Erie Indemnity Company Reports 16.1% Revenue Growth to $3.8 Billion for Fiscal Year 2024

Erie Indemnity Company reported significant financial growth for the fiscal year ending December 31, 2024, with total operating revenue reaching $3.8 billion, a 16.1% increase from $3.3 billion in 2023. The company's net income also rose to $600.3 million, reflecting a 34.6% increase compared to $446.1 million in the previous year. This growth was primarily driven by an 18.4% increase in direct and affiliated assumed premiums written by the Erie Insurance Exchange, which totaled $11.9 billion in 2024. The management fee revenue, which is a key component of the company's earnings, increased by 18.5% to $2.9 billion, supported by a consistent management fee rate of 25%.

In terms of operational metrics, the company saw a 4.8% increase in policies in force, contributing to a year-over-year average premium per policy increase of 13.4%. The growth in premiums was bolstered by a 19.1% rise in renewal business, which accounted for $10.2 billion of the total premiums. The company also reported a 14.2% increase in new business premiums, totaling $1.7 billion, although the number of new policies written decreased by 2.1%. The overall policyholder retention ratio remained high at 90.4%, indicating strong customer loyalty.

Strategically, Erie Indemnity has focused on enhancing its operational efficiency and expanding its service offerings. The company has maintained its role as the attorney-in-fact for the Erie Insurance Exchange, providing essential policy issuance and renewal services. In 2024, the company also made significant investments in technology and infrastructure, with fixed asset purchases totaling $124.8 million, primarily for software and home office renovations. The company’s employee headcount remained stable, supporting its operational needs without significant fluctuations.

Looking ahead, Erie Indemnity expressed cautious optimism regarding future growth, emphasizing the importance of maintaining strong relationships with the Erie Insurance Exchange and its independent agency system. The company acknowledged potential risks, including economic conditions that could impact customer retention and premium levels. However, it remains committed to leveraging its market position and operational capabilities to navigate these challenges effectively. The management fee rate is expected to remain at 25% for 2025, reflecting the company's confidence in its ongoing revenue generation capabilities.