Erie Indemnity publishes Q1 2024 results
Erie Indemnity publishes Q1 2024 results | Insurance Business America
Insurance News
Erie Indemnity publishes Q1 2024 results
Operating income saw a double-digit rise
Insurance News
By
Kenneth Araullo
Erie Indemnity Company has disclosed its financial outcomes for the first quarter ending March 31.
The company reported a net income of $124.6 million, or $2.38 per diluted share, marking an increase from $86.2 million, or $1.65 per diluted share, recorded in the same quarter of the previous year.
The firm experienced a 25.6% rise in operating income before taxes, which amounted to an increase of $28.3 million for the first quarter of 2024, compared to the corresponding period in 2023.
Regarding revenue specifics, management fee revenue from policy issuance and renewal services witnessed an upsurge of $107.6 million, or 19.3%, in the first quarter of 2024 relative to the first quarter of 2023. Additionally, management fee revenue from administrative services climbed by $1.7 million, or 11.5%, in the same period.
The cost of operations linked to policy issuance and renewal services also saw significant changes. Commissions grew by $67 million, primarily due to an increase in direct and affiliated assumed written premium along with heightened agent incentive compensation. Furthermore, non-commission expenses escalated by $14.3 million.
This increase included a $4.4 million rise in underwriting and policy processing costs, primarily driven by higher underwriting report and personnel expenses.
Conversely, information technology costs decreased by $3.7 million, mainly due to a rise in capitalized professional fees and personnel costs related to technological initiatives. Sales and advertising expenditures surged by $4.3 million, primarily due to increased agent-related costs, while administrative and other costs rose by $7.2 million, largely due to increased personnel and travel expenses.
The investment income before taxes showed a robust recovery, posting $15.1 million in the first quarter of 2024, in contrast to a loss of $4.7 million in the first quarter of 2023. Net investment income reached $15.9 million, a significant improvement from $2.2 million in the prior year. This included $0.5 million of limited partnership earnings, compared to losses of $10.8 million in the first quarter of 2023.
Additionally, the firm realized net gains of $1.9 million on investments during the quarter, a recovery from losses of $5.3 million in the same quarter of the previous year. Net impairment losses recognized in earnings were reported at $2.7 million, up from $1.6 million in the first quarter of 2023.
What are your thoughts on this story? Please feel free to share your comments below.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
