Erie Indemnity Company

Thomas B. Hagen, Chairman of the board, controls the firm through the H.O. Hirt Trusts. These trusts hold 92% of the company's Class B voting stock, ensuring that the Hagen family and their trustee successors maintain the power to appoint the board and preserve the existing management contract structure.

Erie Indemnity serves as the attorney-in-fact for the Erie Insurance Exchange, a policyholder-owned reciprocal insurer. As attorney-in-fact, Erie Indemnity manages all non-investment operations of the Exchange and collects a management fee set as a percentage of premiums written, creating a permanent, contractually defined revenue stream.

The capital is deployed in two distinct pools. The insurance subsidiary maintains a conservative, fixed-income-heavy portfolio to support policyholder reserves. The holding company directs excess corporate capital into commercial real estate, mostly concentrated in downtown Erie, Pennsylvania, including historic buildings and the corporate campus.

It is not a family office but operates with family-office-like characteristics given the concentrated control by the H.O. Hirt Trusts and the Hagen family. However, it is a publicly traded company with minority shareholders and a core operating business that dwarfs typical family investment entities.

Yes, it supports the Erie Insurance Foundation and participates in the Erie Giving Network. Philanthropic efforts are closely tied to local civic projects in Erie, Pennsylvania, complementing the firm's role as a major real estate developer and cultural patron in the city.

Thomas B. Hagen is a former President of The Pennsylvania Society and a past Chairman of the Insurance Federation of Pennsylvania. He is also a member of the Erie Yacht Club, reflecting deep integration into regional political and insurance industry circles that have been instrumental in maintaining the company's mutual-like governance stance in a consolidating industry.

The specific percentage is not a static, publicly filed number but is governed by a contractual agreement between Erie Indemnity and the Erie Insurance Exchange. The arrangement is subject to regulatory oversight by the Pennsylvania Insurance Department, which must approve the rate since it constitutes an expense of the policyholder-owned insurer.