Indemnity Supplemental Information (Tables)

9 Months Ended

Sep. 30, 2013

Condensed financial statements

Schedule of Consolidating Statement of Financial Position

Consolidating Statement of Financial Position

	Erie Insurance Group
	At September 30, 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	$	499	$	7,921	$	—		$	8,420
Equity securities	48		849		—			897
Trading securities, at fair value	0		2,945		—			2,945
Limited partnerships	158		979		—			1,137
Other invested assets	1		20		—			21
Total investments	706		12,714		—			13,420
Cash and cash equivalents	33		502		—			535
Premiums receivable from policyholders	—		1,203		—			1,203
Reinsurance recoverable	—		174		—			174
Deferred income tax asset	42		0		—			42
Deferred acquisition costs	—		574		—			574
Other assets	107		329		—			436
Receivables from the Exchange and other affiliates	320		—		(320		)	—
Note receivable from EFL	25		—		(25		)	—
Total assets	$	1,233	$	15,496	$	(345	)	$	16,384
Liabilities
Losses and loss expense reserves	$	—	$	3,712	$	—		$	3,712
Life policy and deposit contract reserves	—		1,754		—			1,754
Unearned premiums	—		2,654		—			2,654
Deferred income tax liability	0		368		—			368
Other liabilities	576		466		(345		)	697
Total liabilities	576		8,954		(345		)	9,185
Shareholders’ equity and noncontrolling interest
Total Indemnity shareholders’ equity	657		—		—			657
Noncontrolling interest in consolidated entity – Exchange	—		6,542		—			6,542
Total equity	657		6,542		—			7,199
Total liabilities, shareholders’ equity and noncontrolling interest	$	1,233	$	15,496	$	(345	)	$	16,384

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 September 30,				Nine months ended September 30,
	2013		2012		2013		2012
Management operations:
Management fee revenue, net	$	333	$	305	$	965	$	882
Service agreement revenue	8		8		23		23
Total revenue from management operations	341		313		988		905
Cost of management operations	281		247		820		734
Income from management operations before taxes	60		66		168		171
Investment operations:
Net investment income	4		4		11		12
Net realized gains on investments	1		2		1		4
Net impairment losses recognized in earnings	0		0		0		0
Equity in earnings of limited partnerships	5		6		13		10
Income from investment operations before taxes	10		12		25		26
Income from operations before income taxes	70		78		193		197
Provision for income taxes	24		27		66		67
Net income attributable to Indemnity	$	46	$	51	$	127	$	130

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)	Nine months ended September 30,
	2013			2012
Management fee received	$	933		$	851
Service agreement fee received	23			23
Net investment income received	16			19
Limited partnership distributions	18			11
Decrease in reimbursements collected from affiliates	(8		)	(2		)
Commissions and bonuses paid to agents	(521		)	(470		)
Salaries and wages paid	(110		)	(99		)
Pension contribution and employee benefits paid	(33		)	(36		)
General operating expenses paid	(124		)	(99		)
Income taxes paid	(62		)	(54		)
Net cash provided by operating activities	132			144
Net cash used in investing activities	(33		)	(8		)
Net cash used in financing activities	(78		)	(135		)
Net increase in cash and cash equivalents	21			1
Cash and cash equivalents at beginning of period	12			11
Cash and cash equivalents at end of period	$	33		$	12