Erie Indemnity Reports Gains in Q4 and Full-Year 2002 Results

Erie Indemnity Company announced good results for the fourth quarter and full-year 2002 with Q4 net income reaching $33.9 million, up from $5.9 million for the same period in 2001.

The announcement also noted that
– Net income per share increased to $.48 per share, compared to $.08 per share in the comparable quarter for 2001.
— Net income, excluding net realized losses on investments and related federal income taxes, increased to $35.6 million, up from $23.1 million for the same period one year ago.
— Management fee revenue grew by 17.9 percent to $181.8 million, up from $154.2 million for the same period one year ago.

“The increase in fourth quarter net income was due to a combination of management fee growth (calculated on the property and casualty direct written premiums of the Erie Insurance Group) and a reduction in net realized losses on investments, compared to the same period in 2001. Fourth quarter 2001 results were affected by $26.4 million, or $.24 per share, in realized losses on investments, as well as a charge of $10.7 million, or $.10 per share, related to the retirement of former CEO Stephen Milne,” said the bulletin.

For the full-year 2002 Erie Indemnity reported the following results:
– Net income was up by 40.8 percent to $172.1 million, from $122.3 million at the end of 2001.
– Net income per share increased to $2.42 per share at December 31, 2002, from $1.71 at year-end 2001.
— Net income, excluding net realized losses on investments and related federal income taxes, grew 27.1 percent to $179.4 million.

“We continue to achieve strong growth in direct written premiums, which have propelled the management fee revenue increases we saw in the fourth quarter and throughout 2002,” stated Jeffrey A. Ludrof, president and CEO. “Our policies in force growth was strong, ending the year at 3.5 million, with commercial lines policies increasing by 13.4 percent and personal lines policies by 12.8 percent over 2001. We also saw significant increases in average written premium per policy, up nearly 10 percent in 2002 over the 2001 figure. I attribute this growth to our competitive products and pricing and our superior service.”