Valued at a market cap of $16.3 billion, Erie Indemnity Company (ERIE) is a U.S.-based insurance services company headquartered in Erie, Pennsylvania. It serves as the managing attorney-in-fact for the Erie Insurance Exchange, which is a reciprocal insurance exchange offering auto, home, business, and life insurance.
Shares of ERIE have underperformed the broader market, plunging 12.1% over the past 52 weeks and 13.3% this year. In contrast, the S&P 500 Index ($SPX) has gained 11.9% and is down marginally in 2025.
Zooming out, ERIE has lagged behind the SPDR S&P Insurance ETF (KIE). The exchange-traded fund has gained 15.1% over the past 52 weeks and 4.4% on a YTD basis.
On April 25, Erie Indemnity reported its fiscal Q1 2025 results. Net income rose 11.1% year-over-year to $138.4 million, while total operating revenue climbed 12.3% to $989.4 million, driven by a 13.4% increase in management fee revenue and a 29% surge in investment income, reflecting stronger bond yields and robust returns from limited partnerships.
Despite the healthy growth metrics, earnings per share came in at $2.65, falling short of consensus estimates due to elevated operating expenses, primarily tied to personnel and IT investments. The earnings miss triggered a sharp market reaction, with shares sliding 11.5% post-earnings.
For fiscal 2025, which ends in December, analysts expect Erie Indemnity’s EPS to grow 9.9% to $12.62. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing in the previous quarter.
ERIE stock has a consensus “Moderate Buy” rating overall. Of the two analysts covering the stock, one recommends a “Strong Buy,” and one suggests a “Hold” rating.
This configuration has been consistent over the past few months.
The stock is currently trading above its average price target.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
