Erie Indemnity — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income for the third quarter of 2026 was $182.0 million ($3.48 per diluted share), compared to $182.9 million ($3.50 per diluted share) in the third quarter of 2025.
• Net income for the first nine months of 2026 was $512.8 million ($9.80 per diluted share), compared to $496.0 million ($9.48 per diluted share) in the first nine months of 2025.
• Operating income before taxes for the third quarter of 2026 was $207.4 million, a decrease of $1.5 million (0.7%) from $208.9 million in the third quarter of 2025.
• Operating income before taxes for the first nine months of 2026 was $578.3 million, an increase of $18.8 million (3.4%) from $559.5 million in the first nine months of 2025.
• Income before income taxes for the third quarter of 2026 was $232.8 million, compared to $232.8 million in the third quarter of 2025.
• Income before income taxes for the first nine months of 2026 was $651.2 million, compared to $628.3 million in the first nine months of 2025.
• Income tax expense for the third quarter of 2026 was $50.8 million, compared to $49.9 million in the third quarter of 2025.
• Income tax expense for the first nine months of 2026 was $138.4 million, compared to $132.3 million in the first nine months of 2025.
• Investment income before taxes for the third quarter of 2026 was $19.9 million, down from $21.6 million in the third quarter of 2025.
• Investment income before taxes for the first nine months of 2026 was $64.5 million, up from $60.7 million in the first nine months of 2025.
• Net investment income for the third quarter of 2026 was $25.4 million, up from $21.0 million in the third quarter of 2025.
• Net investment income for the first nine months of 2026 was $71.5 million, up from $61.0 million in the first nine months of 2025.
• Net realized and unrealized investment losses for the third quarter of 2026 were $5.4 million, compared to gains of $1.3 million in the third quarter of 2025.
• Net realized and unrealized investment losses for the first nine months of 2026 were $5.7 million, compared to gains of $2.3 million in the first nine months of 2025.
• Net impairment losses recognized in earnings for the first nine months of 2026 were $1.3 million, compared to $2.6 million in the first nine months of 2025.

Business Segments and Product Lines:

• Management fee revenue from policy issuance and renewal services increased $21.7 million (2.6%) in the third quarter of 2026 compared to the third quarter of 2025.
• Management fee revenue from administrative services increased $0.9 million (4.7%) in the third quarter of 2026 compared to the third quarter of 2025.
• Management fee revenue from policy issuance and renewal services increased $92.1 million (3.8%) in the first nine months of 2026 compared to the first nine months of 2025.
• Management fee revenue from administrative services increased $4.0 million (7.4%) in the first nine months of 2026 compared to the first nine months of 2025.
• Commissions for policy issuance and renewal services increased $24.0 million in the third quarter of 2026, driven by higher agent incentive compensation and growth in direct and affiliated assumed written premium.
• Commissions for policy issuance and renewal services increased $96.6 million in the first nine months of 2026, driven by higher agent incentive compensation and growth in direct and affiliated assumed written premium.
• Non-commission expenses for policy issuance and renewal services decreased $1.1 million in the third quarter of 2026.
• Non-commission expenses for policy issuance and renewal services decreased $20.7 million in the first nine months of 2026.
• Personnel costs increased $1.6 million in the third quarter of 2026 due to higher healthcare costs.
• Personnel costs increased $6.7 million in the first nine months of 2026 due to higher incentive compensation and base compensation, partially offset by 2025 bonuses for the 100th anniversary.
• Technology and infrastructure costs increased $6.9 million in the third quarter of 2026 due to internal-use software impairments, depreciation, amortization, and cloud usage costs.
• Technology and infrastructure costs increased $7.4 million in the first nine months of 2026 due to higher depreciation and amortization from technology initiatives.
• Acquisition and underwriting support costs decreased $5.8 million in the third quarter of 2026 due to lower postage and underwriting report costs.
• Acquisition and underwriting support costs decreased $11.5 million in the first nine months of 2026 due to lower underwriting report and postage costs.
• Professional fees decreased $12.1 million in the first nine months of 2026 due to reduced use of third-party services related to technology initiatives.
• Administrative and other costs decreased $5.5 million in the third quarter of 2026 primarily due to lower credit card processing fees.
• Administrative and other costs decreased $9.2 million in the first nine months of 2026 due to lower credit card processing fees and charitable contributions related to the transition of charitable giving through the Erie Insurance Foundation.

Other Key Points:

• Erie Indemnity Company is the management company for Erie Insurance Group, which is the 10th largest homeowners insurer, 11th largest automobile insurer, and 9th largest commercial lines insurer in the United States based on direct premiums written.
• Erie Insurance Group is the 16th largest property/casualty insurer in the United States based on net premiums written.
• Erie Insurance Group has nearly seven million policies in force and operates in 12 states and the District of Columbia.
• Erie Insurance Group is rated A (Excellent) by AM Best and is a Fortune 500 company founded in 1925.
• A pre-recorded audio webcast was scheduled for 10:00 AM ET on October 30, 2026, accessible at www.erieinsurance.com.
• The company disclosed significant risks including dependence on the relationship with Erie Insurance Exchange, the growth of the Exchange, general business conditions, regulatory changes, technology security, and catastrophic losses.