Home Care In Erie, CO

Erie Indemnity Co (ERIE) reports robust financial performance with significant premium growth and strategic advancements, despite weather-related impacts and rising costs.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q: How has Hurricane Helene impacted Erie Indemnity's financial performance? A: Timothy Necastro, President and CEO, explained that Hurricane Helene negatively affected the combined ratio for Erie Insurance Exchange, contributing 5.3 points to the third-quarter 2024 combined ratio of 113.7. Despite these challenges, Erie Indemnity Company maintained strong performance due to growth in new business and solid retention.

Q: What factors contributed to Erie Indemnity's inclusion in the S&P 500 Index? A: Julie Pelkowski, Executive Vice President and CFO, attributed the inclusion to strong operating performance driven by significant increases in management fee revenue. This growth is linked to the Exchange's premium increases, which have been necessary to address increased loss cost pressures and weather-related activities.

Q: Can you elaborate on the premium growth and its impact on Erie Indemnity's financials? A: Julie Pelkowski noted that the Exchange's direct and affiliated assumed written premiums grew over 18% for the quarter and over 19% year-to-date. This growth is largely due to rate increases, resulting in a significant increase in the average written premium per policy by 12.8% year-over-year. The strong premium growth has positively impacted management fee revenue and overall financial performance.

Q: How has Erie Indemnity managed its cost of operations amid growth? A: Julie Pelkowski highlighted that commissions, the largest expense, increased in line with premium growth. Non-commission expenses also rose due to higher personnel costs, production-related expenses, and investments in technology. Despite these increases, the company continues to focus on maintaining a strong balance sheet and capital management.

Q: What strategic initiatives is Erie Indemnity pursuing to enhance customer and agent experiences? A: Timothy Necastro discussed the launch of Business Auto 2.0, a refreshed product piloted in Indiana, and a new capability for automatic online account enrollment. These initiatives aim to improve service delivery and customer engagement, supporting the company's broader strategy to modernize platforms and enhance digital capabilities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

The Draco Project by Civitas Resources Inc aims to drill 26 new wells that could extend up to five miles underground right under neighborhoods and new homes. If approved, this could be the longest horizontal drill in Colorado. The area above ground would be in unincorporated Weld County, but the lines will extend under Erie and near existing wells.

For the past year, Sami Carroll has spent hours researching and fighting the Draco oil and gas proposal that would go right through her neighborhood in Erie.

"I don't believe that it is safe, and I don't believe that this type of technology should be done for the first time under one of the fastest-growing towns in Colorado, "Carroll said.

Before going forward, the project needs approval from the state's Energy and Carbon Management Commission.

On Tuesday, the commission held a community feedback event, where public comment lasted hours. Some concerns residents like Carroll shared include impacts on air quality, noise, traffic and how the project could interact with existing wells. David Frank, town of Erie director of Environmental Services, says some previous wells are in residents front yards.

The project also would impact new residential construction projects that Frank says the town has been working on for years.

"That's very frustrating for a town to have been working on a huge project for so long to see that project impacted in very short order by neighboring local governments over which we have a little control," Frank said.

But those behind the project say they're doing everything they can to keep things safe and efficient. Rich Coolidge, the manager of Public Affairs for Civitas Resources, Inc., told CBS Colorado in a statement in part, "We know that Colorado's regulations governing oil and natural gas development are some of the strictest in the world, and we see the Draco pad meeting and even exceeding the state's regulations."

But Erie residents still have questions about what the risks could be. Frank added, "Even the most advanced drill site, it is still impactful to its neighbors, and so we continue to work on how those more specific impacts can be mitigated."

The commission was scheduled to make a decision on the project on Nov. 6, but on Friday afternoon postponed it until Nov. 13, "at the request of the operator and the petitioners." The petitioner includes those involved in the new housing developments nearby.

As the commission prepares for the hearing, blank, the Public Information Officer & Community Relations manager for ECMC, emphasized, "The proposal has to comply with ECMC rule-making and regulations. So our commission ultimately is responsible for taking in all of those factors and making a decision within those parameters."

Civitas shared a statement that says it is committed to preventing impacts to the surrounding community.

"As Colorado's first carbon neutral operator and a leader in sustainability, we're known as an early adopter of new technologies and innovative practices. We know that Colorado's regulations governing oil and natural gas development are some of the strictest in the world and we see the Draco pad meeting and even exceeding the state's regulations. Following conversations from stakeholders, local governments and others, we've developed that pad site to minimize and mitigate impacts by locating it east of Erie in unincorporated Weld County. Our best in class operations will include use of all-electric, lower-emission drill rig, followed by our quiet completions fleet that reduces sound and emissions. The project will also expedite the removal of 22 older wells, which will also remove tanks and equipment located in and around the town of Erie and reclaim and return close to 12 acres of land."

"The extended reach laterals heard in public comments are nothing new to Civitas. By leveraging cutting-edge technology and innovation, we've progressed from drilling 1-mile wells to safely executing 2-, 3-, and 4-mile wells in developed fields, maximizing resource recovery while significantly reducing surface footprint and enhancing operational efficiency. Civitas, like other Colorado operators, meticulously plans its proposed wells, which undergo rigorous review and approval by the Colorado Energy and Carbon Management Commission (ECMC) through the Application for Permit to Drill process, ensuring full compliance with the ECMC's mission, rules, and regulations. As Colorado residents ourselves, we are committed to protecting public health, safety, welfare, and the environment through our operations, demonstrating our dedication to our neighbors and surrounding communities."

"Residents interested in learning more about the development can visit our dedicated website. We've also included responses to Frequently Asked Questions."

Meanwhile Carroll plans to speak whenever the hearing happens, saying she hopes, "Sometimes when law and common sense don't necessarily match up, that the commission will hear the common sense concerns around this project, and not just rubber stamp."

Sarah Horbacewicz

Sarah Horbacewicz is a multi-skilled journalist for CBS News Colorado. Read her latest reports or check out her bio and send her an email.

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Summary

Erie Indemnity Co (ERIE, Financial) released its 8-K filing on October 31, 2024, reporting a notable increase in net income for the third quarter of 2024. The company, which provides services related to sales, underwriting, and policy issuance for the Erie Insurance Exchange, reported net income of $159.8 million, or $3.06 per diluted share, surpassing the analyst estimate of $2.99 per share. This marks a significant improvement from the $131.0 million, or $2.51 per diluted share, recorded in the same quarter of 2023.

Erie Indemnity Co (ERIE, Financial) operates exclusively in the United States, primarily through its relationship with the Erie Insurance Exchange. The company's revenue is derived from a management fee, typically 25% of the Exchange's premiums, which are largely generated from automobile and homeowners insurance, as well as commercial insurance products.

In the third quarter of 2024, Erie Indemnity Co (ERIE, Financial) reported operating income of $180.1 million, a 21.3% increase from the previous year. This growth was driven by a substantial rise in management fee revenue from policy issuance and renewal services, which increased by $120.1 million, or 18.5%, compared to the third quarter of 2023. Additionally, investment income before taxes rose to $19.5 million, up from $12.3 million in the prior year.

Despite the positive financial results, Erie Indemnity Co (ERIE, Financial) faces challenges related to increased operational costs. The cost of operations for policy issuance and renewal services saw a rise, with commissions increasing by $66.3 million due to growth in premiums and agent incentive compensation. Non-commission expenses also rose by $23.3 million, driven by higher underwriting, IT, and sales costs.

Operating income before taxes increased $31.7 million, or 21.3 percent, in the third quarter of 2024 compared to the third quarter of 2023," the company noted in its filing.

Erie Indemnity Co (ERIE, Financial) also reported a significant increase in investment income, which totaled $48.5 million for the first nine months of 2024, compared to $19.2 million in the same period of 2023. This improvement reflects the company's strategic investment decisions and favorable market conditions.

As a key player in the insurance industry, Erie Indemnity Co (ERIE, Financial) continues to leverage its strong market position and robust financial performance to drive growth. The company's ability to increase management fee revenue and investment income highlights its effective operational strategies and resilience in a competitive market.

Erie Indemnity Co (ERIE, Financial)'s third-quarter results demonstrate its capacity to exceed market expectations and deliver strong financial performance. The company's strategic focus on enhancing revenue streams and managing operational costs will be crucial in maintaining its competitive edge in the insurance industry. Investors and stakeholders will be keen to monitor how Erie Indemnity Co (ERIE) navigates future challenges and capitalizes on growth opportunities.

Explore the complete 8-K earnings release (here) from Erie Indemnity Co for further details.

STERLING – Outside of some early rust to shake off after playing for the first time in a week, the Erie-Prophetstown volleyball team played some of its best volleyball in Tuesday’s Class 2A Newman Regional semifinal matchup with Oregon.

The second-seeded Panthers took care of business against the ninth-seeded Hawks, winning 25-15, 25-17. E-P (30-3-2) advances to face seventh-seeded Rock Falls in Thursday’s regional final at 6 p.m. The Rockets took down Sherrard in three sets after trailing the first set 12-0.

Senior Jamie Neumiller had nine kills, two aces and two blocks in E-P’s 10th straight win.

“I think we’re working well as a team and building momentum off of each other,” she said. “We have a lot of potential, and I’m really excited for that.”

After an impressive regular season and a 10-0 mark in the Three Rivers Conference, the Panthers are in position to win their first regional title since becoming a co-op in 2018.

Lauren Abbott led E-P with 11 kills and added two more blocks. She and the other hitters constantly were able to get off clean hits at the net that Oregon (18-17) often could not return.

“I think our setter Kaylee Keegan pushes really hard to try to get us the best ball,” Neumiller said. “She really tries the hardest to make us look good.

“We have many, many hitters who can put the ball down.”

Keegan said the team does a good job of spreading the ball around. She finished with 24 assists and two aces.

“Our passers do really well setting me up so I can set up our hitters and run a good offense,” Keegan said.

Keegan trusts her hitters and said it helps having multiple options. Ashlyn Johnson also had six kills and added nine digs.

“They’re really confident with the ball,” she said, “so it helps me more.”

E-P trailed 2-0 in the opening set but would not trail again. The Panthers were especially sharp to open the second set, leading 10-1.

E-P coach Heather Bruns said the team’s effort was “amazing.”

“It was fun to see them go out with the intensity they went out with and were ready to go,” she said. “We’ve talked a lot about peaking at this point.”

She said the team’s back row and serve receive has been “spot on” in recent weeks.

“That first-ball contact leads to Kaylee being able to feed whoever she wants to feed,” Bruns said.

Bruns tells the team to just take one day and one match at a time and to treat the postseason like any other match.

“If we go out and do what we’ve done all season,” Bruns said, “we have high hopes of being successful Thursday and possibly after that.”

Oregon coach Farrell Cain said the team did what it could and didn’t quit. E-P just has great hitters and a tough defense.

“They’ve got some good attackers in the front row, and the defense is pretty scrappy,” she said. “I think we struggled a little bit blocking, so that put a lot of weight on our defense.”

Grace Tremble had six kills, three digs and a block, while Anna Stender had nine assists, two kills and five digs. Madi Shaffer had two assists, six digs and an ace for Oregon.

Cain said the team had a good season and accomplished goals of having a winning record and being competitive in the postseason.

“Overall, I was proud of the girls and what they did this season.”

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Drake Lansman

Sauk Valley Media/Shaw Local sports reporter since May of 2024. Drake is a Bettendorf native who graduated from Iowa State University. He previously covered sports in the Quad Cities area for nine years.

A plan to create a trail connection from Boulder to Erie is underway with approval from the Boulder County commissioners, who gave extra attention to mitigating the impacts on wildlife.

The commissioners approved the plan on a 2-1 vote during the Oct. 24 meeting, with Commissioner Claire Levy voting against. Levy expressed concerns about the wildlife mitigation plans not being clear enough to move forward with it.

Stacey Proctor, manager of regional trails, bikeways and strategic projects, said the plan considers the preferred alignment of the trail, but the preferred alignment is just the starting point for a more detailed engineering analysis.

The project would be about 8.5 miles long, beginning at 61st Street in Boulder and ending at County Line Road in Erie. The county projects the cost will be about $30.4 million, which includes $23.4 million in construction costs and $7 million in design costs.

Residents and commissioners can still provide feedback and review the trail, Proctor noted.

As travel patterns change and Erie continues to reach full build-out, she said, pedestrians need a safe route that is separated from vehicles.

“There is currently no safe, direct route for bikes and pedestrians between Erie and Boulder,” she said.

Proctor clarified the trail was formerly known as the Union Pacific Trail, before it was purchased by RTD in 2009. The rail line is not officially abandoned, and the proposed trail path will mostly be next to the rail bed, not directly on it.

Tonya Luebbert, regional trails planner, said the goal of the trail plan is to identify an alignment that is reasonable to build and maintain while providing safety for bikers and pedestrians with minimal impacts to the environment and adjacent properties.

The recommended trail alignment would cross the rail bed as needed and lie just off the railroad tracks, Luebbert said. The trail would be about 10 feet wide, with an underpass at the U.S. 287 intersection.

Though residents showed a preference for the proposed alignment, Luebbert said, each proposed trail came with its trade-offs. Though the proposed alignment is the safest for pedestrians, it presents concerns for species management in the corridor.

“We will continue to work with (Colorado Parks and Wildlife), other open space agencies and experts in the area on minimization and mitigation strategies,” Luebbert said.

The trail passes through a raptor bird habitat, and the county is working to find ways to protect the birds from impacts.

Luke Bolinger, director of parks and recreation for Erie, spoke during public comment and expressed the town’s support for the project and the current proposed alignment. As Erie expects to double in population over the next two decades, the project will provide essential recreational and transportation use, he added.

Erie Councilmember Emily Baer said the council strongly supports the trail. She said the trail will not only help connect Erie to Boulder but also to other local municipalities.

“By completing this trail and ensuring year-round use, we provide opportunities for generations to enjoy the outdoors, improve mobility and foster stronger regional connections,” Baer said.

The meeting had two hours of public comment, with residents mainly expressing their support for the trail. The residents who were against the trail said they were concerned it would affect local raptor habitats.

Commissioner Levy said her main concern is that the trail might be serving too many purposes. She feels having a trail that is safe, enjoyable, direct while still maintaining and protecting the local wildlife is too big of an ask for a single trail.

“You can’t do it all in one corridor,” she said.

Commissioners Ashley Stolzmann and Marta Lochamin both were in favor of the plan and provided feedback on how to best manage and mitigate the impacts on the wildlife and environment.

“This is a step in the process, and there will still be a lot of opportunity for public engagement and input around mitigation, around exact routes and exact locations,” Stolzmann said.

Originally Published: October 28, 2024 at 6:30 AM MDT