Stock Analysis Report

Executive Summary

Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States.


Earnings are forecast to grow 6.71% per year

Earnings grew by 23.9% over the past year

Pays a reliable dividend of 2.36%

Risk Analysis

No risks detected for ERIE from our risk checks.

Snowflake Analysis

Outstanding track record average dividend payer.

Similar Companies

Share Price & News

How has Erie Indemnity's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: ERIE has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




US Insurance


US Market

1 Year Return




US Insurance


US Market

Return vs Industry: ERIE underperformed the US Insurance industry which returned 19.2% over the past year.

Return vs Market: ERIE underperformed the US Market which returned 20.1% over the past year.

Shareholder returns

7 Day1.6%0.2%0.9%
30 Day-3.5%3.3%1.4%
90 Day-7.7%6.7%8.8%
1 Year0.9%-1.0%22.0%19.2%22.5%20.0%
3 Year54.3%43.3%37.2%26.7%49.9%40.3%
5 Year101.2%75.9%74.3%53.5%73.2%54.1%

Price Volatility Vs. Market

How volatile is Erie Indemnity's share price compared to the market and industry in the last 5 years?

Simply Wall St News


Is Erie Indemnity undervalued compared to its fair value and its price relative to the market?


Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: ERIE ($163.56) is trading above our estimate of fair value ($87.73)

Significantly Below Fair Value: ERIE is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: ERIE is poor value based on its PE Ratio (26.8x) compared to the Insurance industry average (14x).

PE vs Market: ERIE is poor value based on its PE Ratio (26.8x) compared to the US market (18.4x).

Price to Earnings Growth Ratio

PEG Ratio: ERIE is poor value based on its PEG Ratio (4x)

Price to Book Ratio

PB vs Industry: ERIE is overvalued based on its PB Ratio (7.6x) compared to the US Insurance industry average (1.2x).

Next Steps

Future Growth

How is Erie Indemnity forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERIE's forecast earnings growth (6.7% per year) is above the savings rate (1.7%).

Earnings vs Market: ERIE's earnings (6.7% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: ERIE's earnings are forecast to grow, but not significantly.

Revenue vs Market: ERIE's revenue (4.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ERIE's revenue (4.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if ERIE's Return on Equity is forecast to be high in 3 years time

Next Steps

Past Performance

How has Erie Indemnity performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ERIE has high quality earnings.

Growing Profit Margin: ERIE's current net profit margins (13%) are higher than last year (11.7%).

Past Earnings Growth Analysis

Earnings Trend: ERIE's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: ERIE's earnings growth over the past year (23.9%) exceeds its 5-year average (13.5% per year).

Earnings vs Industry: ERIE earnings growth over the past year (23.9%) exceeded the Insurance industry 22%.

Return on Equity

High ROE: ERIE's Return on Equity (28.5%) is considered high.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is Erie Indemnity's financial position? (This company is analysed differently as a bank or financial institution)

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Inventory Level: ERIE has a low level of unsold assets or inventory.

Debt Coverage by Assets: ERIE's debt is covered by short term assets (assets are 9.5x debt).

Financial Institutions Analysis

Asset Level: ERIE's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ERIE has a sufficient allowance for bad loans.

Low Risk Liabilities: ERIE reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ERIE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ERIE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ERIE has an appropriate level of bad loans.

Next Steps


What is Erie Indemnity's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: ERIE's dividend (2.36%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ERIE's dividend (2.36%) is low compared to the top 25% of dividend payers in the US market (3.69%).

Stability and Growth of Payments

Stable Dividend: ERIE's dividends per share have been stable in the past 10 years.

Growing Dividend: ERIE's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.9%), ERIE's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Tim NeCastro (59yo)





Mr. Timothy Gerard NeCastro, also known as Tim, CPA, CIC, is President of Erie Indemnity Company since January 1, 2017 and its Chief Executive Officer since August 2016. Mr. NeCastro is President and Chief ...

CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD3.50M) is below average for companies of similar size in the US market ($USD6.26M).

Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.

Leadership Team

Timothy NeCastro
President & CEO3.5yrsUS$3.50m0.029% $2.2m
Gregory Gutting
Executive VP & CFO4.3yrsUS$1.13m0.0081% $611.2k
Bradley Postema
Senior VP & Chief Investment Officer (Leave of Absence)7.7yrsUS$1.04m0.0036% $268.2k
Robert Ingram
Executive VP & Chief Information Officer7.5yrsUS$1.33m0.028% $2.1m
Bill Matrogran
Vice President of Construction Management & Operations0yrsno datano data
Scott Beilharz
Vice President of Capital Management & Investor Relations8.1yrsno datano data
Sheryl Rucker
SVP of Strategic & Integrated Services and Law Division1.8yrsno datano data
Douglas Smith
Executive Vice President of Sales & Products3.3yrsno data0.0097% $736.6k
Charles Fletcher
Senior Vice President of Sales & Marketing0yrsno datano data
Dionne Oakley
Executive Vice President of Human Resources & Strategy2.1yrsno data0.0038% $284.1k


Average Tenure


Average Age

Experienced Management: ERIE's management team is considered experienced (3.9 years average tenure).

Board Members

Eugene Connell
Independent Director2.8yrsUS$157.50k0.038% $2.8m
George Lucore
Independent Director3.8yrsUS$153.00k0.0033% $249.3k
Thomas Hagen
Chairman of the Board12.5yrsUS$254.28k32.81% $2.5b
John Borneman
Director27.8yrsUS$154.00k0.038% $2.9m
Salvatore Correnti
Independent Director1.8yrsUS$123.00k0.00061% $46.1k
Charles Hartz
Independent Director16.8yrsUS$147.00k0.0040% $302.9k
Jonathan Hagen
Vice Chairman of the Board7.1yrsUS$172.00k0.43% $32.6m
Thomas Palmer
Independent Director13.8yrsUS$189.00k0.0015% $111.1k
Elizabeth Ann Vorsheck
Independent Director12.8yrsUS$156.63k18.31% $1.4b
Brian Hudson
Independent Director2.8yrsUS$178.50k0.00056% $42.3k


Average Tenure


Average Age

Experienced Board: ERIE's board of directors are considered experienced (9.8 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Erie Indemnity Company's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: Erie Indemnity Company
  • Ticker: ERIE
  • Exchange: NasdaqGS
  • Founded: 1925
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$7.555b
  • Shares outstanding: 46.19m
  • Website:

Number of Employees


  • Erie Indemnity Company
  • 100 Erie Insurance Place
  • Erie
  • Pennsylvania
  • 16530
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERIENasdaqGS (Nasdaq Global Select)YesClass A Non-Voting Common StockUSUSDOct 1995


Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States. The company provides sales, underwriting, and policy issuance services for the policyholders on behalf of the Erie Insurance Exchange. Its sales related services include agent compensation, and sales and advertising support services; and underwriting services comprise underwriting and policy processing, as well as provides administrative support, information technology, and customer services. Erie Indemnity Company was founded in 1925 and is based in Erie, Pennsylvania. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:38
End of Day Share Price2020/02/14 00:00
Annual Earnings2018/12/31

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.