Erie Indemnity Company Class A (ERIE)

Erie Indemnity Co.'s stock price has declined approximately 14.13% in the past six months. Key events include the Q1 2025 earnings report where EPS missed forecasts, leading to an 11.63% stock drop after-hours. An information security event caused business disruptions and lawsuits. The Q4 2024 earnings report showed an increase in EPS compared to the prior year.

Erie Indemnity's business experiences some seasonality. Management fees have higher gross margins in certain quarters. Direct written premiums are greater in the second and third quarters. Loss and loss adjustment expenses are greater during the third and fourth quarters, influenced by weather patterns.

Erie Indemnity Co. operates as the attorney-in-fact for the Erie Insurance Exchange, providing management services such as sales, underwriting, and policy issuance. It also participates in the property/casualty insurance business through its subsidiaries. The company offers a range of insurance coverages, including personal lines (auto, home, life), and commercial lines, distributed through independent agencies.

Erie Indemnity Co. is headquartered in Erie, Pennsylvania, and operates across 12 states and the District of Columbia. Its primary operating regions are the Midwest, Mid-Atlantic, and Southeast United States, with significant premium contributions from Pennsylvania, Maryland, and Virginia. The company maintains 23 field offices throughout its operating region to support claims services and marketing for its independent agents.

Erie Indemnity maintains a strong brand reputation, particularly in customer satisfaction, often ranking above the industry average. The company has received recognition for its workplace culture and diversity impact. However, a recent information security event has led to business disruptions and lawsuits, potentially impacting its reputation. AM Best revised its outlook for Erie Insurance Group's members to negative from stable, citing concerns about the sustainability of Erie Indemnity's management fee and the Exchange's financial performance.

Erie Indemnity Co. has a mixed ownership structure, with significant holdings by both institutional and individual investors. Institutional shareholders collectively own approximately 42.90% to 42.98% of the company's stock. Thomas B. Hagen is the largest individual shareholder, owning 86.97% of the company.