Indemnity Supplemental Information (Tables)

3 Months Ended

Mar. 31, 2014

Condensed financial statements

Schedule of Consolidating Statement of Financial Position

Consolidating Statement of Financial Position

	Erie Insurance Group
	At March 31, 2014
(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	$	502	$	8,379	$	—		$	8,881
Equity securities	35		852		—			887
Trading securities, at fair value	—		3,253		—			3,253
Limited partnerships	145		953		—			1,098
Other invested assets	1		20		—			21
Total investments	683		13,457		—			14,140
Cash and cash equivalents	44		335		—			379
Premiums receivable from policyholders	—		1,194		—			1,194
Reinsurance recoverable	—		175		—			175
Deferred acquisition costs	—		558		—			558
Other assets	113		372		—			485
Receivables from the Exchange and other affiliates	301		—		(301		)	—
Note receivable from EFL	25		—		(25		)	—
Total assets	$	1,166	$	16,091	$	(326	)	$	16,931
Liabilities
Losses and loss expense reserves	$	—	$	3,838	$	—		$	3,838
Life policy and deposit contract reserves	—		1,775		—			1,775
Unearned premiums	—		2,625		—			2,625
Deferred income tax liability	0		492		—			492
Other liabilities	424		413		(326		)	511
Total liabilities	424		9,143		(326		)	9,241
Shareholders’ equity and noncontrolling interest
Total Indemnity shareholders’ equity	742		—		—			742
Noncontrolling interest in consolidated entity – Exchange	—		6,948		—			6,948
Total equity	742		6,948		—			7,690
Total liabilities, shareholders’ equity, and noncontrolling interest	$	1,166	$	16,091	$	(326	)	$	16,931

Consolidating Statement of Financial Position

	Erie Insurance Group
	At December 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	$	526	$	8,162	$	—		$	8,688
Equity securities	50		819		—			869
Trading securities, at fair value	—		3,202		—			3,202
Limited partnerships	146		940		—			1,086
Other invested assets	1		20		—			21
Total investments	723		13,143		—			13,866
Cash and cash equivalents	49		403		—			452
Premiums receivable from policyholders	—		1,167		—			1,167
Reinsurance recoverable	—		172		—			172
Deferred income tax asset	2		0		—			2
Deferred acquisition costs	—		566		—			566
Other assets	114		337		—			451
Receivables from the Exchange and other affiliates	300		—		(300		)	—
Note receivable from EFL	25		—		(25		)	—
Total assets	$	1,213	$	15,788	$	(325	)	$	16,676
Liabilities
Losses and loss expense reserves	$	—	$	3,747	$	—		$	3,747
Life policy and deposit contract reserves	—		1,758		—			1,758
Unearned premiums	—		2,598		—			2,598
Deferred income tax liability	0		450		—			450
Other liabilities	479		419		(325		)	573
Total liabilities	479		8,972		(325		)	9,126
Shareholders’ equity and noncontrolling interest
Total Indemnity shareholders’ equity	734		—		—			734
Noncontrolling interest in consolidated entity – Exchange	—		6,816		—			6,816
Total equity	734		6,816		—			7,550
Total liabilities, shareholders’ equity, and noncontrolling interest	$	1,213	$	15,788	$	(325	)	$	16,676

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,
	2014		2013
Management operations:
Management fee revenue, net	$	319	$	296
Service agreement revenue	7		7
Total revenue from management operations	326		303
Cost of management operations	268		254
Income from management operations before taxes	58		49
Investment operations:
Net investment income	4		4
Net realized gains on investments	1		0
Net impairment losses recognized in earnings	0		0
Equity in earnings of limited partnerships	6		3
Income from investment operations before taxes	11		7
Income from operations before income taxes	69		56
Provision for income taxes	23		19
Net income attributable to Indemnity	$	46	$	37

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,
	2014			2013
Management fee received	$	317		$	288
Service agreement fee received	8			7
Net investment income received	6			5
Limited partnership distributions	3			7
Increase in reimbursements collected from affiliates	1			2
Commissions and bonuses paid to agents	(225		)	(197		)
Salaries and wages paid	(47		)	(44		)
Pension contribution and employee benefits paid	(23		)	(22		)
General operating expenses paid	(50		)	(45		)
Income taxes recovered (paid)	1			(2		)
Net cash used in operating activities	(9		)	(1		)
Net cash provided by investing activities	44			45
Net cash used in financing activities	(40		)	(15		)
Net (decrease) increase in cash and cash equivalents	(5		)	29
Cash and cash equivalents at beginning of period	49			12
Cash and cash equivalents at end of period	$	44		$	41