On August 17, 2026, Erie Indemnity Co
ERIE -3.22% 63
shares fell 3.2% to a current price of $247.75, within a 52-week range of $204.63 to $371.45. This decline comes amidst a challenging year, with shares down 12.1% year-to-date and 31.0% over the past year.
GF Value™ verdict: Current price at $247.75 is 32.1% below the GF Value™ estimate of $364.65.GF Score™: 63/100, indicating an Above Average rating.Notable signal: Insider activity shows a net buying of $1.3M over the past 12 months.Is ERIE Overvalued or Undervalued?According to GuruFocus, the GF Value™ estimate for Erie Indemnity Co is $364.65, suggesting that the stock is currently undervalued by 32.1%. This intrinsic value estimate is derived from a combination of historical trading multiples, past business growth, and future performance forecasts. The margin of safety provided by the significant difference between the current price and GF Value™ presents an attractive opportunity for potential investors, although caution is warranted due to recent price declines.
The GF Valuation label classifies ERIE as significantly undervalued, which should prompt further investigation into the company's fundamentals, particularly concerning dividend sustainability and growth potential. While the current undervaluation may present buy opportunities for some, potential buyers should consider the company's recent performance trends and the broader market conditions that could affect future performance.
How Does ERIE's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)22.4x35.7xForward P/E19.7xN/AErie Indemnity Co's current P/E ratio of 22.4x is significantly below its 5-year median P/E of 35.7x, indicating that the stock is trading at a discount compared to its historical valuation. This analysis aligns with the GF Value™ assessment of the stock being undervalued, reinforcing the notion that there may be an opportunity for investors looking for value in the insurance sector.
What Does ERIE's GF Score™ Tell Us?The GF Score™ serves as a comprehensive measure of a company's financial health, performance, and valuation. Erie Indemnity Co has a GF Score™ of 63/100, indicating an Above Average rating. The strongest sub-ranks are in Financial Strength (9/10) and Profitability (7/10), while the weakest areas are in Momentum (1/10) and Growth and Valuation (both 4/10).
MetricRatingGF Score™63Financial Strength9/10Profitability7/10Growth4/10Valuation4/10Momentum1/10The overall score suggests that Erie Indemnity Co has a solid financial foundation and profitability metrics, making it a relatively stable investment. However, the low momentum rank indicates that the stock has not experienced the same positive price trends recently, which may be a concern for investors seeking growth. Balancing these factors is essential when considering the company's future investment potential.
What Are Gurus and Insiders Doing with ERIE?Currently, four gurus hold shares of Erie Indemnity Co, with two increasing their positions and four trimming their holdings in recent quarters. This mixed sentiment among institutional investors may reflect differing opinions on the company's future performance. However, the insider activity indicates a net buying of $1.3M, suggesting that those closer to the company have confidence in its value and future prospects.
This pattern of insider buying relative to selling is a positive signal, often interpreted as a sign of confidence from management about the company's current valuation and future growth potential. Such insider transactions can provide valuable insights, as insiders may have access to information not yet reflected in the market price.
What This Means for InvestorsBased on the analysis above, Erie Indemnity Co appears to be undervalued according to the GF Value™ estimate, presenting a potential opportunity for investors looking for a solid dividend stock with a strong financial foundation. However, the company's low momentum and recent price declines warrant careful consideration of market conditions. For a deeper dive into Erie Indemnity Co and its valuation metrics, visit the Erie Indemnity Co
ERIE -3.22% 63
stock page and explore additional resources on the GF Value™ page.
Frequently Asked QuestionsWhat is ERIE's GF Score™?
ERIE's GF Score™ is 63/100, indicating an Above Average rating, reflecting its solid financial performance and stability.
Is ERIE overvalued or undervalued?
ERIE is currently undervalued, with the GF Value™ estimate of $364.65 suggesting a significant upside from the current price of $247.75.
What is ERIE's P/E ratio?
ERIE's P/E ratio (TTM) is 22.4x, which is 37% below its 5-year median P/E of 35.7x, indicating it is trading at a discount compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Release Date: July 31, 2026For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Erie Indemnity C
Erie Indemnity Company (ERIE) Q2 2026 Earnings Call July 31, 2026 10:00 AM EDT
Company Participants
Scott Beilharz - Vice President of Capital Management & Investor Relations
Timothy NeCastro - President & CEO
Julie Pelkowski - Executive VP & CFO
Presentation
Operator
Good morning, and welcome to the Erie Indemnity Company Second Quarter 2026 Earnings Conference Call. This call was prerecorded, and there will be no question-and-answer session following the recording.
And now I'd like to introduce your host for this call, Vice President of Investor Relations, Scott Beilharz. Please go ahead.
Scott Beilharz
Vice President of Capital Management & Investor Relations
Thank you, and welcome, everyone. We appreciate you joining us for this recorded discussion about our second quarter results. This recording will include remarks from Tim NeCastro, President and Chief Executive Officer; and Julie Pelkowski, Executive Vice President and Chief Financial Officer. Our earnings release and financial supplement were issued yesterday afternoon after the market closed and are available within the Investor Relations section of our website, erieinsurance.com.
Before we begin, I would like to remind everyone that today's discussion may contain forward-looking remarks that reflect the company's current views about future events. These remarks are based on assumptions subject to known and unexpected risks and uncertainties. These risks and uncertainties may cause results to differ materially from those described in these remarks. For information on important factors that may cause such differences, please see the safe harbor statements in our Form 10-Q filing with the SEC filed yesterday and in the related press release.
This prerecorded call is the property of Erie Indemnity Company. It may not be reproduced or rebroadcast by any other party without the prior written consent of Erie Indemnity Company.
Erie Indemnity has declined ~33% over the past year, underperforming insurance peers despite steady operational results and a unique, low-risk commission-based model. ERIE's revenue growth is capped by its 25% management fee, with premium growth slowing to ~3% and policy retention falling as premium inflation moderates. Operating margins remain stable, but incremental margin is pressured by sharply higher agent incentive compensation and slowing policy growth.
Erie Indemnity (ERIE - Free Report) came out with quarterly earnings of $3.45 per share, beating the Zacks Consensus Estimate of $3.35 per share. This compares to earnings of $3.34 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.99%. A quarter ago, it was expected that this insurance company would post earnings of $3.06 per share when it actually produced earnings of $2.88, delivering a surprise of -5.88%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Erie Indemnity, which belongs to the Zacks Insurance - Brokerage industry, posted revenues of $1.09 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.12%. This compares to year-ago revenues of $1.06 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Erie Indemnity shares have lost about 13.3% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for Erie Indemnity?While Erie Indemnity has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Erie Indemnity was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.46 on $1.09 billion in revenues for the coming quarter and $12.47 on $4.18 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Brokerage is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Oxbridge Re Holdings Limited (OXBR - Free Report) , is yet to report results for the quarter ended June 2026.
This company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +116%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Oxbridge Re Holdings Limited's revenues are expected to be $1.1 million, up 66.7% from the year-ago quarter.
Net Income per Diluted Share was $3.45 for the Quarter and $6.32 for the Six Months of 2026
, /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and six months ending June 30, 2026. Net income was $180.3 million, or $3.45 per diluted share, in the second quarter of 2026, compared to $174.7 million, or $3.34 per diluted share, in the second quarter of 2025. Net income was $330.8 million, or $6.32 per diluted share, in the first six months of 2026, compared to $313.1 million, or $5.99 per diluted share, in the first six months of 2025.
2Q and First Half 2026
(in thousands)
2Q'26
2Q'25
1H'26
1H'25
Operating income
$ 204,123
$ 199,173
$ 370,910
$ 350,549
Investment income
22,553
19,600
44,672
39,136
Other income
1,401
1,974
2,821
5,808
Income before income taxes
228,077
220,747
418,403
395,493
Income tax expense
47,783
46,062
87,635
82,391
Net income
$ 180,294
$ 174,685
$ 330,768
$ 313,102
2Q 2026 Highlights
Operating income before taxes increased $5.0 million, or 2.5 percent, in the second quarter of 2026 compared to the second quarter of 2025.
Management fee revenue - policy issuance and renewal services increased $39.0 million, or 4.7 percent, in the second quarter of 2026 compared to the second quarter of 2025. Management fee revenue - administrative services increased $1.3 million, or 7.2 percent, in the second quarter of 2026 compared to the second quarter of 2025. Cost of operations - policy issuance and renewal services Commissions increased $44.7 million in the second quarter of 2026, compared to the same period in 2025, primarily driven by an increase in agent incentive compensation and the growth in direct and affiliated assumed written premium. Non-commission expense decreased $8.8 million in the second quarter of 2026 compared to the second quarter of 2025. Personnel costs increased $3.0 million, primarily due to increased incentive compensation driven by stronger performance metrics and a smaller decrease in company stock price. This increase was partially offset by bonuses awarded to all employees in 2025 in recognition of our 100th anniversary. Sales and advertising decreased $1.7 million primarily due to a decrease in agent-related and advertising costs. Acquisition and underwriting support costs decreased $3.9 million primarily due to lower underwriting report and postage costs. Professional fees decreased $5.0 million primarily due to reduced use of third-party services related to technology initiatives. Administrative and other costs decreased $2.1 million primarily due to lower credit card processing fees and charitable contributions related to the transition of charitable giving through the Erie Insurance Foundation. Income from investments before taxes totaled $22.6 million in the second quarter of 2026 compared to $19.6 million in the second quarter of 2025. Net investment income was $22.6 million in the second quarter of 2026 compared to $20.0 million in the second quarter of 2025.
First Half 2026 Highlights
Operating income before taxes increased $20.4 million, or 5.8 percent, in the first six months of 2026 compared to the first six months of 2025.
Management fee revenue - policy issuance and renewal services increased $70.4 million, or 4.5 percent, in the first six months of 2026 compared to the first six months of 2025. Management fee revenue - administrative services increased $3.2 million, or 8.8 percent, in the first six months of 2026 compared to the first six months of 2025. Cost of operations - policy issuance and renewal services Commissions increased $72.7 million in the first six months of 2026 compared to the first six months of 2025, primarily driven by an increase in agent incentive compensation and the growth in direct and affiliated assumed written premium. Non-commission expense decreased $19.5 million for the six months ended June 30, 2026 compared to the same period in 2025. Personnel costs increased $5.1 million, primarily due to increased incentive compensation driven by stronger performance metrics, and higher base compensation. The increase is partially offset by bonuses awarded to all employees in 2025 in recognition of our 100th anniversary. Sales and advertising decreased $3.7 million primarily due to a decrease in agent-related and advertising costs. Acquisition and underwriting support costs decreased $5.7 million primarily due to lower underwriting report costs. Professional fees decreased $12.0 million primarily due to reduced use of third-party services related to technology initiatives. Administrative and other costs decreased $3.7 million primarily due to lower charitable contributions related to the transition of charitable giving through the Erie Insurance Foundation and a decrease in credit card processing fees. Income from investments before taxes totaled $44.7 million in the first six months of 2026 compared to $39.1 million in the first six months of 2025. Net investment income was $46.1 million in the first six months of 2026 compared to $40.0 million in the first six months of 2025. Net realized and unrealized losses were $0.2 million in the first six months of 2026 compared to gains of $1.0 million in the first six months of 2025. Net impairment losses recognized in earnings were $1.3 million in the first six months of 2026 compared to $1.8 million in the first six months of 2025.
Webcast Information
Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on July 31, 2026. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.
Erie Insurance Group
Erie Insurance Group, based in Erie, Pennsylvania, is the 10th largest homeowners insurer, 11th largest automobile insurer, and 9th largest commercial lines insurer in the United States based on direct premiums written, according to AM Best Company. Founded in 1925, Erie Insurance is a Fortune 500 company and the 16th largest property/casualty insurer in the United States based on net premiums written. Rated A (Excellent) by AM Best, ERIE has nearly seven 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:
dependence upon our relationship with the Erie Insurance Exchange ("Exchange") and the management fee under the agreement with the subscribers at the Exchange; dependence upon our relationship with the Exchange and the growth of the Exchange, including: general business and economic conditions; factors impacting the timing of premium rates charged for policies; factors affecting insurance industry competition, including technological innovations; dependence upon the independent agency system; and ability to maintain our brand, including our reputation for customer service; dependence upon our relationship with the Exchange and the financial condition of the Exchange, including: the Exchange's ability to maintain acceptable financial strength ratings; factors affecting the quality and liquidity of the Exchange's investment portfolio; changes in government regulation of the insurance industry; litigation and regulatory actions; emergence of significant unexpected events, including pandemics, economic or social inflation, and changes in tariff policies; emerging claims and coverage issues in the industry; and severe weather conditions or other catastrophic losses, including terrorism; costs of providing policy issuance and renewal services to the subscribers at the Exchange under the subscriber's agreement; ability to attract, develop, retain, and protect talented management and employees; ability to ensure system availability and effectively manage technology initiatives; difficulties with technology, data or network security breaches, including cyber attacks; ability to maintain uninterrupted business operations; compliance with complex and evolving laws and regulations and outcome of pending and potential litigation; factors affecting the quality and liquidity of our investment portfolio; and 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.
Erie Indemnity Company
Consolidated Statements of Operations
(dollars in thousands, except per share data)
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
(Unaudited)
(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services
$ 862,879
$ 823,853
$ 1,649,278
$ 1,578,902
Management fee revenue - administrative services
19,619
18,296
39,094
35,941
Administrative services reimbursement revenue
201,554
212,644
401,650
422,917
Service agreement revenue
5,744
5,304
11,685
11,736
Total operating revenue
1,089,796
1,060,097
2,101,707
2,049,496
Operating expenses
Cost of operations - policy issuance and renewal services
684,119
648,280
1,329,147
1,276,030
Cost of operations - administrative services
201,554
212,644
401,650
422,917
Total operating expenses
885,673
860,924
1,730,797
1,698,947
Operating income
204,123
199,173
370,910
350,549
Investment income
Net investment income
22,587
20,030
46,147
39,978
Net realized and unrealized investment gains (losses)
557
479
(208)
981
Net impairment losses recognized in earnings
(591)
(909)
(1,267)
(1,823)
Total investment income
22,553
19,600
44,672
39,136
Other income
1,401
1,974
2,821
5,808
Income before income taxes
228,077
220,747
418,403
395,493
Income tax expense
47,783
46,062
87,635
82,391
Net income
$ 180,294
$ 174,685
$ 330,768
$ 313,102
Net income per share
Class A common stock – basic
$ 3.87
$ 3.75
$ 7.10
$ 6.72
Class A common stock – diluted
$ 3.45
$ 3.34
$ 6.32
$ 5.99
Class B common stock – basic and diluted
$ 581
$ 563
$ 1,065
$ 1,008
Weighted average shares outstanding – Basic
Class A common stock
46,189,033
46,189,063
46,188,942
46,188,984
Class B common stock
2,542
2,542
2,542
2,542
Weighted average shares outstanding – Diluted
Class A common stock
52,298,697
52,304,407
52,299,440
52,304,397
Class B common stock
2,542
2,542
2,542
2,542
Dividends declared per share
Class A common stock
$ 1.4625
$ 1.365
$ 2.925
$ 2.73
Class B common stock
$ 219.375
$ 204.75
$ 438.75
$ 409.50
Erie Indemnity Company
Consolidated Statements of Financial Position
(in thousands)
June 30,
2026
December 31,
2025
(Unaudited)
Assets
Current assets:
Cash and cash equivalents (includes restricted cash of $39,608 and $30,189, respectively)
$ 282,902
$ 345,874
Available-for-sale securities
61,715
33,902
Available-for-sale securities lent
1,973
3,436
Receivables from Erie Insurance Exchange and affiliates, net
On July 24, 2026, Erie Indemnity Co (ERIE) shares rose 4.2%, closing at $223.55. This price movement occurs within a 52-week range of $204.63 to $380.67, highli
On July 21, 2026, Erie Indemnity Co (ERIE) shares fell 4.1% today, reaching a current price of $215.82. This decline is part of a broader trend, with the stock
Erie Indemnity (ERIE) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
, /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) will host a pre-recorded audio webcast with the financial community providing financial results for the second quarter 2026 on Friday, July 31st, at 10 a.m. Eastern Time. Erie Indemnity will issue a press release reporting its results after the close of the market on Thursday, July 30th.
The pre-recorded audio will be available on the company's Investor Relations website at www.erieinsurance.com/investors
To access the pre-recorded audio via phone, please go to this link (registration link), and you will be provided details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.
To automatically receive Erie Indemnity financial news by email, please visit www.erieinsurance.com and subscribe to email alerts.
About Erie Insurance
Erie Insurance Group, based in Erie, Pennsylvania, is the 10th largest homeowners insurer, 11th largest automobile insurer and 9th largest commercial lines insurer in the United States based on direct premiums written, according to AM Best Company. Founded in 1925, Erie Insurance is a Fortune 500 company and the 16th largest property/casualty insurer in the United States based on net premiums written. Rated A (Excellent) by AM Best, ERIE has nearly seven 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
Negativní sentiment se před koncem obchodní seance ještě více prohloubil. Může za to silný pokles technologického giganta Google, u kterého přišla zpráva, že je v několikaměsíčním zpoždění s vydáním nové vlajkové AI verze Geminy Pro 3.5. V prostředí velké konkurence to může mít neblahý efekt ztráty poptávky. Akcie Alphabet končí silnou ztrátou –4,43 %.
Nevalný výsledek zažil i čipový sektor, kde velkou váhu poklesu má na svědomí Micron -5,65 % či AMD -5,33 %.
Oproti tomu se dařilo defenzivním sektorům spotřebního zboží či služeb. McDonald přidal slušných +3,04 %, PepsiCo též +2,97 % a například kartová asociace Mastercard +3,04 %.
Ropa WTI stále mírně ztrácela -0,75 %. Negativní vývoj na burze tedy dnes nebyl ovlivněn negativní geopolitickou situací.
Index Dow Jones -0,2 % na 52553,62 b.
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Jan Pazourek, Fio banka, a.s.
Dividend Aristocrats, tracked via NOBL, outperformed SPY YTD despite a sharp March pullback, with 44 Aristocrats beating SPY and 17 posting double-digit gains. Momentum, valuation (via dividend yield theory), and projected long-term total return now guide Aristocrat selection, with 39 currently screening as undervalued and offering ≥10% expected annualized returns. Recent dividend increases from CL, GD, LIN, and O bring the 2026 average Aristocrat dividend growth rate to 3.40%, with Realty Income expected to announce further hikes throughout the year.
, /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) will host a pre-recorded audio webcast with the financial community providing financial results for the first quarter 2026 on Friday, April 24th, at 10 a.m. Eastern Time. Erie Indemnity will issue a press release reporting its results after the close of the market on Thursday, April 23rd.
The pre-recorded audio will be available on the company's Investor Relations website at www.erieinsurance.com/investors
To access the pre-recorded audio via phone, please go to this link (registration link), and you will be provided details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.
To automatically receive Erie Indemnity financial news by email, please visit www.erieinsurance.com and subscribe to email alerts.
About Erie Insurance
Erie Insurance Group, based in Erie, Pennsylvania, is the 11th largest homeowners insurer, 12th largest automobile insurer and 10th largest commercial lines insurer in the United States based on direct premiums written, according to AM Best Company. Founded in 1925, Erie Insurance is a Fortune 500 company and the 16th largest property/casualty insurer in the United States based on net premiums written. Rated A (Excellent) by AM Best, ERIE has nearly seven 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
On April 14, 2026, Erie Indemnity Co ERIE shares fell 4.5% today, bringing the current price to $249.43. Over the past 52 weeks, the stock has traded between $233.82 and $434.00, reflecting significant volatility in its pricing.
GF Value™ verdict: 35.3% undervalued, with a fair value estimated at $385.37.GF Score™ of 72/100 indicates the stock is rated as above average in terms of its investment potential.Financial Strength rating of 9/10 highlights the company's solid financial foundation. Is ERIE Overvalued or Undervalued? Currently, Erie Indemnity Co's stock price of $249.43 is significantly below the GF Value™ estimate of $385.37, suggesting that the stock is undervalued by approximately 35.3%. This margin of safety presents a compelling opportunity for investors who seek value stocks. According to the GF Valuation label, Erie Indemnity Co is categorized as significantly undervalued, indicating that the current market price does not reflect the intrinsic value of the company based on its fundamentals.
However, it is important to approach this opportunity with caution. While undervaluation may signal a potential for price appreciation, investors should consider the company's recent performance, including a year-to-date decline of 12% and a substantial 40% drop over the past year. These results could be reflective of broader market conditions or company-specific challenges that warrant further investigation.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does ERIE's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 23.3x 35.9x Forward P/E 18.5x - Erie Indemnity Co's current P/E ratio of 23.3x is significantly below its 5-year median P/E of 35.9x, indicating that the stock is trading at a lower valuation than its historical average. The forward P/E of 18.5x further suggests that the market anticipates improved earnings in the future. This P/E analysis aligns with the GF Value™ verdict of undervaluation, reinforcing the notion that the stock may have room for growth compared to its historical pricing metrics.
What Does ERIE's GF Score™ Tell Us? Metric Rating GF Score™ 72/100 Financial Strength 9/10 Profitability 8/10 Growth 4/10 Valuation 4/10 Momentum 2/10 The GF Score™ provides a comprehensive view of Erie Indemnity Co's overall investment quality. With a score of 72/100, the company ranks above average, particularly in Financial Strength (9/10) and Profitability (8/10), indicating a robust financial position and effective operations. However, the Growth (4/10) and Momentum (2/10) scores suggest that the company may face challenges in expanding its earnings and maintaining upward price momentum, which could be a concern for growth-oriented investors.
What Are Insiders Doing with ERIE Stock? Over the last three months, there have been no insider transactions reported for Erie Indemnity Co. This lack of activity may suggest that insiders do not perceive an immediate need to buy or sell shares, potentially indicating confidence in the company's long-term outlook. However, the absence of insider buying may also raise questions about the company's recent performance and future prospects from those closest to its operations.
What This Means for Investors Based on the analysis of GF Value™, Erie Indemnity Co appears to be undervalued at its current price of $249.43, with a significant margin of safety of 35.3%. While this presents an opportunity for potential appreciation, investors should also consider the recent performance trends and the company's growth prospects before making decisions.
For the complete analysis, visit the Erie Indemnity Co ERIE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ERIE's GF Score™?
ERIE's GF Score™ is 72/100, indicating that the stock ranks above average in terms of its investment potential based on key financial metrics.
Is ERIE overvalued or undervalued?
ERIE is currently undervalued, with a GF Value™ estimate of $385.37 compared to its current price of $249.43, representing a 35.3% margin of safety.
What is ERIE's P/E ratio?
ERIE's P/E ratio is 23.3x, which is significantly below its 5-year median P/E of 35.9x, indicating that the stock is trading at a lower valuation than its historical average.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Net Income was $150.5 million, Earnings per Diluted Share was $2.88
, /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter ending March 31, 2026. Net income was $150.5 million, or $2.88 per diluted share, in the first quarter of 2026, compared to $138.4 million, or $2.65 per diluted share, in the first quarter of 2025.
1Q 2026
(in thousands)
1Q'26
1Q'25
Operating income
$ 166,787
$ 151,376
Investment income
22,119
19,536
Other income
1,420
3,834
Income before income taxes
190,326
174,746
Income tax expense
39,852
36,329
Net income
$ 150,474
$ 138,417
1Q 2026 Highlights
Operating income before taxes increased $15.4 million, or 10.2 percent, in the first quarter of 2026 compared to the first quarter of 2025.
Management fee revenue - policy issuance and renewal services increased $31.4 million, or 4.2 percent, in the first quarter of 2026 compared to the first quarter of 2025. Management fee revenue - administrative services increased $1.8 million, or 10.4 percent, in the first quarter of 2026 compared to the first quarter of 2025. Cost of operations - policy issuance and renewal services Commissions increased $28.0 million in the first quarter of 2026, compared to the same period in 2025, primarily driven by an increase in agent incentive compensation and the growth in direct and affiliated assumed written premium. Non-commission expense decreased $10.7 million in the first quarter of 2026 compared to the first quarter of 2025. Personnel costs increased $2.1 million, primarily driven by higher pension costs and increased compensation. Sales and advertising decreased $2.0 million primarily due to a decrease in advertising costs and community development initiative costs. Acquisition and underwriting support costs decreased $1.9 million primarily due to lower underwriting report costs. Professional fees decreased $7.0 million primarily due to reduced use of third-party services related to technology initiatives. Administrative and other costs decreased $1.6 million primarily due to lower charitable contributions related to the transition of charitable giving through the Erie Insurance Foundation, partially offset by an increase in credit card processing fees. Income from investments before taxes totaled $22.1 million in the first quarter of 2026 compared to $19.5 million in the first quarter of 2025. Net investment income was $23.6 million in the first quarter of 2026 compared to $19.9 million in the first quarter of 2025. Net realized and unrealized losses were $0.8 million in the first quarter of 2026 compared to gains of $0.5 million in the first quarter of 2025.
Webcast Information
Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on April 24, 2026. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.
Erie Insurance Group
Erie Insurance Group, based in Erie, Pennsylvania, is the 11th largest homeowners insurer, 12th largest automobile insurer and 10th largest commercial lines insurer in the United States based on direct premiums written, according to AM Best Company. Founded in 1925, Erie Insurance is a Fortune 500 company and the 16th largest property/casualty insurer in the United States based on net premiums written. Rated A (Excellent) by AM Best, ERIE has nearly seven 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:
dependence upon our relationship with the Erie Insurance Exchange ("Exchange") and the management fee under the agreement with the subscribers at the Exchange; dependence upon our relationship with the Exchange and the growth of the Exchange, including: general business and economic conditions; factors impacting the timing of premium rates charged for policies; factors affecting insurance industry competition, including technological innovations; dependence upon the independent agency system; and ability to maintain our brand, including our reputation for customer service; dependence upon our relationship with the Exchange and the financial condition of the Exchange, including: the Exchange's ability to maintain acceptable financial strength ratings; factors affecting the quality and liquidity of the Exchange's investment portfolio; changes in government regulation of the insurance industry; litigation and regulatory actions; emergence of significant unexpected events, including pandemics, economic or social inflation, and changes in tariff policies; emerging claims and coverage issues in the industry; and severe weather conditions or other catastrophic losses, including terrorism; costs of providing policy issuance and renewal services to the subscribers at the Exchange under the subscriber's agreement; ability to attract, develop, retain, and protect talented management and employees; ability to ensure system availability and effectively manage technology initiatives; difficulties with technology, data or network security breaches, including cyber attacks; ability to maintain uninterrupted business operations; compliance with complex and evolving laws and regulations and outcome of pending and potential litigation; factors affecting the quality and liquidity of our investment portfolio; and 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.
Erie Indemnity Company
Consolidated Statements of Operations
(dollars in thousands, except per share data)
Three months ended March 31,
2026
2025
(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services
$ 786,399
$ 755,049
Management fee revenue - administrative services
19,475
17,645
Administrative services reimbursement revenue
200,096
210,273
Service agreement revenue
5,941
6,432
Total operating revenue
1,011,911
989,399
Operating expenses
Cost of operations - policy issuance and renewal services
645,028
627,750
Cost of operations - administrative services
200,096
210,273
Total operating expenses
845,124
838,023
Operating income
166,787
151,376
Investment income
Net investment income
23,560
19,948
Net realized and unrealized investment (losses) gains
(765)
502
Net impairment losses recognized in earnings
(676)
(914)
Total investment income
22,119
19,536
Other income
1,420
3,834
Income before income taxes
190,326
174,746
Income tax expense
39,852
36,329
Net income
$ 150,474
$ 138,417
Net income per share
Class A common stock – basic
$ 3.23
$ 2.97
Class A common stock – diluted
$ 2.88
$ 2.65
Class B common stock – basic and diluted
$ 485
$ 446
Weighted average shares outstanding – Basic
Class A common stock
46,188,850
46,188,903
Class B common stock
2,542
2,542
Weighted average shares outstanding – Diluted
Class A common stock
52,300,180
52,304,384
Class B common stock
2,542
2,542
Dividends declared per share
Class A common stock
$ 1.4625
$ 1.365
Class B common stock
$ 219.375
$ 204.75
Erie Indemnity Company
Consolidated Statements of Financial Position
(in thousands)
March 31, 2026
December 31, 2025
(Unaudited)
Assets
Current assets:
Cash and cash equivalents (includes restricted cash of $39,549 and $30,189, respectively)
$ 268,616
$ 345,874
Available-for-sale securities
53,995
33,902
Available-for-sale securities lent
870
3,436
Receivables from Erie Insurance Exchange and affiliates, net
Erie Indemnity Co (ERIE) Q1 2026 Earnings Call Highlights: Strong Financial Performance Amid Competitive Market Erie Indemnity Co (ERIE) reports improved underwriting performance and net income growth, despite challenges in premium growth and customer retention.
Release Date: April 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Erie Indemnity Co ERIE experienced significantly lower catastrophe and weather-related losses in the first quarter of 2026, improving underwriting performance.The company's combined ratio improved to 99.4% in Q1 2026 from 108.1% in Q1 2025, driven by better rate adequacy and reduced catastrophe losses.Net income increased to nearly $151 million or $2.88 per diluted share in Q1 2026, compared to $138 million or $2.65 per diluted share in Q1 2025.Management fee revenue for policy issuance and renewal services grew by approximately 4.2%, aligning with the increase in direct written premiums.Erie Indemnity Co (ERIE) is actively expanding its product offerings, such as Erie Secure Auto and Business Auto 2.0, into new states, enhancing growth opportunities. Negative Points Direct written premium growth slowed to 3.6% in Q1 2026 compared to 13.9% in Q1 2025, reflecting a more competitive market environment.Policies in force decreased by 1.7% from the previous year, and retention declined to 88%, indicating challenges in maintaining customer base.Higher premiums are impacting customer behavior, making growth challenging despite improved pricing adequacy.Commission expenses increased by 6.4% due to higher agent incentive compensation and base commissions, impacting overall cost structure.Noncommission expenses decreased by 5.6%, but personnel costs rose due to higher pension costs and increased compensation, affecting expense management. Q & A Highlights Q: Can you provide an overview of the recent changes to the Board of Directors at Erie Indemnity Co?
A: Timothy Necastro, President and CEO, announced that Tom Hagen has stepped down as Chairman after over 20 years, with Jonathan Hirt Hagen elected as the new Chairman. William Edwards has joined the Board, and the company mourns the passing of long-time Board member George Lucore.
Q: How did Erie Indemnity Co perform financially in the first quarter of 2026 compared to the previous year?
A: Julie Pelkowski, CFO, reported that net income was nearly $151 million, up from $138 million in Q1 2025. Operating income increased by approximately 10%, and the combined ratio improved to 99.4% from 108.1% due to lower catastrophe losses and improved rate adequacy.
Q: What were the key drivers behind the improved combined ratio in Q1 2026?
A: Julie Pelkowski explained that the improvement was driven by a reduction in non-catastrophe losses and a significant decrease in catastrophe losses compared to the previous year, which included the costliest weather event in the company's history.
Q: What strategic initiatives is Erie Indemnity Co focusing on for future growth?
A: Timothy Necastro highlighted the rollout of Erie Secure Auto and Business Auto 2.0, as well as the introduction of a new online quote platform to enhance customer and agent experiences. The company is also modernizing technology platforms and integrating AI to improve operational efficiency.
Q: How is Erie Indemnity Co leveraging artificial intelligence within the organization?
A: Timothy Necastro stated that AI is being used to improve workflows, such as preparing subrogation cases and reducing backlogs. The focus is on enhancing employee performance rather than replacing jobs, with AI strengthening the human touch in operations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Erie Indemnity Company faces slowing premium growth, with Q1 2026 direct written premiums up only 3.6% and policy count down 1.7%. Aggressive price hikes have pressured customer retention (down to 88%) and led to a shrinking client base, challenging ERIE's commission-driven model. Shares trade at a 21.5x P/E, well above sector averages but 30% below ERIE's five-year historical premium, reflecting market doubts on future growth.
On May 18, 2026, Erie Indemnity Co ERIE shares saw a positive movement, rising 4.0% to a current price of $221.51. This performance comes after a challenging period, with a 52-week range spanning from a low of $210.07 to a high of $380.67.
GF Value™ verdict: The current price is $221.51, which is 38.5% below the GF Value™ estimate of $360.45.GF Score™: 64/100, indicating an above-average potential for long-term returns.Most notable signal: Financial Strength is rated 9/10, suggesting a robust balance sheet. Is ERIE Overvalued or Undervalued? Based on the current price of $221.51, Erie Indemnity Co appears significantly undervalued when compared to the GF Value™ of $360.45. This provides a margin of safety of 38.5%, indicating that the stock could be a favorable opportunity for those looking for undervalued assets in the insurance sector. The GF Valuation label classifies ERIE as "Significantly Undervalued," which suggests that the market may not be fully reflecting the company's intrinsic value at this time.
Despite the company's financial strength and growth prospects, investors should consider the risks associated with potential volatility and the stock's recent performance, which has seen a year-to-date decline of 21.9% and a one-year decrease of 39.6%. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does ERIE's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)20.3x35.7x (5-Year Median) Forward P/E17.8x Currently, ERIE's P/E (TTM) of 20.3x is significantly below its 5-year median P/E of 35.7x and also lower than its forward P/E of 17.8x. This analysis aligns with the GF Value™ verdict, indicating that the stock is trading at a valuation that is well below its historical averages, further supporting the notion that ERIE is undervalued at its current price.
What Does ERIE's GF Score™ Tell Us? MetricRating GF Score™64 Financial Strength9/10 Profitability7/10 Growth4/10 Valuation4/10 Momentum1/10 The GF Score™ of 64/100 suggests that Erie Indemnity Co is positioned above average in terms of long-term return potential. The strongest area is Financial Strength, rated 9/10, indicating a solid balance sheet and low debt levels. However, the weakest aspect is Momentum, rated at 1/10, which shows that the stock has not performed well in the near term, reflecting recent negative trends in price performance.
What Are Insiders Doing with ERIE Stock? In the last three months, insiders have sold $0.1 million worth of ERIE stock, with no reported buying activity. This pattern may suggest a level of caution among insiders, potentially reflecting their sentiment about the company's short-term prospects or market conditions. However, the lack of significant insider buying may also indicate a wait-and-see approach rather than a strong bearish outlook.
What This Means for Investors Based on the GF Value™ assessment, Erie Indemnity Co ERIE appears significantly undervalued. While the company's financial strength and low relative P/E ratios present a compelling case for potential growth, the current market sentiment and recent stock performance may warrant careful consideration.
For the complete analysis, visit the Erie Indemnity Co ERIE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ERIE's GF Score™?
ERIE's GF Score™ is 64/100, indicating an above-average potential for long-term returns based on various financial metrics.
Is ERIE overvalued or undervalued?
ERIE is currently undervalued, with a GF Value™ of $360.45 compared to its current price of $221.51, representing a 38.5% margin of safety.
What is ERIE's P/E ratio?
ERIE's P/E ratio is 20.3x, which is 43% below its 5-year median of 35.7x, indicating that the stock is trading at a lower valuation compared to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
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