Erie Indemnity Company fell in line with other insurers announcing decreases in its profit figures for the fourth quarter of 2001 and for the full year.
The company reported that net income of $122,261,396 or $1.71 per share for the year ended December 31, 2001, compared to net income of $152,393,015 or $2.12 per share for the same period in 2000. Erie’s operating income (net income excluding realized gains/losses and related federal income taxes)however stayed fairly steady with $142,982,859 reported for 2001 and $141,363,933 for 2000.
“Net income for the three month period ended December 31, 2001, was $5,916,198 or $0.08 per share compared to $32,497,361 or $0.45 per share recorded during the same period in 2000,” the company reported. Operating income dropped slightly for the quarter ended December 31, 2001 from$31,468,406 in 2000 to $24,865,923 last year.
Erie’s overall premiums, however, rose 15.1 percent last year to $634,965,490 in from $551,645,647 in 2000. It attributed the growth to “Increases in average premium per policy, continued improvements in new policy growth and favorable policy retention rates.”
Further premium increases are anticipated. Erie stated that “due to pricing actions contemplated, filed and awaiting approval, or approved through December 31, 2001” it expected an additional “$107 million in premium for the Erie Insurance Group,” adding that, “The majority of the anticipated increase stems from the private passenger auto, commercial auto and homeowners lines of business. The effect of these pricing actions is expected to be realized ratably throughout 2002.”