-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RS2a9ZqOBPf7X9hL/aTFY4ZXynvlQJlIuqOkGwdqqD7Yi+XLxoPHU6wPR9x0eSsB Ej+H80indFSSmp2DgjRCjA== 0000922621-03-000018.txt : 20031029 0000922621-03-000018.hdr.sgml : 20031029 20031029162807 ACCESSION NUMBER: 0000922621-03-000018 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031029 ITEM INFORMATION: FILED AS OF DATE: 20031029 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ERIE INDEMNITY CO CENTRAL INDEX KEY: 0000922621 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 250466020 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24000 FILM NUMBER: 03964084 BUSINESS ADDRESS: STREET 1: 100 ERIE INSURANCE PL CITY: ERIE STATE: PA ZIP: 16530 BUSINESS PHONE: 8148702000 MAIL ADDRESS: STREET 1: 100 ERIE INSURANCE PLACE CITY: ERIE STATE: PA ZIP: 16530 8-K 1 a8k1029.txt PRESS RELEASE ISSUED OCTOBER 29, 2003 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 29, 2003 ERIE INDEMNITY COMPANY (Exact name of registrant as specified in its charter) PENNSYLVANIA 0-24000 25-0466020 ------------------------------- ------------- ------------------- (State or other jurisdiction of (Commission (I.R.S. Employer incorporation) File Number) Identification No.) 100 Erie Insurance Place, Erie, Pennsylvania 16530 - -------------------------------------------- ---------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (814) 870-2000 1 Item 12. Results of Operations and Financial Condition" On October 29, 2003, Erie Indemnity Company issued a press release announcing financial results for the quarter ended September 30, 2003. A copy of this press release is attached hereto and is incorporated herein by reference as Exhibit 99.1. On October 30, 2003 at 11 a.m. Erie Indemnity Company will hold a telephone conference call that will be webcast and that is complimentary to the press release announcing financial results for the quarter ended September 30, 2003. Exhibit Number Description - -------------- ----------- 99.1 Press release dated October 29, 2003 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ERIE INDEMNITY COMPANY Erie Indemnity Company ------------------------------ (Registrant) Date: October 29, 2003 /s/ Philip A. Garcia ------------------------------- (Philip A. Garcia, Executive Vice President & CFO) 3 EX-99 3 exh99-1.txt PRESS RELEASE, FINANCIALS AND SUPPLEMENTS EXHIBIT 99.1 ERIE INDEMNITY REPORTS SOLID THIRD QUARTER EARNINGS Erie, Pa., October 29, 2003 - Erie Indemnity Company (Nasdaq: ERIE) today announced results for the third quarter 2003, including the following highlighted information: o Net income increased by 21.8 percent to $56.2 million, up from $46.2 million at September 30, 2002 o Net income per share increased by 21.9 percent to $.79 per share, compared to $.65 per share in the comparable quarter for 2002. o Net income, excluding net realized gains or losses on investments and related federal income taxes, increased by 12.8 percent to $55.0 million, or $.78 per share, up from $48.8 million, or $.69 per share, for the same period one year ago. o Management fee revenue grew by 10.8 percent to $231.7 million, up from $209.1 million for the same period one year ago. "We are pleased with Erie Indemnity Company's solid financial performance in the third quarter," said Jeffrey A. Ludrof, president and chief executive officer. "While we maintain our focus on initiatives designed to improve our underwriting profitability, we continue to benefit from the dedication and support of our employees and independent agency force. Their efforts continue to produce favorable policyholder retention." "An unfortunately large number of claims related to severe weather events masked the progress we are making with improving our underwriting results," Mr. Ludrof noted. "Catastrophe losses were high for the entire insurance industry during the quarter. Hurricane Isabel was particularly devastating for a large number of our policyholders, and many others suffered losses due to wind and hailstorms in western Pennsylvania. Despite these setbacks, we are making progress toward our goals." Mr. Ludrof added: "We continue to experience solid premium growth, primarily due to rate increases and a retention ratio of over 90 percent." Details of Third Quarter 2003 Results - ------------------------------------- Management operations - --------------------- Management fee revenue increased by 10.8 percent to $231.7 million for the quarter ended September 30, 2003, compared to $209.1 million for the same period one year ago. Management fee revenue continued to grow at a slower rate than the growth in direct written premiums in the third quarter due to the continued effect of the reduction in the management fee rate from 25 percent in 2002 to 24 percent in 2003. The property and casualty direct written premiums of the Erie Insurance Group, upon which management fee revenue is calculated, totaled $971.0 million in the third quarter of 2003, an increase of 16.1 percent compared to $836.3 million in the third quarter of 2002. Direct written premium for the quarter was impacted by a twelve-month growth rate for policies in force of 9.0 percent and the effect of positive rate actions implemented in 2002 and 2003. The average written premium per policy increased by 9.9 percent for the twelve months ended September 30, 2003, to $964, as compared to $877 for the twelve months ended September 30, 2002. The decline in the twelve-month growth rate of policies in force was due to a decline in new policies written and a lower retention rate in the third quarter of 2003. New premium written declined 20.6 percent to $125.4 million in the third quarter of 2003 from $157.9 million in the third quarter of 2002. Personal lines new premium written declined 13 percent, while commercial lines new premium written declined 33.9 percent in the third quarter of 2003 compared to the same period in 2002. The year-over-year policy retention rate declined slightly to 90.6 percent from 91.0 percent. Service agreement revenue increased for the third quarter of 2003 to $6.7 million from $1.2 million in the third quarter of 2002. Included in service agreement revenue are service charges the Company collects from policyholders for providing extended payment plans on policies. The service charge revenue for the third quarter of 2003 was $5.0 million, compared to a charge of $2.3 million for the same period one year ago. During the third quarter of 2002 the Company adjusted service charge revenue which was incorrectly being recognized in full as billing installments were created at the time of policy issuance instead of at the time the billings were rendered. The company recorded a one-time adjustment reducing third quarter 2002 service charge revenue by $7.4 million. Nonaffiliated assumed voluntary reinsurance premiums of Erie Insurance Exchange, upon which the Company receives a 6.0 percent service fee (down from 7.0 percent in 2002), totaled $27.7 million in the third quarter of 2003, down 44.3 percent from the $49.7 million recorded in the third quarter 2002. 4 The cost of management operations increased 17.2 percent to $169.8 million in the third quarter of 2003, from $144.8 million for the same period in 2002. Commission costs totaled $125.2 million for the third quarter of 2003, an 18.2 percent increase over the $105.9 million reported in the third quarter of 2002. Third quarter costs of management operations, excluding commissions, increased 14.5 percent to $44.6 million in 2003 from $38.9 million in 2002. Insurance underwriting operations - --------------------------------- The Company's insurance underwriting operations recorded losses of $4.9 million and $6.3 million in the third quarters of 2003 and 2002, respectively. The underwriting loss for the quarter was due in part to catastrophe losses affecting the Property & Casualty Group totaling $110.1 million. This includes losses associated with Hurricane Isabel of $70 million recorded in the third quarter 2003. The Company's share of catastrophe losses totaled $6.1 million in the third quarter of 2003, compared to $1.5 million in the third quarter of 2002. Offsetting these losses were reinsurance recoveries recorded under the aggregate excess-of-loss reinsurance agreement between the Company's property and casualty subsidiaries and the Erie Insurance Exchange. In the third quarter 2003, the Company recorded recoveries of $7.1 million under this reinsurance agreement. The statutory combined ratio for the Property & Casualty Group for the third quarter was 117.0, compared to 110.7 for the third quarter of 2002. Excluding catastrophe losses, including Hurricane Isabel, the Property & Casualty Group's combined ratio was 105.0. Included in the Company's policy acquisition and other underwriting expenses are expenses stemming from the Property & Casualty Group's eCommerce initiative. Company expenses totaled $.5 million for the third quarter 2003 compared to $.9 million for the same period one year ago. These costs will continue to be incurred as the program develops through 2004. Investment operations - --------------------- Net revenue from investment operations for the third quarter of 2003 reflects an increase of 84.5 percent to $19.8 million, compared to $10.7 million for the same period in 2002. Net investment income increased by 4.4 percent to $14.5 million for the quarter ended September 30, 2003, from $13.9 million for the same period in 2002. Net realized gains on investments of $1.8 million were recorded during the third quarter of 2003 compared to net realized losses of $4.0 million for the third quarter of 2002. Net realized losses were affected by impairment charges of $7.0 million recorded during the third quarter of 2002. There were no impairment charges in the third quarter of 2003. Equity in earnings of limited partnerships totaled $1.3 million in the third quarter of 2003, compared to $0.8 million in the third quarter of 2002. The Company's earnings, net of tax, from its 21.6 percent equity ownership of Erie Family Life increased to $2.2 million for the third quarter of 2003 from $0.1 million in the third quarter 2002. Strong increases in policy revenue, net investment income and net realized capital gains contributed to the significant improvement in results for Erie Family Life in the third quarter of 2003. Changes to Financial Reporting - ------------------------------ Erie Indemnity Company has been evaluating the application of a recently issued financial accounting standard, [Financial Accounting Standards Board (FASB) Interpretation No. 46, (FIN 46)] to the Erie Insurance Group. As a result of the analysis, the Company has determined that the Erie Insurance Exchange is a variable interest entity (VIE) under the interpretation that should be consolidated for financial statement purposes with the Company. As a consequence of consolidating the Erie Insurance Exchange with the Company, Erie Family Life will also be consolidated with the Company in its financial statements due to the combined ownership interest in Erie Family Life. This change will be reflected in the December 31, 2003 annual report of Erie Indemnity Company, and subsequent quarterly reports. The Company does not expect that the reported net income or shareholder's equity of the Company will change as a result of the consolidation or the Exchange and Erie Family Life into the financial statements of the Company. Erie Indemnity Company provides management services to the member companies of the Erie Insurance Group, which includes the Erie Insurance Exchange, Flagship City Insurance Company, Erie Insurance Company, Erie Insurance Property and Casualty Company, Erie Insurance Company of New York and Erie Family Life Insurance Company. According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 17th largest automobile insurer in the United States based on direct premiums written and the 20th largest property/casualty insurer in the United States based on total lines net premium written. The Group, rated A+ (Superior) by A.M. Best Company, has more than 3.7 million policies in force and operates in 11 states and the District of Columbia. Erie Insurance Group ranked 454 on the FORTUNE 500. 5 News releases and more information about Erie Insurance Group are available at http://www.erieinsurance.com - ---------------------------- "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: Certain forward-looking statements contained herein involve risks and uncertainties. These statements include certain discussions relating to management fee revenue, cost of management operations, underwriting, premium and investment income volume, business strategies, profitability and business relationships and the Company's other business activities during 2003 and beyond. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "could," "would," "expect," "plan," "intend," "anticipate," "believe," "estimate," "project," "predict," "potential" and similar expressions. These forward-looking statements reflect the Company's current views about future events, are based on assumptions and are subject to known and unknown risks and uncertainties that may cause results to differ materially from those anticipated in those statements. Many of the factors that will determine future events or achievements are beyond our ability to control or predict. STATEMENTS OF OPERATIONS AND FINANCIAL POSITION AND OTHER INFORMATION WILL FOLLOW ERIE INDEMNITY COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share data) Three months ended September 30, Nine months ended September 30, (unaudited) (unaudited) 2003 2002 2003 2002 -------------------------------- ------------------------------- OPERATING REVENUE: Management fee revenue $ 231,747 $ 209,068 $ 671,730 $ 593,895 Premiums earned 48,358 42,171 140,759 119,824 Service agreement revenue 6,667 1,192 20,014 16,310 ---------- ---------- ---------- ---------- Total operating revenue $ 286,772 $ 252,431 $ 832,503 $ 730,029 ---------- ---------- ---------- ---------- OPERATING EXPENSES: Cost of management operations $ 169,752 $ 144,801 $ 494,212 $ 421,097 Losses and loss expenses incurred 38,723 35,044 115,587 98,431 Policy acquisition and other underwriting expenses 14,578 13,416 42,065 37,343 ---------- ---------- ---------- ---------- Total operating expenses $ 223,053 $ 193,261 $ 651,864 $ 556,871 ---------- ---------- ---------- ---------- OTHER INCOME AND EXPENSES: Investment income, net of expenses $ 14,477 $ 13,867 $ 43,015 $ 40,705 Realized gains (losses) on investments 1,846 (4,047) 5,815 (8,628) Equity in earnings (losses) of limited partnerships 1,311 803 (1,435) 1,110 ---------- ---------- ---------- ---------- Total other income and expenses $ 17,634 $ 10,623 $ 47,395 $ 33,187 ---------- ---------- ---------- ---------- Income before income taxes and equity in earnings of Erie Family Life Insurance Company $ 81,353 $ 69,793 $ 228,034 $ 206,345 Less: Provision for income taxes 27,124 23,730 76,107 69,171 Equity in earnings of Erie Family Life Insurance Company, net of tax $ 2,008 $ 99 $ 4,668 $ 1,015 ---------- ---------- ---------- ---------- Net income $ 56,237 $ 46,162 $ 156,595 $ 138,189 ========== ========== ========== ========== Net income per share (basic & diluted) $ 0.79 $ 0.65 $ 2.21 $ 1.94 ========== ========== ========== ========== Weighted average shares outstanding 70,997 71,006 70,997 71,109 ========== ========== ========== ========== DIVIDENDS DECLARED Class A non-voting common $ 0.19 $ 0.17 $ 0.57 $ 0.51 ---------- ---------- ---------- ---------- Class B common $ 28.50 $ 25.50 $ 85.50 $ 76.50 ---------- ---------- ---------- ----------
6 Erie Indemnity Company CONSOLIDATED STATEMENTS OF OPERATIONS - SEGMENT BASIS (Amounts in thousands, except per share data) Three months ended September 30 Nine months ended September 30 (unaudited) (unaudited) 2003 2002 2003 2002 ------------------------------- ------------------------------ MANAGEMENT OPERATIONS Management fee revenue $ 231,747 $ 209,068 $ 671,730 $ 593,895 Service agreement revenue 6,667 1,192 20,014 16,310 ---------- ---------- ---------- ---------- Total revenue from management operations $ 238,414 $ 210,260 $ 691,744 $ 610,205 Cost of management operations 169,752 144,801 494,212 421,097 ---------- ---------- ---------- ---------- Income from management operations $ 68,662 $ 65,459 $ 197,532 $ 189,108 ---------- ---------- ---------- ---------- INSURANCE UNDERWRITING OPERATIONS Premiums earned $ 48,358 $ 42,171 $ 140,759 $ 119,824 ---------- ---------- ---------- ---------- Losses and loss adjustment expenses incurred $ 38,723 $ 35,044 $ 115,587 $ 98,431 Policy acquisition and other underwriting expenses 14,578 13,416 42,065 37,343 ---------- ---------- ---------- ---------- Total losses and expenses $ 53,301 $ 48,460 $ 157,652 $ 135,774 ---------- ---------- ---------- ---------- Underwriting loss $ (4,943) $ (6,289) $ (16,893) $ (15,950) ---------- ---------- ---------- ---------- INVESTMENT OPERATIONS Net investment income $ 14,477 $ 13,867 $ 43,015 $ 40,705 Net realized gains (losses) on investments 1,846 (4,047) 5,815 (8,628) Equity in earnings (losses) of limited partnerships 1,311 803 (1,435) 1,110 Equity in earnings of Erie Family Life Insurance Company 2,160 106 5,019 1,091 ---------- ---------- ---------- ---------- Net revenue from investment operations $ 19,794 $ 10,729 $ 52,414 $ 34,278 ---------- ---------- ---------- ---------- Income before income taxes $ 83,513 $ 69,899 $ 233,053 $ 207,436 Provision for income taxes 27,276 23,737 76,458 69,247 ---------- ---------- ---------- ---------- Net income $ 56,237 $ 46,162 $ 156,595 $ 138,189 ========== ========== ========== ========== Net income per share (basic & diluted) $ 0.79 $ 0.65 $ 2.21 $ 1.94 ========== ========== ========== ========== Net income excluding net realized gains (losses) and related taxes $ 55,038 $ 48,793 $ 152,815 $ 143,797 ========== ========== ========== ========== WEIGHTED AVERAGE SHARES OUTSTANDING 70,997 71,006 70,997 71,109 ========== ========== ========== ==========
Erie Indemnity Company CONSOLIDATED STATEMENTS OF OPERATIONS - SEGMENT BASIS - Continued (Amounts in thousands) The table below reconciles the Company's GAAP-basis net income to net income excluding net realized gains or losses and related income taxes. Management believes this measure assists the financial statement reader in interpreting and evaluating the financial results of the Company by removing the effects of gain or losses from investment sales, which could significantly impact the Company's financial results from one period to another based on the timing of investment sales and resulting gains or losses, which may or may not be recurring. Three months ended September 30 Nine months ended September 30 (unaudited) (unaudited) 2003 2002 2003 2002 --------------------------- ------------------------- Net income $ 56,237 $ 46,162 $ 156,595 $ 138,189 Net realized gains (losses) on investments 1,846 (4,047) 5,815 (8,628) Income tax (expense) benefit on realized gains (losses) (647) 1,416 (2,035) 3,020 ---------- ---------- ---------- ---------- Realized gains (losses) net of income tax (expense) benefit 1,199 (2,631) 3,780 (5,608) ---------- ---------- ---------- ---------- Net income excluding net realized gains (losses) and related taxes $ 55,038 $ 48,793 $ 152,815 $ 143,797 ========== ========== ========== ==========
7 Erie Indemnity Company CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Amounts in thousands, except per share data) September 30 December 31 2003 2002 (unaudited) ------------ ----------- ASSETS Investments Fixed maturities $ 862,962 $ 708,068 Equity securities Preferred stock 149,287 157,563 Common stock 42,886 36,515 Other invested assets 110,825 96,613 ----------- ----------- Total investments $ 1,165,960 $ 998,759 Cash and cash equivalents $ 82,102 $ 85,712 Equity in Erie Family Life Insurance Company 55,045 48,545 Premiums receivable from policyholders 279,858 239,704 Receivables from affiliates 981,063 829,049 Other assets 187,808 155,907 ----------- ----------- Total assets $ 2,751,836 $ 2,357,676 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Unpaid losses and loss adjustment expenses $ 824,568 $ 717,015 Unearned premiums 463,620 393,091 Other liabilities 328,720 260,198 ----------- ----------- Total liabilities $ 1,616,908 $ 1,370,304 Total shareholders' equity $ 1,134,928 $ 987,372 ----------- ----------- Total liabilities and shareholders' equity $ 2,751,836 $ 2,357,676 =========== =========== Book value per share $15.99 $13.91 Shares outstanding 70,997 70,997
8 Erie Indemnity Company Segment Information Management fee revenue by line of business: Three months ended September 30 % Nine months ended September 30 % 2003 2002 Change 2003 2002 Change (In thousands) ------------------------------------------------------------------------------------ Private passenger auto $ 121,065 $ 111,942 8.1% $ 343,820 $ 313,786 9.6% Commercial auto 18,008 16,699 7.8 57,115 50,884 12.2 Homeowners 42,962 35,705 20.3 110,491 92,017 20.1 Commercial multi-peril 23,127 20,568 12.4 74,573 62,371 19.6 Workers' compensation 18,716 16,394 14.2 61,344 52,173 17.6 All other lines of business 9,169 7,760 18.2 27,087 22,664 19.5 --------------------------------------------------------------------------------- Total $ 233,047 $ 209,068 11.5% $ 674,430 $ 593,895 13.6% Allowance for management fee returned on cancelled policies 1,300 0 0.0 2,700 0 0.0 --------------------------------------------------------------------------------- Total management fee revenue $ 231,747 $ 209,068 10.8% $ 671,730 $ 593,895 13.1% =================================================================================
Growth rate of policies in force for Property and Casualty Group insurance operations: All other Private 12-mth. 12-mth. lines of 12-mth. Total 12-mth. passenger growth growth personal growth Personal growth Date auto rate Homeowners rate business rate Lines rate - ------------------------------------------------------------------------------------------------------ 12/31/2001 1,432,747 7.1% 1,075,816 9.0% 215,134 11.5% 2,723,697 8.2% 03/31/2002 1,469,617 8.3 1,104,806 10.1 222,061 12.2 2,796,484 9.3 06/30/2002 1,512,335 9.4 1,146,639 11.4 231,951 13.4 2,890,925 10.5 09/30/2002 1,554,425 10.4 1,190,651 13.1 240,410 14.4 2,985,486 11.8 12/31/2002 1,591,161 11.1 1,230,895 14.4 249,544 16.0 3,071,600 12.8 03/31/2003 1,623,429 10.5 1,263,118 14.3 257,327 15.9 3,143,874 12.4 06/30/2003 1,650,225 9.1 1,293,575 12.8 264,423 14.0 3,208,223 11.0 09/30/2003 1,666,285 7.2 1,316,775 10.6 269,640 12.2 3,252,700 9.0 All other 12-mth. CML* 12-mth. 12-mth. CML* 12-mth. Total 12-mth. CML* growth multi- growth Workers' growth lines of growth CML* growth Date auto rate peril rate comp. rate business rate Lines rate - ---------------------------------------------------------------------------------------------------------------------------- 12/31/2001 96,100 9.7% 166,214 11.6% 52,033 10.3% 71,539 9.9% 385,886 10.7% 03/31/2002 98,926 10.7 171,283 12.5 53,320 10.8 73,392 10.7 396,921 11.5 06/30/2002 102,447 11.6 179,761 13.9 55,607 11.9 75,884 11.7 413,699 12.6 09/30/2002 105,353 11.8 185,608 14.4 57,375 12.5 78,131 11.5 426,467 13.0 12/31/2002 108,069 12.5 190,787 14.8 58,930 13.3 79,772 11.5 437,558 13.4 03/31/2003 109,963 11.2 194,911 13.8 60,104 12.7 81,356 10.9 446,334 12.4 06/30/2003 112,911 10.2 201,614 12.2 61,932 11.4 83,826 10.5 460,283 11.3 09/30/2003 114,339 8.5 205,127 10.5 62,396 8.8 85,789 9.8 467,651 9.7 12-mth. Total growth Date All lines rate - ------------------------------- 12/31/2001 3,109,583 8.5% 03/31/2002 3,193,405 9.6 06/30/2002 3,304,624 10.8 09/30/2002 3,411,953 11.9 12/31/2002 3,509,158 12.8 03/31/2003 3,590,208 12.4 06/30/2003 3,668,506 11.0 09/30/2003 3,720,351 9.0 *CML = Commercial
9 Policy retention trends for Property and Casualty Group insurance operations: Private All other passenger CML* CML* Workers' lines of Date auto auto Homeowners multi-peril comp. business Total - ------------------------------------------------------------------------------------------------------------------- 12/31/2001 92.2% 90.5% 90.2% 88.0% 88.4% 88.2% 90.9% 03/31/2002 92.3 90.9 90.2 88.8 89.3 88.1 90.9 06/30/2002 92.4 91.1 90.4 89.0 89.5 88.3 91.0 09/30/2002 92.5 90.8 90.5 88.7 89.5 88.2 91.1 12/31/2002 92.6 91.0 90.5 88.7 89.4 88.5 91.2 03/31/2003 92.5 91.3 90.6 89.1 90.2 88.5 91.2 06/30/2003 92.2 91.1 90.5 88.4 89.4 88.4 91.0 09/30/2003 91.9 90.4 90.1 88.0 88.9 88.4 90.6 *CML = Commercial
Selected financial data of Erie Insurance Exchange: The selected financial data below is derived from the Erie Insurance Exchange's financial statements prepared in accordance with Statutory Accounting Principles. In the opinion of management, all adjustments consisting only of normal recurring accruals, considered necessary for a fair presentation have been included. The financial data set forth below is only a summary. Three months ended Nine months ended -------------------------- -------------------------- (In thousands) September 30, September 30, September 30, September 30, Statutory Accounting Basis 2003 2002 2003 2002 -------------------------- -------------------------- (unaudited) (unaudited) Premiums earned $ 866,860 $ 754,220 $ 2,501,654 $ 2,140,526 -------------------------- -------------------------- Losses and loss adjustment expenses $ 793,945 $ 609,396 $ 2,116,828 $ 1,727,052 Insurance underwriting and other expenses 247,732 252,872 756,597 718,881 -------------------------- -------------------------- Net underwriting loss $ (174,817) $ (108,048) $ (371,771) $ (305,407) -------------------------- -------------------------- Net investment income 61,138 52,569 172,313 166,568 Net realized gains (losses) 76,693 (43,497) 154,907 (118,331) Federal income tax benefit (12,858) (32,741) (59,539) (68,925) -------------------------- -------------------------- Net (loss) income $ (24,128) $ (66,235) $ 14,988 $ (188,245) ========================== ==========================
As of (In thousands) September 30, December 31, Statutory Accounting Basis 2003 2002 ------------ ------------ (unaudited) Cash and invested assets $ 6,832,949 $ 5,967,051 Total assets 7,949,783 7,007,803 =========== =========== Claims and unearned premium reserves 4,628,520 3,962,218 Total liabilities 5,669,162 4,892,032 =========== =========== Policyholders' surplus $ 2,280,621 $ 2,115,771 =========== =========== 10 -----END PRIVACY-ENHANCED MESSAGE-----