ERIE INDEMNITY CO
For the period ended Mar 31, 2024. Filed Apr 25, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed Apr 25, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Financial Condition
Investments
Our investment portfolio is managed with the objective of maximizing after-tax returns on a risk-adjusted basis. The following table presents the carrying value of our investments as of:
| (dollars in thousands) | March 31, 2024 | % to total | December 31, 2023 | % to total |
|---|---|---|---|---|
| (Unaudited) | ||||
| Available-for-sale securities | $969,645 | 84% | $961,241 | 85% |
| Equity securities | 86,578 | 8 | 84,253 | 7 |
| Agent loans (1) | 67,448 | 6 | 67,787 | 6 |
| Other investments (2) | 28,374 | 2 | 23,026 | 2 |
| Total investments | $1,152,045 | 100% | $1,136,307 | 100% |
(1)The current portion of agent loans is included in the line item "Prepaid expenses and other current assets" in the Statements of Financial Position.
(2)The current and long-term portions of other investments are included in the line items "Prepaid expenses and other current assets" and "Other assets, net", respectively in the Statements of Financial Position.
Fixed maturities
Under our investment strategy, we maintain a fixed maturity portfolio that is of high quality and well diversified within each market sector. This investment strategy also achieves a balanced maturity schedule. Our fixed maturity portfolio is managed with the goal of achieving reasonable returns while limiting exposure to risk.
Available-for-sale securities are carried at fair value with unrealized gains and losses, net of deferred taxes, included in shareholders’ equity. Net unrealized losses on fixed maturities, net of deferred taxes, totaled $25.5 million at March 31, 2024, compared to $24.7 million at December 31, 2023.
The following table presents a breakdown of the fair value of our fixed maturity portfolio by industry sector and rating as of:
| (in thousands) | March 31, 2024 (1) | |||||
|---|---|---|---|---|---|---|
| AAA | AA | A | BBB | Non- investmentgrade | Fairvalue | |
| (Unaudited) | ||||||
| Basic materials | $0 | $0 | $957 | $5,366 | $5,920 | $12,243 |
| Communications | 0 | 2,903 | 13,660 | 9,039 | 12,602 | 38,204 |
| Consumer | 0 | 1,959 | 22,861 | 65,632 | 41,017 | 131,469 |
| Diversified | 0 | 0 | 0 | 0 | 119 | 119 |
| Energy | 0 | 0 | 5,638 | 20,734 | 14,447 | 40,819 |
| Financial | 0 | 2,041 | 97,008 | 122,412 | 16,146 | 237,607 |
| Government-municipal (2) | 0 | 0 | 0 | 0 | 4,833 | 4,833 |
| Industrial | 0 | 0 | 4,872 | 18,513 | 27,488 | 50,873 |
| Structured securities (3) | 139,122 | 188,164 | 29,749 | 15,347 | 132 | 372,514 |
| Technology | 1,898 | 0 | 2,989 | 22,215 | 13,348 | 40,450 |
| U.S. Treasury | 0 | 1,039 | 0 | 0 | 0 | 1,039 |
| Utilities | 0 | 0 | 2,703 | 36,359 | 5,246 | 44,308 |
| Total | $141,020 | $196,106 | $180,437 | $315,617 | $141,298 | $974,478 |
(1)Ratings are supplied by S&P, Moody’s, and Fitch with the exception of Government-municipal, which is unrated. The table is based upon the lowest rating for each security.
(2)Includes held-to-maturity securities totaling $4.8 million, which are included in the line item "Other assets, net" in the Statement of Financial Position.
(3)Structured securities include residential and commercial mortgage-backed securities, collateralized debt obligations, and asset-backed securities.
Equity securities
Equity securities primarily include nonredeemable preferred stocks and are carried at fair value in the Statements of Financial Position with all changes in unrealized gains and losses reflected in the Statements of Operations.
The following table presents an analysis of the fair value of our equity securities by sector as of:
| (in thousands) | March 31, 2024 | December 31, 2023 |
|---|---|---|
| (Unaudited) | ||
| Financial services | $70,834 | $69,900 |
| Utilities | 5,876 | 5,810 |
| Energy | 3,698 | 3,901 |
| Consumer | 4,425 | 3,915 |
| Technology | 1,500 | 500 |
| Industrial | 221 | 180 |
| Communications | 24 | 47 |
| Total | $86,578 | $84,253 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.