Erie Indemnity Company

Good morning and welcome to the Erie Amnesty Company third quarter 2025 earnings conference call. This call was pre-recorded and there will be no questions and answer sessions following the recording. Now I would like to introduce your host for the call, Vice President of Investor Relations, Scott Biohart. Please proceed.

Thank you and welcome everyone. We appreciate you joining us for this recorded discussion about our third quarter results. This recording will include remarks from Tinda Castro, President and Chief Executive Officer, and Julie Palkowski, Executive Vice President and Chief Financial Officer. Our earnings release and financial supplement were issued yesterday afternoon after the market closed and are available within the Investor Relations section of our website, yourinsurance.com. Before we begin, I would like to remind everyone that today's discussion may contain forward-looking remarks that reflect the company's current views about future events. These remarks are based on assumptions subject to known and unexpected risks and uncertainties. These risks and uncertainties may cause results to differ materially from those described in these remarks. For information on important factors that may cause such differences, please see the Safe Harbor Statement in our form 10-key filing with the SEC filed yesterday and in the related press release. This pre-recorded call is the property of your indemnity company. It may not be reproduced or rebroadcast by any other party without the prior written consent of your indemnity company. With that, we'll move on to Tim's remarks. Tim?

Thanks, Scott, and good morning, everyone. As we start today's call, I want to share an important update regarding our financial strength rating. In September, AMBEST adjusted the financial strength rating of the property casualty members of Erie Insurance Group from A-plus superior to A-excellent. While that change was disappointing, it's important to note that an A-excellent rating is still one of the strongest in the industry. AMBEST pointed to Erie's solid balance sheet, adequate operating performance, a favorable business profile, and strong risk management practices. This feedback from AMBEST is reflected in our financial position, particularly our surplus, which remains extremely robust at $9.6 billion. The rating change primarily reflects profitability challenges we've discussed in past calls related to large underwriting losses. driven by more frequent and severe weather events and increased claim severity in both auto and homeowners. To provide a bit of background, severe weather-related events in 2023 and 2024 were nearly double historical levels, contributing to Erie's elevated underwriting losses. That trend has continued into 2025, where a fast-moving hailstorm earlier this year caused $370 million in insured losses, the single largest weather event in our company's history. At the same time, claims severity in both auto and homeowners grew faster than our rate increases, even as we worked to keep pricing competitive for our mutual customers. We've continued to take a measured, steady approach to rate adjustments, and that means it takes a bit longer to fully see the benefits of these changes. The bottom line is that the past few years marked by inflation and weather volatility have been some of the most challenging in our history. I'm confident in the actions we've been taking to bring our profitability back to more stable levels, which are already taking hold, reflected in our third quarter results. With that, I'll turn it over to our Chief Financial Officer, Julie Palkowski, to share more on those results. Julie.