Erie Indemnity Company Q1 FY2026 earnings call

• Board changes: Tom Hagen stepped down as chairman, Jonathan Herthagen was elected chairman, William Edwards joined the board, and George Lucor passed away. - Personal line: Continued rollout of Erie Secure Auto, expanded to Virginia and West Virginia, expect to introduce in four additional states this quarter. - Commercial lines: Business Auto 2.0 expanded to new states, remaining state New York to complete rollout. - Online quote platform: Launched in Ohio in February, to be introduced in Maryland, Pennsylvania, Virginia, and West Virginia next month. - Technology modernization: More than half of systems migrated to contemporary platforms. - AI application: Scaled deployment of secure tools like ChatGPT Enterprise, embedding AI in real workflows with governance.

For the Erie Insurance Exchange, direct written premium grew 3.6% in the first quarter of 2026 compared to 13.9% in the first quarter of 2025. Average premium per policy grew 8.1% in the first quarter, while policies in force were down 1.7% from the same time last year and retention declined to 88%. The exchange's combined ratio was 99.4% in the first quarter of 2026 compared to 108.1% in the first quarter of 2025. For indemnity, net income was nearly $151 million, or $2.88 per diluted share, in the first quarter of 2026 compared to $138 million, or $2.65 per diluted share, in the first quarter of 2025. Operating income increased approximately 10% to almost $167 million from $151 million in the first quarter of 2025. Management fee revenue for policy issuance and renewal services grew approximately $31 million, or 4.2%. Commission expense increased 6.4% to $465 million. Non-commission expenses decreased approximately 5.6% to $180 million. Investment income in the first quarter was $22 million compared to $20 million in the same period of 2025.

• Continue rollout of Erie Secure Auto, expect to introduce in four additional states this quarter with continued expansion throughout the year. - Complete rollout of Business Auto 2.0 in New York. - Introduce new online quote platform in Maryland, Pennsylvania, Virginia, and West Virginia next month. - Continue with technology modernization and embedding AI into real workflows with strong governance.