Good morning, and welcome to the Erie Indemnity Company Second Quarter 2021 Earnings Conference Call. [Operator Instructions] Now I'd like to introduce your host for the call, Vice President of Investor Relations, Scott Beilharz.

Thank you, and welcome, everyone. We appreciate you joining us for this recorded discussion about our 2021 second quarter results. This recording will include remarks from Tim NeCastro, President and Chief Executive Officer; and Greg Gutting, Executive Vice President and Chief Financial Officer. Our earnings release and financial supplement were issued yesterday afternoon after the market closed and are available within the Investor Relations section of our website, erieinsurance.com. Before we begin I would like to remind everyone that today's discussion may contain forward-looking remarks that reflect the company's current views about future events. These remarks are based on assumptions subject to known and unexpected risks and uncertainties. These risks and uncertainties may cause results to differ materially from those described in these remarks. For information on important factors that may cause these differences, please see the safe harbor statements in our Form 10-Q filing with the SEC ended July 29, 2021, and in the related press release. This prerecorded call is a property of Erie Indemnity Company. It may not be reproduced or rebroadcast by any other party without the prior written consent of Erie Indemnity Company. With that, we'll move on to Tim's remarks. Tim?

Thanks, Scott, and good morning, everyone. Thank you for taking time to learn more about Erie's performance in the second quarter of 2021. Over the past several weeks, many of us have started to return to a more normal way of living. And with that, we're also starting to return to a normal way of working. In early July, we began returning more employees to our offices for the first phase of our workplace reset initiative. Phase two is set to begin in September with a significantly greater number of returning employees. Many of those employees will be among the first to work in our new seven-story office building, which we're planning to dedicate in September after a 17-month delay. The building is spectacular, and I can't wait to see it filled with activity. As we move through this phased return to our workplace and pilot new ways of working, it's important to note that we'll be learning and adapting as we go. One of the biggest lessons learned over the past 1.5 years is that the human touch transcends physical location. So just as we've been doing since the early days of the pandemic, we're committed to taking a thoughtful and deliberate approach to our decisions. As we pioneer what's next for our workforce delivery, our special culture and unique service model remains at the forefront of everything we do. Turning to our second quarter. I'm excited to announce an exciting milestone with a sure symbol of our continued stability and growth, six million policies in force. We certainly could not have reached this milestone without our hard-working agency force and dedicated sales and underwriting teams. Our study as you will approach to pricing and commitment to long-term profitability positions us well for continued growth as we look to seven million policies in force and a century of service. We had a remarkable first quarter of the year, and I'm pleased to report that those strong financial results are holding steady as we reach the halfway point of 2021. As you saw in our press release filed after the market close yesterday, Erie Indemnity reported net income of $79 million or $1.51 per diluted share for the second quarter. This is compared to a net income of $82 million or $1.57 per diluted share in the second quarter of 2020. In the second quarter of 2021, we grew premium by 3.4%. This increase was largely driven by strong retention and an increase in new written premium of almost 40%. Losses remain at lower-than-normal levels due to a relatively mild spring and continued reduction in driving to the pandemic, contributing to a combined ratio of 92.6% year-to-date. Now I will turn the call over to Greg to expand on our second quarter results. Greg?

Thanks, Tim. Good morning, everyone. Thank you for taking time today to be a part of the Erie Indemnity second quarter earnings call. As the country continues to move to a more normal way of living, Erie is continuing to see this reflected in our financial results. We are seeing new business growth, but along with that, we are also seeing an increase in claims frequency. That being said, claims activity is still below pre-pandemic levels. You will see, as I share with you the financial results, that Erie remains well positioned for success going forward. Starting with the Exchange, the insurance operations we manage, direct written premium growth for the second quarter was 3.4%, driven by substantial growth in new business premium, which climbed almost 40% over the prior year. With a combined ratio for the quarter of 97.7%, the Exchange's policyholder surplus grew to $11.7 billion, up $400 million from March 31. Now shifting to Indemnity. In the second quarter, Indemnity generated net income of $79 million or $1.51 per diluted share compared to $82 million or $1.57 per diluted share in the second quarter of 2020. For the first half of 2021, net income was $153 million or $2.92 per diluted share compared to $141 million or $2.70 per diluted share in the first half of 2020. Operating income decreased 6.7% or $6 million in the second quarter of 2021 compared to the second quarter of 2020. Indemnity also saw a decrease in operating income of 8.9% or $16 million for the first six months of this year compared to the first six months of last year. Indemnity's management fee revenue for policy issuance and renewal services increased $18 million or 3.8% in the second quarter of 2021 compared to the second quarter of 2020. While for…

Thanks, Greg. Despite the many challenges faced by our agents and employees over the past 18 months, we haven't missed a beat when it comes to productivity and growth. Our teams continue to execute on initiatives that will make a positive difference for our agents and customers this year and beyond. For over a year, we've been developing and refining the strategy that will bolster our competitive position, focused on expanding our digital capabilities while leveraging Erie's distinctive human touch. That means further strengthening the distinct relationship we have with our agents and broadening our shared digital presence to engage with customers wherever they are using the methods they prefer. Because our agents are critical to the success of this strategy, continuing to grow and nurture our agency force is a top priority moving forward. The newly formed agent recruiting and performance team is focused on just that, recruiting, onboarding and developing new agents and providing ongoing training and support to established agents. Most importantly, the team will be doing so in a way that's right for Erie, making sure that new agents are aligned with our values and share our commitment to service. In recent product developments, we have refreshed our Erie personal umbrella product and pricing, and it's creating tremendous results so far. Umbrella coverage provides protection beyond what auto and home insurance policies cover, and the refreshed product has been rolled out in 10 states. Companywide, new business direct written premium for personal umbrella is up more than 50% year-to-date. Our goal is to have the product in all of our states by the end of 2021. We recognize that a key part of supporting our customers and agents include supporting the communities where we do business, and several recent outreach efforts speak to that ongoing commitment.…