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Jun 30, 2020

Erie Insurance Q2 2020 Earnings Report

Erie Indemnity's net income decreased in Q2 2020 due to economic disruption from COVID-19, while investment results improved from Q1 2020.

Key Takeaways

Erie Indemnity Company reported a decrease in net income for the second quarter of 2020, with net income at $82.0 million, or $1.57 per diluted share, compared to $87.8 million, or $1.68 per diluted share, in the second quarter of 2019. The decrease is attributed to economic disruptions from the COVID-19 pandemic. However, investment results improved compared to the first quarter of 2020.

Net income decreased to $82.0 million, or $1.57 per diluted share, in Q2 2020 from $87.8 million, or $1.68 per diluted share, in Q2 2019.

The Exchange experienced declines in new business due to business disruptions and recessionary conditions impacting management fee revenue.

Financial markets partially recovered in the second quarter of 2020, improving investment results.

Operating income before taxes decreased by $5.4 million, or 5.6 percent, in Q2 2020 compared to Q2 2019.

Total Revenue
$657M
Previous year: $648M
+1.4%
EPS
$1.57
Previous year: $1.68
-6.5%

Erie Insurance

Erie Insurance

Forward Guidance

Forward-looking statements are subject to risks and uncertainties, including the potential impacts of the COVID-19 pandemic on the Exchange's growth and financial condition, dependence on relationships with the Exchange, and factors affecting the quality and liquidity of investment portfolios.