Erie Indemnity

Direct pricing power is constrained because the management fee is contractually capped at 25% of the Exchange’s direct and affiliated assumed premiums; the board kept the rate at 25% for 2025 and 2026. Erie Indemnity’s effective levers are (1) sustaining the maximum fee and (2) riding premium increases at the Exchange.

Average premiums per policy rose 9.6% over the prior 12 months, offsetting a 1.1% decline in policies‑in‑force, which still expanded management‑fee revenue by 8.2% in 2025. Latent pricing power is thus derivative, not absolute.