ERIE INDEMNITY CO Q4 FY2024 earnings call

• Centennial Celebration: 2025 marks Erie Insurance's centennial, with historical context on its founding in 1925.
• Financial Results: Julie Pelkowski discussed the Exchange's growth, combined ratio improvements, and Indemnity's income and expense details, including management fee revenue and expense increases.
• Technology Modernization: Migration of legacy systems to cloud, enhancements to products like Business Auto 2.0 and expansion of workers' comp coverage to additional states.
• Awards and Promotions: Erie was recognized as a top 100 employer for workplace culture and its internship program was listed as one of the best, and two senior leaders were promoted to executive vice presidents.

Erie Insurance Exchange: Direct written premiums of the Exchange grew 16% in the fourth quarter of 2024 and over 18% for the full year 2024 compared to the respective period in the prior year. Total average premium per policy grew over 13% in 2024. Policies in force grew 4.8% to over 7 million in 2024, with policyholder retention at 90.4%. The combined ratio was 105.7 in the fourth quarter of 2024, improving from 111.4 in the same period of 2023, and ended at 110.4 for the total year 2024, better than 2023's 119.1. Catastrophe losses were lower in 2024 despite Hurricane Helene adding 1.6 points to the combined ratio. Indemnity Company: Net income was $152 million or $2.91 per diluted share in the fourth quarter of 2024, compared to nearly $111 million or $2.12 per diluted share in the same period of 2023. Full year 2024 net income was just over $600 million or $11.48 per diluted share, up from just over $446 million or $8.53 per diluted share in 2023. Operating income in the fourth quarter increased over $40 million or 31.7% compared to 2023, and for the total year, it increased just over $156 million or 30%. Management fee revenue from policy issuance and renewal services increased over $97 million or 16.1% in the fourth quarter of 2024 and $452 million or 18.5% for the total year compared to 2023.

• Business Auto 2.0 will move ahead for full rollout in the first half of 2025.
• Workers' comp coverage is expected to be expanded to additional states soon.