Aug 7 (Reuters) - Property and casualty insurer Erie

Indemnity ( ERIE ) reported a rise in second-quarter profit on

Thursday, helped by strong growth in investment income and fees.

Consumers boosted spending on insurance products, including

auto and property coverage, prioritizing financial protection

even as premiums climbed amid a surge in extreme weather events.

Erie's management fee revenue from policy issuance and

renewal services - the primary driver of its earnings - jumped

8.3% to $823.9 million in the second quarter.

The Pennsylvania-based company's net investment income also

rose to $20 million in the quarter - from $16 million a year

ago.

Insurers' investment portfolio tends to be heavily weighted

towards bonds, which give better returns in a high interest rate

environment.

They also allocate a certain portion of their investment

portfolio towards equity securities.

Indemnity's net income rose to $174.7 million, or $3.34 per

share, in the three months ended June 30, compared with $163.9

million, or $3.13 per share, a year ago.

Indemnity's stock has fallen 14.5% so far this year,

compared with the 7.9% jump in the benchmark S&P 500 index

.