1. The ADP for insurance company operations.

2. A Conduent for an insurance exchange.

• Managing Attorney-in-Fact Services: Oversees and manages the operations and affairs for the subscribers at the Erie Insurance Exchange.
• Sales & Marketing Support Services: Provides agent compensation, sales, and advertising support services for insurance product distribution.
• Underwriting & Policy Processing Services: Manages the underwriting process and policy issuance and renewal for insurance policies.
• Customer & Administrative Support Services: Offers customer service and general administrative support for the insurance exchange's operations.
• Information Technology Services: Provides information technology infrastructure and support crucial for the exchange's operations.

Erie Indemnity (ERIE) primarily sells its services to **Erie Insurance Exchange**.

Erie Indemnity operates as the managing attorney-in-fact for the subscribers at the Erie Insurance Exchange. In this capacity, Erie Indemnity provides a comprehensive suite of services to the Exchange, including sales, underwriting, policy issuance, renewal services, agent compensation, sales and advertising support, underwriting and policy processing, customer services, administrative support, and information technology services. The Erie Insurance Exchange is not a publicly traded company and therefore does not have a stock symbol.

Timothy G. Necastro, President and Chief Executive Officer

Timothy G. Necastro has served as the President and Chief Executive Officer of Erie Indemnity since August 2016. He is scheduled to retire on December 31, 2026, marking the end of a 30-year career with the company, including a decade as CEO. Prior to his current role, Mr. Necastro held positions as President, CEO, and Director at Erie Family Life Insurance Co., Erie Insurance Co., and Erie Insurance Exchange (Investment Portfolio). He also worked as Finance Director at Plastek Group and as Senior Manager at Ernst & Young LLP. He earned his undergraduate degree from Gannon University.

Julie Marie Pelkowski, Executive Vice President and Chief Financial Officer

Julie Marie Pelkowski was appointed Executive Vice President and Chief Financial Officer, effective May 1, 2023, succeeding Greg Gutting. She joined Erie in 1998 as an internal auditor. Before her role as CFO, she served as Senior Vice President and Controller and was a co-lead for Erie's Destination 2025 corporate strategy program. Her career at Erie also includes positions as Financial Reporting Supervisor and Vice President, Financial Reporting. Ms. Pelkowski began her financial career in 1991 with Deloitte & Touche. She is a Certified Public Accountant (CPA) and holds a bachelor's degree in accounting from Clarion University of Pennsylvania.

Parthasarathy Srinivasa, Executive Vice President and Chief Information Officer

Parthasarathy Srinivasa is the Executive Vice President and Chief Information Officer of Erie Indemnity.

Douglas E. Smith, Executive Vice President, Sales and Products

Douglas E. Smith serves as the Executive Vice President, Sales and Products for Erie Indemnity.

Sean D. Dugan, Executive Vice President, Human Resources and Corporate Services

Sean D. Dugan is the Executive Vice President, Human Resources and Corporate Services. He was promoted to this role in December 2022.

The key risks to Erie Indemnity (ERIE) primarily stem from its unique business model as a managing attorney-in-fact for the Erie Insurance Exchange.

1. Heavy Dependence on Erie Insurance Exchange: Erie Indemnity's business model is fundamentally tied to the performance and growth of the Erie Insurance Exchange, which serves as its sole customer and primary source of revenue. The company earns management fees based on premiums written by the Exchange. Consequently, any adverse impact on the Exchange's growth, financial condition, underwriting appetite, product strategy, or ability to renew policies could significantly affect Erie Indemnity's financial results. This dependence limits Erie Indemnity's strategic flexibility and creates a concentration of business risk.
2. Potential for Reduction in Management Fees and Related Litigation: The sustainability of the management fees Erie Indemnity charges the Exchange is a significant concern. Historically, the management fee can be up to 25% of premiums, and there have been instances where the fee was reduced. The Exchange's financial performance, particularly its underwriting losses and diminishing surplus, could lead to pressure to reduce these fees. Furthermore, Erie Indemnity has faced policyholder lawsuits challenging its management fee practices and alleging breaches of fiduciary duty, highlighting ongoing scrutiny of this revenue stream. A reduction in the management fee rate would directly impact Erie Indemnity's profitability.
3. Competitive Market Landscape and Macroeconomic Headwinds Affecting the Exchange: While Erie Indemnity itself does not directly compete as a traditional insurer, the Erie Insurance Exchange operates in a highly competitive property and casualty insurance market. The Exchange faces competition from large national companies, regional insurers, and direct-to-consumer models. Intense competition, aggressive pricing, product innovation, and macroeconomic factors such as inflation, high unemployment, or recession can affect the Exchange's ability to attract and retain customers, thus impacting its premium growth. Additionally, the broader P&C insurance industry is susceptible to increasing frequency and severity of catastrophe losses due to climate change, and "social inflation" (rising litigation costs and larger jury awards), which indirectly pressure the Exchange's underwriting performance and, in turn, Erie Indemnity's fee revenue.

• The proliferation of direct-to-consumer and digital-first insurance providers (e.g., Geico, Lemonade, Root Insurance) is challenging the traditional agency-based distribution model. As Erie Indemnity provides sales support, agent compensation, and advertising services for the Erie Insurance Exchange, a significant shift in market share towards direct insurers could reduce the demand for these services or put pressure on the exchange's business model, indirectly impacting ERIE.
• Rapid advancements in Insurtech and artificial intelligence (AI) are enabling the automation and streamlining of core insurance functions, including underwriting, policy processing, and customer service. Since Erie Indemnity provides these exact services (underwriting and policy processing, customer services, and information technology services), these technological developments pose a threat by potentially making traditional, human-intensive processes less competitive or by allowing insurers to perform these functions more efficiently in-house or through specialized tech providers.

Erie Indemnity (ERIE) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Growth in Direct Written Premiums and Policies In Force: Erie Indemnity's revenue is directly tied to the premium volume and policy growth of the Erie Insurance Exchange, from which it earns a 25% management fee. Direct written premiums for the Exchange grew by approximately 5% in the fourth quarter of 2025 and nearly 9% for the full year 2025, primarily due to prior rate actions. In Q1 2024, direct and assumed written premiums increased by 19%, with new business premiums growing by 32.4% and total policies in force increasing by 7.1%.
2. Strategic Rate Actions and Price Increases: The company has demonstrated a focus on implementing rate increases, which have contributed to an increase in the average premium per policy. This strategy is reflected in the 9.6% increase in average premium per policy for the year 2025, driven by realized rate actions. Management anticipated a larger impact from these rate increases in 2024 and continued to see incremental improvement in profitability from them in Q1 2024.
3. Expansion of Product Lines and Market Penetration: Erie Indemnity is concentrating on organic growth, including deepening its market penetration within existing operational areas and expanding its product lines, particularly in commercial insurance. This diversification aims to cater to a broader range of business needs and broaden revenue streams.
4. Investment in Technology and New Product Rollouts: The company is investing in technology and launching new products to enhance its offerings and competitiveness. The "ErieSecure Auto" product, initially piloted in Ohio and scheduled for broader deployment in states like Pennsylvania, West Virginia, and Virginia by mid-2026, is aimed at improving growth and pricing competitiveness. Additionally, technology modernization initiatives, such as the rollout of Business Auto 2.0 with enhanced processing and features, are expected to be fully implemented by Q3 2025.
5. Strengthening the Independent Agent Network: Erie Indemnity's strategy includes continuous investment in and support of its independent agent network, recognizing it as a significant competitive advantage. This approach helps to reach new customers and expand policyholder numbers. Growth in agent compensation, driven by base commission increases and higher incentive compensation linked to profitability, further supports this network.

Share Repurchases

• Erie Indemnity reported $0.00 in share buybacks as of December 31, 2025, and February 2026.
• The company engages in the purchase of treasury stock to satisfy stock-based compensation awards.

Share Issuance

• Erie Indemnity's shares outstanding saw minor fluctuations between 2021 and 2024, with 0.052 billion shares outstanding in 2024, a 0.01% increase from 2023.

Outbound Investments

• In 2025, Erie Strategic Ventures made investments in Atomic and Feathery.

Capital Expenditures

• Cash is primarily used to fund management operations, including the purchase and development of information technology, and other capital expenditures.
• The company is focused on the rollout of its Erie Secure Auto product across new states to enhance its competitive position and improve customer acquisition.
• Non-commission expenses in 2025 increased, driven in part by higher information technology costs.