Erie Indemnity Reports Full Year and Fourth Quarter 2022 Results.

ERIE, Pa: Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the full year and quarter ending December 31, 2022. Net income was $298.6 million, or $5.71 per diluted share, in 2022, compared to $297.9 million, or $5.69 per diluted share, in 2021. Net income was $65.5 million, or $1.25 per diluted share, in the fourth quarter of 2022, compared to $55.0 million, or $1.05 per diluted share, in the fourth quarter of 2021.

The uncertainty resulting from post-pandemic conditions and the current economic environment continues to evolve and the duration or extent of financial impacts remain uncertain.

4Q and Full Year 2022

(dollars in thousands)

4Q'22

4Q'21

2022

2021

Operating income

$ 81,430

$ 61,834

$ 376,214

$ 318,097

Investment income

288

12,328

632

67,332

Interest expense and other, net

(243)

4,335

394

9,025

Income before income taxes

81,961

69,827

376,452

376,404

Income tax expense

16,471

14,785

77,883

78,544

Net income

$ 65,490

$ 55,042

$ 298,569

$ 297,860

2022 Full Year Highlights

Operating income before taxes increased $58.1 million, or 18.3 percent, in 2022 compared to 2021.

Management fee revenue - policy issuance and renewal services increased $174.7 million, or 9.1 percent, in 2022 compared to 2021.

Management fee revenue - administrative services remained consistent at $58.3 million in both 2022 and 2021.

Cost of operations - policy issuance and renewal services

Commissions increased $71.1 million in 2022 compared to 2021 driven by direct and affiliated assumed written premium growth, partially offset by a reduction in agent incentive compensation.

Non-commission expense increased $47.1 million in 2022 compared to 2021. Underwriting and policy processing costs increased $6.4 million primarily due to increased underwriting report, printing, and personnel costs. Information technology costs increased $13.1 million primarily due to increased hardware and software costs and professional fees, partially offset by decreased personnel costs. Sales and advertising costs increased $7.5 million primarily due to increased advertising and agent-related expenses. Administrative and other expenses increased $22.5 million primarily due to an increase in personnel costs related to compensation and increased professional fees.

The administrative services reimbursement revenue and corresponding cost of operations increased both total operating revenue and total operating expenses by $668.3 million in 2022 and $638.5 million in...