Key highlights from Erie’s earnings call

Erie Insurance hosted its Q1 2024 earnings call on April 26, 2024, marking the company’s 99th anniversary. Founded in 1925 by H.O. Hirt and O.G. Crawford, Erie initially brought in less than $30,000 in net premiums. Here are the key highlights nowadays:​

Financial Performance

• Net income was $124.6 million, or $2.38 per diluted share, in the first quarter of 2024, compared to $86.2 million, or $1.65 per diluted share, in the first quarter of 2023.
• Business has grown to over $10 billion in premiums and nearly 7 million policies, covering 12 states and DC. They have over 6,500 employees and more than 14,000 independent agents.
• Improved Combined Ratio: 106% compared to 122.7% in Q1 2023.
• Premium Growth: Direct and assumed written premium increased by 19%.
• Policy Growth: Total policies in force grew by 7.1%.
• Policy Retention: Maintained a solid policy retention ratio of 91.2%.

Technology and Innovation

• Migrating legacy technology platforms has been a top priority and remains so in 2024.
• Erie has successfully modernized over one-third of legacy applications and are working to phase out older systems.
• These upgrades are directly linked to their expense management strategy, aiming to eliminate inefficiencies and delays from outdated systems.
• Modernization has improved the best review method of inspection for claims, reducing cycle times.
• Previously, the best review process caused delays due to a lack of data integration.
• Now, agents and customers can use the Photo Appraisal tool and Direct Repair Program (DRP) shops, speeding up claims processing by days.

HR

• Hybrid employees, comprising about 60% of the workforce, now have 52 remote workdays per year.