Erie Indemnity Company Q4 FY2025 earnings call

• 2025 was 100th year in business, navigated challenging underwriting environment with elevated weather activity, higher claims severity and competitive market dynamics.
• Exchange saw direct written premiums growth, avg premium per policy growth, Q4 combined ratio improvement, full year combined ratio improvement. Policies in-force declined, retention declined.
• Indemnity had net income changes, operating income changes, investment income changes. In 2025, established tax-exempt private charitable foundation, paid dividends and Board approved dividend increase.
• On personal lines, Erie Secure Auto successfully deployed in West Virginia and Virginia with plans to roll out in additional states in first half of 2026, saw impacts in Ohio pilot.
• On commercial lines, Business Auto 2.0 expanding across footprint, released to North Carolina, improving quoting and servicing experience.
• Through Erie Strategic Ventures, invested in Atomic and Feathery, focusing on technology and financial services intersection.
• Earned recognitions in customer claim satisfaction, small business insurance customer satisfaction, and America's Best Customer Service.

For the exchange: Direct written premiums grew approx 5% in Q4 vs prior year and almost 9% for full year vs 2024, avg premium per policy grew 9.6% for total year. Q4 combined ratio improved to 94.1% vs 105.7% same quarter 2024, full year combined ratio improved from 110.4% in 2024 to 104.9% in 2025. Policies in-force declined 1.1%, retention declined to 88.4%. For the Indemnity: Q4 net income was over $63 million or $1.21 per diluted share vs $152 million or $2.91 per diluted share in Q4 2024. Full year net income totaled over $559 million or $10.69 per diluted share vs over $600 million or $11.48 per diluted share in 2024. Q4 operating income decreased nearly $10 million or 5.7%, full year operating income increased nearly $41 million or 6%. Total investment income was just over $24 million in Q4 vs $21 million in Q4 2024, full year total investment income was almost $85 million vs approx $69 million in 2024.

• 2026 focus on continuing to strengthen profitability, supporting disciplined growth and investing in product offerings and capabilities.
• Continue to roll out Erie Secure Auto in additional states in first half of 2026.
• Continue expansion of Business Auto 2.0 across footprint, with more states expected before end of first quarter 2026.
• Continue with Erie Strategic Ventures investments in the personal and commercial insurance value chain and adjacencies that offer potential to deliver value to Erie, its agents and policyholders.

• Challenging underwriting environment shaped by elevated weather activity, higher claims severity and competitive market dynamics which may cause results to differ materially from forward-looking remarks.
• Risks and uncertainties related to the assumptions behind forward-looking remarks that may cause differences in results.