Erie Indemnity Reports First Quarter 2024 Results | Insurance business America
The operating result increased in double digits
Insurance News
By Kenneth Araullo
Erie Indemnity Company reported its financial results for the first quarter ended March 31.
The company reported net income of $124.6 million, or $2.38 per diluted share, up from $86.2 million, or $1.65 per diluted share, in the year-ago quarter.
The Company reported a 25.6% increase in pretax operating income, an increase of $28.3 million for the first quarter of 2024 compared to the corresponding period in 2023.
In terms of revenue, administrative fee revenue from policy issuance and renewal increased $107.6 million, or 19.3%, in the first quarter of 2024 compared to the first quarter of 2023. Additionally, management fee income from management services increased $1.7 million , or 11.5%, over the same period.
There have also been significant changes in operating costs associated with issuing and renewing policies. Commissions increased $67 million, primarily due to an increase in direct and affiliated premiums and increased broker incentive compensation. Additionally, commission expense increased by $14.3 million.
This increase included a $4.4 million increase in underwriting and policy processing costs, primarily due to higher underwriting reporting and personnel costs.
In contrast, information technology costs decreased $3.7 million, primarily due to an increase in capitalized fees and personnel costs related to technology initiatives. Selling and advertising expenses increased $4.3 million, primarily due to increased brokerage costs, while administrative and other expenses increased $7.2 million, primarily due to increased personnel and travel expenses.
Pre-tax investment income rebounded strongly, reaching $15.1 million in the first quarter of 2024, compared to a loss of $4.7 million in the first quarter of 2023. Net investment income reached $15.9 million dollars, a significant improvement from $2.2 million a year ago. This included limited partnership gains of $0.5 million, compared to losses of $10.8 million in the first quarter of 2023.
Additionally, the company recorded net gains on investments of $1.9 million during the quarter, a recovery from losses of $5.3 million in the year-ago quarter. Net impairment losses recognized in earnings were $2.7 million, an increase from $1.6 million in the first quarter of 2023.
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2024-04-26 15:07:34
www.insurancebusinessmag.com
