Erie Indemnity Appoints New CEO, Approves Management Fee Rate and Dividend Increase, Declares Ordinary Dividends

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Erie, Pennsylvania., December 9, 2021 / PRNewswire / – At its regular meeting held December 7, 2021, The Board of Directors of Erie Indemnity Company (NASDAQ: ERIE) Appointed a new executive vice president, set the rate of management fees charged to Erie Insurance Exchange, approved an increase in shareholder dividends and declared the regular quarterly dividend. Erie Indemnity Company has paid dividends to common shareholders since 1933.

Erie Insurance. (PRNewsFoto / Erie Insurance) (PRNewsfoto / Erie Insurance)

The appointed Council Brian W. Bolash an executive vice president of the company. Bolash has been with the company for 21 years and is currently Senior Vice President, Secretary and General Counsel, responsible for the Law and Internal Audit Division. The appointment is effective January 1, 2022, after which he will continue to exercise the functions of general counsel and general secretary of the company. Bolash graduated from Gannon University and Dickinson La Law School Pennsylvania State University.

The board also agreed to maintain the current rate of management fees paid to Erie Indemnity Company by Erie Insurance Exchange at 25%, effective January 1, 2022. The management fee rate was 25% for the period From January 1 to December 31, 2021. The Board has the authority under the agreement with (insured) subscribers to Erie Insurance Exchange to set the rate of management fees, at its discretion; however, the maximum royalty rate allowable by the agreement is 25%. This action was taken based on various factors including the review and revision of the relative financial positions of Erie Insurance Exchange and Erie Indemnity Company.

The Board also decided to increase the regular quarterly cash dividend by $ 1.035 at $ 1.11 on each class A share and $ 155.25 at $ 166.50 on each Class B share. This represents a share payout by 7.2% increase over the current dividend rate. The next quarterly dividend is payable January 20, 2022, To shareholders of record on January 5, 2022, With a release date of dividend January 4, 2022.

About Erie Insurance

Erie Insurance Group

According to AM Best Company, Erie Insurance Group, based in Erie, Pennsylvania, Is the 12th largest home insurer, 13th largest auto insurer and 13th commercial lines insurer United States on the basis of direct premiums written. Founded in 1925, Erie Insurance is a Fortune 500 company and the 16th largest property / casualty insurer in United States on the basis of net premiums total lines. Rated A + (Superior) by AM Best, ERIE has over 6 million policies in force and operates in 12 states and the District of Columbia. Press releases and more information about Erie Insurance Group are available at www.erieinsurance.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
Statements contained in this document that are not historical facts are forward-looking statements and, as such, are subject to risks and uncertainties that could cause actual events and results to differ, possibly be materially, of those discussed here. Forward-looking statements relate to future trends, events or results and include, without limitation, statements and assumptions on which such statements are based and which relate to our plans, strategies, objectives, expectations, intentions and suitability. Resource. Examples of forward-looking statements are discussions relating to premiums and investment income, expenses, results of operations and compliance with contractual and regulatory requirements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual results and results may differ materially from what is expressed or expected in these forward-looking statements. Some of the risks and uncertainties, in addition to those set forth in our documents filed with the Securities and Exchange Commission, that could cause actual results and future events to differ from those set out or contemplated in forward-looking statements, include the following :

  • dependence on our relationship with the Erie Insurance Exchange (“Exchange”) and the costs of managing the agreement with subscribers to the Exchange;

  • dependence on our relationship with the Exchange and the growth of the Exchange, including:

  • dependence on our relationship with the exchange and the financial condition of the Exchange, including:

  • the potential impacts of the COVID-19 pandemic on the growth and financial situation of the Stock Exchange;

  • Costs of providing services of issuance and policy renewal of the Exchange under the Subscriber Agreement;

  • ability to attract and retain talented managers and employees;

  • ability to ensure system availability and effectively manage technology initiatives;

  • difficulties with technology or data security breaches, including cyber attacks;

  • ability to maintain uninterrupted business operations;

  • outcome of current and potential litigation;

  • the potential impacts of the Covid-19 pandemic on our business, the business activities of our customers and / or independent agents, or our operations of third-party suppliers;

  • factors that affect the quality and liquidity of our investment portfolio; and

  • our ability to meet liquidity and access capital needs.

A forward-looking statement is only valid as of the date on which it is made and reflects our analysis only as of that date. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changes in assumptions or otherwise.

Cision

Cision

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SOURCE Erie Indemnity Company


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