Indemnity Supplemental Information (Tables)

3 Months Ended

Mar. 31, 2013

Condensed financial statements

Schedule of Consolidating Statement of Financial Position

Consolidating Statement of Financial Position

	Erie Insurance Group
	At March 31, 2013
(in millions)	Indemnity shareholder interest		Exchange noncontrolling interest		Reclassifications and eliminations			Erie Insurance Group
Assets
Investments
Available-for-sale securities, at fair value:
Fixed maturities	$	421	$	7,891	$	—		$	8,312
Equity securities	49		943		—			992
Trading securities, at fair value	0		2,662		—			2,662
Limited partnerships	167		1,004		—			1,171
Other invested assets	1		20		—			21
Total investments	638		12,520		—			13,158
Cash and cash equivalents	41		347		—			388
Premiums receivable from policyholders	—		1,113		—			1,113
Reinsurance recoverable	—		169		—			169
Deferred income tax asset	39		0		—			39
Deferred acquisition costs	—		510		—			510
Other assets	115		299		—			414
Receivables from the Exchange and other affiliates	287		—		(287		)	—
Note receivable from EFL	25		—		(25		)	—
Total assets	$	1,145	$	14,958	$	(312	)	$	15,791
Liabilities
Losses and loss expense reserves	$	—	$	3,628	$	—		$	3,628
Life policy and deposit contract reserves	—		1,726		—			1,726
Unearned premiums	—		2,399		—			2,399
Deferred income tax liability	0		410		—			410
Other liabilities	509		414		(312		)	611
Total liabilities	509		8,577		(312		)	8,774
Shareholders’ equity and noncontrolling interest
Total Indemnity shareholders’ equity	636		—		—			636
Noncontrolling interest in consolidated entity – Exchange	—		6,381		—			6,381
Total equity	636		6,381		—			7,017
Total liabilities, shareholders’ equity and noncontrolling interest	$	1,145	$	14,958	$	(312	)	$	15,791

Consolidating Statement of Financial Position

	Erie Insurance Group
	At December 31, 2012
(in millions)	Indemnity shareholder interest		Exchange noncontrolling interest		Reclassifications and eliminations			Erie Insurance Group
Assets
Investments
Available-for-sale securities, at fair value:
Fixed maturities	$	452	$	7,707	$	—		$	8,159
Equity securities	55		945		—			1,000
Trading securities, at fair value	0		2,417		—			2,417
Limited partnerships	180		1,037		—			1,217
Other invested assets	1		20		—			21
Total investments	688		12,126		—			12,814
Cash and cash equivalents	12		388		—			400
Premiums receivable from policyholders	—		1,062		—			1,062
Reinsurance recoverable	—		168		—			168
Deferred income tax asset	37		0		—			37
Deferred acquisition costs	—		504		—			504
Other assets	117		339		—			456
Receivables from the Exchange and other affiliates	281		—		(281		)	—
Note receivable from EFL	25		—		(25		)	—
Total assets	$	1,160	$	14,587	$	(306	)	$	15,441
Liabilities
Losses and loss expense reserves	$	—	$	3,598	$	—		$	3,598
Life policy and deposit contract reserves	—		1,708		—			1,708
Unearned premiums	—		2,365		—			2,365
Deferred income tax liability	0		365		—			365
Other liabilities	518		402		(306		)	614
Total liabilities	518		8,438		(306		)	8,650
Shareholders’ equity and noncontrolling interest
Total Indemnity shareholders’ equity	642		—		—			642
Noncontrolling interest in consolidated entity – Exchange	—		6,149		—			6,149
Total equity	642		6,149		—			6,791
Total liabilities, shareholders’ equity and noncontrolling interest	$	1,160	$	14,587	$	(306	)	$	15,441

Indemnity

Condensed financial statements

Schedule of Income attributable to Indemnity shareholder interest

Income attributable to Indemnity shareholder interest

	Indemnity Shareholder Interest
(in millions)	Three months ended March 31,
	2013		2012
Management operations:
Management fee revenue, net	$	296	$	269
Service agreement revenue	7		7
Total revenue from management operations	303		276
Cost of management operations	254		230
Income from management operations before taxes	49		46
Investment operations:
Net investment income	4		4
Net realized gains on investments	0		3
Net impairment losses recognized in earnings	0		0
Equity in earnings of limited partnerships	3		1
Income from investment operations before taxes	7		8
Income from operations before income taxes	56		54
Provision for income taxes	19		18
Net income attributable to Indemnity	$	37	$	36

Schedule of Indemnity's components of direct cash flows as included in the Consolidated Statements of Cash Flows

Indemnity’s components of direct cash flows as included in the Consolidated Statements of Cash Flows

	Indemnity Shareholder Interest
(in millions)	Three months ended March 31,
	2013			2012
Management fee received	$	288		$	266
Service agreement fee received	7			7
Net investment income received	5			7
Limited partnership distributions	7			3
Increase in reimbursements collected from affiliates	2			0
Commissions and bonuses paid to agents	(197		)	(180		)
Salaries and wages paid	(44		)	(34		)
Pension contribution and employee benefits paid	(22		)	(27		)
General operating expenses paid	(45		)	(33		)
Income taxes paid	(2		)	0
Net cash (used in) provided by operating activities	(1		)	9
Net cash provided by investing activities	45			53
Net cash used in financing activities	(15		)	(45		)
Net increase in cash and cash equivalents	29			17
Cash and cash equivalents at beginning of period	12			11
Cash and cash equivalents at end of period	$	41		$	28