Erie Indemnity's profit jumps on robust fees, investment income

Erie Indemnity

27/02/2025 21:51

Feb 27 (Reuters) - Erie Indemnity's ERIE.O fourth-quarter profit rose 37% as it earned higher fees from policies and bigger returns on its investments, the property and casualty insurer said on Thursday.

Policyholders encouraged by a resilient economy have maintained high insurance spending and opted for broader coverage, despite some lingering uncertainty.

The Pennsylvania-based company reported a 13% jump in operating revenue, helped by a 16% rise in management fee revenue from policy issuance and renewal services.

Investment income also more than doubled, thanks to higher interest from its bond portfolio and a rally in equities.

Net income was $152 million, or $2.91 per share, for the three months ended Dec. 31, compared with $110.9 million, or $2.12 per share, a year earlier.

Shares rose 2.6% after market hours. They had fallen 3% in 2025 up to Thursday's close, compared with a 1.3% rise in the S&P 500 index .SPX.

Erie was included in the benchmark index in September.

 (Reporting by Niket Nishant in Bengaluru; Editing by Shounak Dasgupta)

 ((Niket.Nishant@thomsonreuters.com))