On this page of StockholderLetter.com we present the latest annual shareholder letter from ERIE INDEMNITY CO — ticker symbol ERIE. Reading current and past ERIE letters to shareholders can bring important insights into the investment thesis.

 •  3/21/2025 Letter Continued (Full PDF)
 •  3/24/2023 ERIE Stockholder Letter
 •  3/22/2024 ERIE Stockholder Letter
 •  More "Insurance Brokers" Category Stockholder Letters
 •  ERIE Benford's Law Stock Score = 93

ERIE Shareholder/Stockholder Letter Transcript:

E R I E I N D E M N I T Y C O M PA N Y
ANNUAL REPORT

    IN THIS CHANGING WORLD,
THE AGE OF AN INSTITUTION
IS SOMETHING TO BOAST OF.
GREAT AGE IS IN ITSELF
EVIDENCE OF CERTAIN VIRTUES.
FOR AN INSTITUTION TO LIVE LONG
IT MUST OF NECESSITY
SERVE SOME USEFUL PURPOSE.   
  RITTEN BY H.O. HIRT ON APRIL 20, 1930,
W
THE COMPANY   S FIFTH ANNIVERSARY.
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TIM NECASTRO
PRESIDENT AND CEO
TO OUR SHAREHOLDERS
Throughout my life and career, I   ve been fortunate to have the guidance of a few key people I
consider mentors. People like my uncle, who worked as an accountant and was a father figure
to me and my siblings after my father passed. His advice about finding my passion shaped my
career and led me to where I am today.
Another mentor was a close family friend who was also
a father figure to me. He taught me many valuable life
lessons   whether he realized it or not   over pots of
sauce and meatballs at our annual parish festival. Their
advice, and example, helped me through some of the
hardest decisions I   ve had to make, and their words are
in the back of my mind every day.
Sadly, I lost both of these amazing men in 2024. But the
wisdom they imparted in word and deed has taken on
even greater meaning and importance. I now strive to
carry on their legacies.
In a similar way, all of us at ERIE share another great
mentor: our co-founder, H.O. Hirt. As we celebrate our
100th year in business, it   s worth reflecting on the legacy
that has underscored our perseverance and success.
H.O.   s values, like mine, were learned at the family
table. They have guided us through some of the
company   s hardest times and helped us achieve our
greatest strides. His words have shaped ERIE into the
company it became a century ago and they continue
to shape us today. Never lose the human touch. Insist
upon thinking. Strive to be above all in service. Those
teachings and others continue to guide our philosophy
on business and how we set ourselves apart.
We celebrate our 100th anniversary facing a very
different and dynamic world than it was in 1925. We feel
a sense of urgency to respond to the many challenges
and changes in front of us. And we recognize the
importance of keeping the values, lessons and wisdom
imparted to us a century ago.
Now, it   s up to us to carry on the legacy.
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FINDING A
BALANCE
The past year was punctuated by significant economic
pressures and challenges. These complexities require
us to take very strategic and deliberate actions in how
we   re running our business.
Your company, Erie Indemnity, continued to experience
strong operating performance driven by growth for
Erie Insurance Exchange.
The hard market of the past few years has led to
substantial growth in premium and policies in force.
The nearly one million new business policies written
in 2024 and continued strong customer retention of
90.4 percent at year-end helped us reach a significant
milestone of seven million policies in force.
This was achieved even with significant rate increases
taken to counter both the continued pressures of
inflation and increased weather activity. It is no doubt
a testament to the unique value proposition we offer
and the Agents and Employees who bring our service
commitment to life.
Of course, with that growth comes the need to balance
our risks and exposures. Environmental and economic
pressures have continued to affect the Exchange   s
combined ratio, which stood at 110.4 percent at yearend. This is an improvement over 2023, when we ended
the year at 119.1 percent, but we still remain focused on
bringing it down to a more profitable level.
Several measures are being taken to improve
profitability, including expense reductions, tightened
underwriting, and targeted slowdowns in growth. The
impacts the rate increases will have on profitability of
the Exchange are also still being realized, because we
write policies almost exclusively with annual terms.
Despite the challenges, we remain confident in the
strength of our financial position, thanks to our unique
value proposition and steady business philosophy. This
balanced approach to how we do business has been
standard practice for us since our company   s founding.
It   s worked for us for a century, and I   m confident it will
continue to serve us well as we navigate the market
challenges of today.
H.O. Hirt
O.G. Crawford
1925
Erie Insurance Exchange begins operations
in Erie, Pennsylvania, on April 20. H.O. Hirt
is Secretary and General Manager. O.G.
Crawford is Vice President. H.O.   s 1920
Dodge is insured on the new company   s
11th policy, effective on ERIE   s first day of
business. The annual auto premium is $34.
1928
   A one-person office opens in
Pittsburgh, Pennsylvania.
1931
   The first issue of The Bulletin publishes. This
weekly communication with Agents has appeared
continually since and is one of longest-running
company publications in the country.
1934
   ERIE develops the    Super Standard Auto Policy,   
offering many extra coverages at no additional cost.
Some of the    Xtra features,    such as    Drive Other Car   
coverage, later become standard in auto policies.
1940
   Fire insurance is introduced, helping independent
Agents to rely more fully on Erie Insurance
products for their customers    needs.
1941
   A profit-sharing bonus is given to Employees
for the first time. Although not guaranteed,
the bonus has been approved by the
Board of Directors each year since.
1943
   Comprehensive Personal Liability coverage
is added to the product line.
1946
   One million dollars in annual premium is
collected. It takes only two more years to
reach $2 million in annual premium.
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 3/21/2025 Letter Continued (Full PDF)