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Erie Indemnity Company primarily serves as the attorney-in-fact for the subscribers at the Erie Insurance Exchange, a reciprocal insurer specializing in property and casualty insurance. The company is responsible for policy issuance, renewal services, and administrative tasks, including claims handling and investment management for the Exchange and its subsidiaries . Erie Indemnity's revenue is closely linked to the Exchange's performance, as it earns management fees based on a percentage of the premiums written by the Exchange, with a set rate of 25% for 2023 and 2024 . The Exchange's insurance offerings are divided into personal and commercial lines, with personal lines making up the majority of the business .
- Personal Lines - Comprises private passenger automobile and homeowners insurance, accounting for the majority of the direct and affiliated assumed written premiums.
- Commercial Lines - Includes commercial multi-peril, commercial automobile, and workers compensation insurance, contributing to the remaining portion of the business.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Brian W. Bolash Executive | Executive Vice President, Secretary, and General Counsel | None | Oversees legal, compliance, and corporate governance matters. Has been with ERIE since January 2016. | |
Cody Cook Executive | Executive Vice President, Claims | None | Joined ERIE in 2003. Promoted to EVP effective January 1, 2025. | |
Douglas E. Smith Executive | Executive Vice President, Sales & Products | None | EVP since November 2016. Oversees sales and product strategies. | |
Julie M. Pelkowski Executive | Executive Vice President and CFO | None | CFO since October 2024. Responsible for financial strategy and reporting. | |
Lorianne Feltz Executive | Executive Vice President, Claims & Customer Service | None | EVP since November 2016. Announced retirement effective May 30, 2024. | |
Parthasarathy Srinivasa Executive | Executive Vice President and CIO | None | Joined ERIE in April 2022. Leads IT and digital transformation initiatives. | |
Sarah Shine Executive | Executive Vice President, Experience and Customer Service | None | Joined ERIE in 2000. Promoted to EVP effective January 1, 2025. | |
Sean D. Dugan Executive | Executive Vice President, Human Resources and Corporate Services | None | Joined ERIE in 1992. Promoted to EVP in January 2023. Leads HR and corporate services functions. | |
Timothy G. NeCastro Executive | President and CEO | Director at EFL, EIC, Flagship, ENY, EPC | CEO since August 2016, with prior leadership roles at ERIE. Oversees overall strategy and operations. | View Report → |
Brian A. Hudson, Sr. Board | Director | Director at MidPenn Bank | Director since 2017. Retired CEO of Pennsylvania Housing Finance Agency. | |
C. Scott Hartz Board | Director | Managing Director of InRange Investor Group, LLC; Director of EMMA Health Technologies | Director since 2003. Former Global CEO of PwC Consulting. Extensive experience in IT, cybersecurity, and investments. | |
Elizabeth Hirt Vorsheck Board | Director | Co-Trustee of the H.O. Hirt Trusts | Director since 2007. Granddaughter of ERIE's founder. Manages family business interests and charitable initiatives. | |
Eugene C. Connell Board | Director | Independent Investor and Advisor | Director since 2017. Former Chief Actuary and Chief Risk Officer at ERIE. | |
George R. Lucore Board | Director | Managing Director of PAFLA Properties, LLC | Director since 2016. Played a key role in ERIE's geographic expansion. | |
J. Ralph Borneman, Jr. Board | Director | President, CEO, and Chairman of Body-Borneman Insurance & Financial Services LLC | Director since 1992. Over 55 years of experience in the insurance industry. | |
Jonathan Hirt Hagen Board | Vice Chairman of the Board | Co-Trustee of the H.O. Hirt Trusts | Director since 2005. Grandson of ERIE's founder. Oversees majority voting stock of the company. | |
LuAnn Datesh Board | Director | Vice President, General Counsel, and Corporate Secretary at Olympus Energy LLC | Director since 2016. Extensive legal and corporate governance experience in the energy sector. | |
Salvatore Correnti Board | Director | Director at Builders Insurance | Director since 2018. Former CEO of a global asset management company managing over $120 billion. | |
Thomas W. Palmer Board | Director | Of Counsel at Marshall & Melhorn, LLC | Director since 2006. Expertise in business law, corporate governance, and financial reporting. |
- Given that the Exchange's combined ratio remains high at 113.7% in Q3 despite significant rate increases, what specific underwriting measures are you implementing to improve profitability, and when do you anticipate these efforts will reflect in a lower combined ratio?
- With the Exchange's direct written premiums growing over 18% due to rate increases but policies in force growing only 6%, how are you addressing the risk of potential policyholder pushback or diminished retention in the face of rising premiums?
- Non-commission expenses have risen by 13.8% in Q3, driven by higher personnel costs and technology investments; can you elaborate on these increases and explain how they will enhance efficiency and profitability moving forward?
- Considering that your management fee revenue is heavily dependent on the Exchange's premium growth amidst its profitability challenges, how sustainable is your current revenue growth if loss cost pressures persist?
- Since it takes up to 24 months for rate increases to fully impact the combined ratio due to your 12-month policies, what strategies are you employing to mitigate this lag effect on profitability in the near term?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Erie Insurance Exchange | Sole customer; attorney-in-fact | All | Contributed 100% of Indemnity’s revenue in 2024, totaling $3,795.1 million. Accounts receivable was $707.1 million at Dec 31, 2024. Management fee is 25%. |
Recent press releases and 8-K filings for ERIE.
- Q1 Financial Results: Net income reached $138.4M ($2.65 EPS) with operating income up by 9% (an increase of $12.6M)
- Dividend Announcement: Declared a quarterly dividend of $1.365 per share on Class A stock
- Exchange Performance: Achieved nearly 14% growth in direct and assumed written premiums, with average policy premiums rising by 13.2% and policies in force up by 3.2%
- Catastrophe Impact: Significant March losses resulted in a combined ratio of 108.1% for the Exchange
- Centennial Milestone: Celebrated 100 years of historical achievements and employee-led charitable initiatives
- A pre-recorded webcast is scheduled for April 25, 2025