Erie Indemnity Co.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 30 July 2026: press release. The quarter’s numbers.

Key takeaways

Quarterly net income and EPS rose: Net income was $180.3 million, or $3.45 per diluted share, against $174.7 million, or $3.34 per diluted share, a year earlier. Source
Operating income before taxes rose 2.5 percent: Operating income before taxes was $204,123 thousand in the second quarter against $199,173 thousand, and rose $20.4 million, or 5.8 percent, in the first six months. Source
Policy issuance fees grew 4.7 percent: Policy issuance and renewal management fees rose $39.0 million in the second quarter compared with the prior-year quarter. Source
Commissions rose $44.7 million in quarter: Commissions rose $44.7 million in the second quarter, driven by agent incentive compensation and growth in direct and affiliated assumed written premium. Source
Second-quarter net investment income rose: Net investment income was $22.6 million in the second quarter against $20.0 million a year earlier; the first-quarter release reported $23.6 million. Source

“Net Income per Diluted Share was $3.45 for the Quarter and $6.32 for the Six Months of 2026”
Erie Indemnity Co., press release

Earnings and operating results

Quarterly net income and EPS rose: Net income was $180.3 million, or $3.45 per diluted share, against $174.7 million, or $3.34 per diluted share, a year earlier. Source
First-half net income and EPS rose: Six-month net income was $330.8 million, or $6.32 per diluted share, against $313.1 million, or $5.99 per diluted share, in the first half of 2025. Source
Operating income before taxes rose 2.5 percent: Operating income before taxes was $204,123 thousand in the second quarter against $199,173 thousand, and rose $20.4 million, or 5.8 percent, in the first six months. Source

Management fee revenue

Policy issuance fees grew 4.7 percent: Policy issuance and renewal management fees rose $39.0 million in the second quarter compared with the prior-year quarter. Source
Administrative services fees grew 7.2 percent: Administrative services management fees rose $1.3 million in the second quarter, and $3.2 million, or 8.8 percent, in the first six months. Source
First-half policy fees grew 4.5 percent: Policy issuance and renewal management fees rose $70.4 million, or 4.5 percent, in the first six months against the same period of 2025. Source

“Personnel costs increased $3.0 million, primarily due to increased incentive compensation driven by stronger performance metrics and a smaller decrease in company stock price.”
Erie Indemnity Co., press release

Commissions and agent pay

Commissions rose $44.7 million in quarter: Commissions rose $44.7 million in the second quarter, driven by agent incentive compensation and growth in direct and affiliated assumed written premium. Source
First-half commissions rose $72.7 million: First-half commissions rose $72.7 million on the same drivers: agent incentive compensation and growth in direct and affiliated assumed written premium. Source
Agent-related sales costs fell: Sales and advertising costs fell $1.7 million in the second quarter, mainly on lower agent-related and advertising costs; the first-half decrease was $3.7 million. Source

Non-commission expenses

Non-commission expense fell in quarter: Non-commission expense fell $8.8 million in the second quarter and $19.5 million in the first six months, compared with the same periods of 2025. Source
Professional fees fell on technology spending: Professional fees fell $5.0 million in the second quarter and $12.0 million in the first half, on lower use of third-party technology services. Source
Underwriting report and postage costs fell: Acquisition and underwriting support costs fell $3.9 million in the second quarter and $5.7 million in the first half, mainly on lower underwriting report costs. Source

Personnel and administrative costs

Personnel costs rose in second quarter: Personnel costs rose $3.0 million in the second quarter, partly offset by 2025 bonuses awarded to all employees for the 100th anniversary. Source
First-half personnel costs rose: First-half personnel costs rose $5.1 million, from incentive compensation tied to performance metrics and higher base compensation, partly offset by the 2025 anniversary bonuses. Source
Administrative costs fell on charity transition: Administrative and other costs fell $3.7 million in the first half, from lower charitable contributions during the Erie Insurance Foundation giving transition and lower credit card processing fees. Source

Investment income

Second-quarter net investment income rose: Net investment income was $22.6 million in the second quarter against $20.0 million a year earlier; the first-quarter release reported $23.6 million. Source
Investment income before taxes rose: Income from investments before taxes was $44.7 million in the first half, against $39.1 million a year earlier. Source
Realized results turned negative in first half: Net realized and unrealized results were losses of $0.2 million in the first half, against gains of $1.0 million; impairment losses were $1.3 million, against $1.8 million. Source

Market position and footprint

Rankings by direct premiums written: AM Best ranks Erie 10th among homeowners, 11th in automobile and 9th in commercial lines by direct premiums written; the first-quarter release gave 11th, 12th and 10th. Source
Nearly seven million policies in force: Erie has nearly seven million policies in force, operates in 12 states and the District of Columbia, and holds an A (Excellent) AM Best rating. Source
16th largest property/casualty insurer by NPW: Erie Insurance is a Fortune 500 company and ranks 16th among property/casualty insurers by net premiums written. Source

Coming up, as management said on 30 July 2026

Pre-recorded audio broadcast July 31: A pre-recorded audio broadcast on the Web is scheduled for 10:00 AM ET on July 31, 2026, accessible through the company website. Source

Figures management reported

Figure	Reported
Investment income Source	$22.6 million in second quarter 2026 vs $20.0 million in second quarter 2025

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Erie Indemnity Reports Second Quarter 2026 Results

Net Income per Diluted Share was $3.45 for the Quarter and $6.32 for the Six Months of 2026

Erie, Pa., July 30, 2026 - Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and six months ending June 30, 2026. Net income was $180.3 million, or $3.45 per diluted share, in the second quarter of 2026, compared to $174.7 million, or $3.34 per diluted share, in the second quarter of 2025. Net income was $330.8 million, or $6.32 per diluted share, in the first six months of 2026, compared to $313.1 million, or $5.99 per diluted share, in the first six months of 2025.

2Q and First Half 2026
(in thousands)	2Q'26	2Q'25	1H'26	1H'25
Operating income	$204,123	$199,173	$370,910	$350,549
Investment income	22,553	19,600	44,672	39,136
Other income	1,401	1,974	2,821	5,808
Income before income taxes	228,077	220,747	418,403	395,493
Income tax expense	47,783	46,062	87,635	82,391
Net income	$180,294	$174,685	$330,768	$313,102

2Q 2026 Highlights

Operating income before taxes increased $5.0 million, or 2.5 percent, in the second quarter of 2026 compared to the second quarter of 2025.

Management fee revenue - policy issuance and renewal services increased $39.0 million, or 4.7 percent, in the second quarter of 2026 compared to the second quarter of 2025.
Management fee revenue - administrative services increased $1.3 million, or 7.2 percent, in the second quarter of 2026 compared to the second quarter of 2025.
Cost of operations - policy issuance and renewal services
Commissions increased $44.7 million in the second quarter of 2026, compared to the same period in 2025, primarily driven by an increase in agent incentive compensation and the growth in direct and affiliated assumed written premium.
Non-commission expense decreased $8.8 million in the second quarter of 2026 compared to the second quarter of 2025. Personnel costs increased $3.0 million, primarily due to increased incentive compensation driven by stronger performance metrics and a smaller decrease in company stock price. This increase was partially offset by bonuses awarded to all employees in 2025 in recognition of our 100th anniversary. Sales and advertising decreased $1.7 million primarily due to a decrease in agent-related and advertising costs. Acquisition and underwriting support costs decreased $3.9 million primarily due to lower underwriting report and postage costs.

Professional fees decreased $5.0 million primarily due to reduced use of third-party services related to technology initiatives. Administrative and other costs decreased $2.1 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 $22.6 million in the second quarter of 2026 compared to $19.6 million in the second quarter of 2025. Net investment income was $22.6 million in the second quarter of 2026 compared to $20.0 million in the second quarter of 2025.

First Half 2026 Highlights

Operating income before taxes increased $20.4 million, or 5.8 percent, in the first six months of 2026 compared to the first six months of 2025.

Management fee revenue - policy issuance and renewal services increased $70.4 million, or 4.5 percent, in the first six months of 2026 compared to the first six months of 2025.
Management fee revenue - administrative services increased $3.2 million, or 8.8 percent, in the first six months of 2026 compared to the first six months of 2025.
Cost of operations - policy issuance and renewal services
Commissions increased $72.7 million in the first six months of 2026 compared to the first six 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 $19.5 million for the six months ended June 30, 2026 compared to the same period in 2025. Personnel costs increased $5.1 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. Sales and advertising decreased $3.7 million primarily due to a decrease in agent-related and advertising costs. Acquisition and underwriting support costs decreased $5.7 million primarily due to lower underwriting report costs. Professional fees decreased $12.0 million primarily due to reduced use of third-party services related to technology initiatives. Administrative and other costs decreased $3.7 million primarily due to lower charitable contributions related to the transition of charitable giving through the Erie Insurance Foundation and a decrease in credit card processing fees.

Income from investments before taxes totaled $44.7 million in the first six months of 2026 compared to $39.1 million in the first six months of 2025. Net investment income was $46.1 million in the first six months of 2026 compared to $40.0 million in the first six months of 2025. Net realized and unrealized losses were $0.2 million in the first six months of 2026 compared to gains of $1.0 million in the first six months of 2025. Net impairment losses recognized in earnings were $1.3 million in the first six months of 2026 compared to $1.8 million in the first six months of 2025.

Webcast Information

Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on July 31, 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 largest homeowners insurer, 11 largest automobile insurer, and 9 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 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:

Forward-looking statements notice

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.