Erie Indemnity Company (ERIE) Earnings Call Transcript & Summary

Good morning, fellow shareholders. I'm Tom Hagen, Chairman of the Board of the Erie Indemnity Company, and I will be acting as Chairman of this meeting. I'm pleased to welcome you to this 95th annual shareholders meeting of our company, albeit this meeting is in a much different format than usual for the first time in our 95 years and certainly necessitated by the coronavirus challenge facing all of us. As a reminder, the Erie Indemnity Company is the attorney-in-fact for the subscribers at the reciprocal Erie Insurance Exchange and also the management company for the 5 other insurance companies owned by the Exchange, all of which collectively comprise the Erie Insurance Group, commonly referred to as Erie Insurance or just the Erie. Before we begin, we have some housekeeping items to review. Because of the ongoing concerns regarding the spread of the COVID-19 coronavirus, this Annual Meeting of Shareholders is being held solely by live webcast. Out of concern for the health and safety of our employees and shareholders, management and the Board of Directors determined that it would not be prudent or in anyone's best interest to have an in-person shareholders' meeting like we have always had in the past. Also, because our directors and most members of our executive team are joining this webcast from their respective remote locations, it would be difficult for us to entertain shareholder questions since they do not have a telephone line into the conversation on the webcast. Therefore, we will have a question -- we will not have a question-and-answer session at the end of this meeting. If you have a question, however, you are invited to send it in writing to the Board of Directors or executive management in care of our corporate secretary. Contact information for our corporate secretary can be found in our 2020 information statement that was mailed out on or about March 20 with the notice of this meeting. I now call this 2020 annual shareholders' meeting to order. It was exactly 95 years ago today on Monday morning, April 20, 1925, that H.O. Hirt and O.G. "Ollie" Crawford opened the office door for business at their new start-up venture, the Erie Insurance Exchange and its managing attorney-in-fact, Erie Indemnity Company. Their office was located in Room 312 of the 50-year-old Scott Block, then at 928 State Street on the northwest corner of West 10th and State Streets in downtown Erie. In 1965, on the occasion of the Erie's 40th anniversary, H.O. Hirt said this about the Erie's founding 40 years before: "There never would have been an Erie without Ollie, for Ollie was more of a promoter than I ever could be. He was the promoter. I was the balance wheel. He was the father. I was the mother." As the mother, H.O. had the responsibility for keeping the Erie family together and running smoothly. But 8 years into the relationship, father Ollie left the Erie family and H.O. became a single parent. There's no question about how H.O 's single parenting has turned out over his 50 years leading the Erie and in the years since. But along the way, H.O. and the Erie faced many a challenge and crisis, including some big ones like the Great Depression and World War II. Today, as we are all coping with this challenging period in our history, we might wonder how H.O. would have reacted to this COVID-19 pandemic if he were here today with us. Of course, he's not here, but I know him pretty well, and I can imagine him simply shaking his head and saying, "Oh my, not again." For you see, it was just a half dozen years before the Erie opened its doors that H.O. and Ollie survived the influenza pandemic of 1918, 1919 unscathed, but more than 500 in Erie and over 600,000 nationwide died. Without question, H.O. was lucky since he was one of those who was highly vulnerable because he was still in a weakened condition recovering from tuberculosis. In addition, he was living at his family homestead in a working-class neighborhood on Erie's east side, where he was in close proximity to his mother and 3 sisters, especially his sister Kate, a registered nurse, all of whom were nursing and caring for neighbors. I recall being told a number of years ago by a member of one such family, the [ Spillers ], that their family survived that terrible pandemic because of the care they received from the Hirt family. Taking care of and treating others as you would like to be treated runs deep at the Erie. That is why in an abundance of caution and concern for the health and safety of our employees and our communities, Erie management promptly made the decision to have nearly everyone work remote and continue working remote even though the home office and our Pennsylvania offices could continue to be used under Governor Wolf's revised shutdown list. Staying home and away from others, we are told, is one of the best ways to deter the spread of this highly contagious and life-threatening virus. Despite these extraordinary times, our management team under the leadership of CEO, Tim NeCastro, together with our dedicated employees and agents, have readily adapted to the new working conditions and are doing an outstanding job of continuing to serve our millions of policyholders who are facing the same challenges as all of us. A little later, we'll hear more from our President and CEO, Tim NeCastro; and our Executive Vice President and Chief Financial Officer, Greg Gutting, about Erie's response to the COVID-19 pandemic as well as a review of 2019 and the current state of the Erie's business. But first, with the able assistance of our Senior Vice President, Secretary and General Counsel, Brian Bolash, acting as Secretary of this meeting, we will handle the usual and necessary annual meeting business, all I might add at the appropriate social distancing. Before we move to the first item of business, I'd like to introduce the other members of the executive team who are either present or listening to this virtual meeting. With me in person are Tim NeCastro, President and CEO; Greg Gutting, Executive Vice President and Chief Financial Officer; and Brian Bolash, Senior Vice President, Secretary and General Counsel. Listening from their remote locations are Lorianne Feltz, Executive Vice President, Claims and Customer Service; Robert C. Ingram III, Executive Vice President and Chief Information Officer; Douglas E. Smith, Executive Vice President, Sales and Products; and Dionne Wallace Oakley, Executive Vice President, Human Resources and Strategy. Getting back to the business at hand, we have posted to the webcast an agenda for this meeting. Our company has 2 classes of common stock outstanding: Class A nonvoting stock, which is SEC registered, publicly owned and traded on Nasdaq under the symbol E-R-I-E; and Class B voting stock that is very closely held and not registered or publicly traded. The Class B stock is the only class of stock entitled to vote on the matters presented at this meeting. This Annual Meeting of Shareholders has been called for the purpose of considering and acting upon the proposals set forth in the notice of the annual meeting and information statement, which were mailed to all shareholders prior to this meeting. There are 3 proposals that are up for consideration by the Class B voting shareholders only. And they are: one, the election of directors to fill 12 positions on our Board of Directors and to serve until the company's 2021 annual meeting of shareholders and until their successors are elected and qualified; two, to approve on a nonbinding advisory basis the compensation of our named executive officers; and three, to consider and act upon a proposal to approve our Long Term Incentive Plan. Additionally, the company's bylaws provide a procedure by which shareholders may present proposals at the annual meeting. However, no such proposals were received to be considered at this meeting. Mr. Secretary, will you please present proofs of the due calling of this meeting?

Mr. Chairman, the appropriate affidavit has been executed, verifying that we have caused notice of the annual meeting to be mailed on or about March 20, 2020, to all Class A and Class B shareholders of record as of the record date, February 21, 2020.

The Chair orders that these items be filed with the records of the meeting. Mr. Secretary, please present a certified list of shareholders as of February 21, 2020, the record date set by the Board.

Mr. Chairman, as Secretary, I have certified the list of our shareholders of record as of February 21, 2020.

Mr. Secretary, do we have a quorum?

Based on the proxies received, there is present in person, via webcast or by proxy, 2,531 shares of Class B common stock of the total 2,542 shares outstanding, representing 99.6% of the outstanding shares. Therefore, Mr. Chairman, we have a quorum.

The required notice of the meeting has been given and a quorum is present. Therefore, the Chair declares the meeting legally convened and ready to transact business. Since copies of the minutes of the last year's annual meeting have also been posted to the webcast, we will dispense with the reading of the minutes, and the Chair orders that the minutes be inserted in the company's minute book. The Board of Directors has appointed James D. Gwinn, Julie M. Pelkowski and Pamela M. Pesta as judges of election for this meeting. Each of them has signed the prescribed oath, and the Secretary will file the forms with the records of the meeting. The first order of business is the election of 12 directors to serve until the company's 2021 annual meeting of shareholders and until their successors are elected and qualified. All of the candidates for election as directors of the company are sitting directors. All of the nominees were unanimously recommended for election by our Board's independent Nominating and Governance Committee, whose recommendations were then unanimously accepted by our Board of Directors. At this time, I would like to introduce the candidates for election as directors of our company at today's meeting. Their biographies and information about their experience and qualifications can be found in the information statement sent to you with the notice of this meeting. J. Ralph Borneman, Jr. Ralph is Chair of our Strategy Committee, and I might add, one of our longest-serving independent agents. Eugene C. Connell. Gene is Chair of our Risk Committee, and he is acting as liaison for the Board to executive management during this COVID-19 crisis. Salvatore Correnti. Sal is the Chair of our Investment Committee. LuAnn Datesh. Jonathan Hirt Hagen. Jon is Vice Chairman of the Board and Chair of our Nominating and Governance Committee and also Nonexecutive Chairman of the 5 insurance subsidiaries of the exchange. C. Scott Hartz. Brian A. Hudson, Sr. Brian is Chair of our Audit Committee. George R. Lucore. Thomas W. Palmer. Tom is Chair of our Executive Compensation and Development Committee. Martin P. Sheffield. Elizabeth Hirt Vorsheck. Betsy is Chair of our Charitable Giving Committee. And yours truly, Tom Hagen, Chairman of the Board and Chairman of the Executive Committee. The second order of business is to consider and act upon a proposal to approve, on a nonbinding advisory basis, the compensation of our named executive officers. The third order of business is to consider and act upon a proposal to approve our Long Term Incentive Plan. Typically, the last order of business would be the consideration of shareholder proposals. However, as I mentioned earlier, no proposals have been received. I hereby declare that the polls are now open, and the judges of election, who are present here at this meeting for the webcast, are prepared to receive the votes of the Class B shareholders for the election of directors. Mr. Secretary, are there any other instructions with respect to voting?

Mr. Chairman, these instructions are for Class B shareholders only. If you have submitted a proxy but wish to withdraw your proxy or change the vote specified in your proxy, please dial the telephone number that was sent to you with your access code to enter today's virtual meeting. If any Class B shareholder has not submitted a proxy and desires to vote now at the meeting, please dial the telephone number that was sent to you with your access code to enter today's virtual meeting. If you have already mailed in your proxy, however, there is no need to vote by ballot because your proxy will be voted in the manner you have directed. Of course, you may withdraw your proxy and vote by ballot if you wish to do so. But unless you would like to change your vote, it is not necessary at this time to vote by ballot.

At this time, we will pause for a couple of minutes to allow any Class B shareholder who would like to either vote or change their vote to contact our corporate secretary using the telephone number that they were given in advance of today's meeting. Please stand by. Please continue standing by. We're almost there. Please continue holding. Our Secretary is checking the telephone line and it takes a few minutes. With our shareholder voting now completed, I declare the polls closed. We will pause for another moment while the judges of election prepare their report. We are now ready for the report and certificate of the judges of election. Mr. Secretary?

On the basis of the report and certification of the judges of election, I report as follows: the 12 candidates for election as director, who are recommended by the Nominating Governance Committee and whose recommendations were accepted by our Board of Directors, have each been elected as directors of the company to serve until the company's 2021 annual meeting of shareholders and until their successors are elected and qualified. The proposal for the adoption on a nonbinding advisory basis of a resolution approving the compensation of our named executive officers was approved. And finally, the proposal to approve our Long Term Incentive Plan was also approved.

Mr. Secretary, please file the report of the judges of election with the records of the meeting. Congratulations to all of our directors who were reelected today. I can assure all shareholders that our Board is a dedicated, cohesive and hard-working group that takes to heart our founder, H.O. Hirt's admonition, that the insurance business is serious business. This concludes the business portion of the company's annual meeting of shareholders. On behalf of the Board, I thank the shareholders for their votes at today's meeting. We will now hear from our Executive Vice President and Chief Financial Officer, Greg Gutting, who will discuss our 2019 financial results. Following Greg's presentation, our President and Chief Executive Officer, Tim NeCastro, will report on developments in Erie's business. Greg?

Thank you, Tom. And good morning, everyone, and thank you for making the time to be a part of our 2020 annual shareholder meeting this morning. It is especially important in these uncertain times that we continue to be connected and take a moment to focus on the commitment to service that makes Erie the insurer of choice throughout our footprint. I am very honored to be here today delivering another strong year of financial results for your Erie Indemnity Company and Erie Insurance Exchange, the insurance operations we manage. Both Indemnity and the Exchange experienced continued growth last year, once again surpassing industry results. I'll share our 2019 results with you shortly, but first, allow me to address the obvious. These are difficult times. In my 35-year tenure with Erie, we have never faced challenges like those triggered by the COVID-19 pandemic. Overnight, we changed the way we do business. We changed the way we work with one another, and we even changed the way we interact with our own families. Yet through unprecedented change, we have never lost sight of our core values. The level of care and professionalism demonstrated by our agents and employees has been unwavering. Service continues to be above all. As I reflect on our service proposition, I am struck by how seamlessly we have been able to pivot and adapt our operations to maintain that unwavering commitment. Certainly, the rapid pace of technology is largely responsible for keeping our service best-in-class in today's world. But that wasn't always the case. There was a time back in the spring of 2011 where I found myself in a situation where today's technology would have made it a nonevent. It was Good Friday. And in 2011, we still observed Good Friday as a company holiday. Though the offices were closed, I came in to tie up a few loose ends for the quarter. In my office, the phone rang, and I answered. On the line was a claimant calling because she was having trouble cashing the check that was issued to her that morning. She desperately needed to deposit the check before the bank closed for the Easter holiday. Doing my best to help, I made a call to one of our treasury staff who was off for the day. [ Bonnie ] instantly knew that the problem was that the check that was just issued to the claimant, but the deposit of pay file was not yet received by the bank, therefore, the bank had no record of the check being issued and declined the transaction. [ Bonnie ] was out running errands but was headed home where she could post the transaction to the bank records remotely. [ Bonnie ] was able to post the transaction and the claimant cashed the check shortly after lunch. She was very pleased with the service. It wasn't a big deal. It's what we do at Erie. Looking back now, I think of how easy this situation would have been handled using the claim's e-payment capability. Today, with ePay technology, the claims adjuster would have been able to deposit the claimant's funds directly into her bank account with a push of a button. In fact, since April last year, we have processed over 17,000 claims payments, totaling more than $50 million through this new payment capability. This is just one example of how technology has enhanced the service we offer while maintaining the human touch. Technology will continue to evolve to make our business more efficient, but it is the human touch that will always be Erie's differentiator, and it is the human touch and the award-winning service of our agents and employees that made it possible for me to be here today reporting these 2019 financial results. I'll begin with the Exchange. The direct and assumed premiums written by the Exchange grew 5.2% over 2018 to $7.5 billion, marking the 12th consecutive year of growth and another year of outperforming Conning's industry forecast of 4.6% for the year. Strong retention and higher average premium per policy, particularly in commercial lines, attributed to this year's growth. While the second half of 2019 saw a reduction in weather-related losses, an active spring storm season and a higher severity of those storms drove an increase in incurred losses compared to 2018. The Exchange ended 2019 with a combined ratio of 105 versus 103.1 in 2018. Even with the increase in combined ratio for 2019, the Exchange was able to grow policyholder surplus by $900 million to a level of $9.5 billion, driven by strong investment returns. Erie Insurance Exchange continues to be operationally and financially solid, maintaining an A+ (Superior) rating for the property and casualty group and an A (Excellent) rating for Erie Family Life from the A.M. Best insurance rating company. Once again, Erie Indemnity, your company, benefited from the strong performance of the Exchange. Indemnity's net income of $317 million for 2019 was a $29 million increase over the prior year. The increase was driven by increases in both operating income as well as investment income. In 2019, operating income before taxes totaled $13 million or 3.8% compared to 2018. Management fee revenue from policy issuance and renewal services combined with management fee revenue from administrative services increased almost $95 million over 2018, while expenses increased $82 million. Commissions paid to our agents increased $41 million in 2019 compared to 2018, resulting from the 5.2% increase in the direct and assumed premiums written by the Exchange, somewhat offset by lower agent incentive awards related to less profitable business. Noncommission expenses in 2019 increased nearly $40 million compared to 2018. Underwriting and policy processing costs increased $6 million, and information technology costs increased $23 million due to an increase in professional fees and hardware and software costs. Customer service costs increased $3 million due to increased credit card processing fees as well as personnel costs. Finally, administrative and other expenses increased $11 million driven by an increase in the Long Term Incentive Plan costs due to a higher company stock price in 2019 compared to 2018 as well as several multiyear commitments we made to support community development initiatives. The increase in noncommission expense was slightly offset by a decrease in sales and advertising expense of $3 million. Income from investments totaled $40 million for the year, up 54% compared to 2018. Together, Indemnity's income from operations and investments resulted in earnings of $6.06 per diluted share in 2019 compared to $5.51 per diluted share in 2018. We remain committed to our disciplined capital management practices and Above all in Service promise. As a result, our balance sheet is robust, enabling Indemnity to pay you, our shareholders, $168 million in dividends last year. And with full confidence, our Board of Directors approved a 7.2% increase in the regular quarterly cash dividend for both Class A and Class B shares for 2020. The strong capital position of both the Exchange and Indemnity puts us in an enviable position as we face the new challenges presented by the COVID-19 pandemic in 2020 and beyond. As your Chief Financial Officer, it is my privilege to report on another excellent year for both Erie Insurance Exchange and Erie Indemnity Company. I want to thank you for that opportunity, and I also want to thank all of the Erie employees and agents for their tremendous efforts year after year. It is my hope that next year at this time, we are all gathered together as families do to celebrate Erie's continued success. Thank you, and stay well. Tim?

Thanks, Greg. Thank you, Tom Hagen, and members of the Board. And thank you, shareholders, for your continued support of Erie even in these unconventional circumstances. As Greg mentioned, the human touch has been central to everything we've done at Erie for 95 years. Relationships with our agents and customers, our employees are at the heart of what we do and who we are. So adjusting to these virtual methods of connecting over the past several weeks has been challenging, but we have adapted. Just like this meeting, which has always been an important way to come together to reflect on where we've been and where we are headed, we are finding different ways to connect and keep those relationships strong. Typically, during these meetings, my focus is on what we've accomplished in the past year, and I will get to that very important information in a moment. But I'd like to first give you some insight into how we've been managing over the past several weeks. This pandemic has been a trying time for everyone, especially with the uncertainty and swiftness of the spread of this virus. While we've been thoughtful about every action we've taken, we've had to move with speed and flexibility. But through it all, one thing has remained very clear. When faced with difficult situations, the strength of our Above all in Service commitment really shows. Our agents have demonstrated just how much they share our commitment to service by finding innovative ways to stay connected with customers even when forced to close their physical offices. And our employees have shown an amazing level of dedication in these new and challenging circumstances. In less than 1 week, we doubled our remote workforce from roughly 2,500 employees to more than 5,000. Our technology teams and other personnel distributed more than 1,500 additional monitors and laptops, along with other equipment across the footprint with impressive efficiency. The customer care operations team has been experiencing a higher volume of more complex calls from customers who have been affected by the pandemic. Our customer advocates have acted with compassion, as they always do, even while 90% of them adjusted to remote work. While the majority of our workforce is now remote, our claims personnel continues to serve our policyholders in the field, and a limited number of essential employees are reporting to our offices across the footprint. These employees are performing work that's critical to our operations during this very difficult time, and we believe that extra level of commitment should be rewarded. So we have implemented a pandemic pay program for eligible employees. This gives them up to an extra $500 biweekly for work in these higher-risk environments. After announcing the pandemic pay program, I received several e-mails from employees. One of those was from [ Jill ], a claims support specialist in New York. She said, "I can't say it enough, but thank you so much for the extra money going to employees who are going out at this time. I am 1 of the 10 that are in the office and drive an hour to work each day. My mom is in a nursing home, and it's heartbreaking that I can't see her right now. There are a lot of ups and downs in my life right now, but this really helps." E-mails like that reaffirm that doing the right thing is always the right decision. In that spirit, we took action recently to provide additional financial relief to our customers. First, across our footprint, we are making the necessary filings to reduce our rates for our personal and commercial auto insurance customers, saving them an estimated $200 million. Along with reduced rates, Erie agents are adjusting coverages to reflect reduced risk, also lowering premiums. Additionally, our agents and customer care teams are working with individual policyholders to extend flexibility in billing and payments. We also recently introduced an enhancement to our ErieSecure Home coverage at no cost to our policyholders that would reimburse them for the gift cards that can no longer be used because of the business closing. The coverage provides an incentive to our customers to support local businesses in our communities during this time of economic hardship. Our decision to offer these concessions to our stakeholders to help them with the unique needs arising from the global pandemic was guided by our 95-year commitment to service. We believe it's our responsibility to follow through on our promise to provide as near-perfect protection and service at the lowest possible cost. It was, quite simply, the right thing to do. We will continue to evaluate other measures we can take to support our agents, customers and employees in the days and weeks ahead. It helps, of course, that our consistent, long-term view gives us a solid footing to handle the unexpected that was again reflected in the 2019 financial results that Greg just reviewed. The Exchange's policyholder surplus, which stood at $9.5 billion at year-end, positions us well to meet our policyholder commitments during this crisis. Engaging our stakeholders in discussions about their current experiences with us was a major focus in 2019. And from those discussions, we learned that customers want the ability to go online with any device for information and for service. But they also want to be able to talk to a person who will listen and help them when they need it. This deeper digital capabilities with a human touch has been resoundingly confirmed in the past several weeks. And fortunately, we've already made great strides in that arena. One of the most significant ways was by introducing a new online shared view of information for use by customers, agents and employees. This literally puts all stakeholders on the same page, giving them all more robust, real-time information on claims status, account details and other pertinent information. It allows employees to answer questions more efficiently, and because customers have better access to information, fewer calls overall are coming in. This drives cost savings and allows customer care representatives more time to offer the human touch when it's needed the most. In 2019, we also completed considerable work in launching products to drive future revenue. YourTurn, our telematics program was expanded to more states and to drivers of all ages. This is paving the way for a mobile-based, pay-per-mile product to expand our current auto product portfolio, which includes a traditional 1-year auto policy and, of course, Erie Rate Lock. Later this year, we'll roll out a new online [indiscernible] package product, ErieSecure Business, which combines 7 legacy products into an easy-to-use and easy-to-sell product offering. And on the life side, a new [ insurance ] product is being finalized for market introduction, giving our agents easy-to-sell, competitive term and whole life product options. The agents who sell these products are the lifeblood of our organization. We now have 13,000 licensed agents through a network of over 2,000 agencies. We recognize that hiring in an agency is an investment in its future and ours. Agency employees who are new today may be agency owners tomorrow. So we've been working to strengthen our support for recruiting and developing new producers for a long-term commitment to Erie. We also welcomed more than 600 new employees to Erie in 2019, continuing the steady hiring growth we've been seeing for several years. We continue to be engaged in the revitalization of our hometown of Erie and are anxious to resume that work once the current situation begins to normalize. Not only does this reflect our values of being a good corporate citizen, but we also know that having a vibrant downtown will help us attract and retain top talent, that steady growth in our workforce brings fresh perspectives and paves the way for innovation, but it also means that we need to invest heavily in orienting our new associates into the very special culture we have here at the Erie. Part of that is engaging with our employees to find out how they feel about their work and their experience with us. Since this pandemic situation really began to affect how we live and work, I've been reaching out to employees at least once a week through e-mail and short videos to update them on our response, share what's on my mind and invite them to do the same. In these days of working differently and separately, it's a way to broaden one of our cherished concepts at Erie, the open door. In one of those touch points with employees, I asked them to let me know how they're coping. I received a lot of heartwarming and thoughtful responses, but one in particular stood out. It was from [ Kerry ], one of our customer advocates. Here's an excerpt of what [ Kerry ] had to say. "Being a customer advocate is a rewarding job, but it's also one of the hardest jobs I have ever done. Last week, I spoke with a woman from Tennessee who lost her home in the tornado and her job due to COVID-19. I've been asked a lot how I'm doing, which to be honest, still blows my mind. I don't come from a background where caring and support was easily given. But what comes to my mind right now is this: Thankful to be part of the Erie family." [ Kerry's ] e-mail resonated with me on many levels. We have a lot of people depending on us now more than ever. I'm so grateful that our strong position and our service commitment is allowing us to be there for them, to offer them a sense of security and peace of mind and to uphold the Above All in Service promise that's been at our core for 95 years, no matter what challenges come our way. I've never been prouder of who we are as a company and the values we hold dear. And just like [ Kerry ], I've never been more grateful to be part of this amazing Erie family. This isn't how any of us expected to be marking our 95th anniversary, but 5 years from now, when we celebrate a century of service, I'm confident we'll look back with tremendous pride. We'll see just how the Erie family came together during this challenging time and came out of it even stronger and more committed to our founding principles than ever before. So to all of you who made Erie what it is, our employees and leaders, our agents, customers and communities, our Board of Directors and you, our shareholders, thank you. I'll turn it back over to our Chairman, Mr. Hagen.

Thank you, Tim and Greg. As mentioned earlier, shareholder questions can be submitted in writing to our Board of Directors or executive management in care of our corporate secretary. Contact information for the corporate secretary appears in our 2020 information statement. This concludes the business of today's meeting. While we all would have preferred to have you here in person to celebrate our 95th anniversary, nonetheless, I would like to thank you for joining us in this remote format and to thank you also for your continued support, not only as investors, but hopefully also as valued policyholders of the big little of Erie, as H.O. Hirt called it. Now if by some remote chance, any of you are not an Erie policyholder, please check out the Erie's website at www.erieinsurance.com. There being no further business to come before this meeting, I would like to wish our shareholders, employees, retirees, agents and policyholders and everyone else connected to our Erie family the best of health and a safe place in this most unusual and perilous time and our hope for a better year ahead. I now declare this 95th annual shareholders meeting adjourned.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.