Erie Indemnity Company reported net income of $152 million, or $2.91 per diluted share, in the fourth quarter of 2024, compared with $110.9 million, or $2.12 per share, in the same period in 2023.
Operating income before taxes rose by 31.7% to $40.2 million from a year ago. Management fee revenue from policy issuance and renewal services rose by $96.7 million, while management fee revenue from administrative services increased by $500,000.
Income from investments before taxes was $20.8 million in Q4, compared with $9.8 million a year earlier. Limited partnership earnings were $1.8 million, compared with losses of $600,000 in the same period in 2023.
Net realized and unrealized gains on investments were $200,000 in the fourth quarter, compared with $3.4 million in the fourth quarter of 2023. Net impairment losses recognized in earnings were $400,000 in Q4, compared with $7.8 million a year earlier.
For 2024, the company reported net income of $600.3 million, or $11.48 per share, compared with $446.1 million, or $8.53 per share, in 2023.
Operating income before taxes increased by $156.2 million, or 30%, compared with 2023. Management fee revenue from policy issuance and renewal services increased by $452 million, or 18.5%, while management fee revenue from administrative services rose by $4.7 million, or 7.4%.
Commissions increased by $252.9 million, driven by growth in direct and affiliated assumed written premium. Non-commission expenses rose by $47.9 million, with underwriting and policy processing expenses increasing by $18.5 million due to higher underwriting report and personnel costs.
Income from investments before taxes was $69.3 million in 2024, compared with $29 million the prior year. Net investment income was $70.2 million, up from $44.6 million in 2023. Meanwhile, net realized and unrealized gains on investments were $3.2 million in 2024, compared to losses of $5.8 million in 2023.
In December, the company said it will continue charging Erie Insurance Exchange a 25% management fee, effective Jan. 1. The 25% management fee rate was determined after reviewing the financial positions of both the Exchange and Erie Indemnity.
The company’s board also approved a 7.1% increase in the regular quarterly dividend.
