Q3 2024 Erie Indemnity Co Earnings Call - Pre-Recorded
And press pound when finished.
For 2023, while year to date operating income increased 29, 5% or $116 million compared to the first nine months of 2023.
The main driver of these increases continues to be higher management fee revenue, resulting from the exchanges significant direct written premium growth.
The indemnities management fee revenue for policy issuance and renewal services increased $120 million or 18, 5% in the third quarter of 2024 compared to the third quarter of 2023.
For the first nine months of 2020 for indemnity saw an increase of 355 million or 19, 3% compared to the same period of 2023, which is in line with the direct written premium growth of the exchange in the similar periods.
Looking at the indemnities cost of operations for policy issuance and renewal services commissions, our largest expense increased $66 million or 18, 7% in the third quarter and $202 million or 19, 9% in the first nine months of 2024 compared to the same.
Periods in 2023.
The increases in both periods were driven by and in line with the growth in the exchanges direct and affiliated assumed written premium.
The lesser extent agent incentive compensation contributed to the increase driven by the profitability component of the incentive.
Non commission expenses increased $23 million or 13, 8% in the third quarter of 2024 compared to 2023.
Primary drivers of the increase include higher personnel costs higher costs tied to production such as underwriting and policy processing expenses and our additional investments in technology.
We also continue to make community related investments as Tim highlighted earlier.
For the first nine months of 2020 for indemnity saw an increase in non commission expenses of nearly 42 million or eight 4% similar.
Similar to the quarter, we saw higher personnel cost higher cost tied to production, including underwriting and policy processing expenses and increased community related investments.
On a year to date basis, we also had higher agent related costs and credit card card processing fees, while we had lower information technology costs.
The personnel cost increases in both the third quarter and year to date through September were impacted by increased compensation, including higher estimated costs for long term incentive plan awards, which was primarily due to the substantial increase in the stock price throughout 2024.
Turning to our investment operations indemnity maintains a conservative portfolio to support our objectives of steady and consistent growth in earnings per share current and future dividend growth.
<unk> the company from downside risks in its operations as well as reinvesting in the business as if opportunities arise in the third quarter of 2020 for investment income before taxes totaled $19 5 million compared to just over $12 million in the third quarter of 2023.
For the first nine months of 2020 for investment income before taxes was $48 5 million compared to just over $19 million in the first nine months of 2023.
As always we take a very measured approach to our capital management and we maintain a strong balance sheet for.
For the first nine months of 2024, our financial performance enabled us to pay our shareholders over 178 million in dividends.
Thank you again for your time today now I'll turn the call back over to Tim Tim.
Tim: Thanks Julie.
Tim: Our customer base continues to grow it's increasingly important to be sure of products and services with their needs and we equipped pages with the tools to provide personalized and efficient service.
Tim: One recent example is business auto too to point out.
Tim: <unk> newly refreshed and enhanced business model product currently being piloted in Indiana.
Tim: It includes several new options and features all conceived and developed based on agent feedback. It seems is helping agents with the unique needs of their business customers, including enhanced quoting and processing experience and the.
Tim: The ability to have vehicles for multiple states on one policy.
Tim: Our refreshed rating plan with new pricing factors also helps ensure compared with competitive pricing for.
For the most favorable risks and it all business is priced appropriately and sustainably.
Tim: Asia is probably in the new offerings have ensuring valuable feedback, which has already led to several design enhancements.
Tim: And to your interactions with our pilot patients through year end will help us determine any additional adjustments needed before expanding the rollout into other states in early 2025.
We also successfully launched 10 state rollout of a new capability that can automatically enrolled customers in our online account platform.
Tim: At the point of sale.
Tim: Online account and answers customers ability to access information pay bills and track claims.
Tim: Creating efficiencies and allowing our call center staff and agents to spend more time on.
Tim: More complex and meaningful interactions.
Tim: This new capability is helping to increase adoption of this important tool and will also help us to better leverage customer data.
Enhancements like these are part of a broader strategy to modernize our platforms programs and data capabilities.
Tim: Additional migrations of legacy platforms to the cloud and other digital capability improvements have been made over the past quarter and are ongoing.
Tim: Have you read we've always believed that our commitment to service extends not just to our customers.
Tim: Also to the communities within our footprint.
Tim: August Erie insurance donated $450000 in grants to nine nonprofits through the companies investing in our future educational Grant initiative.
Tim: Programs aimed at strengthening the connection between academic programming and out of school time activities with a goal of eliminating poverty through education.
Tim: This grant program was launched in 2021 more than $1 $7 million in grants have been awarded by Erie insurance educational nonprofits in and around our home city of Erie, Pennsylvania.
This is in addition to more than $10 million donated to educational causes over the years to Pennsylvania's educational improvement.
Tim: That program.
Tim: I'm also pleased to share two recent workplace accolades.
Tim: First Erie insurance was named to the Forbes list of Americas Best in state employers for 2024 for the fifth straight year.
Tim: <unk> ranked among the top 20 out of 100 employers in Pennsylvania that made the list.
Tim: Erie Insurance was also arm with for 2020 for diversity impact award from the global ERP.
Tim: The world's largest network of employee resource groups business resource groups and diversity Council.
Tim: Our African American.
Tim: <unk> Alliance veterans and women's affinity networks were recognized for being champions of diversity equity and inclusion in our organization.
Tim: As I close out our call for the third quarter I would like to share my appreciation for our employees and independent agents, who uphold our above all in service promise everyday.
Tim: Any circumstance.
Tim: Thank you also to our shareholders for your trust and support.
Tim: Thanks to all of you.
Tim: Your interest in Erie.
Tim: [music].