Erie Indemnity Company reported significant financial growth for the third quarter and the first nine months of 2024, driven by increased operating revenue and improved profitability. For the three months ended September 30, 2024, operating revenue reached $999.9 million, a 16.4% increase from $858.9 million in the same period of 2023. For the nine months, revenue totaled $2.87 billion, up 17.1% from $2.45 billion year-over-year.
Total operating expenses also rose, amounting to $819.8 million for the third quarter, compared to $710.5 million in 2023, and $2.36 billion for the nine months, up from $2.06 billion. Despite this increase in expenses, operating income improved to $180.1 million for the third quarter (up 21.3% from $148.5 million) and $509.1 million for the nine months (up 29.5% from $393.2 million).
Net income for the third quarter was $159.8 million, a 22.0% increase from $131.0 million in 2023, while net income for the nine months rose to $448.3 million, up 33.8% from $335.1 million. The diluted net income per share for the third quarter was $3.06, compared to $2.51 in the prior year, and for the nine months, it increased to $8.57 from $6.41.
Management fee revenue, a key component of the company's earnings, increased significantly, with $771.6 million for the third quarter (up 18.9%) and $2.21 billion for the nine months (up 19.6%). Direct and affiliated assumed premiums written by the Exchange also saw growth, reaching $3.16 billion for the third quarter (up 18.4%) and $9.04 billion for the nine months (up 19.1%).
The company’s total assets increased to $2.86 billion as of September 30, 2024, from $2.47 billion at the end of 2023. Shareholders' equity rose to $1.95 billion, up from $1.66 billion. Cash and cash equivalents also improved, totaling $221.2 million compared to $144.1 million at the end of 2023.
In terms of strategic developments, Erie Indemnity initiated securities lending transactions in May 2024, managed by a third-party institution, which allows the company to generate additional income. The company continues to face litigation related to management fees, with ongoing appeals and court proceedings.
Overall, Erie Indemnity's financial performance reflects strong growth in revenue and profitability, supported by increased premiums and effective management strategies.
About ERIE INDEMNITY CO
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