AddedRisk Factors
attract profitable business in the highly competitive property and casualty insurance market and potentially result in reduced sales of its products and lower premium revenue.
10-K 0001628280-26-010666 (2026-02-23) vs 10-K 0000922621-25-000004 (2025-02-27)
| Section | Compared text | Words now | Changed |
|---|---|---|---|
| Risk Factors | Item 1A | 5,648 | 5.1% |
| MD&A | Item 7 | 9,424 | 16.8% |
| Legal Proceedings | Item 3 | 1,186 | 7.7% |
| Accounting Policies | Item 8, Note 2 – Significant Accounting Policies | 2,850 | 17.3% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 210 words changed in this paragraph; it is 56% similar to last year's version.
Serving in the capacity of attorney-in-fact for the subscribers at the Exchange, we are dependent on the growth and financial condition of the Exchange, who is our sole customer. The strength of the Exchange and its wholly owned subsidiaries is rated annually by A.M. AM Best through assessing its financial stability and ability to pay claims. The ratings are generally based upon factors relevant to policyholders and are not directed toward return to investors. The On September 5, 2025, the Exchange and each of its property and casualty insurance subsidiaries are rated were downgraded from A+ "Superior", "Superior" to A "Excellent" and its financial strength rating was revised from negative to stable. The A "Excellent" rating is the second third highest financial strength rating, which is rating assigned to companies that have achieved superior excellent overall performance when compared to the standards established by A.M. AM Best and have a superior an excellent ability to meet obligations to policyholders over the long term. As of December 31, 2024, only approximately 13% of insurance groups, While the Exchange's policyholder surplus continues to be classified in which AM Best's strongest category, the Exchange is included, are rated A+ or higher. On August 8, 2024, while our A+ "Superior" rating was reaffirmed, the financial strength rating outlook was revised from stable to negative. The outlook downgrade was primarily driven by the Exchange’s Exchange's large underwriting losses in recent profitability challenges from rising loss cost pressures years, driven by elevated weather-related events and increased weather-related activity, severity in the auto and homeowners' segments. The stable financial strength rating reflects the related surplus impact. The expectation that the Exchange's profitability initiatives will accelerate and stabilize operating results over the near term. Furthermore, the stable outlook acknowledged that while actions have been implemented to address reflects the challenges, the timing lag related to the most significant action, rate increases, could result in interim challenges until such time strongest level of balance sheet strength as the rate increases are earned and the full beneficial impact is realized. assessed by AM Best.
Source: Item 7, 10-K 0001628280-26-010666 vs Item 7, 10-K 0000922621-25-000004
Accounting Policies 164 words changed in this paragraph; it is 37% similar to last year's version.
In December 2023, July 2025, the Financial Accounting Standards Board ("FASB") FASB issued ASU 2023-09, "Income Taxes 2025-05, "Financial Instruments - Credit Losses (Topic 740): Improvements to Income Tax Disclosures", 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets", which requires provides a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under "Revenue from Contracts with Customers (Topic 606)". Under the practical expedient, entities to disclose specific categories in an effective tax rate reconciliation, additional information may assume that current conditions as of the balance sheet date do not change for reconciling items that meet a quantitative threshold, and certain information about income taxes paid. the remaining life of the asset. The amendments in this ASU are required to be adopted for fiscal years beginning after December 15, 2024. 2025, and interim periods within those fiscal years. Early adoption is permitted. The An entity that elects the practical expedient should apply the amendments can be applied on either a prospective or retrospective basis. We plan to adopt do not expect the standard in will have a material impact on our consolidated financial statements for the year ending December 31, 2025, and we expect the standard will impact certain of our income tax disclosures.
Source: Item 8, Note 2 – Significant Accounting Policies, 10-K 0001628280-26-010666 vs Item 8, Note 2 – Significant Accounting Policies, 10-K 0000922621-25-000004
Risk Factors 64 words changed in this paragraph; it is 80% similar to last year's version.
Our activities are subject to extensive regulation under federal and state laws on matters as diverse as internal control over financial reporting and disclosure controls, securities regulation, data privacy and protection, cybersecurity, taxation, immigration, wage-and-hour standards and employment and labor relations. These laws and regulations are complex and evolving, and compliance with these laws requires significant resources. In some cases, these laws and regulations may increase our costs, negatively impact revenues, or impose operational limitations on our business. Further, there can be no assurance that we, our third-party service providers and our independent agents are in full compliance with all applicable laws and regulations at all times. Efforts at compliance with all laws and regulations are further complicated by new and evolving regulations regarding cybersecurity, artificial intelligence and ESG matters. matters, including DEI-related items. For example, recent changes in the U.S. regulatory environment relating to ESG matters has increased scrutiny of corporate ESG practices. Failure to effectively address current and future ESG regulatory developments and stakeholder expectations may expose our business to litigation, fines, penalties, and damage to our reputation, which, if material could adversely affect our financial condition and results of operations.
Source: Item 1A, 10-K 0001628280-26-010666 vs Item 1A, 10-K 0000922621-25-000004
Legal Proceedings 10 words changed in this paragraph; it is 75% similar to last year's version.
Indemnity intends to vigorously defend the district court’s order on appeal and to otherwise defend against all allegations and requests for relief sought by plaintiffs.
Source: Item 3, 10-K 0001628280-26-010666 vs Item 3, 10-K 0000922621-25-000004
Every change, by type
Sentences and paragraphs of ERIE's Risk Factors and MD&A, 10-K 2026-02-23 against 10-K 2025-02-27. Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
RemovedRisk Factors
RewordedRisk Factors
Similarly, the Exchange’s Exchange's brand could be tarnished by reactions to business practices, adverse financial developments, perceptions of our corporate governance, and how we address employee matters and concerns, environmental, social and governance (ESG) initiatives, or the conduct of our employees, officers and directors. directors, or environmental, social and governance (ESG) practices, including corporate diversity, equity and inclusion (DEI) initiatives.
RewordedRisk Factors
While we continue to test and assess our business continuity and disaster recovery plans to validate they meet the needs of our core business operations and address multiple business interruption events, there is no assurance that core business operations
RewordedRisk Factors
For example, the behavior of claimants and policyholders and the timing and amounts of claims settlements may change in unexpected ways, policyholders, including increased attorney involvement and third-party litigation financing, which could result in large higher jury awards.
RewordedRisk Factors
Regulatory developments, provider relationships, pandemics and demographic and economic factors that are beyond our control, such as inflation, inflation and increased labor market competition, are indicators that employee costs could increase, which could reduce our profitability or impact our personnel strategy.
RewordedRisk Factors
The Exchange's AM Best rating is currently A+ ("Superior"). A ("Excellent").
RewordedRisk Factors
Accordingly, any reduction in direct and affiliated assumed premiums written by the Exchange and/or the management fee rate could have a negative effect on decrease our revenues and net income.
RewordedRisk Factors
Our interactions with, and reliance upon, third parties parties, including our independent agents, expose us to increased risk related to data security, service disruptions or effectiveness of our control system, particularly as we increase our reliance on cloud-based computing and software-as-a-service from third parties to operate our business.
RewordedRisk Factors
In addition, talented employees with specialized skills in actuarial, finance, human resources, law, risk management and information technology, including artificial intelligence and data analytics, are also essential to support and grow our core functions.
RewordedRisk Factors
We have established business continuity and disaster recovery plans to provide for the continuation of core business operations in the event that normal business operations could not be performed due to catastrophic or other events, including pandemics. pandemics and cyber attacks.
RewordedRisk Factors
Efforts at compliance with all laws and regulations are further complicated by new and evolving regulations regarding cybersecurity, artificial intelligence and ESG matters. matters, including DEI-related items.
AddedMD&A
•ability to attract, develop, retain, and protect talented management and employees;
AddedMD&A
Earlier in the year, we experienced an information security incident that has since been remediated and did not have a material impact on our consolidated financial condition, results of operations, or cash flows. As of December 31, 2025, we continue to pursue recovery of a portion of lost income due to business interruption and related expenses from our cybersecurity insurance policy.
AddedMD&A
Personnel costs in all expense categories in 2025 were impacted by increased healthcare costs compared to 2024. Personnel costs in 2025 were also impacted by decreased incentive compensation compared to 2024. Decreases in incentive plan costs were primarily driven by lower performance metrics compared to 2024 and a decrease in company stock price during 2025 compared to an increase during 2024.
RemovedMD&A
RemovedMD&A
RemovedMD&A
RemovedMD&A
RemovedMD&A
RemovedMD&A
RewordedMD&A
Years ended December 31, (dollars in thousands) 2025 % Change 2024 % Change 2023 % Change 2022 Policy issuance and renewal services Direct and affiliated assumed premiums written by the Exchange $ 12,957,469 8.9% $ 11,903,759 18.4% $ 10,056,484 17.0% $ 8,595,960 Management fee rate 24.37 % 24.40 % 24.30 % 24.30 % Management fee revenue 3,157,735 8.7 2,904,517 18.9 2,443,726 17.0 2,088,818 Change in estimate for management fee returned on cancelled policies (1) (25,929) NM (10,443) NM (1,653) (70.0) (972) Management fee revenue - policy issuance and renewal services $ 3,131,806 8.2% $ 2,894,074 18.5% $ 2,442,073 17.0% $ 2,087,846 Administrative services Direct and affiliated assumed premiums written by the Exchange $ 12,957,469 8.9% $ 11,903,759 18.4% $ 10,056,484 17.0% $ 8,595,960 Management fee rate 0.63 % 0.60 % 0.70 % 0.70 % Management fee revenue 81,632 14.3 71,423 1.5 70,395 17.0 60,172 Change in contract liability (2) (7,268) NM (2,985) 55.4 (6,690) NM (1,865) Change in estimate for management fee returned on cancelled policies (1) (306) NM (83) NM (36) NM 16 Management fee revenue - administrative services 74,058 8.3 68,355 7.4 63,669 9.2 58,323 Administrative services reimbursement revenue 836,639 3.8 806,336 9.4 737,139 10.3 668,268 Total revenue from administrative services $ 910,697 4.1% $ 874,691 9.2% $ 800,808 10.2% $ 726,591
RewordedMD&A
The Exchange and each of its property and casualty insurance subsidiaries are rated A+ "Superior", A "Excellent" rating is the second third highest financial strength rating, which is rating assigned to companies that have achieved superior excellent overall performance when compared to the standards established by A.M. AM Best and have an excellent ability to meet obligations to policyholders over the long term.
RewordedMD&A
RewordedMD&A
Commissions – Commissions increased $169.0 $175.6 million in 2023 2025 compared to 2022, 2024, primarily driven by the growth in direct and affiliated assumed written premium, partially offset by a decrease premium and an increase in agent incentive compensation. compensation due to improved property and casualty underwriting profitability for the three-year period ended 2025 compared to the three-year period ended 2024.
RewordedMD&A
Years ended December 31, (dollars in thousands) 2025 % Change 2024 % Change 2023 % Change 2022 Management fee revenue - administrative services $ 74,058 8.3% $ 68,355 7.4% $ 63,669 9.2% $ 58,323 Administrative services reimbursement revenue 836,639 3.8 806,336 9.4 737,139 10.3 668,268 Total revenue allocated to administrative services 910,697 4.1 874,691 9.2 800,808 10.2 726,591 Administrative services expenses Claims handling services 735,330 6.5 690,662 8.8 635,043 10.1 576,799 Investment management services 32,908 (5.7) 34,889 (0.2) 34,958 (5.0) 36,795 Life management services 68,401 (15.3) 80,785 20.3 67,138 22.8 54,674 Operating income - administrative services $ 74,058 8.3% $ 68,355 7.4% $ 63,669 9.2% $ 58,323
RewordedMD&A
Increased cash provided by operating activities in 2023, 2025, compared to 2022, 2024, was primarily due to an increase in management fees received of $319.2 $311.1 million driven by growth in direct and affiliated assumed premiums written by the Exchange. Exchange and a decrease in income taxes paid of $55.9 million driven by lower taxable income compared to 2024, resulting from changes in tax legislation and increased charitable contributions.
RewordedMD&A
Cost of operations for policy issuance and renewal services increased 15.0% 8.7% to $2.3 $2.5 billion in 2024 2025 primarily due to higher scheduled commissions driven by direct and affiliated assumed written premium growth, as well as increased agent incentive compensation due to improved profitability, and increased personnel costs and underwriting report costs, partially offset by decreased professional fees. hardware and software costs.
RewordedMD&A
RewordedMD&A
Personal lines – Total personal lines premiums written increased 20.0% 8.3% to $9.2 billion in 2025, from $8.5 billion in 2024, from $7.1 billion in 2023, driven by a 15.1% 9.4% increase in total personal lines year-over-year average premium per policy and policy, partially offset by a 4.8% increase 1.5% decrease in total personal lines policies in force.
RewordedMD&A
Net unrealized losses gains on available-for-sale securities, net of deferred taxes, totaled $1.3 million at December 31, 2025, compared to unrealized losses of $17.6 million at December 31, 2024, compared to $24.7 million at December 31, 2023. 2024.
RewordedMD&A
"Financial Statements and Supplementary Data - Note 6, Fair Value, 16, Concentrations of Credit Risk, of Notes to Consolidated Financial Statements" contained within this report for additional details on the fair value measurement of our investments. details.
RewordedMD&A
Quiet changesMD&A
The 2023 2025 actuarial loss was driven primarily by the lower discount rate used to measure the future benefit obligations, partially offset by higher than expected return on plan assets.
Quiet changesMD&A
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