ERIE INDEMNITY CO

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:

(1)This includes $42.3 million and $44.4 million of securities lent under a securities lending agreement as of September 30, 2026 and December 31, 2025, respectively.

(2)This includes $14.1 million and $20.1 million of securities lent under a securities lending agreement as of September 30, 2026 and December 31, 2025, respectively.

(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 security 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 security 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 $38.8 million at September 30, 2026, compared to unrealized gains of $1.3 million at December 31, 2025.

The following table presents a breakdown of the fair value of our available-for-sale portfolio by industry sector and rating as of:

(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 non-redeemable preferred stocks and exchange-traded funds, and investments in privately held companies that do not have readily determinable fair values. See Part 1, Item 1. "Financial Statements - Note 2, Significant Accounting Policies, of Notes to Consolidated Financial Statements" contained within this report for information on the measurement and accounting of our equity securities.

The following table presents an analysis of our equity securities as of:

(1)Includes $16.2 million and $11.9 million at September 30, 2026 and December 31, 2025, respectively, of equity securities that do not have readily determinable fair values.