Erie Indemnity Company (ERIE) investor relations material

Executive summary

• Net income for Q2 2026 was $180.3 million ($3.45 per diluted share), up from $174.7 million ($3.34 per share) in Q2 2025, and for the first half reached $330.8 million ($6.32 per share), compared to $313.1 million ($5.99 per share) in 2025.

• Operating income increased 2.5% to $204.1 million in Q2 and 5.8% to $370.9 million for the first half, reflecting growth in direct and affiliated assumed premiums.

• Achieved highest customer satisfaction among large auto insurers in the J.D. Power 2026 U.S. Insurance Shopping Study for the third consecutive year.

• Ranked 308 on the 2026 Fortune 500, up 15 spots from last year, reflecting ongoing growth and financial strength.

• Saw improvement in underwriting performance and a more balanced financial picture in the first half of 2026 after a challenging 2025.

Financial highlights

• Total operating revenue reached $1.09 billion for Q2 2026, up from $1.06 billion in Q2 2025; six-month revenue was $2.10 billion, up from $2.05 billion.

• Net investment income was $22.6 million in Q2 2026, up from $20.0 million in Q2 2025; for the first half, it was $46.1 million, up from $40.0 million.

• Management fee revenue increased 4.7% in Q2 and 4.5% year-to-date; administrative services revenue rose 7.2% and 8.8%, respectively.

• Operating expenses rose 2.9% in Q2 and 1.9% for the first half, mainly due to higher agent commissions and incentive compensation.

• Commissions increased by $44.7 million in Q2 2026 and $72.7 million in the first half, while non-commission expenses decreased by $8.8 million in Q2 and $19.5 million in the first half.

Outlook and guidance

• Focus remains on restoring profitability, supporting disciplined growth, and investing in agent and employee capabilities.

• Continued rollout of Erie Secure Auto and new online quoting platform to drive future growth and efficiency.

• Management expects sufficient liquidity and capital resources, with ongoing monitoring of inflation, interest rates, and market volatility.

• Emphasis on sustainable underwriting and targeted customer value initiatives.

• Forward-looking statements highlight risks related to economic conditions, competition, regulatory changes, and catastrophic events.