Erie Indemnity Company (ERIE) offers property casualty insurance including automobile, homeowners and commercial multi peril, automobile and worker’s compensation insurance.
Over the last ten years, the company has grown profits at 2% rate but dividends at a 14% rate generating a 12-20% return on equity. 2008 and 2009 were difficult for ERIE, but earnings bounced back in 2010 and should continue to improve this year as a result of:
(1) rising management fees,
(2) stringent cost controls,
