Erie Insurance (Nasdaq: ERIE) announced that its president and chief executive officer, Tim NeCastro, will retire effective December 31 2026. NeCastro has been with the company for 30 years, joining in 1996 and becoming CEO in 2016, and his departure marks the end of a decade‑long tenure at the helm.
NeCastro’s leadership has overseen Erie’s transformation into a fee‑based insurer that acts as the attorney‑in‑fact for the Erie Insurance Exchange. Under his guidance the company’s premium base grew to nearly $13 billion and its policy count surpassed 7 million. Profitability has improved markedly, with management fee revenue rising and net income increasing from $159.8 million in Q3 2024 to $182.9 million in Q3 2025, reflecting stronger fee collections and disciplined cost management.
"In September, A.M. Best adjusted the financial strength rating of the property casualty members of Erie Insurance Group from A+ (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," NeCastro said. "Our focus remains clear: strengthening profitability, delivering an exceptional service and investing in the technology and products that will shape Erie's next century." Tom Hagen, chairman of the board, added, "Tim has led the organization with extraordinary kindness and humility. He has been a consistent model for The ERIE's values — always putting people and service first."
The downgrade from A+ to A by A.M. Best highlights the impact of weather‑related losses and inflation on claims severity, but the company’s fee‑based model continues to provide a stable revenue stream. Management has emphasized that the rating remains a strong indicator of financial strength and that the company is focused on maintaining profitability while investing in technology and new products such as ErieSecure Auto.
The board has begun a search for a successor, and investors will monitor the appointment for signals of strategic direction. NeCastro’s retirement opens a window for potential shifts in product development, technology investment, and market expansion, while the company’s recent 100th‑anniversary celebrations underscore its long‑standing presence in the industry.
The announcement signals a significant leadership transition that could influence Erie’s strategic trajectory, but the company’s fee‑based business model and recent profitability gains provide a foundation for continued stability as it seeks new executive leadership.
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