Erie Indemnity Company reported a net income of $138.4 million for the first quarter of 2025, reflecting an 11.1% increase from $124.6 million in the same period of 2024. The company's diluted earnings per share rose to $2.65, up from $2.38 year-over-year. Total operating revenue for the quarter reached $989.4 million, a 12.3% increase compared to $880.7 million in the prior year, driven primarily by a 13.4% rise in management fee revenue from policy issuance and renewal services, which amounted to $755.0 million.
The company experienced significant growth in direct and affiliated assumed premiums written by the Erie Insurance Exchange, which increased by 13.9% to $3.1 billion in the first quarter of 2025. This growth was attributed to higher personal lines and commercial multi-peril premiums. However, the number of new business policies written decreased by 15.0%, indicating a potential shift in market dynamics. The average premium per policy for all lines increased by 13.2%, contributing to the overall revenue growth.
Operationally, Erie Indemnity's total cash provided by operating activities was $118.1 million, up from $87.2 million in the first quarter of 2024. This increase was primarily due to higher management fees received, which were driven by the growth in premiums. The company also reported a net cash used in investing activities of $97.8 million, significantly higher than the $27.0 million used in the same period last year, largely due to increased purchases of available-for-sale securities.
In terms of strategic developments, Erie Indemnity continues to focus on enhancing its operational efficiency and service offerings. The company has maintained a management fee rate of 25% for both 2025 and 2024, which is critical for its revenue model. The company also reported a slight increase in administrative services revenue, which rose by 4.2% to $17.6 million. The overall administrative services reimbursement revenue increased to $210.3 million, reflecting the company's ongoing commitment to providing comprehensive services to the Exchange.
Looking ahead, Erie Indemnity remains cautious about potential economic challenges, including inflation and market volatility, which could impact the Exchange's operations and, consequently, the company's revenue. The company is committed to monitoring these conditions closely and adapting its strategies to maintain its financial health and operational effectiveness.
About ERIE INDEMNITY CO
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