ERIE INDEMNITY CO (ERIE)

Erie Indemnity Company is a publicly held Pennsylvania business corporation, incorporated in 1925, that serves as attorney-in-fact for the subscribers (policyholders) of the Erie Insurance Exchange, a Pennsylvania-domiciled reciprocal insurer writing property and casualty insurance. The Exchange has wholly owned property and casualty subsidiaries (Erie Insurance Company, Erie Insurance Company of New York, Erie Insurance Property & Casualty Company and Flagship City Insurance Company) and a life insurer, Erie Family Life Insurance Company. Under a subscriber's agreement, Indemnity earns a management fee of up to 25% of the direct and affiliated assumed premiums written by the Exchange, with the rate set at least annually by its Board of Directors.

Indemnity reports a single segment, management operations. Its services fall into two groups. Policy issuance and renewal services cover sales, underwriting and issuance. In 2025, agent compensation made up about 71% of related expenses, underwriting and policy processing about 8%, and information technology about 10%, with the rest being customer service and administrative support. Administrative services cover claims handling, life insurance management and investment management for the Exchange and its insurance subsidiaries, and are reimbursed at cost under the subscriber's agreement and service agreements.

The Exchange is Indemnity's sole customer, and its earnings depend largely on the Exchange's premium growth and financial condition. In 2025, personal lines (mainly private passenger auto and homeowners) were 71% of the Exchange's direct and affiliated assumed written premiums, and commercial lines (commercial multi-peril, commercial auto and workers compensation) were 29%. The Exchange sells exclusively through independent insurance agencies. Written premiums tend to be higher in the second and third quarters. Indemnity has no direct competition in providing its services, but the Exchange competes in a highly competitive insurance industry against large national carriers, regional insurers and direct-to-consumer sellers.

Indemnity and the Exchange are regulated as an insurance holding company system, and state insurance departments must approve intercompany service agreements and may examine the companies. At December 31, 2025, Indemnity had 6,667 full-time employees, about 50% of whom provide claims and life insurance management services exclusively for the Exchange and its subsidiaries, which reimburse the cost monthly. The Exchange itself has no employees or officers. Indemnity is headquartered at 100 Erie Insurance Place, Erie, Pennsylvania.