# EDGAR Filing Document

**Accession Number:** 0000922621
**File Stem:** 0000922621-23-000006
**Filing Date:** 2023-3
**Character Count:** 23685
**Document Hash:** 29ec749b16a32ef7f3971460dfd9a9df
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000922621-23-000006.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0000922621-23-000006

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230301

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230301

**DATE AS OF CHANGE**: 20230301

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ERIE INDEMNITY CO
- **CENTRAL INDEX KEY:** 0000922621
- **STANDARD INDUSTRIAL CLASSIFICATION:** INSURANCE AGENTS BROKERS & SERVICES [6411]
- **IRS NUMBER:** 250466020
- **STATE OF INCORPORATION:** PA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-24000
- **FILM NUMBER:** 23693781

**BUSINESS ADDRESS:**
- **STREET 1:** 100 ERIE INSURANCE PL
- **CITY:** ERIE
- **STATE:** PA
- **ZIP:** 16530
- **BUSINESS PHONE:** 8148702000

**MAIL ADDRESS:**
- **STREET 1:** 100 ERIE INSURANCE PLACE
- **CITY:** ERIE
- **STATE:** PA
- **ZIP:** 16530

?xml version="1.0" ? erie-20230301

<u>[Top of the Form](#i4d34c1563f354efdb7acd45b845df28d_1)</u>

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): March 1, 2023

---

| |
|:---|
| **ERIE INDEMNITY COMPANY** |
| (Exact name of registrant as specified in its charter) |

---

---

| | | |
|:---|:---|:---|
| Pennsylvania | 0-24000 | 25-0466020 |
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | Identification No.) |

---

 100 Erie Insurance Place, <u>Erie,</u> <u>Pennsylvania</u> 16530 <br> (Address of principal executive offices) (Zip Code)

 Registrant's telephone number, including area code: 814 870-2000

 Not applicable <br> Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | | |
|:---|:---|:---|:---|
| Class A common stock, | stated value $0.0292 per share | ERIE | NASDAQ Stock Market, LLC |
| (Title of each class) | (Title of each class) | (Trading Symbol) | (Name of each exchange on which registered) |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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<u>[Top of the Form](#i4d34c1563f354efdb7acd45b845df28d_1)</u>

**Item 2.02 Results of Operations and Financial Condition.**

On March 1, 2023, Erie Indemnity Company (the "Company") issued a press release announcing financial results for the quarter and year ended December 31, 2022. Copies of the press release and financial information are attached hereto and are incorporated herein by reference as Exhibit 99.1 and Exhibit 99.2, respectively.

On March 2, 2023 at 10:00 a.m. the Company will provide a pre-recorded Webcast that is complementary to the press release announcing financial results for the quarter and year ended December 31, 2022.

**Item 8.01 Other Events.** 

At its meeting on February 16, 2023, the Company's Board of Directors approved the following quarterly dividend on shares of Erie Indemnity Company Class A common stock:

Dividend Number: 371

Class A Rate Per Share: $1.19

Declaration Date: February 16, 2023

Ex-Dividend Date: April 4, 2023

Record Date: April 5, 2023

Payable Date: April 20, 2023

**Item 9.01 Financial Statements and Exhibits.**

Exhibit 99.1 Press Release

Exhibit 99.2 Financial Information

Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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<u>[Top of the Form](#i4d34c1563f354efdb7acd45b845df28d_1)</u>

Exhibit Index

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | <u>[Press Release](ex-99112312022.htm)</u> |
| 99.2 | <u>[Financial Information](ex-99212312022.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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<u>[Top of the Form](#i4d34c1563f354efdb7acd45b845df28d_1)</u>

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | Erie Indemnity Company | Erie Indemnity Company |
| *March 1, 2023* | *By:* | */s/ Gregory J. Gutting* |
|  |  | *Name: Gregory J. Gutting* |
|  |  | *Title: Executive Vice President & CFO* |

---

## Exhibit 99.1

**Exhibit 99.1**

![ex991image12312021a.gif](ex991image12312021a.gif)

**Erie Indemnity Reports Full Year and Fourth Quarter 2022 Results**

*Net Income per Diluted Share was $1.25 for the Quarter and $5.71 for the Year*

**Erie, Pa. - March 1, 2023** - Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the full year and quarter ending December 31, 2022. Net income was $298.6 million, or $5.71 per diluted share, in 2022, compared to $297.9 million, or $5.69 per diluted share, in 2021. Net income was $65.5 million, or $1.25 per diluted share, in the fourth quarter of 2022, compared to $55.0 million, or $1.05 per diluted share, in the fourth quarter of 2021.

The uncertainty resulting from post-pandemic conditions and the current economic environment continues to evolve and the duration or extent of financial impacts remain uncertain.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **4Q and Full Year 2022** | **4Q and Full Year 2022** | **4Q and Full Year 2022** | **4Q and Full Year 2022** | **4Q and Full Year 2022** |
| *(dollars in thousands)* | **4Q'22** | **4Q'21** | **2022** | **2021** |
| Operating income | $81430 | $61834 | $376214 | $318097 |
| Investment income | 288 | 12328 | 632 | 67332 |
| Interest expense and other, net | (243) | 4335 | 394 | 9025 |
| &nbsp;&nbsp;&nbsp;Income before income taxes | 81961 | 69827 | 376452 | 376404 |
| Income tax expense | 16471 | 14785 | 77883 | 78544 |
| &nbsp;&nbsp;&nbsp;Net income | $65490 | $55042 | $298569 | $297860 |

---

**2022 Full Year Highlights**

Operating income before taxes increased $58.1 million, or 18.3 percent, in 2022 compared to 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Management fee revenue - policy issuance and renewal services increased $174.7 million, or 9.1 percent, in 2022 compared to 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Management fee revenue - administrative services remained consistent at $58.3 million in both 2022 and 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Cost of operations - policy issuance and renewal services*

**–**Commissions increased $71.1 million in 2022 compared to 2021 driven by direct and affiliated assumed written premium growth, partially offset by a reduction in agent incentive compensation.

*–*Non-commission expense increased $47.1 million in 2022 compared to 2021. Underwriting and policy processing costs increased $6.4 million primarily due to increased underwriting report, printing, and personnel costs. Information technology costs increased $13.1 million primarily due to increased hardware and software costs and professional fees, partially offset by decreased personnel costs. Sales and advertising costs increased $7.5 million primarily due to increased advertising and agent-related expenses. Administrative and other expenses increased $22.5 million primarily due to an increase in personnel costs related to compensation and increased professional fees.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*◦* The administrative services reimbursement revenue and corresponding cost of operations increased both total operating revenue and total operating expenses by $668.3 million in 2022 and $638.5 million in 2021, but had no net impact on operating income.

Income from investments before taxes totaled $0.6 million in 2022 compared to $67.3 million in 2021. Net investment income was $28.6 million in 2022 compared to $62.2 million in 2021. Included in net investment income is $10.4 million of limited partnership losses in 2022 compared to earnings of $31.7 million in 2021. Net realized and unrealized losses on investments were $27.3 million in 2022 compared to gains of $4.9 million in 2021.

**4Q 2022 Highlights**

Operating income before taxes increased $19.6 million, or 31.7 percent, in the fourth quarter of 2022 compared to the fourth quarter of 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Management fee revenue - policy issuance and renewal services increased $53.3 million, or 11.8 percent, in the fourth quarter of 2022 compared to the fourth quarter of 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*◦* Management fee revenue - administrative services increased $0.6 million, or 4.0 percent in the fourth quarter of 2022 compared to the fourth quarter of 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Cost of operations - policy issuance and renewal services*

–Commissions increased $15.6 million in the fourth quarter of 2022 compared to the fourth quarter of 2021 primarily driven by direct and affiliated assumed written premium growth, partially offset by a reduction in agent incentive compensation.

*–*Non-commission expense increased $19.3 million in the fourth quarter of 2022 compared to the fourth quarter of 2021. Underwriting and policy processing costs increased $3.5 million primarily due to increased personnel costs, postage and underwriting report costs. Information technology costs increased $5.1 million primarily due to increased hardware and software costs and professional fees. Sales and advertising costs increased $4.4 million primarily due to increased advertising and agent-related expenses. Administrative and other expenses increased $7.5 million primarily due to increased personnel costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ The administrative services reimbursement revenue and corresponding cost of operations increased both total operating revenue and total operating expenses by $175.6 million in the fourth quarter of 2022 and $165.4 million in the fourth quarter of 2021, but had no net impact on operating income.

Income from investments before taxes totaled $0.3 million in the fourth quarter of 2022 compared to $12.3 million in the fourth quarter of 2021. Net investment income was $4.0 million in the fourth quarter of 2022 compared to $12.6 million in the fourth quarter of 2021. Included in net investment income is $8.3 million of limited partnership losses in the fourth quarter of 2022 compared to earnings of $5.0 million in the fourth quarter of 2021. Net realized and unrealized losses on investments were $3.5 million in the fourth quarter of 2022 compared to $0.2 million in the fourth quarter of 2021.

------

**Webcast Information**

Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on March 2, 2023. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.

**Erie Insurance Group**

According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 11th largest homeowners insurer, 13th largest automobile insurer and 13th largest commercial lines insurer in the United States based on direct premiums written. Founded in 1925, Erie Insurance is a Fortune 500 company and the 19th largest property/casualty insurer in the United States based on total lines net premium written. Rated A+ (Superior) by A.M. Best, ERIE has more than 6 million policies in force and operates in 12 states and the District of Columbia.

News releases and more information are available on ERIE's website at www.erieinsurance.com.

\*\*\*

**"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:**

Statements contained herein that are not historical fact are forward-looking statements and, as such, are subject to risks and uncertainties that could cause actual events and results to differ, perhaps materially, from those discussed herein. Forward-looking statements relate to future trends, events or results and include, without limitation, statements and assumptions on which such statements are based that are related to our plans, strategies, objectives, expectations, intentions, and adequacy of resources. Examples of forward-looking statements are discussions relating to premium and investment income, expenses, operating results, and compliance with contractual and regulatory requirements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Among the risks and uncertainties, in addition to those set forth in our filings with the Securities and Exchange Commission, that could cause actual results and future events to differ from those set forth or contemplated in the forward-looking statements include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dependence upon our relationship with the Erie Insurance Exchange ("Exchange") and the management fee under the agreement with the subscribers at the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dependence upon our relationship with the Exchange and the growth of the Exchange, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ general business and economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ factors affecting insurance industry competition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ dependence upon the independent agency system; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ ability to maintain our reputation for customer service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dependence upon our relationship with the Exchange and the financial condition of the Exchange, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ the Exchange's ability to maintain acceptable financial strength ratings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ factors affecting the quality and liquidity of the Exchange's investment portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ changes in government regulation of the insurance industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ litigation and regulatory actions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ emergence of significant unexpected events, including pandemics and inflation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ emerging claims and coverage issues in the industry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ severe weather conditions or other catastrophic losses, including terrorism;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs of providing policy issuance and renewal services to the Exchange under the subscriber's agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ability to attract and retain talented management and employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ability to ensure system availability and effectively manage technology initiatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulties with technology or data security breaches, including cyber attacks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ability to maintain uninterrupted business operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• outcome of pending and potential litigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• factors affecting the quality and liquidity of our investment portfolio; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to meet liquidity needs and access capital.

A forward-looking statement speaks only as of the date on which it is made and reflects our analysis only as of that date. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changes in assumptions, or otherwise.

## Exhibit 99.2

**Exhibit 99.2**

**Erie Indemnity Company**

**Statements of Operations**

*(dollars in thousands, except per share data)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended December 31, | Three months ended December 31, | Twelve months ended December 31, | Twelve months ended December 31, |
| | 2022 | 2021 | 2022 | 2021 |
| | (Unaudited) | (Unaudited) | | |
| **Operating revenue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Management fee revenue - policy issuance and renewal services | $503633 | $450286 | $2087846 | $1913166 |
| &nbsp;&nbsp;&nbsp;Management fee revenue - administrative services | 14877 | 14301 | 58323 | 58286 |
| &nbsp;&nbsp;&nbsp;Administrative services reimbursement revenue | 175613 | 165350 | 668268 | 638483 |
| &nbsp;&nbsp;&nbsp;Service agreement revenue | 6512 | 5994 | 25687 | 24042 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue | 700635 | 635931 | 2840124 | 2633977 |
| **Operating expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of operations - policy issuance and renewal services | 443592 | 408747 | 1795642 | 1677397 |
| &nbsp;&nbsp;&nbsp;Cost of operations - administrative services | 175613 | 165350 | 668268 | 638483 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 619205 | 574097 | 2463910 | 2315880 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Operating income** | 81430 | 61834 | 376214 | 318097 |
| **Investment income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | 3979 | 12572 | 28585 | 62177 |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized investment (losses) gains | (3453) | (237) | (27286) | 4946 |
| &nbsp;&nbsp;&nbsp;Net impairment (losses) recoveries recognized in earnings | (238) | (7) | (667) | 209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total investment income** | 288 | 12328 | 632 | 67332 |
| Interest expense |  | 1050 | 2009 | 4132 |
| Other income (expense) | 243 | (3285) | 1615 | (4893) |
| Income before income taxes | 81961 | 69827 | 376452 | 376404 |
| Income tax expense | 16471 | 14785 | 77883 | 78544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income** | $**65490** | $**55042** | $**298569** | $**297860** |
| **Earnings Per Share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Net income per share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common stock – basic | $1.41 | $1.18 | $6.41 | $6.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Class A common stock – diluted** | $**1.25** | $**1.05** | $**5.71** | $**5.69** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class B common stock – basic and diluted | $211 | $177 | $962 | $959 |
| &nbsp;&nbsp;&nbsp;**Weighted average shares outstanding – Basic** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common stock | 46189028 | 46189068 | 46188916 | 46188806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class B common stock | 2542 | 2542 | 2542 | 2542 |
| &nbsp;&nbsp;&nbsp;**Weighted average shares outstanding – Diluted** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common stock | 52298903 | 52305628 | 52297990 | 52307302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class B common stock | 2542 | 2542 | 2542 | 2542 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Dividends declared per share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common stock | $1.190 | $1.110 | $4.520 | $4.215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class B common stock | $178.50 | $166.50 | $678.00 | $632.25 |

---

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**Erie Indemnity Company**

**Statements of Financial Position**

*(in thousands)*

---

| | | |
|:---|:---|:---|
| | December 31, 2022 | December 31, 2021 |
| **Assets** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $142090 | $183702 |
| &nbsp;&nbsp;&nbsp;Available-for-sale securities | 24267 | 38396 |
| &nbsp;&nbsp;&nbsp;Receivables from Erie Insurance Exchange and affiliates, net | 524937 | 479123 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 79201 | 56206 |
| &nbsp;&nbsp;&nbsp;Accrued investment income | 8301 | 6303 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | 778796 | 763730 |
| Available-for-sale securities, net | 870394 | 907689 |
| Equity securities | 72560 | 87743 |
| Fixed assets, net | 413874 | 374802 |
| Agent loans, net | 60537 | 58683 |
| Deferred income taxes, net | 0 | 145 |
| Other assets | 43295 | 49265 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**2239456** | $**2242057** |
| **Liabilities and shareholders' equity** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Commissions payable | $300028 | $270746 |
| &nbsp;&nbsp;&nbsp;Agent bonuses | 95166 | 120437 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 165915 | 138317 |
| &nbsp;&nbsp;&nbsp;Dividends payable | 55419 | 51693 |
| &nbsp;&nbsp;&nbsp;Contract liability | 36547 | 34935 |
| &nbsp;&nbsp;&nbsp;Deferred executive compensation | 12036 | 12637 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term borrowings |  | 2098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | 665111 | 630863 |
| Defined benefit pension plans | 51224 | 130383 |
| Long-term borrowings |  | 91734 |
| Contract liability | 17895 | 17686 |
| Deferred executive compensation | 13724 | 14571 |
| Deferred income taxes, net | 14075 | 0 |
| Other long-term liabilities | 29019 | 14342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 791048 | 899579 |
| **Shareholders' equity** | **1448408** | **1342478** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' equity** | $**2239456** | $**2242057** |

---

<br>