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Here are 1-3 brief analogies for Erie Indemnity (ERIE):

• The publicly traded management company for a regional, agent-based insurer, similar in market approach to Travelers or Chubb but with a more concentrated footprint.
• Like the operational brain behind a large, stable, and agent-driven insurance provider, much like a geographically concentrated version of Allstate or State Farm.
• A stable, dividend-paying regional insurance company, similar to a smaller, more focused The Hartford that emphasizes strong agent relationships.

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• Management and Administrative Services: Provides sales, underwriting, policy issuance, and claims processing services for the Erie Insurance Exchange.
• Auto Insurance Sales & Service Facilitation: Facilitates the distribution and servicing of personal vehicle insurance policies.
• Homeowners Insurance Sales & Service Facilitation: Facilitates the distribution and servicing of property and casualty insurance for residences.
• Commercial Insurance Sales & Service Facilitation: Facilitates the distribution and servicing of insurance products tailored for businesses, including property, liability, and workers' compensation.
• Life Insurance Sales & Service Facilitation: Facilitates the distribution and servicing of various life insurance policies.

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Erie Indemnity (symbol: ERIE) primarily sells its management and administrative services to other companies within the Erie Insurance Group. As such, its major customers are the insurance carriers for which it acts as a managing attorney-in-fact or provides services. These include:

• Erie Insurance Exchange
• Erie Insurance Company
• Erie Insurance Property and Casualty Company
• Flagship City Insurance Company
• Erie Family Life Insurance Company
• Erie Insurance Company of New York

These customer companies are integral components of the broader Erie Insurance Group and are not publicly traded entities with separate stock symbols.

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Major suppliers for Erie Indemnity (ERIE) include:

• Guidewire Software Inc. (Symbol: GWRE)
• Verisk Analytics, Inc. (Symbol: VRSK)

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Timothy G. NeCastro, President and Chief Executive Officer

Mr. NeCastro has served as the Chief Executive Officer and President of Erie Indemnity since August 2016. He joined the company in 1996 and has held various leadership roles, including Senior Vice President and Regional Officer, Senior Vice President of Product and Policy Services Division, and Senior Vice President of Controller Division. Prior to joining Erie, he was the Director of Finance at Plastek Group and spent 10 years as a Senior Manager at Ernst & Young.

Julie M. Pelkowski, Executive Vice President and Chief Financial Officer

Ms. Pelkowski became the Chief Financial Officer and Executive Vice President in May 2023. She joined Erie in 1998 as an internal auditor. Her career at Erie includes serving as Senior Vice President of the Enterprise Office, Senior Vice President and Controller, Vice President of Financial Reporting, and Interim Controller. She began her financial career at Deloitte & Touche.

Parthasarathy Srinivasa, Executive Vice President and Chief Information Officer

Mr. Srinivasa has been an Executive Vice President and Chief Information Officer of Erie Indemnity since April 2022. Before joining Erie, he served as Senior Vice President and Chief Data and Insurance Information Officer at Verisk Analytics. He has also held various technology leadership roles at Zurich Financial Services, Farmers Insurance, Tokio Marine HCC, and Safe Auto.

Thomas B. Hagen, Chairman of the Board

Mr. Hagen has served as the Chairman of Erie Indemnity since 2007. He also holds the position of Chairman of Custom Group Industries, machining and fabrication manufacturing companies, since 1997, and has been the General Partner of Hagen Family Limited Partnership since 1989. His previous roles at Erie Indemnity include President from 1982 to 1990, and Chairman and Chief Executive Officer from 1990 to 1993.

Jonathan Hirt Hagen, Vice Chairman of the Board

Mr. Hagen has been the Vice Chairman of Erie Indemnity since 2013. He also serves as a Co-Trustee of the H.O. Hirt Trusts. Previously, he was the Vice Chairman of Custom Group Industries from 1999 to 2017.

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The key risks to Erie Indemnity's (ERIE) business are primarily centered around its unique business model and the performance of the Erie Insurance Exchange.

1. Dependence on Erie Insurance Exchange and Potential for Management Fee Reduction: Erie Indemnity's business model is heavily reliant on the Erie Insurance Exchange, as it is the sole customer from which ERIE generates the majority of its management fee revenue. There are significant concerns regarding the sustainability of ERIE's 25% management fee, especially given the Exchange's substantial operating losses and diminishing surplus. Analysts estimate that a reduction in this management fee could potentially reset earnings expectations by approximately 20%.
2. Catastrophe Exposure and Underwriting Profitability of the Erie Insurance Exchange: The financial performance of the Erie Insurance Exchange directly impacts Erie Indemnity's revenue due to the fee-based structure. The Exchange has shown vulnerability to severe weather and cyber incidents, leading to rising catastrophe losses and an elevated combined ratio. A cybersecurity breach affecting 50,000 customers has also contributed to rising costs. While Erie Indemnity itself does not bear the underwriting risk, a deterioration in the Exchange's profitability could put pressure on the management fees or stifle premium growth, consequently affecting ERIE's revenue stream.
3. Rising IT Costs and Operational Expenses / Cybersecurity Threats: Erie Indemnity faces challenges from increasing IT costs and overall operational expenses, which can pressure margins. For instance, IT expenses alone increased by $11.3 million in Q1 2025, and total operating costs rose by 14% in the same quarter. Moreover, cybersecurity threats represent a notable weakness, with a past breach already impacting customer data, potentially affecting the company's reputation and financial stability.

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1. Emergence of Direct-to-Consumer (DTC) and Digitally Native Insurers: Erie Indemnity primarily relies on a network of independent agents for policy distribution. A clear emerging threat comes from competitors who operate with direct-to-consumer models, leveraging online platforms, mobile applications, and sophisticated digital marketing to attract customers without the need for traditional agents. Companies like GEICO, Progressive, Lemonade, and Root have demonstrated the viability and growth of this model, offering convenience, speed, and often lower premiums to a segment of the market that prefers self-service or direct digital interaction. This shift in customer preference and distribution method directly challenges Erie's established agent-centric model and threatens its ability to acquire and retain digitally-savvy policyholders. This parallels Netflix disrupting Blockbuster by offering a more convenient, direct distribution model.

2. Advanced Data Analytics and AI-Driven Underwriting/Pricing: The insurance industry is increasingly leveraging vast datasets (including telematics, public records, and IoT data) combined with artificial intelligence and machine learning algorithms to achieve highly granular risk assessment and dynamic pricing. While Erie has initiatives in telematics, competitors whose core business models are built on advanced data science can potentially identify and price risk more accurately and quickly. This allows them to offer more competitive rates to lower-risk customers, potentially leading to adverse selection for traditional insurers like Erie who may have less sophisticated or slower adoption of these data-driven underwriting capabilities. This impacts Erie's ability to maintain profitable growth and competitive pricing without significant and ongoing investment in these rapidly evolving technologies.

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• U.S. Property and Casualty (P&C) Insurance Market: This overarching market, which includes both personal and commercial lines, was approximately $1.05 trillion in 2024. The market size of the Property, Casualty and Direct Insurance in the US is projected to be $1.0 trillion in 2025.
• U.S. Personal Lines Insurance Market: This segment, which primarily consists of private auto and homeowners insurance, reached approximately $534.92 billion in direct premiums written in 2024. Personal lines insurance is the largest component of the U.S. P/C insurance sector, making up over 54% of its net written premiums in 2024.
• U.S. Commercial Lines Insurance Market: This segment, comprising various coverages such as commercial multi-peril, commercial auto, and workers' compensation, aggregated direct premiums written of $502.35 billion in 2024.

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Here are 3-5 expected drivers of future revenue growth for Erie Indemnity (ERIE) over the next 2-3 years:

1. Continued Realization of Rate Increases: Erie Indemnity has implemented significant rate increases, which are anticipated to gradually boost profitability as they fully take effect. For instance, the substantial premium growth observed in 2024 was largely attributed to the ongoing realization of these rate adjustments, with the average written premium per policy increasing by 12.8% year-over-year. Management has expressed confidence that the balance of rate adequacy will position the company for long-term profitable growth.
2. Growth in Direct Written Premiums and Policy Retention: A primary driver of Erie Indemnity's management fee revenue is the growth in direct written premiums from the Erie Insurance Exchange. The Exchange experienced significant growth in direct and affiliated assumed written premiums, increasing over 18% in the third quarter of 2024 and more than 19% year-to-date. Despite rate increases, policies in force grew by 6% year-over-year, and policyholder retention remained strong at 90.8%. Consistent growth in premiums and policies is a historical trend that fuels revenue expansion.
3. Expansion of New Products and Services: The company is actively launching and expanding new insurance offerings. Erie Indemnity launched a pilot program for Business Auto 2.0 in Indiana. Furthermore, there are plans to expand the new auto insurance product, Erie Secure Auto, to additional states by mid-2026. These strategic initiatives aim to enhance service offerings and broaden the company's market presence.
4. Growth in Investment Income: Investment income is a significant contributor to Erie Indemnity's revenue. The company saw its investment income before taxes rise to $19.5 million in Q3 2024, up from $12 million in Q3 2023. For the first nine months of 2024, investment income before taxes reached $48.5 million, a notable increase from the prior year. Higher interest rates have been favorable, diversifying and increasing profits, and providing capital for reinvestment.

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Share Repurchases

• Erie Indemnity made significant share repurchases in Q4 2022, totaling approximately $466.95 million.
• The company conducted smaller repurchases throughout 2023 and 2024, continuing into early 2025.
• From July 1, 2025, to September 30, 2025, Erie Indemnity did not repurchase any shares.

Share Issuance

• Erie Indemnity's shares outstanding have remained relatively stable over the last few years, with reported year-over-year changes between 0% and 0.02% from 2021 to 2025.
• As of October 24, 2025, the number of Class A Common Stock shares outstanding was approximately 46.19 million, and Class B Common Stock was 2,542 shares.

Outbound Investments

• Erie Strategic Ventures, the venture capital arm of Erie Insurance (which Erie Indemnity manages), has invested in new portfolio companies like Atomic and Feathery to advance innovation in insurance and financial technology.
• In 2020, Erie Indemnity partnered with Arctaris Impact Investors and the Erie Community Foundation to facilitate local opportunity zone projects, which included investments in a video game developer and a plastics recycling company.
• The company committed $750,000 over five years to the Erie Regional Chamber and Growth Partnership's Erie Forward initiative, aimed at attracting new businesses, supporting existing ones, and fostering startups in the region.

Capital Expenditures

• Erie Indemnity completed the construction of a new office building in the fourth quarter of 2020, expanding its corporate home office complex to nearly one million square feet.
• Ongoing capital expenditures are primarily focused on the purchase and development of information technology, including hardware and software costs.
• Information technology costs increased by $19.8 million in the first nine months of 2025.