ERIE INDEMNITY CO
For the period ended Mar 31, 2025. Filed Apr 24, 2025.
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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, 2025 · Filed Apr 24, 2025
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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, 2025 | % to total | December 31, 2024 | % to total |
|---|---|---|---|---|
| (Unaudited) | ||||
| Available-for-sale securities (1) | $1,112,707 | 84% | $1,043,615 | 83% |
| Equity securities (2) | 81,912 | 6 | 85,891 | 7 |
| Agent loans (3) | 98,823 | 7 | 92,731 | 7 |
| Other investments (4) | 34,666 | 3 | 29,610 | 3 |
| Total investments | $1,328,108 | 100% | $1,251,847 | 100% |
(1)This includes $12.2 million and $7.3 million of securities lent under a securities lending agreement as of March 31, 2025 and December 31, 2024, respectively.
(2)This includes $0.1 million of securities lent under a securities lending agreement as of March 31, 2025.
(3)The current portion of agent loans is included in the line item "Prepaid expenses and other current assets, net" in the Consolidated Statements of Financial Position.
(4)The current and long-term portions of other investments are included in the line items "Prepaid expenses and other current assets, net" and "Other assets, net", respectively in the Consolidated Statements of Financial Position.
Available-for-sale securities
Under our investment strategy, we maintain an available-for-sale portfolio that is of high quality and well diversified within each market sector. This investment strategy also achieves a balanced maturity schedule. Our available-for-sale 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 available-for-sale securities, net of deferred taxes, totaled $11.9 million at March 31, 2025, compared to $17.6 million at December 31, 2024.
The following table presents a breakdown of the fair value of our available-for-sale portfolio by industry sector and rating as of:
| (in thousands) | March 31, 2025 (1) | |||||
|---|---|---|---|---|---|---|
| AAA | AA | A | BBB | Non- investmentgrade | Fairvalue | |
| (Unaudited) | ||||||
| Basic materials | $0 | $0 | $976 | $2,158 | $8,261 | $11,395 |
| Communications | 0 | 6,015 | 12,638 | 15,298 | 11,783 | 45,734 |
| Consumer | 0 | 1,997 | 37,477 | 63,256 | 47,651 | 150,381 |
| Diversified | 0 | 0 | 0 | 0 | 829 | 829 |
| Energy | 0 | 872 | 5,789 | 20,159 | 14,731 | 41,551 |
| Financial | 0 | 4,302 | 118,532 | 137,048 | 21,234 | 281,116 |
| Industrial | 0 | 0 | 6,900 | 19,112 | 32,048 | 58,060 |
| Structured securities (2) | 170,957 | 190,005 | 25,226 | 14,762 | 844 | 401,794 |
| Technology | 1,956 | 0 | 0 | 20,481 | 15,103 | 37,540 |
| U.S. Treasury | 0 | 9,135 | 0 | 0 | 0 | 9,135 |
| Utilities | 0 | 0 | 13,621 | 48,916 | 12,635 | 75,172 |
| Total | $172,913 | $212,326 | $221,159 | $341,190 | $165,119 | $1,112,707 |
(1)Ratings are supplied by S&P, Moody’s, and Fitch. The table is based upon the lowest rating for each security.
(2)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 Consolidated Statements of Financial Position with all changes in unrealized gains and losses reflected in the Consolidated 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, 2025 | December 31, 2024 |
|---|---|---|
| (Unaudited) | ||
| Financial services | $67,776 | $69,930 |
| Utilities | 4,229 | 5,629 |
| Energy | 2,995 | 4,117 |
| Consumer | 4,037 | 3,341 |
| Technology | 1,974 | 1,974 |
| Communications | 901 | 900 |
| Total | $81,912 | $85,891 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.