Erie Indemnity Company has released its financial results for the first quarter of 2025. The company reported net income of $138.4 million, or $2.65 per diluted share, up from $124.6 million, or $2.38 per share, a year earlier.
Operating income before taxes increased by 9.1%, rising to $151.4 million in the first quarter from $138.8 million a year earlier. The company’s management fee revenue from policy issuance and renewal services grew by 13.4%, or $89.4 million. Additionally, management fee revenue from administrative services saw a modest increase of 4.2%, rising by $700,000.
Cost of operations for the quarter included a $61.1 million rise in commissions, driven by higher premiums in both direct and affiliated assumed written business. Non-commission operating expenses increased by $16.3 million. A significant portion of this increase was attributed to higher personnel costs, which contributed to a $3.1 million rise in underwriting and policy processing expenses.
Meanwhile, information technology costs also increased by $11.3 million, largely due to spending on hardware, software and personnel. Customer service costs grew by $1.6 million, largely due to higher personnel and credit card processing fees. The rise in personnel costs was partly due to increased compensation, including higher estimated costs for incentive plan awards.
Cost of operations for the quarter included a $61.1 million rise in commissions, driven by higher premiums in both direct and affiliated assumed written business. Non-commission operating expenses increased by $16.3 million. A significant portion of this increase was attributed to higher personnel costs, which contributed to a $3.1 million rise in underwriting and policy processing expenses.
Information technology costs also increased by $11.3 million, largely due to spending on hardware, software, and personnel. Customer service costs grew by $1.6 million due to higher personnel and credit card processing fees. The rise in personnel costs was partly due to increased compensation, including higher estimated costs for incentive plan awards.
Investment income before taxes for the first quarter of 2025 totaled $19.5 million, compared to $15.1 million in the same period of 2024. Net investment income increased to $19.9 million from $15.9 million in 2024. Income tax expense for the quarter amounted to $36.3 million, up from $32.8 million in the same period last year.
Based in Erie, Pennsylvania, Erie Insurance ranks as the 12th largest homeowners insurer and 13th largest in both automobile and commercial lines insurance in the U.S. based on direct premiums written.
