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Erie Indemnity

Nasdaq:ERIE
Snowflake Description

Outstanding track record with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ERIE
Nasdaq
$8B
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States. The last earnings update was 59 days ago. More info.


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ERIE Share Price and Events
7 Day Returns
1.3%
NasdaqGS:ERIE
0.2%
US Insurance
-0.3%
US Market
1 Year Returns
52.6%
NasdaqGS:ERIE
2.4%
US Insurance
7%
US Market
ERIE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Erie Indemnity (ERIE) 1.3% 2.2% 25.9% 52.6% 96.1% 153.4%
US Insurance 0.2% 3.4% 7.1% 2.4% 30.1% 43.3%
US Market -0.3% 2% 8.5% 7% 37.7% 46.8%
1 Year Return vs Industry and Market
  • ERIE outperformed the Insurance industry which returned 2.4% over the past year.
  • ERIE outperformed the Market in United States of America which returned 7% over the past year.
Price Volatility
ERIE
Industry
5yr Volatility vs Market

Value

 Is Erie Indemnity undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Erie Indemnity to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Erie Indemnity.

NasdaqGS:ERIE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $16.07 * 25%
$4.02
Book Value of Equity per Share Median Book Value from the past 5 years. $16.07
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ERIE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.737 (1 + (1- 21%) (1.2%))
0.829
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.829 * 5.96%)
7.67%

Discounted Cash Flow Calculation for NasdaqGS:ERIE using Excess Returns Model Model

The calculations below outline how an intrinsic value for Erie Indemnity is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:ERIE Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (25% – 7.67%) * $16.07)
$2.79
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $2.79 / (7.67% - 2.73%)
$56.52
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $16.07 + $56.52
$72.59
NasdaqGS:ERIE Discount to Share Price
Calculation Result
Value per share (USD) From above. $72.59
Current discount Discount to share price of $179.95
= -1 x ($179.95 - $72.59) / $72.59
-147.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Erie Indemnity is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Erie Indemnity's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Erie Indemnity's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ERIE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $5.51
NasdaqGS:ERIE Share Price ** NasdaqGS (2019-04-18) in USD $179.95
United States of America Insurance Industry PE Ratio Median Figure of 87 Publicly-Listed Insurance Companies 18x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Erie Indemnity.

NasdaqGS:ERIE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ERIE Share Price ÷ EPS (both in USD)

= 179.95 ÷ 5.51

32.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Erie Indemnity is overvalued based on earnings compared to the US Insurance industry average.
  • Erie Indemnity is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Erie Indemnity's expected growth come at a high price?
Raw Data
NasdaqGS:ERIE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 32.65x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
6.9%per year
United States of America Insurance Industry PEG Ratio Median Figure of 66 Publicly-Listed Insurance Companies 1.23x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGS:ERIE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 32.65x ÷ 6.9%

4.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Erie Indemnity is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Erie Indemnity's assets?
Raw Data
NasdaqGS:ERIE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $18.62
NasdaqGS:ERIE Share Price * NasdaqGS (2019-04-18) in USD $179.95
United States of America Insurance Industry PB Ratio Median Figure of 118 Publicly-Listed Insurance Companies 1.23x
United States of America Market PB Ratio Median Figure of 5,184 Publicly-Listed Companies 1.91x
NasdaqGS:ERIE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ERIE Share Price ÷ Book Value per Share (both in USD)

= 179.95 ÷ 18.62

9.66x

* Primary Listing of Erie Indemnity.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Erie Indemnity is overvalued based on assets compared to the US Insurance industry average.
X
Value checks
We assess Erie Indemnity's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Erie Indemnity has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Erie Indemnity expected to grow at an attractive rate?
  • Erie Indemnity's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Erie Indemnity's earnings growth is positive but not above the United States of America market average.
  • Erie Indemnity's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ERIE Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ERIE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 6.9%
NasdaqGS:ERIE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 4.6%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 16.6%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ERIE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ERIE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 2,614 331 1
2019-12-31 2,494 312 1
NasdaqGS:ERIE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,382 264 288
2018-09-30 2,207 251 258
2018-06-30 2,038 199 236
2018-03-31 1,865 192 215
2017-12-31 1,692 197 197
2017-09-30 1,670 219 211
2017-06-30 1,646 243 210
2017-03-31 1,621 241 212
2016-12-31 1,597 254 210
2016-09-30 -1,860 -290 194
2016-06-30 -933 -43 187
2016-03-31 275 106 182

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Erie Indemnity's earnings are expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).
  • Erie Indemnity's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ERIE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Erie Indemnity Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ERIE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 6.45 6.45 6.45 1.00
2019-12-31 6.08 6.08 6.08 1.00
NasdaqGS:ERIE Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 5.51
2018-09-30 4.93
2018-06-30 4.51
2018-03-31 4.11
2017-12-31 3.77
2017-09-30 4.03
2017-06-30 4.01
2017-03-31 4.06
2016-12-31 4.02
2016-09-30 3.72
2016-06-30 3.57
2016-03-31 3.47

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Erie Indemnity will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Erie Indemnity's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Erie Indemnity has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Erie Indemnity performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Erie Indemnity's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Erie Indemnity's year on year earnings growth rate has been positive over the past 5 years.
  • Erie Indemnity's 1-year earnings growth exceeds its 5-year average (46.3% vs 9.4%)
  • Erie Indemnity's earnings growth has exceeded the US Insurance industry average in the past year (46.3% vs -4.3%).
Earnings and Revenue History
Erie Indemnity's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Erie Indemnity Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ERIE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,382.21 288.22 -1.72
2018-09-30 2,207.15 257.96 -3.67
2018-06-30 2,037.51 236.06
2018-03-31 1,864.62 214.88
2017-12-31 1,691.77 197.00 3.48
2017-09-30 1,669.99 210.73 2.39
2017-06-30 1,645.90 209.57
2017-03-31 1,621.22 212.35
2016-12-31 1,596.63 210.37 2.41
2016-09-30 -1,860.47 194.26
2016-06-30 -932.88 186.88
2016-03-31 275.24 181.57
2015-12-31 1,505.51 174.68
2015-09-30 6,172.00 171.00
2015-06-30 6,252.00 168.00
2015-03-31 6,218.00 161.00
2014-12-31 6,124.00 168.00
2014-09-30 6,232.00 178.00
2014-06-30 6,383.00 177.00
2014-03-31 6,211.00 172.00
2013-12-31 6,271.00 163.00
2013-09-30 5,946.00 157.00
2013-06-30 5,829.00 162.00
2013-03-31 5,563.00 161.00
2012-12-31 5,512.00 160.00
2012-09-30 5,558.00 156.00
2012-06-30 4,894.00 152.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Erie Indemnity has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Erie Indemnity used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.
  • Erie Indemnity has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Erie Indemnity's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Erie Indemnity has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Erie Indemnity's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Erie Indemnity's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Erie Indemnity is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Erie Indemnity's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Erie Indemnity's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 11.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Erie Indemnity Company Filings, last reported 3 months ago.

NasdaqGS:ERIE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 973.67 99.73 668.76
2018-09-30 921.02 99.73 349.72
2018-06-30 880.19 99.73 305.78
2018-03-31 840.16 74.73 216.20
2017-12-31 857.34 74.73 286.91
2017-09-30 875.15 49.73 249.95
2017-06-30 853.21 49.74 216.77
2017-03-31 829.86 24.75 187.83
2016-12-31 816.91 24.77 245.21
2016-09-30 838.93 0.00 191.92
2016-06-30 815.19 0.00 170.69
2016-03-31 784.87 0.00 162.52
2015-12-31 769.50 0.00 244.96
2015-09-30 8,125.00 0.00 3,599.00
2015-06-30 8,162.00 0.00 3,565.00
2015-03-31 8,137.00 0.00 3,516.00
2014-12-31 7,983.00 0.00 3,737.00
2014-09-30 7,836.00 0.00 3,504.00
2014-06-30 7,821.00 0.00 3,677.00
2014-03-31 7,690.00 0.00 3,632.00
2013-12-31 7,550.00 0.00 3,654.00
2013-09-30 7,199.00 0.00 3,480.00
2013-06-30 6,968.00 0.00 3,089.00
2013-03-31 7,017.00 0.00 3,050.00
2012-12-31 6,791.00 0.00 2,817.00
2012-09-30 6,843.00 0.00 3,073.00
2012-06-30 6,597.00 0.00 2,758.00
  • Erie Indemnity's level of debt (10.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 10.2% today).
  • Debt is well covered by operating cash flow (264.3%, greater than 20% of total debt).
  • Erie Indemnity earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Erie Indemnity's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Erie Indemnity has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2%
Current annual income from Erie Indemnity dividends. Estimated to be 2% next year.
If you bought $2,000 of Erie Indemnity shares you are expected to receive $40 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Erie Indemnity's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • Erie Indemnity's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ERIE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America Insurance Industry Average Dividend Yield Market Cap Weighted Average of 79 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ERIE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 3.60 1.00
2019-12-31 3.60 1.00
NasdaqGS:ERIE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-12-07 3.600 2.323
2018-10-25 3.360 2.533
2018-07-26 3.360 2.669
2018-04-26 3.360 2.891
2017-12-08 3.360 2.874
2017-10-26 3.130 2.560
2017-04-26 3.130 2.583
2016-12-07 3.130 2.682
2016-07-27 2.920 2.867
2016-04-20 2.920 3.027
2015-12-02 2.920 3.090
2015-10-29 2.724 3.029
2015-07-30 2.724 3.259
2015-04-30 2.724 3.317
2014-12-03 2.724 3.087
2014-07-31 2.540 3.197
2014-05-01 2.540 3.394
2013-12-04 2.540 3.604
2013-10-31 2.370 3.353
2013-08-01 2.370 3.204
2013-04-29 2.370 2.997
2012-11-19 2.370 3.287
2012-08-06 2.210 3.449
2012-04-18 2.210 3.096
2012-02-27 2.210 2.886
2011-12-07 2.210 2.882
2011-08-04 2.060 2.817
2011-06-10 2.060 2.897
2011-05-05 2.060 2.920
2010-12-07 2.060 3.021
2010-11-04 1.920 3.112
2010-07-29 1.920 3.548
2010-05-06 1.920 4.153
2009-12-10 1.920 4.708
2009-10-29 1.800 4.931
2009-08-05 1.800 4.812
2009-04-30 1.800 5.072
2009-04-22 1.800 5.237

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Erie Indemnity's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Erie Indemnity's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Erie Indemnity afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Erie Indemnity has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Erie Indemnity's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tim NeCastro
COMPENSATION $3,495,963
AGE 58
TENURE AS CEO 2.7 years
CEO Bio

Mr. Timothy Gerard NeCastro, 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 Executive Officer of Erie Insurance (“Erie”) since January 2017. He joined Erie in 1996, starting a career that has spanned finance, services and sales. He was then promoted to Senior Vice President of the Controller Division in 1997. He serves as President and CEO at Erie Insurance Property & Casualty Company .He moved into operations in 2008 as Senior Vice President of the Product and Policy Services Division. He expanded his experience to field sales operations in 2010, when he was promoted to regional officer. Prior to joining ERIE, he worked for The Plastek Group, as Director of finance. He previously worked for 10 years progressing through Senior Manager at Ernst & Young. He is a graduate of Cathedral Preparatory School and earned a bachelor's degree in accounting from Gannon University. He maintains his Certified Public Accounting (CPA) designation, is a Certified Insurance Counselor (CIC) and holds licenses in property & casualty and life insurance. He serves on the Boards of the Property Casualty Insurers Association of America, Insurance Information Institute, Erie Regional Chamber and Growth Partnership and UPMC Hamot, as well as the Gannon University board of trustees. He is a founding Board member and President of the Erie Downtown Development Corporation’s Board of Directors. Mr. NeCastro served as Chief Executive Officer at Erie Indemnity Company from August 2016 until December 2016. He served as its President and Chief Executive Officer Designate from June 2016 until July 2016. He served as Senior Vice President of West Region of Erie Indemnity Company from February 2010 until June 2016. Mr. NeCastro served as Director at Erie Family Life Insurance Company ("EFL"), Erie Insurance Company ("EIC"), Flagship City Insurance Company ("Flagship"), Erie Insurance Company of New York ("ENY") and Erie Insurance Property & Casualty Company ("EPC").

CEO Compensation
  • Tim's compensation has been consistent with company performance over the past year.
  • Tim's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Erie Indemnity management team in years:

3.1
Average Tenure
55
Average Age
  • The tenure for the Erie Indemnity management team is about average.
Management Team

Tim NeCastro

TITLE
President & CEO
COMPENSATION
$3M
AGE
58
TENURE
2.7 yrs

Greg Gutting

TITLE
Executive VP & CFO
COMPENSATION
$1M
AGE
55
TENURE
3.5 yrs

Brad Postema

TITLE
Senior VP & Chief Investment Officer
COMPENSATION
$1M
TENURE
6.8 yrs

Bob Ingram

TITLE
Executive VP & Chief Information Officer
COMPENSATION
$1M
AGE
59
TENURE
6.7 yrs

Bill Matrogran

TITLE
Vice President of Construction Management & Operations

Scott Beilharz

TITLE
Vice President of Capital Management & Investor Relations
TENURE
7.3 yrs

Sheryl Rucker

TITLE
Senior Vice President of Law Division
TENURE
1 yrs

Douglas Smith

TITLE
Executive Vice President of Sales & Products
AGE
44
TENURE
2.4 yrs

Charles Fletcher

TITLE
Senior Vice President of Sales & Marketing

Dionne Oakley

TITLE
Executive Vice President of Human Resources & Strategy
AGE
50
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Erie Indemnity board of directors in years:

9
Average Tenure
65
Average Age
  • The tenure for the Erie Indemnity board of directors is about average.
Board of Directors

Tom Hagen

TITLE
Chairman of the Board
COMPENSATION
$254K
AGE
82
TENURE
11.7 yrs

Jonathan Hagen

TITLE
Vice Chairman of the Board
COMPENSATION
$172K
AGE
55
TENURE
6.3 yrs

John Ralph Borneman

TITLE
Director
COMPENSATION
$154K
AGE
79
TENURE
27 yrs

Thomas Palmer

TITLE
Director
COMPENSATION
$189K
AGE
70
TENURE
13 yrs

Elizabeth A. Vorsheck

TITLE
Director
COMPENSATION
$157K
AGE
62
TENURE
12 yrs

Brian Hudson

TITLE
Director
COMPENSATION
$179K
AGE
63
TENURE
2 yrs

Sal Correnti

TITLE
Director
COMPENSATION
$123K
AGE
57
TENURE
1 yrs

Eugene Connell

TITLE
Director
COMPENSATION
$158K
AGE
63
TENURE
2 yrs

George Lucore

TITLE
Director
COMPENSATION
$153K
AGE
67
TENURE
3 yrs

Claude Lilly

TITLE
Director
COMPENSATION
$169K
AGE
71
TENURE
19.3 yrs
Who owns this company?
Recent Insider Trading
  • Erie Indemnity insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
27. Mar 19 Sell J. Borneman Individual 26. Mar 19 26. Mar 19 -10,000 $176.60 $-1,764,710
25. Mar 19 Buy Brian Hudson Individual 25. Mar 19 25. Mar 19 115 $174.03 $20,014
02. Jan 19 Buy Louis Colaizzo Individual 31. Dec 18 31. Dec 18 750 $133.00 $99,750
28. Dec 18 Buy Salvatore Correnti Individual 26. Dec 18 26. Dec 18 320 $126.81 $40,578
30. Oct 18 Buy Timothy NeCastro Individual 30. Oct 18 30. Oct 18 160 $131.21 $20,994
21. Aug 18 Buy Timothy NeCastro Individual 21. Aug 18 21. Aug 18 1,550 $127.89 $198,230
03. Aug 18 Buy Timothy NeCastro Individual 03. Aug 18 03. Aug 18 141 $126.43 $17,827
31. May 18 Buy Louis Colaizzo Individual 29. May 18 29. May 18 1,000 $112.00 $112,000
02. May 18 Buy Timothy NeCastro Individual 01. May 18 01. May 18 119 $117.39 $13,969
X
Management checks
We assess Erie Indemnity's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Erie Indemnity has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Do Insiders Own Lots Of Shares In Erie Indemnity Company (NASDAQ:ERIE)?

Every investor in Erie Indemnity Company (NASDAQ:ERIE) should be aware of the most powerful shareholder groups. … Erie Indemnity is a pretty big company. … Check out our latest analysis for Erie Indemnity

Simply Wall St -

2 Days Left To Cash In On Erie Indemnity Company (NASDAQ:ERIE) Dividend

To qualify for the dividend check of US$0.90 per share, investors must have owned the shares prior to 05 April 2019, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Erie Indemnity's latest financial data to analyse its dividend attributes. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:?

Simply Wall St -

Did Erie Indemnity Company's (NASDAQ:ERIE) Recent Earnings Growth Beat The Trend?

When Erie Indemnity Company (NASDAQ:ERIE) released its most recent earnings update (31 December 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Erie Indemnity's average earnings over the past couple of years, and its industry performance. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 9.4%, indicating the rate at which ERIE is growing has accelerated

Simply Wall St -

Need To Know: Erie Indemnity Company (NASDAQ:ERIE) Insiders Have Been Buying Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Erie Indemnity Company (NASDAQ:ERIE). … Erie Indemnity Insider Transactions Over The Last Year. … In total, Erie Indemnity insiders bought more than they sold over the last year

Simply Wall St -

The Erie Indemnity Share Price Is Up 135% And Shareholders Are Boasting About It

For example, the Erie Indemnity Company (NASDAQ:ERIE) share price has soared 135% in the last half decade. … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, Erie Indemnity managed to grow its earnings per share at 11% a year.

Simply Wall St -

Is Erie Indemnity Company (NASDAQ:ERIE) Excessively Paying Its CEO?

Tim NeCastro has been the CEO of Erie Indemnity Company (NASDAQ:ERIE) since 2016. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Tim NeCastro's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Erie Indemnity Company (NASDAQ:ERIE) Delivered A Better ROE Than Its Industry

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Erie Indemnity has a return on equity of 28% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

These Fundamentals Make Erie Indemnity Company (NASDAQ:ERIE) Truly Worth Looking At

I've been keeping an eye on Erie Indemnity Company (NASDAQ:ERIE) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe ERIE has a lot to offer. … , dividend-paying company with a

Simply Wall St -

Erie Indemnity Company (NASDAQ:ERIE): Ex-Dividend Is In 4 Days

Investors who want to cash in on Erie Indemnity Company's (NASDAQ:ERIE) upcoming dividend of US$0.90 per share have only 4 days left to buy the shares before its ex-dividend date, 07 January 2019, in time for dividends payable on the 23 January 2019. … Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … When researching a dividend stock, I always follow the following screening criteria:?

Simply Wall St -

What Percentage Of Erie Indemnity Company (NASDAQ:ERIE) Shares Do Insiders Own?

A look at the shareholders of Erie Indemnity Company (NASDAQ:ERIE) can tell us which group is most powerful. … institutional investors have bought into the company … Check out our latest analysis for Erie Indemnity

Simply Wall St -

Company Info

Description

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.

Details
Name: Erie Indemnity Company
ERIE
Exchange: NasdaqGS
Founded: 1925
$8,311,722,786
46,189,068
Website: http://www.erieinsurance.com
Address: Erie Indemnity Company
100 Erie Insurance Place,
Erie,
Pennsylvania, 16530,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ERIE Class A Non-Voting Common Stock Nasdaq Global Select US USD 02. Oct 1995
Number of employees
Current staff
Staff numbers
5,500
Erie Indemnity employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/21 23:35
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/02/22
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.