Erie Indemnity Company Class A (ERIE)

In the past six months, Erie Indemnity Co.'s stock price has shown a slight increase year-over-year but has declined over the last 30 days and six months, reaching a 52-week low in May 2025. In Q1 2025, the company reported GAAP EPS of $2.38, missing estimates, although sales beat estimates; the stock fell 11.63% after-hours following this report. In Q4 2024, the company reported EPS of $2.91, exceeding the previous year. Erie Indemnity has also faced two significant cybersecurity incidents in early 2025, leading to data exposure and business disruptions.

Erie Indemnity Company experiences demand seasonality, with higher direct written premiums for the Property and Casualty Group in the second and third quarters of the year compared to the first and fourth quarters. This seasonality results in higher gross margins in its management operations during the second and third quarters.

Erie Indemnity Co. operates as the managing attorney-in-fact for the subscribers of the Erie Insurance Exchange. The company, founded in 1925 and headquartered in Erie, Pennsylvania, falls under the Financial Services sector, specifically within the Insurance - Brokers and Property/Casualty Insurance industries. Erie Indemnity provides a range of insurance products and services through independent agencies, including personal lines, life insurance, business insurance, and other services like identity recovery and pet insurance. The company's primary revenue source is a management fee from the Erie Insurance Exchange, calculated as a percentage of direct premiums written by the Exchange.

Erie Indemnity Company operates primarily in 12 states and the District of Columbia, predominantly in the Midwest and Northeast regions of the United States. Pennsylvania is its primary market. Other major operating territories include Ohio, Maryland, Virginia, North Carolina, Illinois, Indiana, Kentucky, New York, Tennessee, West Virginia, and Wisconsin. Its geographic footprint represents a limited portion of the total U.S. market.

Erie Indemnity generally maintains a strong brand reputation through its Erie Insurance brand. Erie Insurance was ranked highest among personal lines insurers in the J.D. Power 2022 and 2023 U.S. Independent Agent Satisfaction Study for two consecutive years and has high financial strength ratings from A.M. Best, Standard & Poor's, and Moody's. Erie Insurance has consistently been named to Ward's 50 top-performing property-casualty insurers since 1991. However, recent cybersecurity incidents in April and June 2025, which led to data exposure and network outages, could negatively impact the company's brand reputation. Additionally, in August 2024, A.M. Best revised its outlook for Erie Insurance Group's Members to negative from stable, and there have been policyholder lawsuits alleging breach of fiduciary duty.

Erie Indemnity Co. has a diverse ownership structure, with significant holdings by both institutional and individual investors. Institutional owners hold approximately 20.38% to 42.90% of the company's stock, with major shareholders including Pnc Financial Services Group, Inc., Vanguard Group Inc, Cresset Asset Management, LLC, and BlackRock, Inc. Insiders hold a substantial portion of the company's stock, ranging from approximately 45.52% to 167.53%, with key individual owners including Thomas B. Hagen, F. William Hirt, and Susan Hirt Hagen.