Loading...
•
Mar 31, 2020
Erie Insurance Q1 2020 Earnings Report
Erie Indemnity's financial results were announced for the quarter ending March 31, 2020, with net income at $59.3 million and earnings per diluted share at $1.13.
Key Takeaways
Erie Indemnity Company reported a net income of $59.3 million, or $1.13 per diluted share, for the first quarter of 2020. While the company did not experience significant financial impacts on its core businesses due to COVID-19, financial market volatility significantly impacted the investment portfolio.
Net income for Q1 2020 was $59.3 million, or $1.13 per diluted share, compared to $75.3 million, or $1.44 per diluted share, in Q1 2019.
Operating income before taxes decreased by $0.4 million, or 0.5 percent, compared to Q1 2019.
Management fee revenue from policy issuance and renewal services increased by $12.8 million, or 3.0 percent, compared to Q1 2019.
Management fee revenue from administrative services increased by $0.8 million, or 5.9 percent, compared to Q1 2019.
Erie Insurance
Erie Insurance
Forward Guidance
The company provided forward-looking statements that are subject to risks and uncertainties, including the potential impacts of the COVID-19 pandemic on the growth and financial condition of the Erie Insurance Exchange.
Challenges Ahead
- Potential impacts of the COVID-19 pandemic on the growth and financial condition of the Erie Insurance Exchange (Exchange).
- Potential impacts of the COVID-19 pandemic on our operations, the business operations of our customers and/or independent agents, or our third-party vendor operations.
- Dependence upon our relationship with the 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.
- Dependence upon our relationship with the Exchange and the financial condition of the Exchange.