Erie Indemnity Reports Third Quarter 2026 Results
Net Income per Diluted Share was $3.48 for the Quarter and $9.80 for the Nine Months of 2026
- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and nine months ending September 30, 2026. Net income was $182.0 million, or $3.48 per diluted share, in the third quarter of 2026, compared to $182.9 million, or $3.50 per diluted share, in the third quarter of 2025. Net income was $512.8 million, or $9.80 per diluted share, in the first nine months of 2026, compared to $496.0 million, or $9.48 per diluted share, in the first nine months of 2025.
Operating income before taxes decreased $1.5 million, or 0.7 percent, in the third quarter of 2026 compared to the third quarter of 2025.
• Management fee revenue - policy issuance and renewal services increased $21.7 million, or 2.6 percent, in the third quarter of 2026 compared to the third quarter of 2025.
• Management fee revenue - administrative services increased $0.9 million, or 4.7 percent, in the third quarter of 2026 compared to the third quarter of 2025.
◦ Commissions increased $24.0 million in the third quarter of 2026, compared to the third quarter of 2025, primarily driven by an increase in agent incentive compensation and the growth in direct and affiliated assumed written premium.
◦ Non-commission expense decreased $1.1 million in the third quarter of 2026 compared to the third quarter of 2025. Personnel costs increased $1.6 million primarily due to higher healthcare costs. Sales and advertising increased $1.8 million primarily due to an increase in agent-related costs. Acquisition and underwriting support costs decreased $5.8 million primarily due to lower postage and underwriting report costs. Technology and infrastructure costs increased $6.9 million primarily due to higher costs associated with technology initiatives, including internal-use software impairments, depreciation and amortization expense, and cloud usage costs.
Administrative and other costs decreased $5.5 million primarily due to lower credit card processing fees.
Income from investments before taxes totaled $19.9 million in the third quarter of 2026 compared to $21.6 million in the third quarter of 2025. Net investment income was $25.4 million in the third quarter of 2026 compared to $21.0 million in the third quarter of 2025. Net realized and unrealized investment losses were $5.4 million in the third quarter of 2026 compared to gains of $1.3 million in the third quarter of 2025.
Operating income before taxes increased $18.8 million, or 3.4 percent, in the first nine months of 2026 compared to the first nine months of 2025.
• Management fee revenue - policy issuance and renewal services increased $92.1 million, or 3.8 percent, in the first nine months of 2026 compared to the first nine months of 2025.
• Management fee revenue - administrative services increased $4.0 million, or 7.4 percent, in the first nine months of 2026 compared to the first nine months of 2025.
◦ Commissions increased $96.6 million in the first nine months of 2026 compared to the first nine months of 2025, primarily driven by an increase in agent incentive compensation and the growth in direct and affiliated assumed written premium.
Non-commission expense decreased $20.7 million in the first nine months of 2026 compared to the first nine months of 2025. Personnel costs increased $6.7 million primarily due to increased incentive compensation driven by stronger performance metrics, and higher base compensation. The increase is partially offset by bonuses awarded to all employees in 2025 in recognition of our 100th anniversary. Acquisition and underwriting support costs decreased $11.5 million primarily due to lower underwriting report and postage costs. Technology and infrastructure costs increased $7.4 million primarily due to higher depreciation and amortization expense from technology initiatives. Professional fees decreased $12.1 million primarily due to reduced use of third-party services related to technology initiatives. Administrative and other costs decreased $9.2 million primarily due to lower credit card processing fees and charitable contributions related to the transition of charitable giving through the Erie Insurance Foundation.
Income from investments before taxes totaled $64.5 million in the first nine months of 2026 compared to $60.7 million in the first nine months of 2025. Net investment income was $71.5 million in the first nine months of 2026 compared to $61.0 million in the first nine months of 2025. Net realized and unrealized losses were $5.7 million in the first nine months of 2026 compared to gains of $2.3 million in the first nine months of 2025. Net impairment losses recognized in earnings were $1.3 million in the first nine months of 2026 compared to $2.6 million in the first nine months of 2025. 1
Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on October 30, 2026. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.
Erie Insurance Group, based in Erie, Pennsylvania, is the 10 th largest homeowners insurer, 11 th largest automobile insurer, and 9 th largest commercial lines insurer in the United States based on direct premiums written, according to AM Best Company. Founded in 1925, Erie Insurance is a Fortune 500 company and the 16 th largest property/casualty insurer in the United States based on net premiums written. Rated A (Excellent) by AM Best, ERIE has nearly seven million policies in force and operates in 12 states and the District of Columbia.
News releases and more information are available on ERIE's website at www.erieinsurance.com. *** "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Statements contained herein that are not historical fact are forward-looking statements and, as such, are subject to risks and uncertainties that could cause actual events and results to differ, perhaps materially, from those discussed herein. Forward-looking statements relate to future trends, events, or results and include, without limitation, statements and assumptions on which such statements are based that are related to our plans, strategies, objectives, expectations, intentions, and adequacy of resources. Examples of forward-looking statements are discussions relating to premium and investment income, expenses, operating results, and compliance with contractual and regulatory requirements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Among the risks and uncertainties, in addition to those set forth in our filings with the Securities and Exchange Commission, that could cause actual results and future events to differ from those set forth or contemplated in the forward-looking statements include the following:
• dependence upon our relationship with the Erie Insurance Exchange ("Exchange")
and the management fee under the agreement with the subscribers at the Exchange;
• dependence upon our relationship with the Exchange and the growth of the Exchange, including:
◦ factors affecting insurance industry competition, including technological innovations;
• dependence upon our relationship with the Exchange and the financial condition of the Exchange, including:
◦ factors affecting the quality and liquidity of the Exchange's investment portfolio;
◦ emergence of significant unexpected events, including pandemics, economic or social inflation, and changes in tariff policies;
• costs of providing policy issuance and renewal services to the subscribers at the Exchange under the subscriber's agreement;
• ability to attract, develop, retain, and protect talented management and employees;
• ability to ensure system availability and effectively manage technology initiatives;
• difficulties with technology, data or network security breaches, including cyber attacks;
• compliance with complex and evolving laws and regulations and outcome of pending and potential litigation;
A forward-looking statement speaks only as of the date on which it is made and reflects our analysis only as of that date. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changes in assumptions, or otherwise. 2
Full text with the tables
Exhibit 99.1
Erie Indemnity Reports Third Quarter 2026 Results
Net Income per Diluted Share was $3.48 for the Quarter and $9.80 for the Nine
Months of 2026
Erie, Pa., October 29, 2026
- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for
the quarter and nine months ending September 30, 2026. Net income was $182.0
million, or $3.48 per diluted share, in the third quarter of 2026, compared to
$182.9 million, or $3.50 per diluted share, in the third quarter of 2025. Net
income was $512.8 million, or $9.80 per diluted share, in the first nine months
of 2026, compared to $496.0 million, or $9.48 per diluted share, in the first
nine months of 2025.
3Q and
Nine
Months (in
2026 thousands) 3Q'26 3Q'25 2026 2025
──────────────────────────────────────────────────────────────────────────────
Operating $ 207,382 $ 208,921 $ 578,292 $ 559,470
income
Investme… 19,877 21,554 64,549 60,690
income
Other 5,496 2,286 8,317 8,094
income
Income
before 232,755 232,761 651,158 628,254
income
taxes
Income
tax 50,766 49,908 138,401 132,299
expense
Net $ 181,989 $ 182,853 $ 512,757 $ 495,955
income
3Q 2026 Highlights
Operating income before taxes decreased $1.5 million, or 0.7 percent, in the
third quarter of 2026 compared to the third quarter of 2025.
• Management fee revenue - policy issuance and renewal services increased $21.7
million, or 2.6 percent, in the third quarter of 2026 compared to the third
quarter of 2025.
• Management fee revenue - administrative services increased $0.9 million, or
4.7 percent, in the third quarter of 2026 compared to the third quarter of 2025.
• Cost of operations - policy issuance and renewal services
◦ Commissions increased $24.0 million in the third quarter of 2026, compared to
the third quarter of 2025, primarily driven by an increase in agent incentive
compensation and the growth in direct and affiliated assumed written premium.
◦ Non-commission expense decreased $1.1 million in the third quarter of 2026
compared to the third quarter of 2025. Personnel costs increased $1.6 million
primarily due to higher healthcare costs. Sales and advertising increased $1.8
million primarily due to an increase in agent-related costs. Acquisition and
underwriting support costs decreased $5.8 million primarily due to lower postage
and underwriting report costs. Technology and infrastructure costs increased
$6.9 million primarily due to higher costs associated with technology
initiatives, including internal-use software impairments, depreciation and
amortization expense, and cloud usage costs.
Administrative and other costs decreased $5.5 million primarily due to lower
credit card processing fees.
Income from investments before taxes totaled $19.9 million in the third quarter
of 2026 compared to $21.6 million in the third quarter of 2025. Net investment
income was $25.4 million in the third quarter of 2026 compared to $21.0 million
in the third quarter of 2025. Net realized and unrealized investment losses were
$5.4 million in the third quarter of 2026 compared to gains of $1.3 million in
the third quarter of 2025.
Nine Months 2026 Highlights
Operating income before taxes increased $18.8 million, or 3.4 percent, in the
first nine months of 2026 compared to the first nine months of 2025.
• Management fee revenue - policy issuance and renewal services increased $92.1
million, or 3.8 percent, in the first nine months of 2026 compared to the first
nine months of 2025.
• Management fee revenue - administrative services increased $4.0 million, or
7.4 percent, in the first nine months of 2026 compared to the first nine months
of 2025.
• Cost of operations - policy issuance and renewal services
◦ Commissions increased $96.6 million in the first nine months of 2026 compared
to the first nine months of 2025, primarily driven by an increase in agent
incentive compensation and the growth in direct and affiliated assumed written
premium.
◦
Non-commission expense decreased $20.7 million in the first nine months of 2026
compared to the first nine months of 2025. Personnel costs increased $6.7
million primarily due to increased incentive compensation driven by stronger
performance metrics, and higher base compensation. The increase is partially
offset by bonuses awarded to all employees in 2025 in recognition of our 100th
anniversary. Acquisition and underwriting support costs decreased $11.5 million
primarily due to lower underwriting report and postage costs. Technology and
infrastructure costs increased $7.4 million primarily due to higher depreciation
and amortization expense from technology initiatives. Professional fees
decreased $12.1 million primarily due to reduced use of third-party services
related to technology initiatives. Administrative and other costs decreased $9.2
million primarily due to lower credit card processing fees and charitable
contributions related to the transition of charitable giving through the Erie
Insurance Foundation.
Income from investments before taxes totaled $64.5 million in the first nine
months of 2026 compared to $60.7 million in the first nine months of 2025. Net
investment income was $71.5 million in the first nine months of 2026 compared to
$61.0 million in the first nine months of 2025. Net realized and unrealized
losses were $5.7 million in the first nine months of 2026 compared to gains of
$2.3 million in the first nine months of 2025. Net impairment losses recognized
in earnings were $1.3 million in the first nine months of 2026 compared to $2.6
million in the first nine months of 2025.
1
Webcast Information
Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM
ET on October 30, 2026. Investors may access the pre-recorded audio broadcast by
logging on to www.erieinsurance.com.
Erie Insurance Group
Erie Insurance Group, based in Erie, Pennsylvania, is the 10 th largest
homeowners insurer, 11 th largest automobile insurer, and 9 th largest
commercial lines insurer in the United States based on direct premiums written,
according to AM Best Company. Founded in 1925, Erie Insurance is a Fortune 500
company and the 16 th largest property/casualty insurer in the United States
based on net premiums written. Rated A (Excellent) by AM Best, ERIE has nearly
seven million policies in force and operates in 12 states and the District of
Columbia.
News releases and more information are available on ERIE's website at
www.erieinsurance.com.
***
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995:
Statements contained herein that are not historical fact are forward-looking
statements and, as such, are subject to risks and uncertainties that could cause
actual events and results to differ, perhaps materially, from those discussed
herein. Forward-looking statements relate to future trends, events, or results
and include, without limitation, statements and assumptions on which such
statements are based that are related to our plans, strategies, objectives,
expectations, intentions, and adequacy of resources. Examples of forward-looking
statements are discussions relating to premium and investment income, expenses,
operating results, and compliance with contractual and regulatory requirements.
Forward-looking statements are not guarantees of future performance and involve
risks and uncertainties that are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed or forecasted
in such forward-looking statements. Among the risks and uncertainties, in
addition to those set forth in our filings with the Securities and Exchange
Commission, that could cause actual results and future events to differ from
those set forth or contemplated in the forward-looking statements include the
following:
• dependence upon our relationship with the Erie Insurance Exchange ("Exchange")
and the management fee under the agreement with the subscribers at the Exchange;
• dependence upon our relationship with the Exchange and the growth of the
Exchange, including:
◦ general business and economic conditions;
◦ factors impacting the timing of premium rates charged for policies;
◦ factors affecting insurance industry competition, including technological
innovations;
◦ dependence upon the independent agency system; and
◦ ability to maintain our brand, including our reputation for customer service;
• dependence upon our relationship with the Exchange and the financial condition
of the Exchange, including:
◦ the Exchange's ability to maintain acceptable financial strength ratings;
◦ factors affecting the quality and liquidity of the Exchange's investment
portfolio;
◦ changes in government regulation of the insurance industry;
◦ litigation and regulatory actions;
◦ emergence of significant unexpected events, including pandemics, economic or
social inflation, and changes in tariff policies;
◦ emerging claims and coverage issues in the industry; and
◦ severe weather conditions or other catastrophic losses, including terrorism;
• costs of providing policy issuance and renewal services to the subscribers at
the Exchange under the subscriber's agreement;
• ability to attract, develop, retain, and protect talented management and
employees;
• ability to ensure system availability and effectively manage technology
initiatives;
• difficulties with technology, data or network security breaches, including
cyber attacks;
• ability to maintain uninterrupted business operations;
• compliance with complex and evolving laws and regulations and outcome of
pending and potential litigation;
• factors affecting the quality and liquidity of our investment portfolio; and
• ability to meet liquidity needs and access capital.
A forward-looking statement speaks only as of the date on which it is made and
reflects our analysis only as of that date. We undertake no obligation to
publicly update or revise any forward-looking statement, whether as a result of
new information, future events, changes in assumptions, or otherwise.
2