Erie Indemnity Company

ERIE
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
Latest Q Revenue
$786M
Q1 2026 · +4.2% YoY
TTM ROIC
33%
FY2025 · Net Income / Approx. Book Equity · WACC ~8.5%

Financial Snapshot


ticker: ERIE step: 04 generated: 2026-05-13 source: quick-research

Erie Indemnity Company (ERIE) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $2.840B $3.269B $3.795B +16.1%
Net Income $298.6M $446.1M $600.3M +34.5%
EPS (diluted) $5.71 $8.53 $11.48 +34.6%

FY2025: Revenue ~$4.07B (+7%); EPS $10.69 — slightly below FY2024's $11.48 due to a $100M pre-tax Q4 charitable contribution that reduced earnings. Organic Q1 EPS $2.65 (+11.3%), Q2 EPS $3.34 (+6.7%), Q3 EPS $3.50 (+4.8%). Q1 2025 management fee revenue for policy issuance grew 13.4%. Exchange gross written premiums ~$11.2B (FY2025). CEO Tim NeCastro retiring end of 2026 (announced). Stock down ~36% over 12 months (to ~$220) — valuation compression from peak premium. 40+ year streak of consecutive dividend increases maintained.

Cash Flow & Balance Sheet

Metric Value
Exchange Premiums (2025) ~$11.2B (drives 94% of Erie Indemnity revenue)
Management Fee Rate 25% (max allowable; unchanged 2024 → 2025)
Dividend Streak 40+ consecutive years of increases
Business Model 100% fee-based; no underwriting risk
Operating Margin ~20–22% (high for a services business)

Erie Indemnity is essentially a toll-booth on the Erie Insurance Exchange: as long as the Exchange grows premiums, Erie Indemnity's revenue and earnings grow proportionally. The management fee is capped at 25% by agreement with Exchange policyholders. Capital requirements are minimal — the business generates cash far in excess of its reinvestment needs, which is why the dividend grows steadily.

Key Ratios (approximate)

  • P/E: ~20–22x (EPS $10.69; stock ~$220)
  • Revenue Growth: +16.1% (FY2024); +7% (FY2025 — decelerating)
  • Net Margin: ~15.8% (FY2024); ~13.2% (FY2025 with charitable contribution)
  • Dividend yield: ~1.5–2% (growing; 40+ year streak)

Growth Profile

Erie Indemnity's revenue growth tracks Exchange premium growth: FY2022 +7.8%, FY2023 +15.1%, FY2024 +16.1%, FY2025 +7%. The 2022–2024 acceleration reflected auto/home rate increases as inflation drove up claims costs — the Exchange raised rates aggressively to restore underwriting profitability. FY2025 deceleration reflects a post-hardening normalization. Future growth requires continued Exchange expansion (new states? more agents?) or further rate hardening.

Forward Estimates

  • FY2026: EPS ~$12–13+ (organic, post charitable contribution normalization; CEO transition uncertainty)
  • Analyst target: ~$293.49 (+32.7% from ~$221; 100% Buy); competing bear view: ~$76 (-65%)
  • Key variable: Exchange premium growth rate in FY2026; CEO succession clarity
  • Stock down ~36% YTD 1-year — potential value opportunity or re-rating compression continues

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $ERIE.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Erie Indemnity Company (ERIE) — Financial Analysis | Margin of Insight