Erie Insurance Financial Performances from Time to Time- Erie Indemnity Company or Erie Insurance Group is the insurance company from United States of America (USA). Operationally, this company has headquartered office in Erie, Pennsylvania now operates in 12 states and the District of Columbia with more than 20 field offices. Historically, it was incorporated in 1925 by H.O. Hirt (1887-1982) and O.G. Crawford (1884-1961).
Along with business development Erie Insurance has grown into national insurance company. In 1925, net premiums were recorded at $29,790, and it has grown more than $3 billion in the 2000s. Furthermore, Erie Insurance also own more than 13 thousand of independent ERIE agents. Financially, based on its financial ratings, Erie gets A+ rating from A.M. Best.
In the Insurance industry, Erie has some diversified insurance products. These insurance products from Erie include.
- AUTO & LEISURE
(Auto Insurance, Motorcycle Insurance, Insurance for Recreational Vehicles, Boat Insurance, Collector and Classic Car Insurance, Insurance for ATVs, Snowmobiles, Golf Carts and More)
- HOME & PROPERTY
(Homeowners Insurance, Renters Insurance, Condo Insurance, Mobile Home Insurance, Personal Valuables Insurance, Flood Insurance, Extended Water Coverage)
- LIFE & MORE
(Life Insurance, Long-Term Care Rider Insurance, Medicare Supplement, Retirement, Personal Umbrella Insurance, Identity Theft Recovery Coverage)
- BUSINESS
(Business Insurance, Business Auto Insurance, Wholesaler-Distributors Insurance, Restaurant Insurance, Risk Control Services, Workers’ Compensation, and More Industry Packages)
Management fee revenue and administrative services of Erie Insurance
| Years | Management fee revenue – policy issuance and renewal services | Management fee revenue – administrative services |
|---|---|---|
| USD Thousands | USD Thousands | |
| 2022 | $ 2,087,846 | $ 58,323 |
| 2021 | $ 1,913,166 | $ 58,286 |
| 2020 | $ 1,841,794 | $ 59,463 |
| 2019 | $ 1,810,457 | $ 57,204 |
| 2018 | $ 1,719,567 | $ 53,632 |
| Years | Administrative services reimbursement revenue | Service agreement revenue |
| USD Thousands | USD Thousands | |
| 2022 | $ 668,268 | $ 25,687 |
| 2021 | $ 638,483 | $ 24,042 |
| 2020 | $ 609,435 | $ 25,797 |
| 2019 | $ 582,010 | $ 27,627 |
| 2018 | $ 580,336 | $ 28,677 |
| Source : Erie Indemnity Company Annual Report, 2016-2022 | ||
Management fee revenue and administrative service showed the satisfactory performance from 2018 to 2022. The revenue of management fee from policy issuance and renewal services has grown from $ 1.7 billion in 2018 to USD 2 billion in 2022. Furthermore, the management fee revenue of administrative service also grew from $ 53 million in 2018 to $ 58 million in 2022.
Meanwhile, the administrative services reimbursement revenue also increased from $ 580 million in 2018 into $ $ 668 million in 2022. Furthermore, the service agreement revenue relatively instable with value $ 28 million in 2018 and become $ 25 million in 2022.
The Revenue and Net Income of Erie Insurances
| Years | Total Operating Revenue | Net Income |
|---|---|---|
| USD Thousands | USD Thousands | |
| 2022 | $ 2,840,124 | $ 298,569 |
| 2021 | $ 2,633,977 | $ 297,860 |
| 2020 | $ 2,536,489 | $ 293,304 |
| 2019 | $ 2,477,298 | $ 316,821 |
| 2018 | $ 2,382,212 | $ 288,224 |
| 2017 | $ 1,691,774 | $ 196,999 |
| 2016 | $ 1,596,631 | $ 210,366 |
| 2015 | $ 1,505,508 | $ 174,678 |
| 2014 | $ 1,407,119 | $ 167,505 |
| Source : Erie Indemnity Company Annual Report, 2016-2022 | ||
Overall, in business performance, the operating revenue and Net income of Erie insurance has grown from 2014 to 2022. The Operating Revenue of Erie insurance in 2014 was $ 1.4 billion and increased into $ 2.8 billion in 2022. Meanwhile, the net income of Erie insurance has increased from $ 167 million 2014 into $ 298 million in 2022.
The Assets, Liabilities, and Equities of Erie Insurance
| Years | Total Assets | Total Liabilities | Total shareholders’ equity |
|---|---|---|---|
| USD Thousands | USD Thousands | USD Thousands | |
| 2022 | $ 2,239,456 | $ 791,048 | $ 1,448,408 |
| 2021 | $ 2,242,057 | $ 899,579 | $ 1,342,478 |
| 2020 | $ 2,117,122 | $ 929,074 | $ 1,188,048 |
| 2019 | $ 2,016,240 | $ 882,987 | $ 1,133,253 |
| 2018 | $ 1,778,327 | $ 804,655 | $ 973,672 |
| 2017 | $ 1,665,859 | $ 808,515 | $ 857,344 |
| 2016 | $ 1,548,955 | $ 732,045 | $ 816,910 |
| 2015 | $ 1,407,296 | $ 637,793 | $ 769,503 |
| Source : Erie Indemnity Company Annual Report, 2016-2022 | |||
Based on the financial conditions, in balance sheet 2015 to 2022, the Erie insurance has grown in assets, Liabilities, and Equities. In 2015, the assets of Erie were $ 1.40 billion with Liabilities around $ 637 million and equities around $ 769 million. In 2022, The assets of Erie Insurance were $ 2.2 billion with liabilities around $ 791 million and equities around $ 1,448 million.
Bibliography of Erie Insurance Financial Performances from Time to Time
Erie Insurance. 2023. Annual Report 2016-2022. Accessed via https://www.erieinsurance.com/investor on July 26th, 2023.
