# Erie Indemnity Company (ERIE) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-18  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/ERIE/thesis · /stocks/ERIE/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/ERIE/fundamental

## Navigation

- Overview: /stocks/ERIE
- Financials (this page): /stocks/ERIE/financials
- Thesis: /stocks/ERIE/thesis
- Investment Memo: /stocks/ERIE/memo
- Coverage universe: /stocks