Erie Indemnity Reports Q3 Net up 21.8% to $56.2 Million

Erie Indemnity Company announced that net income increased by 21.8 percent to $56.2 million for the third quarter of 2003, compared to $46.2 million at September 30, 2002

The bulletin also noted that “net income per share increased by 21.9 percent to $.79 per share, compared to $.65 per share in the comparable quarter for 2002, and that “net income, excluding net realized gains or losses on investments and related federal income taxes, increased by 12.8 percent to $55.0 million, or $.78 per share, up from $48.8 million, or $.69 per share, for the same period one year ago.”

The group’s management fee revenue grew by 10.8 percent to $231.7 million, up from $209.1 million for the same period one year ago.

“We are pleased with Erie Indemnity Company’s solid financial performance in the third quarter,” stated president and CEO Jeffrey A. Ludrof. “While we maintain our focus on initiatives designed to improve our underwriting profitability, we continue to benefit from the dedication and support of our employees and independent agency force. Their efforts continue to produce favorable policyholder retention.”

Ludrof noted that the “large number of claims related to severe weather events masked the progress we are making with improving our underwriting results.” He indicated that in fact “catastrophe losses were high for the entire insurance industry during the quarter. Hurricane Isabel was particularly devastating for a large number of our policyholders, and many others suffered losses due to wind and hailstorms in western Pennsylvania.

“Despite these setbacks, we are making progress toward our goals.” Ludrof added, “We continue to experience solid premium growth, primarily due to rate increases and a retention ratio of over 90 percent.”