Erie Indemnity Approves Management Fee Rate and Dividend Increase, Declares Regular Dividends
ERIE, Pa., Dec. 12, 2024 — At its regular meeting held on December 10, 2024, the Board of Directors of Erie Indemnity Company set the management fee rate charged to Erie Insurance Exchange, approved an increase in shareholder dividends, and declared the regular quarterly dividend. Erie Indemnity Company has been consistently paying shareholder dividends since 1933.
The Board decided to maintain the current management fee rate paid to Erie Indemnity Company by Erie Insurance Exchange at 25 percent, effective January 1, 2025. This management fee rate was also set at 25 percent for the entire year of 2024. The Board holds the authority, under the agreement with the subscribers (policyholders) at Erie Insurance Exchange, to set the management fee rate at its discretion, although the maximum allowable fee rate is 25 percent. This decision was made after a thorough review of the financial positions of both Erie Insurance Exchange and Erie Indemnity Company.
In addition, the Board approved an increase in the regular quarterly cash dividend from $1.275 to $1.365 per Class A share, and from $191.25 to $204.75 per Class B share. This adjustment represents a 7.1 percent increase in the payout per share compared to the current dividend rate. The next quarterly dividend will be payable on January 22, 2025, to shareholders of record as of January 7, 2025, with an ex-dividend date of January 7, 2025.
Erie Insurance Group, based in Erie, Pennsylvania, is recognized as the 12th largest homeowners insurer and the 13th largest automobile insurer in the United States according to A.M. Best Company. Founded in 1925, Erie Insurance stands as a Fortune 500 company and ranks as the 17th largest property/casualty insurer in the country based on total lines of net premiums written. With an A+ (Superior) rating from A.M. Best, ERIE boasts over 7 million policies and operates in 12 states as well as the District of Columbia.
It is important to remember that statements and projections made by the company are forward-looking and subject to various risks and uncertainties that could lead to actual results significantly differing from those anticipated. Such forward-looking statements encompass future trends, events, or results and may include projections regarding premium and investment income, expenses, operating results, and compliance with contractual and regulatory obligations. These statements are not guarantees of future performance and carry inherent risks. Consequently, actual outcomes and results may diverge from those expressed or anticipated.
Potential risks and uncertainties that could impact actual results include dependence on relationships with the Erie Insurance Exchange and management fee under subscriber agreements, general economic conditions, competition within the insurance industry, and factors affecting customer service reputation, financial strength ratings, investment portfolio quality, government regulations, litigation outcomes, unexpected emergent situations, weather-related losses, and operational challenges.
Forward-looking statements only reflect an analysis at the time they were made and the company does not undertake any obligation to update or revise them in the future based on new information or changing circumstances.
