Business Description
Erie Indemnity Company is a publicly held Pennsylvania business corporation that
has since our incorporation in 1925 served as the attorney-in-fact for the subscribers
(policyholders) at the Erie Insurance Exchange ("Exchange"). The Exchange,
which also commenced business in 1925, is a Pennsylvania-domiciled, reciprocal
insurer that writes property and casualty insurance. We function solely as the
management company and all insurance operations are performed by the Exchange.
We operate our business as one segment.
Our primary function as attorney-in-fact is to perform certain services for
the Exchange relating to the sales, underwriting, and issuance of policies on
behalf of the Exchange. This is done in accordance with a subscriber’s
agreement (a limited power of attorney) executed individually by each subscriber
(policyholder), which appoints us as their common attorney-in-fact to transact
certain business on their behalf and to manage the affairs of the Exchange.
Pursuant to the subscriber’s agreement and for our services as attorney-in-fact,
we earn a management fee calculated as a percentage, not to exceed 25%, of the
direct and assumed premiums written by the Exchange. The management fee rate
is set annually by our Board of Directors.
The services we provide to the Exchange are related to the sales, underwriting
and issuance of policies. The sales related services we provide include agent
compensation and certain sales and advertising support services. Agent compensation
includes scheduled commissions to agents based upon premiums written as well
as additional commissions and bonuses to agents, which are earned by achieving
targeted measures.
Our primary purpose is to manage the affairs at the Exchange for the benefit
of the policyholders. The Exchange is our sole customer and our earnings primarily
come from management fees based on the direct and assumed premiums written by
the Exchange. We have no direct competition in providing these services to the
Exchange.
5.98% 
233.31 %