AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 31/10/2026
Moat69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Subscriber appointments, the absence of a contractual termination provision and the Exchange's need to contract through its attorney-in-fact establish an embedded position. They do not establish a comparative cost advantage.
durability · 3/4 · Service since 1925 and the disclosed appointment terms demonstrate persistence and contractual protection. Continued operations in 2026 corroborate the relationship; concentration and regulatory constraints prevent an exceptional grade.
customer dependency · 3/4 · The Exchange has no employees or officers, contracts through its attorney-in-fact and uses Indemnity for administrative services. This dependency is organizational; policyholders and non-exclusive agencies retain alternatives.
erosion resilience · 2/4 · Operating earnings grew annually through 2025 and in first-half 2026, but retention and personal policy counts declined, and fourth-quarter 2025 operating income fell. Technological competition remains a prospective risk, not demonstrated disruption.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Indemnity maintained its 25% fee rate rather than increasing it. Underlying personal average premiums rose 9.4% in 2025 while policy counts fell 1.5%; second-quarter 2026 commercial average premiums and policy counts both increased. These are mixed realized outcomes that benefit Indemnity indirectly, and average premium also reflects mix.
retention · 2/4 · The Exchange and its property-casualty subsidiaries retained 88.4% of policies year over year in 2025, down from 90.4%. Personal policy contraction and commercial policy growth give mixed evidence of repeat demand. This is underlying insurance retention, not an Indemnity renewal rate.
margin resilience · 2/4 · Operating earnings increased over the annual and first-half periods, while administrative costs were reimbursed. However, 2025 policy-service costs grew faster than revenue, fourth-quarter operating income declined and second-quarter 2026 policy-service costs again outpaced revenue. Protection is partial.
contractual freedom · 2/4 · The board sets the management fee annually, but the current rate already equals the 25% ceiling. Reasonableness requirements and approval of material intercompany amendments constrain discretion. Underlying insurance pricing also faces regulatory limits and rate-lock delays.
Predictability100
Financial-sector stability over 5 consecutive reported annual periods: equal weights for nondeclining revenue frequency, revenue-growth volatility (5–40pp), positive consolidated earnings frequency, and net-income/revenue margin volatility (3–20pp). Uses reported accounting scope; not industrial FCF or a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 4.07
- positiveEarningsShare
- 100.00
- netMarginStdDev
- 1.90
- observedAnnualPeriods
- 5.00
Financial strength63
Qualitative financial_services assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-services-1; not an industrial ratio score or credit rating.
capital adequacy · 3/4 · Indemnity reported $2.467 billion of consolidated equity against $1.090 billion of liabilities at June 2026, with equity increasing from year-end. No conventional borrowing line appears on the supplied balance sheet, although securities-lending obligations exist. This supports a strong qualitative corporate buffer, not regulatory capital sufficiency.
liquidity funding · 2/4 · June 2026 cash was $282.9 million, including $39.6 million restricted, alongside $61.7 million of current available-for-sale securities. Cash declined from year-end and $753.2 million of receivables was concentrated on the Exchange and affiliates. Commitments, missing cash-flow evidence and undisclosed funding facilities limit confidence; Exchange assets are excluded.
asset liability risk · 2/4 · The balance sheet discloses substantial securities holdings, agent loans, pension obligations and securities-lending payables, plus concentrated unsecured Exchange receivables. First-half investment impairments and net market losses were modest relative to earnings, but credit quality, duration, collateral terms and loan performance are not supplied.
earnings resilience · 3/4 · Operating income increased from $520.3 million in 2023 to $717.2 million in 2025 and grew again in first-half 2026. Administrative reimbursement limits direct exposure to those costs. The charitable contribution reduced 2025 net income, and fourth-quarter operating income declined, so resilience is demonstrated but not exceptional or proven across a full stress cycle.
Capital allocation69
Qualitative financial_services assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-services-1; not an industrial ratio score or credit rating.
capital efficiency · 3/4 · Consolidated net income of $559.3 million in 2025 was substantial relative to opening equity of $1.987 billion and closing equity of $2.283 billion; first-half 2026 earnings remained strong as equity increased. These same-scope earnings and equity demonstrate efficient use of accounting capital without establishing a reported regulatory return or peer superiority.
distributions and buffers · 3/4 · Recognized 2025 dividends of approximately $258.8 million were below $559.3 million of net income while equity increased. First-half 2026 declared dividends also remained below per-share earnings and equity grew further. These demonstrate distributions alongside retained accounting buffers; cash payment timing and regulatory distributable-capital headroom are not established.
dilution and cost · 3/4 · Basic and diluted weighted-average shares were essentially stable year over year in first-half 2026, and compensation trusts were funded through disclosed open-market purchases. The basic-to-diluted share difference reflects the disclosed convertible Class B structure and is not treated as new issuance. Complete compensation cost and financing terms are unavailable.
investment discipline · 2/4 · Investment income and operating earnings increased, and technology-related third-party costs declined in 2026. Fixed assets and agent loans expanded, while the charitable contribution and sizable commitments consumed or committed resources. The evidence supports mixed discipline because project, loan and commitment returns are not disclosed.
Management50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Earnings exceeded recognized dividends and equity accumulated with essentially stable share counts. The $100 million charitable contribution and substantial contractual commitments temper this evidence; cash generation and the economic returns on commitments are not supplied.
incentive alignment · 2/4 · An existing director stock plan, actual one-year vesting terms and open-market funding provide some equity alignment. Recent purchases also funded compensation deferrals. Missing ownership and executive performance metrics prevent a stronger conclusion.
execution · 2/4 · Annual and first-half operating growth and lower 2026 non-commission costs demonstrate execution indirectly. Declining retention, personal policy contraction and the fourth-quarter earnings setback temper it. Premium-driven growth cannot all be attributed to management skill, and CEO succession remains pending.
governance · 2/4 · Fee reasonableness requirements and regulatory approval of material service amendments provide constraints. Exclusive Class B voting rights and board obligations that may favor Exchange subscribers create mixed interests for public shareholders. Director independence details are absent; no misconduct is inferred.
Evidence
Acting as attorney-in-fact in these two capacities is done in accordance with a subscriber's agreement (a limited power of attorney) executed individually by each subscriber (policyholder), which appoints Indemnity as each subscriber's attorney-in-fact to transact certain business on their behalf.
Business — subscriber appointment · Filed 23/02/2026
In accordance with the subscriber's agreement for acting as attorney-in-fact in these two capacities, we retain a management fee calculated as a percentage, not to exceed 25%, of the direct and affiliated assumed premiums written by the Exchange.
Business — contractual management fee ceiling · Filed 23/02/2026
There is no provision in the subscriber's agreement for termination of our appointment as attorney-in-fact by the subscribers at the Exchange and the appointment is not affected by a policyholder's disability or incapacity.
Business — termination provisions of subscriber agreement · Filed 23/02/2026
BUSINESS
General
Erie Indemnity Company ("Indemnity", "we", "us", "our") is a publicly held Pennsylvania business corporation that has since its incorporation in 1925 served as the attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange ("Exchange").
Business — operating history · Filed 23/02/2026
The Exchange and its wholly owned property and casualty insurance subsidiaries' year-over-year policy retention ratio continues to be high at 88.4% at December 31, 2025 and 90.4% at December 31, 2024.
MD&A — policy retention · Filed 23/02/2026
Personal lines – Total personal lines premiums written increased 8.3% to $9.2 billion in 2025, from $8.5 billion in 2024, driven by a 9.4% increase in total personal lines year-over-year average premium per policy, partially offset by a 1.5% decrease in total personal lines policies in force.
MD&A — personal lines premiums and policies · Filed 23/02/2026
These agencies are not obligated to sell only the Exchange's insurance products, and generally also sell products of the Exchange's competitors.
Business — non-exclusive agencies · Filed 23/02/2026
Innovations, including the use of artificial intelligence and machine learning to support underwriting or other decisions, by competitors or other market participants may increase the level of competition in the industry.
Risk factors — technological competition · Filed 23/02/2026
The following table presents our management operations segment revenue, significant segment expenses regularly provided to the CODM, and net income for the years ended December 31: (in thousands) 2025 2024 2023 Management fee revenue $ 3,205,864 $ 2,962,429 $ 2,505,742 Administrative services reimbursement revenue 836,639 806,336 737,139 Service agreement revenue 24,755 26,350 26,059 Total operating revenue 4,067,258 3,795,115 3,268,940 Commissions 1,777,043 1,601,401 1,348,530 Underwriting and policy processing 204,245 199,485 181,003 Information technology 239,789 215,488 216,746 Sales and advertising 66,475 66,480 58,905 Customer service 46,538 43,045 34,391 Administrative and other 179,345 186,425 171,970 Cost of operations - policy issuance and renewal services 2,513,435 2,312,324 2,011,545 Cost of operations - administrative services 836,639 806,336 737,139 Total operating expenses (1) 3,350,074 3,118,660 2,748,684 Operating income 717,184 676,455 520,256 Total investment income 84,861 69,260 28,968 Other income 8,558 11,564 12,712 Contribution to charitable foundation (100,000) — — Income tax expense 151,268 156,965 115,875 Net income $ 559,335 $ 600,314 $ 446,061 (1) See Note 8, "Fixed Assets", for management operations segment depreciation and amortization expense included primarily in "Total operating expenses", as reported on our Consolidated Statements of Operations.
Note 4 — management operations results, 2023–2025 · Filed 23/02/2026
Transactions within a holding company system affecting the member insurers of the holding company system must be fair and reasonable and any charges or fees for services performed must be reasonable.
Regulation — related-party service fee reasonableness · Filed 23/02/2026
Market competition bears directly on the price charged for insurance products and services subject to regulatory limitations.
Competition — insurance pricing constraints · Filed 23/02/2026
Furthermore, the Exchange writes certain personal auto policies with a rate locking feature, which generally extends the amount of time it takes for premium rate actions to be recognized related to these policies.
MD&A — personal auto rate locking · Filed 23/02/2026
42 Table of Contents ERIE INDEMNITY COMPANY CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Years ended December 31, 2025, 2024 and 2023 (dollars in thousands, except per share data) Class A common stock Class B common stock Additional paid-in-capital Accumulated other comprehensive loss Retained earnings Treasury stock Deferred compensation Total shareholders' equity Balance, December 31, 2022 $ 1,992 $ 178 $ 16,481 $ (7,414) $ 2,583,261 $ (1,168,949) $ 22,859 $ 1,448,408 Net income 446,061 446,061 Other comprehensive loss (5,986) (5,986) Dividends declared: Class A $4.845 per share (223,786) (223,786) Class B $726.75 per share (1,847) (1,847) Net purchase of treasury stock (1) (15) 0 (15) Deferred compensation (2,228) 2,228 0 Rabbi trust distribution (2) 2,012 (2,012) 0 Balance, December 31, 2023 $ 1,992 $ 178 $ 16,466 $ (13,400) $ 2,803,689 $ (1,169,165) $ 23,075 $ 1,662,835 Net income 600,314 600,314 Other comprehensive loss (34,191) (34,191) Dividends declared: Class A $5.19 per share (239,721) (239,721) Class B $778.50 per share (1,979) (1,979) Net purchase of treasury stock (1) 0 0 0 Deferred compensation (2,156) 2,156 0 Rabbi trust distribution (2) 2,247 (2,247) 0 Balance, December 31, 2024 $ 1,992 $ 178 $ 16,466 $ (47,591) $ 3,162,303 $ (1,169,074) $ 22,984 $ 1,987,258 Net income 559,335 559,335 Other comprehensive loss (4,430) (4,430) Dividends declared: Class A $5.5575 per share (256,696) (256,696) Class B $833.625 per share (2,119) (2,119) Net purchase of treasury stock (1) 26 26 Deferred compensation (2,514) 2,514 0 Rabbi trust distribution (2) 574 (574) 0 Balance, December 31, 2025 $ 1,992 $ 178 $ 16,492 $ (52,021) $ 3,462,823 $ (1,171,014) $ 24,924 $ 2,283,374 (1) Net purchases of treasury stock in 2023, 2024 and 2025 include the purchase of our Class A common stock in the open market that were subsequently distributed to satisfy stock-based compensation awards.
Consolidated statements of shareholders' equity · Filed 23/02/2026
Net income in 2025 was reduced by $80.6 million, reflecting the after-tax impact of a $100 million charitable contribution made to the Erie Insurance Foundation.
MD&A — charitable contribution impact · Filed 23/02/2026
Remaining commitments related to the underlying contracts total $77.5 million at December 31, 2025, of which the majority is due in the next 12 months.
Commitments — remaining contractual commitments · Filed 23/02/2026
•Other commitments – We have commitments for approximately $473 million which include agreements for various services, including information technology, support and maintenance obligations, operating leases for equipment, vehicles, and real estate, and other obligations in the ordinary course of business.
Commitments — service and other obligations · Filed 23/02/2026
We also have a deferred stock compensation plan for our outside directors to further align the interests of directors with those of our shareholders that provides for payment of a portion of the directors' annual compensation in shares of our Class A common stock.
Compensation — outside director stock plan · Filed 23/02/2026
Each director vests in the grant 25% every three months over the course of a year.
Compensation — director award vesting · Filed 23/02/2026
We purchase shares of our Class A common stock in the open market to satisfy these awards, which are then held in the rabbi trust.
Compensation — open-market funding of director awards · Filed 23/02/2026
Thus, our Board of Directors may be required to make decisions or take actions that may benefit subscribers at the Exchange and the overall health of the Exchange.
Risk factors — board responsibilities to Exchange subscribers · Filed 23/02/2026
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The information with respect to security ownership of certain beneficial owners and management and securities authorized for issuance under equity compensation plans, is incorporated by reference to the information statement on Schedule 14C to be filed with the Securities and Exchange Commission no later than 120 days after December 31, 2025.
Item 12 — ownership information incorporated by reference · Filed 23/02/2026
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE Information with respect to certain relationships with our outside directors is incorporated by reference to the information statement on Schedule 14C to be filed with the Securities and Exchange Commission no later than 120 days after December 31, 2025.
Item 13 — director relationships incorporated by reference · Filed 23/02/2026
June 30,
December 31,
2026
2025
Assets
(Unaudited)
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
753,245
735,589
Prepaid expenses and other current assets, net
92,533
66,061
Accrued investment income
14,194
14,311
Total current assets
1,206,562
1,199,173
Available-for-sale securities, net
1,327,084
1,286,566
Equity securities
150,516
70,624
Available-for-sale and equity securities lent
67,939
61,063
Fixed assets, net
593,365
571,476
Agent loans, net
100,680
93,953
Defined benefit pension plan
62,096
24,137
Other assets, net
48,774
48,489
Total assets
$
3,557,016
$
3,355,481
Liabilities and shareholders' equity
Current liabilities:
Commissions payable
$
457,211
$
425,320
Agent incentive compensation
116,570
132,560
Accounts payable and accrued liabilities
205,760
200,701
Dividends payable
68,109
68,109
Contract liability
48,457
47,561
Deferred executive compensation
9,154
9,400
Securities lending payable
63,157
61,936
Total current liabilities
968,418
945,587
Defined benefit pension plan
34,703
33,410
Contract liability
23,148
23,274
Deferred executive compensation
21,018
22,050
Deferred income taxes, net
19,085
24,788
Other long-term liabilities
23,538
22,998
Total liabilities
1,089,910
1,072,107
Shareholders’ equity
Class A common stock, stated value $0.0292 per share; 74,996,930 shares authorized; 68,299,200 shares issued; 46,189,068 shares outstanding
1,992
1,992
Class B common stock, convertible at a rate of 2,400 Class A shares for one Class B share, stated value $70 per share; 3,070 shares authorized; 2,542 shares issued and outstanding
178
178
Additional paid-in-capital
16,500
16,492
Accumulated other comprehensive loss
(62,847)
(52,021)
Retained earnings
3,657,373
3,462,823
Total contributed capital and retained earnings
3,613,196
3,429,464
Treasury stock, at cost; 22,110,132 shares held
(1,170,957)
(1,171,014)
Deferred compensation
24,867
24,924
Total shareholders’ equity
2,467,106
2,283,374
Total liabilities and shareholders’ equity
$
3,557,016
$
3,355,481
Consolidated balance sheets — June 30, 2026 and December 31, 2025 · Filed 30/07/2026
The management fee is calculated by multiplying all direct and affiliated assumed premiums written by the Exchange by the management fee rate, which is set by our Board of Directors at least annually.
MD&A — management fee calculation and board discretion · Filed 30/07/2026
The management fee rate was set at 25% for both 2026 and 2025.
MD&A — management fee rate in 2026 and 2025 · Filed 30/07/2026
Direct and affiliated assumed premiums written by the Exchange
$
3,536,140
$
3,424,202
3.3
%
$
6,768,566
$
6,544,876
3.4
%
Management fee rate
24.41
%
24.37
%
24.41
%
24.37
%
Management fee revenue
863,172
834,478
3.4
1,652,207
1,594,986
3.6
Change in estimate for management fee returned on cancelled policies (1)
(293)
(10,625)
97.2
(2,929)
(16,084)
81.8
Management fee revenue - policy issuance and renewal services
$
862,879
$
823,853
4.7
%
$
1,649,278
$
1,578,902
4.5
%
Administrative services
Direct and affiliated assumed premiums written by the Exchange
$
3,536,140
$
3,424,202
3.3
%
$
6,768,566
$
6,544,876
3.4
%
Management fee rate
0.59
%
0.63
%
0.59
%
0.63
%
Management fee revenue
20,864
21,573
(3.3)
39,935
41,233
(3.1)
Change in contract liability (2)
(1,123)
(3,216)
65.1
(588)
(5,184)
88.7
Change in estimate for management fee returned on cancelled policies (1)
(122)
(61)
NM
(253)
(108)
NM
Management fee revenue - administrative services
19,619
18,296
7.2
39,094
35,941
8.8
Administrative services reimbursement revenue
201,554
212,644
(5.2)
401,650
422,917
(5.0)
Total revenue from administrative services
$
221,173
$
230,940
(4.2)
%
$
440,744
$
458,858
(3.9)
%
NM = not meaningful
(1)A constraining estimate of variable consideration exists related to the potential for management fees to be returned if a policy were to be cancelled mid-term.
MD&A — management fee revenue and cancellation adjustments · Filed 30/07/2026
Non-commission expense decreased $19.5 million for the six months ended June 30, 2026 compared to the same period in 2025.
MD&A — first-half 2026 non-commission expense · Filed 30/07/2026
Professional fees decreased $12.0 million primarily due to reduced use of third-party services related to technology initiatives.
MD&A — reduced third-party technology service costs · Filed 30/07/2026
Consistent with its legal structure as a reciprocal insurer, the Exchange does not have any employees or officers.
Note 1 — Exchange staffing structure · Filed 30/07/2026
Therefore, it enters into contractual relationships by and through the subscribers' attorney-in-fact.
Note 1 — Exchange contractual relationships · Filed 30/07/2026
Indemnity serves as the attorney-in-fact on behalf of the subscribers at the Exchange with respect to its administrative services as enumerated in the subscriber's agreement.
Note 1 — Indemnity administrative services role · Filed 30/07/2026
State insurance regulations require that intercompany service agreements and any material amendments be approved in advance by the state insurance department.
Note 1 — regulatory approval of intercompany service agreements · Filed 30/07/2026
We also have an exposure to a concentration of credit risk related to the unsecured receivables due from the Exchange for net management fee and other reimbursements.
Risk factors — concentrated unsecured Exchange receivables · Filed 30/07/2026
8
Table of Contents
Note 2. Significant Accounting Policies
Basis of presentation
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X, and include the accounts of Indemnity and its wholly owned subsidiaries.
Note 2 — Indemnity consolidation scope · Filed 30/07/2026
30 Table of Contents Policy issuance and renewal services Three months ended June 30, Six months ended June 30, (dollars in thousands) 2026 2025 % Change 2026 2025 % Change (Unaudited) (Unaudited) Management fee revenue - policy issuance and renewal services $ 862,879 $ 823,853 4.7 % $ 1,649,278 $ 1,578,902 4.5 % Service agreement revenue 5,744 5,304 8.3 11,685 11,736 (0.4) 868,623 829,157 4.8 1,660,963 1,590,638 4.4 Cost of operations - policy issuance and renewal services 684,119 648,280 5.5 1,329,147 1,276,030 4.2 Operating income - policy issuance and renewal services $ 184,504 $ 180,877 2.0 % $ 331,816 $ 314,608 5.5 % Policy issuance and renewal services The management fee revenue allocated for providing policy issuance and renewal services was 24.41% of the direct and affiliated assumed premiums written by the Exchange for the three and six month periods ended June 30, 2026 and 24.37% for the same periods in 2025.
MD&A — policy issuance and renewal operating results · Filed 30/07/2026
Administrative services Three months ended June 30, Six months ended June 30, (dollars in thousands) 2026 2025 % Change 2026 2025 % Change (Unaudited) (Unaudited) Management fee revenue - administrative services $ 19,619 $ 18,296 7.2 % $ 39,094 $ 35,941 8.8 % Administrative services reimbursement revenue 201,554 212,644 (5.2) 401,650 422,917 (5.0) Total revenue allocated to administrative services 221,173 230,940 (4.2) 440,744 458,858 (3.9) Administrative services expenses Claims handling services 175,239 186,461 (6.0) 350,263 372,460 (6.0) Investment management services 9,721 9,305 4.5 17,139 17,038 0.6 Life management services 16,594 16,878 (1.7) 34,248 33,419 2.5 Operating income - administrative services $ 19,619 $ 18,296 7.2 % $ 39,094 $ 35,941 8.8 % Administrative services The management fee revenue allocated to administrative services was 0.59% of the direct and affiliated assumed premiums written by the Exchange for the three and six month periods ended June 30, 2026 and 0.63% for the same periods in 2025.
MD&A — administrative services reimbursement and expenses · Filed 30/07/2026
Commercial lines – Total commercial lines premiums written increased 8.3% to $1.0 billion in the second quarter of 2026, compared to the second quarter of 2025, driven by a 5.9% increase in total commercial lines year-over-year average premium per policy and a 2.1% increase in total commercial lines policies in force.
MD&A — second-quarter 2026 commercial lines premiums and policies · Filed 30/07/2026
FINANCIAL STATEMENTS ERIE INDEMNITY COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (dollars in thousands, except per share data) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 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 See accompanying notes to Consolidated Financial Statements.
Consolidated statements of operations — first-half 2026 · Filed 30/07/2026
The following table provides information regarding our Class A nonvoting common stock share repurchases during the quarter ending June 30, 2026: (dollars in thousands, except per share data) Period Total number of shares purchased Average price paid per share Total number of shares purchased as part of publicly announced program Dollar value of shares that may yet be purchased under the program April 1-30, 2026 (1) 1,290 $ 233.19 — $ 17,754 May 1-31, 2026 — — — 17,754 June 1-30, 2026 (2) 1,908 228.65 — 17,754 Total 3,198 230.48 — (1)Represents shares purchased on the open market to fund the rabbi trust for both the outside director deferred stock compensation plan (1,076 shares at an average price of $233.19 per share) and the incentive compensation deferral plan (214 shares at an average price of $233.19 per share).
Share repurchases — compensation trust funding · Filed 30/07/2026
4Q 2025 Highlights
Operating income before taxes decreased $9.6 million, or 5.7 percent, in the fourth quarter of 2025 compared to the fourth quarter of 2024.
Fourth-quarter 2025 results — operating income decline · Filed 23/02/2026
On the record date for the Annual Meeting, the Company had 2,542 shares of Class B common stock outstanding, which had the exclusive right to vote on all matters presented for consideration at the meeting.
Annual meeting — exclusive Class B voting rights · Filed 23/04/2026
NeCastro, the Company’s President and Chief Executive Officer, will retire on December 31, 2026 and the Board of Directors of the Company will initiate a search to identify a new President and Chief Executive Officer.
Officer succession — planned CEO retirement and search · Filed 20/02/2026
