Q4 2023 Earnings Summary
Reported on Feb 27, 2024 (After Market Close)
Pre-Earnings Price$389.34Last close (Feb 27, 2024)
Post-Earnings Price$391.68Open (Feb 28, 2024)
Price Change
$2.34(+0.60%)
- Record Financial Performance: Erie Indemnity Company achieved an all-time high net income of over $446 million in 2023, with operating income increasing by 38.3% compared to 2022. Revenue growth outpaced expense growth during the year.
- Strong Growth and Retention: The company reached $10 billion in premium, with Erie Insurance Exchange experiencing a 20-year high growth rate of 17%, moving towards 7 million policies in force. New business premium grew over 43% in Q4 and almost 38% for the year compared to prior periods, while retention levels remained strong at 91.2% despite rate increases.
- Technological Advancements and Industry Recognition: ERIE is making significant progress in modernizing its technology platforms, resulting in a 75% reduction in system outage time and reduced costs due to migration to the cloud. The company also received top rankings from J.D. Power for home insurance customer satisfaction.
- Combined ratio increased to 119.1% at year-end 2023, which is 3 points higher than year-end 2022, indicating worsening underwriting profitability.
- Weather-related claims rose to nearly 70,000 in 2023, compared to roughly 50,000 in 2022, contributing to higher losses.
- Policyholder surplus decreased, ending at $9.3 billion at December 2023, which was lower than where we started the year, indicating a weakened financial position.
- Information Unavailable
Q: N/A
A: The documents do not contain information regarding ERIE's earnings call Q&A session.
Research analysts covering ERIE INDEMNITY.