ERIE INDEMNITY CO (ERIE)

Price—Loading quote

AI: Fair-priced

Price checkAt $255.90, Erie looks fairly priced for a durable business whose growth is slowing.

That August 14 intraday quote equals about 23.2 times trailing diluted earnings of roughly $11.02 per share. It is also about 24.2 times trailing free cash flow of $553 million; free cash flow means cash left after operations and property or equipment spending. The annualized $5.85 dividend yields 2.3%. An illustrative model using an 8% required return and 3% lasting growth needs roughly 6%–7% yearly cash-flow growth for five years. That seems possible, but not cheap, supporting Fair-priced.

Big pictureGrowth remains durable, though recent cash generation and earnings gains have become less even.

Revenue climbed from $2.54 billion in 2020 to $4.07 billion in 2025, while operating income more than doubled from $338 million to $717 million. Reported 2025 profit fell 6.8% to $559 million, but a one-time foundation contribution reduced it by $80.6 million after tax. Free cash flow stayed positive throughout the six-year history and reached $571 million in 2025. However, first-half 2026 free cash flow slipped 7% to $228 million even as net income rose 5.6%, showing that cash growth is not automatic.

Business strengthA debt-free balance sheet and stable share count protect each shareholder’s claim.

At June 2026, Erie reported $283 million of cash, roughly $1.61 billion of marketable securities and no borrowings, against $1.09 billion of total liabilities. Assets due within a year were $1.21 billion versus $968 million of liabilities due within a year. Basic Class A shares remained almost unchanged at 46.189 million, while the equivalent diluted count edged down to 52.299 million. First-half dividends totaled $136 million, about 41% of profit; share purchases mainly supplied employee awards rather than materially reducing the share count.

What could change the storyThe price works if policy counts stabilize and fee growth stays near current levels.

The strongest bull case is continued premium growth at Erie Insurance Exchange plus expense discipline. Second-quarter issuance-and-renewal fee revenue rose 4.7%, while the Exchange’s loss-and-expense measure improved to 103.9% from 116.9%; above 100% still means an underwriting loss. Its surplus reached about $10.7 billion, supporting resilience. The bear case is that 3.3% premium growth depended on a 6.8% price increase while policies fell 2%, and commissions rose $44.7 million. Stabilizing policy counts would justify today’s roughly 23-times earnings price; continued shrinkage would not.

$255.90 price considered

AI: News

Second-quarter growth coolsSecond-quarter profit rose, but faster commissions limited operating growth despite higher management fees.

On July 30, 2026, Erie reported second-quarter net income of $180.3 million, or $3.45 per diluted share, up from $174.7 million and $3.34. Management-fee revenue for issuing and renewing policies rose 4.7%, yet operating income increased only 2.5% because commissions climbed $44.7 million. The following session closed 3.6% higher at $242.04 versus $233.67 before the release; that timing is consistent with a favorable response, but does not prove causation.

Charitable gift clouds earningsThe one-time foundation gift depressed reported profit while underlying operating income still advanced.

On February 23, 2026, Erie reported 2025 net income of $559.3 million, or $10.69 per diluted share, down from $600.3 million and $11.48 in 2024. A $100 million contribution to the new Erie Insurance Foundation cut after-tax income by $80.6 million, or $1.54 per share, while operating income still rose 6.0%. The charge was unusual, but the cash left shareholders and raised a capital-allocation question.

Dividend rises againThe board raised the regular dividend while keeping Erie’s key fee rate at its ceiling.

On December 11, 2025, Erie disclosed a board decision made December 9 to lift the quarterly Class A dividend 7.1%, from $1.365 to $1.4625 per share. The board also kept the 2026 management fee at 25%, the contract’s maximum. The dividend increased cash returns, while the fee decision preserved current economics; because the rate cannot rise further, future fee growth must mainly come from higher Exchange premiums.

Revenue

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2018

2019

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2021

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2025

Total cash / debt

CashTotal debt

2018

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2020

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2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$4.07B	$3.80B	$3.27B	$2.84B	$2.63B	$2.54B	$2.48B	$2.38B	$1.69B	$1.60B	$1.51B	$1.41B	$1.30B	$5.51B	$4.82B	$4.89B	$4.25B	$2.65B
Operating expenses	$3.35B	$3.12B	$2.75B	$2.46B	$2.32B	$2.20B	$2.12B	$2.04B	$1.40B	$1.30B	$1.27B	$1.18B	$1.09B	—	—	—	—	—
Operating income	$717.2M	$676.5M	$520.3M	$376.2M	$318.1M	$338.2M	$357.3M	$344.3M	$290.3M	$293.5M	$232.5M	$222.8M	$209.3M	—	—	—	—	—
EBITDAderived	$786.6M	$733.0M	$567.7M	$422.1M	$355.3M	$359.4M	$374.1M	$357.7M	$305.1M	$308.6M	$248.4M	$238.5M	$224.3M	—	—	—	—	—
Net income	$559.3M	$600.3M	$446.1M	$298.6M	$297.9M	$293.3M	$316.8M	$288.2M	$197.0M	$210.4M	$174.7M	$167.5M	$162.6M	$160.0M	$169.0M	$162.0M	$108.0M	$69.0M

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys3$1.43M disclosed value

Sells (SEC code S)3$570.5K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 2, 2026Form 4	Vorsheck Elizabeth ADirector,TenPercentOwner	BuyClass A Common Stock · indirect	4.0K	$200.00	$800.0K	3.00M
Jun 2, 2026Form 4	Vorsheck Elizabeth ADirector,TenPercentOwner	BuyClass A Common Stock · indirect	1.0K	$211.50	$211.5K	267.1K
Jun 2, 2026Form 4	Vorsheck Elizabeth ADirector,TenPercentOwner	BuyClass A Common Stock · indirect	2.0K	$211.00	$422.0K	266.1K
May 8, 2026Form 4	DaBreo AnthonySenior Vice President, Life	SellClass A Common Stock	465	$217.10	$101.0K	909.05
Aug 27, 2024Form 4	HARTZ CHARLES SCOTTDirector	SellClass A Common Stock · indirect	500	$485.83	$242.9K	1.1K

Review ownership filings at SEC.gov ↗

ERIE INDEMNITY CO (ERIE)

Financial charts

Financial statements

Insider buys & sells