Financial Results
Erie Indemnity Reports Full Year and Fourth Quarter 2024 Results
Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the full year and quarter ending December 31, 2024. Net income was $600.3 million, or $11.48 per diluted share, in 2024, compared to $446.1 million, or $8.53 per diluted share, in 2023. Net income was $152.0 million, or $2.91 per diluted share, in the fourth quarter of 2024, compared to $110.9 million, or $2.12 per diluted share, in the fourth quarter of 2023.
2024 Full Year Highlights
Operating income before taxes increased $156.2 million, or 30.0 percent, in 2024 compared to 2023.
- Income from investments before taxes totaled $69.3 million in 2024 compared to $29.0 million in 2023. Net investment income was $70.2 million in 2024 compared to $44.6 million in 2023.
- Net investment income included limited partnership earnings of $2.0 million in 2024 compared to losses of $11.3 million in 2023.
- Net realized and unrealized gains on investments were $3.2 million in 2024 compared to losses of $5.8 million in 2023.
- Net impairment losses recognized in earnings were $4.1 million in 2024 compared to $9.8 million in 2023. PRESS RELEASE
SiriusPoint eyes spot among best-in-class operators following strong 2024
In a recent interview with Reinsurance News, Scott Egan, CEO of SiriusPoint, emphasised that 2024 was a “remarkable year of delivery” for the firm, marking the completion of its repositioning as it aims to continue both growing and enhancing performance.
“We have significantly improved our balance sheet and structure to be healthier, less complex and more able to support the future of the business. Our efforts are now focused on both growing the business and continuing to enhance performance,” Egan observed.
He continued, “I take great pride in the accomplishments of the SiriusPoint team, who have worked with commitment and dedication to produce improvements in our underlying results, quarter after quarter.
Kin reports $495m GWP for 2024 as operating income rises 126%
Kin, the direct-to-consumer home insurer, closed 2024 with $495.3 million in gross written premiums and $156.1 million in total revenue, as operating income for the year hit $12 million, representing a 126% increase over the prior year.
The two Kin-managed reciprocal exchanges posted an adjusted loss ratio, net of catastrophe excess of loss reinsurance recoveries, of 25.9% for FY’24, a continued improvement over the last four years.
The adjusted non-catastrophe loss ratio of 15.5% improved by 600 basis points over 2023, reflecting strong underwriting performance, explained Kin.
The adjusted catastrophe loss ratio increased by 190 basis points compared to the prior year, due to more frequent weather events, resulting in the Kin-managed reciprocal exchanges generating positive adjusted net income for the year.
Commentary/Opinion
Trust, Personalization and Transparency: Foundational for Premium Accuracy
The insurance industry is at a crossroads. Brewing negative consumer sentiment toward insurance affordability and premium fairness is spilling over as profitability struggles threaten markets. As the industry takes needed action, the approach itself comes into question. Insurers find it difficult to inform and educate a customer base that views pricing as opaque and overly complicated. All of this begs the question; can premium adequacy and trustworthiness co-exist?
Eroding Trust
As trust erodes and consumers grow increasingly skeptical, the industry faces mounting challenges. Recent lawsuitsinvolving individuals’ driving data from connected cars and consumer apps being sold to insurers without clearly informed consent has struck a nerve. Allegations of improper home insurance cancellations based on flawed aerial imagery and related concerns of insurers “spying” on their customers has surfaced. And even more attention has been attracted by the recent reports of non-renewals for many homeowners just prior to the Los Angeles area wildfires and is generating a mix of angst and wake-up calls. But each of these actions are deemed necessary for carriers to ensure viability despite the obvious criticism that they lack transparency.
Insurer profitability has been in the forefront as the P&C industry experienced significant underwriting losses over the last three years. Attendant rate increases and tightening underwriting practices are having the desired outcome with at least, financial recovery in personal auto lines. However, there are consequences rippling throughout with a new reality of high rates as core issues around climate exposure, repair cost inflation, social inflation, and fragile supply chains persist and are in simple terms, passed on via premiums.
Alan Demers and Stephen Applebaum
Consumer Trust Issues Hinder Industry Efforts to Close Protection Gap: Survey
Most insurance executives surveyed last year believe they have “an ethical obligation” to close the protection gap—and also believe that “lack of trust in the insurance industry” is a key barrier standing in the way.
Economist Impact, a division of the Economist Group which aims to partner with corporations, governments and nonprofits to deliver positive societal change, and SAS, a provider of data analytics and AI solutions, conducted the “Future of Insurance” survey of more than 500 insurance executives from 17 countries in September and October 2024.
Just over 78 percent agreed with the statement, “The insurance industry has an ethical obligation to close the global protection gap,” with 37.5 percent saying they “agree strongly” and 41 percent agreeing “somewhat.”
News
S&P Puts State Farm General Ratings on CreditWatch
Potential downgrades of State Farm’s California homeowners insurer came closer to reality when S&P Global Ratings put the “AA” financial strength and issuer credit ratings of State Farm General Insurance Co. on CreditWatch with negative implications this week.
In early February, State Farm General asked the California Department of Insurance to approve an “interim emergency” homeowners insurance rate hike, citing declining capital and a potential downgrade as reasons.
California Insurance Commissioner Ricardo Lara did not approve the emergency interim 22 percent rate request, instead calling a meeting with the carrier to get some answers about the carrier’s financial situation. That meeting is set to take place on Feb. 26.
AI in Insurance
AI Revolution in Insurance: What to Expect in 2025 | Insurance Thought Leadership
The insurance industry is at a pivotal moment. AI is fundamentally changing how products are designed, priced, and delivered.
2025 will be a defining year for the insurance industry. With leading insurers now investing billions in AI capabilities, even traditional carriers are racing to adapt or risk obsolescence. The stakes couldn't be higher: Those who master AI's potential will capture market share and dramatically lower loss ratios, while those who lag may find themselves struggling to compete in an increasingly tech-driven marketplace.
Here’s what insurers can expect to see AI do for the industry this year:
- Hyper-Personalized Underwriting and Pricing
- Climate Risk Assessment and Mitigation
- Claims Processing and Fraud Detection
- Ethical Considerations and Challenges
- Generative AI Applications
- Evolution of Risk Pooling
Gregg Barrett founded WaterStreet in 2000. Previously, he launched National Flood Services, working with the Federal Insurance Administration and the National Flood Insurance Program. He later joined Bankers Insurance Group as executive vice president of sales.
Climate/Resilience/Sustainability
$2.1 Trillion of Assets at Risk From Wildfires, Says ZestyAI
Explore wildfire risks in the USA and discover how $2.15 trillion in properties are at high risk for wildfire damage.
Some data from ZestyAI on wildfire risks in the USA, which are substantial, even for the biggest insurers in the game;
A staggering $2.15 trillion worth of U.S. residential property is at high risk of wildfire damage, according to a new AI-powered analysis from ZestyAI, the leader in climate and property risk analytics. The study, which assessed 126 million properties nationwide, found that 4.3 million individual homes face heightened wildfire risk—far beyond traditionally recognized high-risk areas.
Using advanced AI models trained on over 2,000 historical wildfires, ZestyAI mapped wildfire exposure at the property level, integrating satellite and aerial imagery, topography, and structure-specific characteristics. While California leads the nation with $1.16 trillion in wildfire-exposed property, other states such as Colorado ($190.5 billion), Utah ($100.3 billion), and North Carolina ($71.2 billion) also face significant risk.MORE
Research
'Change Fatigue' Ranks in Top Five Barriers to Communications and HR Success for the First Time in 2025, Reveals New Gallagher Report
As companies navigate an increasingly turbulent external environment, communications and HR leaders have identified 'change fatigue' as one of the top five barriers to success, according to Gallagher's 2025 Employee Communications Report.
The report, which drew insights from more than 2,000 communication and HR leaders across 55 countries, found that 44% of HR leaders view change fatigue as a key battleground for success in 2025.
This is the first time that 'change fatigue' was featured on this list, and its immediate arrival in second place may be related to another key barrier – a lack of direction from top leaders (39%).
"Right now, companies across the globe are managing delicate external challenges, all of which require agile and flexible communication. Communications and HR leaders agree that change management is a critical skill in 2025. It's vital that the C-Suite sets clear direction for communications teams to guide the company through challenging situations," said William F. Ziebell, CEO of Gallagher's Benefits & HR Consulting Division.
What are the priorities and barriers for communicators in 2025?
HR leaders are prioritizing initiatives that strengthen engagement within their organizations, with 67% focusing on connecting teams to purpose, strategy and values. Improving manager communications (53%) and boosting leadership visibility (47%) also rank high, reflecting the growing need for transparent top-down communication.
However, these ambitions are met with considerable challenges. Low capacity (49%), change fatigue (44%) and poor people manager communication (41%) were identified as the most challenging barriers to success.
How Many Bicyclists Die on the Roads of America Each Year?
Cycling is an excellent mode of transportation, exercise, and recreation, but it comes with significant risks on American roads.
Every year, thousands of bicyclists are injured or killed in traffic collisions, raising concerns about road safety and the need for better infrastructure, stricter regulations, and increased awareness among drivers and cyclists alike. Understanding the scope of this issue is essential for developing solutions that can reduce the number of fatalities and injuries.
According to recent bicycle accident statistics, over 1,000 cyclists were killed and approximately 46,000 were severely injured in the U.S. in 2022. The number of preventable cyclist deaths has increased by 13% from the previous year, reflecting the growing dangers of cycling in high-traffic areas. Additionally, there was an 11% increase in bicyclist injuries between 2021 and 2022.
The Current State of Bicycle Fatalities in the U.S.
Data from the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) show that bicycle fatalities have been steadily increasing over the past decade. In 2022, approximately 1,005 bicyclists lost their lives in crashes involving motor vehicles. This figure represents a significant rise from previous years, emphasizing the need for improved road safety measures.
Yearly Trends and Contributing Factors
The rise in bicycle fatalities can be attributed to several factors, including:
- Increased cycling popularity: More people are choosing bicycles for commuting and leisure, leading to higher exposure to road dangers.
- Distracted driving: The widespread use of smartphones and in-car entertainment systems has led to more accidents caused by inattentive drivers.
- Lack of protected bike lanes: Many American cities lack adequate cycling infrastructure, forcing riders to share roads with fast-moving vehicles.
- Speeding and reckless driving: Higher vehicle speeds increase the severity of bicycle-related crashes.
- Alcohol impairment: 37% of fatal bicycle crashes involved alcohol, either from the cyclist or the driver.
Innovation
AI-Driven Motorcycle Helmets: The Future of Rider Safety? - iMotorbike News
Revolutionizing Rider Safety: AI-Powered Smart Helmet iC-R Debuts with 360-Degree Vision and Crash Detection.
Subscribe to our Telegram channel for instant updates! In an era where artificial intelligence (AI) is revolutionizing industries, motorcycles are no exception. Gone are the days of relying solely on shoulder checks as now, helmets themselves are getting smarter. Meet the Intelligent Cranium […]n an era where artificial intelligence (AI) is revolutionizing industries, motorcycles are no exception. Gone are the days of relying solely on shoulder checks as now, helmets themselves are getting smarter.
Meet the Intelligent Cranium iC-R, a high-tech helmet designed to enhance rider safety with improved visibility, crash detection, and seamless connectivity.
After first showcasing a concept design in 2015, Virginia-based Intelligent Cranium Helmets (ICH) has finally launched a mass-produced, retail-ready product packed with futuristic features. Unveiled at CES 2025 in Las Vegas, the iC-R smart helmet lineup has already made waves in the motorcycling world.
ICH was founded on a safety-first philosophy. CEO and co-founder Ambrose Dodson recalls the moment that sparked the idea:
“While driving to work one day, I noticed several motorcyclists constantly turning their heads to check their surroundings. I thought—there has to be a safer way for riders to stay aware without taking their eyes off the road.”
Thus, the iC-R helmet was born, integrating AI-driven features designed to improve situational awareness and rider safety
Los Angeles Wildfires
State Farm threatens to drop more policies if California's Lara rejects rate hike
Regulators have given the go-ahead for Mercury General to see premium hikes averaging 12% from March, and for Liberty Mutual subsidiary Safeco to raise by 7.2%. The issue, however, is far from clear for State Farm, California’s largest home insurance provider.
The insurer has warned regulators that it may cancel a significant number of policies if its request for an emergency rate hike is denied. The company met with Insurance Commissioner Ricardo Lara this week to push for an immediate increase in homeowner premiums by 22%, as well as hikes for rental and condo policies, citing massive wildfire-related losses.
State Farm executives made it clear that if the California Department of Insurance does not approve the increases, the insurer may move forward with dropping even more policies, reducing coverage across the state.
During a private meeting with regulators, Mark Schwamberger, CFO of State Farm General, emphasized the severity of the situation, stating, "The ability, prospectively, to continue to stay behind our policies as we enter fire season, it’s in jeopardy, sir, and it’s a very serious situation." He warned that without approval, the company could pursue "significant non-renewals" to limit exposure to wildfire risk.
Swiss Re committed to California despite wildfire challenges: CFO Dacey
In an interview with CNBC, Swiss Re CFO John Dacey said the firm won’t retreat from California despite recent wildfires, emphasising its ability to price the risk effectively and support insurers, just as it does in Florida’s private residential market.
When asked by CNBC if it planned to withdraw from California due to the LA wildfires, the executive noted that Swiss Re does not expect to pull back.
Instead, it aims to assess the events, verify its loss models, and ensure they align with the conditions observed in the state in January 2025.
Dacey added, “We think we can, in fact, price this risk well. We think we can support the primary companies that are offering insurance in the State of California in the same way we can support insurers that offer private residential insurance in the State of Florida. We just need to be sure the pricing is adequate.”
CNBC then asked whether Swiss Re would expand its coverage, given its continued profitability based on combined ratios.
“At the January 1 renewals, that’s exactly what we did. Premiums are up 7%, and that includes all levels of business, with the exception of US liability, which is an area in which we’re still concerned that the pricing is not adequate for Swiss Re and, frankly, for the industry,” Dacey explained.