Erie Indemnity Maintains Max Management Fee, Raises Shareholder Dividends

Erie Indemnity Company’s Board of Directors maintained the management fee rate at 25% for Erie Insurance Exchange, effective January 1, 2026, consistent with the current rate. This management fee rate is the maximum permitted under the agreement with the policyholders of Erie Insurance Exchange. The decision was made after consideration of both entities’ financial positions. Additionally, the Board approved a 7.1% increase in regular quarterly shareholder dividends, raising the Class A share dividend from $1.365 to $1.4625 and the Class B share dividend from $204.75 to $219.375, with the next dividend payable January 21, 2026. Erie Insurance Group, headquartered in Erie, Pennsylvania, ranks among the top U.S. insurers in homeowners, automobile, and commercial lines based on direct premiums written. With over 7 million policies in force and operations spanning 12 states plus the District of Columbia, Erie Insurance holds an A (Excellent) rating from AM Best. The announced management fee and dividend adjustments reflect ongoing financial management strategies within the regulatory framework governing insurer exchanges. The company’s adherence to maximum fee limits and dividend increases signal its stable financial health and its commitment to shareholder returns within the competitive insurance marketplace. This update offers insights into how insurer management fees and shareholder dividends are governed in the context of mutual insurance entities, relevant to insurance professionals monitoring market financial strategies and regulatory compliance.