AM Best Affirms Credit Ratings of Erie Insurance Group’s Members and Erie Family Life Insurance Company

SEPTEMBER 11, 2026 11:03 AM (EDT)

AM Best Affirms Credit Ratings of Erie Insurance Group's Members and Erie Family Life Insurance Company

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FOR IMMEDIATE RELEASE

OLDWICK - SEPTEMBER 11, 2026 11:03 AM (EDT)
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a+" (Excellent) of the property/casualty (P/C) members of Erie Insurance Group (Erie). Additionally, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of "a" (Excellent) of Erie Family Life Insurance Company (EFL). The outlook of these Credit Ratings (ratings) is stable.

Erie Insurance Exchange is the lead company of Erie; the remainder of the P/C group is composed of inter-company pooling members, Erie Insurance Company and Erie Insurance Company of New York (Rochester, NY), and reinsured subsidiaries, Erie Insurance Property & Casualty Company and Flagship City Insurance Company. All companies are domiciled in Erie, PA, unless otherwise specified.

The ratings of Erie reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).

While the group's balance sheet and capital have been impacted by elevated loss costs and catastrophe activity over the recent five-year period, material stabilization and improvement has been seen through year-end 2025, and second-quarter 2026. As a result, risk-adjusted capitalization as measured by Best's Capital Adequacy Ratio (BCAR) remains at the strongest level. In addition, underwriting leverage and key liquidity metrics have remained stable year-over-year. Furthermore, reserve development trends continue to improve with the group reporting two consecutive years of favorable prior year reserve development.

The improvement in Erie's operating results in 2025, and through the first half of 2026, is attributable to management's extensive performance improvement initiatives and strategic rate increases. AM Best notes the impact of these rate increases has been slower when compared with Erie's peers. This lag is partly due to Erie's use of 12-month auto policies and its "rate lock" feature, which delays the recognition of premium rate increases and, in turn, prolongs the beneficial impact. Nonetheless, Erie returned to underwriting profitability in fourth-quarter 2025, and continues to report improved underlying performance. AM Best will continue to monitor these trends to ensure results can be sustained.

The ratings of EFL reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. These ratings also consider the lift from Erie, based on its strategic importance in supporting the overall strategy of EFL in selling life and annuity products to the group's P/C client base. EFL's ratings and stable outlooks are further supported by the strongest level of risk-adjusted capitalization, as measured by BCAR, a conservative investment approach and improved operating results.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings (BCR), Best's Performance Assessments (PA), Best's Preliminary Credit Assessments (PCA) and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.