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The ICR of Erie Indemnity recognizes its strong financial position and consistent sustained profitability derived from the management services agreement, which is partially offset by its dependence on management fee revenues and credit risk related to unsecured receivables due from Erie Insurance Exchange for certain fees, costs and reimbursements. This lawsuit alleges an effort by Erie Indemnity Company ("Erie Indemnity"), Erie Insurance Exchange ("Erie Exchange") and EFL's board of directors to "freeze out" EFL's minority shareholders at an unreasonably low price. While operating returns are below those of its peers, reported results are somewhat distorted by the profit component portion of the management fee paid by Erie Insurance Exchange to its |
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