indemnity Company (NASDAQ:ERIE) is a century-old insurance services company founded in 1925 and headquartered in Erie, Pennsylvania. The company operates as a managing attorney-in-fact for the Erie Insurance Exchange, providing comprehensive insurance services across multiple states. Erie Indemnity went public in 1995 and has grown from its modest beginnings with $31,000 in initial stock to become a Fortune 500 company managing over $12 billion in premiums. The company celebrated its 100th anniversary in 2025, having evolved into one of the largest property and casualty insurance groups in the United States with over 7 million policies in force.
Business
Erie Indemnity operates in the property and casualty insurance industry, serving as the management company for the Erie Insurance Exchange, a reciprocal insurance exchange. A reciprocal insurance exchange is a form of insurance organization where policyholders are both insurers and insureds, pooling their risks together. Erie Indemnity acts as the attorney-in-fact, meaning it has legal authority to manage the day-to-day operations on behalf of the Exchange's subscribers (policyholders). The company provides a comprehensive suite of insurance products and services including: 1. Personal Lines Insurance - This segment offers auto, homeowners, and personal umbrella insurance to individual consumers. Personal lines represent the majority of the company's business, with auto insurance being the largest component. These products protect individuals and families from financial losses due to accidents, property damage, and liability claims. 2. Commercial Lines Insurance - This division provides business insurance including commercial auto, workers' compensation, general liability, and property insurance to small and medium-sized businesses. The company has been expanding its commercial offerings, recently launching Business Auto 2.0 and expanding workers' compensation coverage to additional states like Delaware and Vermont. 3. Management Services - Erie Indemnity provides essential operational services to the Erie Insurance Exchange including sales support, underwriting, policy issuance and renewal, customer service, claims processing, and information technology services. These services generate management fee revenue based on the Exchange's premium volume. The company operates through a network of independent insurance agents across 12 states and the District of Columbia, primarily in the Midwest and Mid-Atlantic regions. Personal lines insurance accounts for approximately 75-80% of total premiums, while commercial lines represent the remaining 20-25% of the business.
Revenue model
Erie Indemnity generates revenue through a unique business model centered on management fee income rather than traditional insurance underwriting. The company earns a management fee equal to 25% of the direct and affiliated assumed premiums written by the Erie Insurance Exchange. This fee-based model provides relatively stable and predictable revenue growth that scales with the Exchange's premium volume. The primary revenue streams include: 1. Management Fee Revenue - Representing approximately 75-80% of total revenue, these fees are earned for providing comprehensive management services to the Erie Insurance Exchange. The fee percentage is contractually fixed at 25% of premiums, creating a direct correlation between premium growth and Erie Indemnity's revenue growth. 2. Investment Income - The company generates additional income from its investment portfolio, which has been increasing due to higher interest rates. Investment income reached $19.5 million in recent quarters, up from $12 million in the prior year. 3. Service Fees - Additional fees for specific services provided to the Exchange and other affiliated entities. The company's paying customers are primarily the Erie Insurance Exchange, which contracts Erie Indemnity to manage its operations, and to a lesser extent, other affiliated insurance entities. The end consumers (policyholders) pay premiums to the Exchange, which then pays management fees to Erie Indemnity. Several factors influence the company's profitability margins. Premium growth drivers include rate increases, policy retention (currently around 90%), new business acquisition, and geographic expansion. The company benefits from economies of scale as management fee revenue grows faster than fixed operational costs. Technology investments in cloud migration, artificial intelligence, and digital platforms help improve operational efficiency and reduce long-term costs. However, margins face pressure from catastrophic weather events that increase claims costs for the Exchange, inflation affecting claims severity, competitive pricing pressures in insurance markets, and the need for continued technology modernization investments. The company's expense ratio has been relatively stable, but significant catastrophe losses like Hurricane Helene have impacted overall profitability metrics.
Competitive moat
Erie Indemnity possesses a moderate to strong competitive moat built primarily on its unique organizational structure and regional market position. The company's most significant competitive advantage stems from its role as the exclusive managing attorney-in-fact for the Erie Insurance Exchange, creating a contractual monopoly over a $12 billion premium base. This relationship is protected by the reciprocal insurance structure, which would be extremely difficult and costly for competitors to replicate or disrupt. The company benefits from strong customer loyalty and retention rates exceeding 90%, indicating satisfied policyholders who are less likely to switch carriers. This high retention rate is supported by the company's consistent recognition for customer service excellence, including J.D. Power's #1 ranking in Home Insurance Customer Satisfaction. Erie's focus on independent agent distribution creates another defensive layer, as these long-term relationships provide stable distribution channels and local market knowledge. Geographic concentration in 12 states allows Erie to develop deep market expertise and operational efficiency in these regions, though this also represents a potential vulnerability. The company's century-long operating history has built substantial brand recognition and trust in its core markets. However, the moat faces several challenges. The insurance industry is highly competitive with numerous national carriers offering similar products, often with greater scale and resources. Digital transformation by insurtech companies and direct-to-consumer models could potentially disrupt traditional agent-based distribution. Climate change and increasing severe weather events pose ongoing challenges to profitability and could force difficult strategic decisions about geographic exposure. Additionally, the company's regional concentration makes it vulnerable to localized economic downturns or regulatory changes, unlike more geographically diversified national insurers. Overall, while Erie Indemnity maintains meaningful competitive advantages through its unique structure and market position, the moat is not impregnable and requires continuous investment in technology, customer service, and market expansion to remain sustainable.
Risks & safety
Erie Indemnity demonstrates a strong margin of safety with excellent financial health and conservative capital management. • Liquidity Position: Strong current ratio of 4.41x and quick ratio of 4.41x with $275 million in cash and short-term investments, providing substantial liquidity buffer • Debt Profile: Essentially debt-free with debt-to-equity ratio of 0.0%, eliminating solvency risk and providing financial flexibility • Cash Generation: Robust free cash flow of $486 million for FY 2024, with operating cash flow of $611 million, indicating strong cash-generating capability • Valuation Metrics: Trading at P/E ratio of 31.7x and EV/EBITDA of 22.9x, which appears reasonable for a stable, growing insurance services company with predictable cash flows • Profitability: Strong return on equity of 30.2% and consistent profitability with net income of $600 million in 2024 • Capital Allocation: Regular dividend payments of $64 million to shareholders while maintaining strong balance sheet • Other Considerations: The Erie Insurance Exchange maintains $9.3 billion in policyholder surplus, providing additional stability to the overall system that supports Erie Indemnity's revenue stream
Recent development
Over the past few years, Erie Indemnity has undergone significant digital transformation and modernization initiatives while maintaining strong financial performance. The company has systematically migrated multiple legacy systems to modern cloud-based platforms, reducing system outage times by 75% and improving operational efficiency. A key strategic initiative has been the establishment of an AI Center of Excellence, exploring over 20 artificial intelligence use cases to enhance operations and customer service. The company has expanded its product offerings with the launch of Business Auto 2.0 platform and extended workers' compensation coverage to Delaware and Vermont. These expansions represent efforts to diversify revenue streams and capture growth in commercial lines insurance. Erie has also enhanced its digital customer experience, with over 1 million households now using their online account platform and implementing automatic online account enrollment across 10 states. Geographic and operational expansion has been another focus area, with the company growing from managing $10 billion to over $12 billion in premiums while maintaining over 7 million policies in force. The company achieved significant premium growth rates of 16-20% annually through a combination of rate increases, new business acquisition, and improved retention rates exceeding 90%. Erie Indemnity has also pursued strategic investments in innovation through the launch of Erie Strategic Ventures, a corporate venture capital arm focused on insurance technology startups. This initiative positions the company to stay ahead of industry trends and potentially acquire or partner with disruptive technologies. The company has maintained focus on expense management and operational efficiency while investing in technology infrastructure. Despite facing challenges from significant catastrophic weather events like Hurricane Helene, Erie has improved its combined ratio from 119.1% in 2023 to 110.4% in 2024, demonstrating effective risk management and pricing strategies.
ERIE company profile · for informational purposes only — not investment advice.
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