Feb 23 (Reuters) - Property and casualty insurer Erie Indemnity ERIE.O reported a fall in fourth-quarter profit on Monday, hit by a $100 million charitable contribution made to the Erie Insurance Foundation.
Net income fell to $63.4 million, or $1.21 per diluted share, in the three months ended December 31, compared to $152 million, or $2.91 per diluted share, in the year-ago period.
The stock was last down 1.4% after the bell. Still, its core business performed well in the quarter.
Insurance demand held steady as companies and consumers continued to purchase coverage to protect against financial losses, accidents, property damage and natural disasters, even as insurance prices rose.
The company's management fee revenue from policy issuance and renewal services rose to $727.6 million in the fourth quarter, up from $698.3 million a year ago.
Net investment income also rose nearly 19% in the quarter.
Insurers' portfolios are typically weighted toward bonds, which generate better returns in a high-interest-rate environment, providing a stable source of earnings and helping offset volatility in other parts of their business.
(Reporting by Manya Saini and Prakhar Srivastava in Bengaluru; Editing by Alan Barona)
((Prakhar.srivastava2@thomsonreuters.com))