Mr. Garcia: Erie Indemnity Company is the attorney-in-fact for the Erie Insurance Exchange. The Erie Insurance Exchange is a reciprocal exchange insurer organized in the State of Pennsylvania in 1925 along with Erie Indemnity Company by our founder, H.O. Hirt. Those two companies along with Erie Family Life Insurance Company, our life insurance affiliate, which was founded in 1969, and four other property and casualty insurers, form the Erie Insurance Group. Collectively, Erie Indemnity is the management company for Erie Insurance Exchange. Erie Insurance Exchange itself, Erie Family Life, and our four other property-casualty insurers operate altogether as the Erie Insurance Group.
TWST: Is it correct to say that Erie Indemnity does not directly write
insurance premiums but only collects management fees?
Mr. Garcia: Actually, the majority of its business is acting as the
attorney-in-fact and collecting the management fee for performing risk
management services on behalf of the property-casualty insurers of the
ERIE group. However, Erie Indemnity Company has two wholly owned
property-casualty insurer subsidiaries itself. So it is in the property-
casualty insurance business and retains a small portion of the insurance
risk of our group. To be precise, it retains 5.5% of the insurance risk
written by our property-casualty companies.
Tickers included in this excerpt: ERIE
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