ERIE INDEMNITY COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

	Three		Three
	months		months
	ended		ended
	Mar. 31		Mar. 31
	(Unaudited)		(Unaudited)
	2005		2004
OPERATING REVENUE:
Management fee revenue-net	$	217,736	$	209,664
Premiums earned		53,648		50,649
Service agreement revenue		4,787		5,598
Total operating revenue		276,171		265,911
OPERATING EXPENSES:
Cost of management operations		167,940		161,821
Losses and loss adjustment expenses incurred		32,677		38,037
Policy acquisition and other underwriting expenses		11,844		11,318
Total operating expenses		212,461		211,176
INVESTMENT INCOME – UNAFFILIATED:
Investment income, net of expenses		14,468		14,686
Net realized gains on investments		5,497		2,853
Equity in earnings of limited
partnerships		2,111		418
Total investment income — unaffiliated		22,076		17,957
Income before income taxes and equity in earnings of Erie Family
Life Insurance Co.		85,786		72,692
Provision for income taxes		28,729		24,435
Equity in earnings of Erie Family Life Insurance Company, net of tax		714		1,315
Net income	$	57,771	$	49,572
Net income per share — basic
Class A common stock	$	0.91	$	0.77
Class B common stock	$	138.84	$	117.87
Net income per share — diluted	$	0.83	$	0.70
Weighted average shares outstanding
Basic:
Class A common stock		62,926,683		63,950,847
Class B common stock		2,851		2,878
Diluted shares		69,845,958		70,926,223
Dividends Declared Per Share
Class A non-voting common	$	0.325	$	0.215
Class B common	$	48.75	$	32.25

ERIE INDEMNITY COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS — SEGMENT BASIS

(Amounts in thousands, except per share data)

	Three		Three
	months		months
	ended Mar. 31		ended Mar. 31
	(Unaudited)		(Unaudited)
	2005		2004
MANAGEMENT OPERATIONS
Management fee revenue	$	230,409	$	221,867
Service agreement revenue		4,787		5,598
Total revenue from management operations		235,196		227,465
Cost of management operations		177,714		171,239
Income from management operations		57,482		56,226
INSURANCE UNDERWRITING OPERATIONS
Premiums earned		53,648		50,649
Losses and loss adjustment expenses incurred		32,677		38,037
Policy acquisition and other underwriting expenses		14,742		14,103
Total losses and expenses		47,419		52,140
Underwriting gain (loss)		6,229		(1,491	)
INVESTMENT OPERATIONS
Net investment income		14,468		14,686
Net realized gains on investments		5,497		2,853
Equity in earnings of limited
partnerships		2,111		418
Equity in earnings of Erie Family Life Insurance Company		767		1,414
Net revenue from investment operations		22,843		19,371
Income before income taxes		86,554		74,106
Provision for income taxes		28,783		24,534
Net income	$	57,771	$	49,572
Net income per share – Class A basic	$	0.91	$	0.77
Net income per share – Class B basic	$	138.84	$	117.87
Net income per share — diluted	$	0.83	$	0.70
WEIGHTED AVERAGE SHARES OUTSTANDING — DILUTED		69,846		70,926

Amounts presented on a segment basis are presented gross of intercompany/intersegment items

ERIE INDEMNITY COMPANY

RECONCILIATION OF OPERATING INCOME TO NET INCOME

(Amounts in thousands, except per share data)

Definition on Non-GAAP and Operating Measures

Operating income, a non-GAAP measure, is net income excluding realized capital gains and losses and federal income taxes related to realized capital gains and losses. Realized capital gains and losses which are included in the Company’s equity in earnings of Erie Family Life Insurance Company and equity in earnings of limited partnerships are not excluded from net income in computing operating income. Net income is the GAAP measure that is most directly comparable to operating income. The Company’s method of calculating this measure may differ from those used by other companies and therefore comparability may be limited.

The Company uses operating income to evaluate their results of operations. It reveals trends in the Company’s management services, insurance underwriting and investment operations that may be obscured by the net effects of realized capital gains and losses. These items may vary significantly between periods and are generally driven by business decisions and economic developments such as capital market conditions, the timing of which is unrelated to management services and insurance underwriting processes of the Company. The Company believes operating income is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s performance. The Company is aware that the price to earnings multiple commonly used by investors as a forward-looking valuation technique uses operating income as the denominator. Operating income should not be considered as a substitute for net income and does not reflect the overall profitability of the Company’s business.

The following table reconciles operating income and net income for the three months ended March 31, 2005 and 2004.

	Three months			Three months ended
	ended Mar. 31			Mar. 31
(in thousands)	(unaudited)			(unaudited)
	2005			2004
Operating income	$	54,199		$	47,718
Net realized gains on investments		5,497			2,853
Income tax expense on realized gains		(1,925	)		(999	)
Realized gains net of income tax expense		3,572			1,854
Net income	$	57,771		$	49,572
	Per share			Per share
	Information-diluted			Information-diluted
	Three months			Three months
	ended Mar. 31			ended Mar. 31
	(unaudited)			(unaudited)
		2005			2004
Operating income		0.78			0.67
Net realized gains on investments		0.08			0.04
Income tax expense on realized gains		(0.03	)		(0.01	)
Realized gains net of income tax expense		0.05			0.03
Net income		0.83			0.70

ERIE INDEMNITY COMPANY

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Amounts in thousands, except per share data)

	March 31		December 31
	2005		2004
	(Unaudited)
ASSETS
Investments
Fixed maturities	$	981,572	$	974,512
Equity securities
Preferred stock		148,790		143,851
Common stock		60,540		58,843
Other invested assets		137,720		135,508
Total investments		1,328,622		1,312,714
Cash and cash equivalents		53,307		50,061
Equity in Erie Family Life Insurance Company		56,010		58,728
Premiums receivable from policyholders		272,870		275,721
Receivables from affiliates		1,123,900		1,145,238
Other assets		141,896		137,282
Total assets	$	2,976,605	$	2,979,744
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Unpaid losses and loss adjustment expenses	$	942,586	$	943,034
Unearned premiums		464,154		472,553
Other liabilities		300,675		297,276
Total liabilities		1,707,415		1,712,863
Total shareholders’ equity		1,269,190		1,266,881
Total liabilities and shareholders’ equity	$	2,976,605	$	2,979,744
Book value per share	$	18.24	$	18.14
Shares outstanding		69,567		69,852

Selected financial data of Erie Insurance Exchange:

The selected financial data below is derived from the Erie Insurance Exchange’s financial statements prepared in accordance with Statutory Accounting Principles. In the opinion of management, all adjustments consisting only of normal recurring accruals, considered necessary for a fair presentation have been included. The financial data set forth below is only a summary.

	Three months		Three months ended
	ended Mar. 31		Mar. 31
	2005		2004
(In thousands) (Unaudited)
Statutory Accounting Basis
Premiums earned	$	932,794	$	890,243
Losses and loss adjustment expenses		553,994		656,772
Insurance underwriting and other expenses		253,627		244,972
Net underwriting gain (loss)		125,173		(11,501	)
Net investment income		79,635		62,729
Net realized gains		76,599		17,156
Federal income tax expense		88,198		18,020
Net income	$	193,209	$	50,364

	As of		As of
	Mar. 31,		Dec. 31,
	2005		2004
	(Unaudited)
(In thousands)
Statutory Accounting Basis
Cash and invested assets	$	7,329,730	$	7,199,447
Other assets		1,083,892		1,070,315
Total assets		8,413,622		8,269,762
Claims and unearned premium reserves		4,949,755		4,973,136
Other liabilities		554,468		492,568
Total liabilities		5,504,223		5,465,704
Policyholders’ surplus		2,909,399		2,804,058
Total liabilities and policyholders’ surplus	$	8,413,622	$	8,269,762

ERIE INDEMNITY COMPANY
RECONCILIATION OF PROPERTY AND CASUALTY GROUP TO INDEMNITY RESULTS

	Three months			Three months ended
	ended Mar. 31			Mar. 31
(Dollars in thousands)	2005			2004
Underwriting results of the Property and Casualty Group-(SAP Basis)	(Unaudited)			(Unaudited)
Direct underwriting results
Direct written premiums	$	971,825		$	960,710
Premiums earned		991,283			927,495
Loss and loss adjustment expenses incurred		574,052			667,638
Policy acquisition and other underwriting expenses		270,613			258,691
Direct underwriting income		146,618			1,166
Nonaffiliated reinsurance underwriting results-net
Assumed voluntary-less ceded retrocessions		(3,619	)		1,435
Assumed involuntary		(7,789	)		(7,664	)
Ceded reinsurance		3,848			8,180
Nonaffiliated reinsurance underwriting (loss)		(15,256	)		(14,409	)
Net Underwriting Income (Loss) (SAP Basis)	$	131,362		$	(13,243	)
ERIE INDEMNITY INSURANCE UNDERWRITING OPERATIONS
Percent of pool assumed by the Indemnity Company		5.50	%		5.50	%
Indemnity preliminary underwriting income (loss)	$	7,225		$	(728	)
Excess-of-loss premiums ceded to the Exchange		(844	)		(842	)
Reinsurance charges under excess-of-loss		(340	)		0
SAP to GAAP adjustments		188			79
Indemnity Underwriting Income (Loss) – GAAP Basis	$	6,229		$	(1,491	)
Net Property & Casualty Group (SAP Basis)
Loss and LAE Ratio		59.5			73.8
Underwriting ratio		26.5			26.1
Policyholder Dividends ratio		0.8			0.3
Statutory combined ratio		86.8			100.2
Adjusted combined ratio, excluding profit component		81.4			95.0
Loss ratio points from catastrophes		0.5			0.8
Loss ratio points from prior accident year reserve development-(redundancy) deficiency		(7.9	)		(6.4	)
Erie Indemnity Company
GAAP combined ratio		88.4			102.9
GAAP loss ratio points from catastrophes		0.5			0.8

SAP Basis represents statutory accounting principles as codified by the National Association of Insurance Commissioners (NAIC)

	Three months			Three months ended
	ended Mar. 31			Mar. 31
	(in thousands)			(in thousands)			%
	2005			2004			Change
Private passenger auto	$	112,858		$	113,010			(0.1	)
Commercial auto		20,510			19,962			2.7
Homeowners		36,097			34,337			5.1
Commercial multi-peril		27,624			26,554			4.0
Workers’ compensation		23,994			22,586			6.2
All other lines of business		9,726			9,318			4.4
		230,809			225,767			2.2	%
Increase in allowance for management fee returned on cancelled policies		(400	)		(3,900	)
Management fee revenue-segment basis	$	230,409		$	221,867			3.9	%
Management fee rate		23.75	%		23.5	%		1.1	%

Growth rates of policies in force for Property and Casualty Group insurance operations:

	Private		12-mth.					12-mth.			All other		12-mth.			Total		12-mth.
	passenger		growth					growth			personal lines		growth			Personal		growth
Date	auto		rate			Homeowners		rate			of business		rate			lines		rate
03/31/03		1,623,429		10.5	%		1,263,118		14.3	%		257,327		15.9	%		3,143,874		12.4	%
06/30/03		1,650,225		9.1			1,293,575		12.8			264,423		14.0			3,208,223		11.0
09/30/03		1,666,285		7.2			1,316,775		10.6			269,640		12.2			3,252,700		9.0
12/31/03		1,672,621		5.1			1,327,842		7.9			272,547		9.2			3,273,010		6.6
03/31/04		1,678,496		3.4			1,335,763		5.8			275,970		7.2			3,290,229		4.7
06/30/04		1,686,524		2.2			1,347,409		4.2			278,547		5.3			3,312,480		3.3
09/30/04		1,682,561		1.0			1,350,899		2.6			278,707		3.4			3,312,167		1.9
12/31/04		1,670,804		(0.1	)		1,347,671		1.5			278,974		2.4			3,297,449		0.8
03/31/05		1,661,955		(1.0	)		1,343,803		0.6			279,927		1.4			3,285,685		(0.1	)

Growth rates of policies in force for Property and Casualty Group insurance operations:

			12-mth.			CML*		12-mth.					12-mth.			All other		12-mth.			Total		12-mth.
	CML*		growth			multi-		growth			Workers'		growth			CML* lines		growth			CML*		growth
Date	auto		rate			peril		rate			comp.		rate			of business		rate			lines		rate
03/31/03		109,963		11.2	%		194,911		13.8	%		60,104		12.7	%		81,356		10.9	%		446,334		12.4	%
06/30/03		112,911		10.2			201,614		12.2			61,932		11.4			83,826		10.5			460,283		11.3
09/30/03		114,339		8.5			205,127		10.5			62,396		8.8			85,789		9.8			467,651		9.7
12/31/03		115,171		6.6			206,533		8.3			62,282		5.7			86,409		8.3			470,395		7.5
03/31/04		115,760		5.3			206,937		6.2			61,378		2.1			86,344		6.1			470,419		5.4
06/30/04		117,060		3.7			209,795		4.1			60,735		(1.9	)		87,172		4.0			474,762		3.1
09/30/04		117,090		2.4			210,012		2.4			59,863		(4.1	)		87,921		2.5			474,886		1.5
12/31/04		117,287		1.8			209,623		1.5			58,931		(5.4	)		87,815		1.6			473,656		0.7
03/31/05		117,382		1.4			208,619		1.3			57,949		(5.6	)		87,877		1.8			472,827		0.5

Growth rates of policies in force for Property and Casualty Group insurance operations:

			12-mth.
	Total all		growth
Date	lines		rate
03/31/03		3,590,208		12.4	%
06/30/03		3,668,506		11.0
09/30/03		3,720,351		9.0
12/31/03		3,743,405		6.7
03/31/04		3,760,648		4.7
06/30/04		3,787,242		3.2
09/30/04		3,787,053		1.8
12/31/04		3,771,105		0.7
03/31/05		3,758,512		(0.1	)

*CML = Commercial

Policy retention trends for Property and Casualty Group insurance operations:

	Private									CML*						All other
	passenger			CML*						multi-			Workers'			lines of
Date	auto			auto			Homeowners			peril			comp.			business			Total
03/31/03		92.5	%		91.3	%		90.6	%		89.1	%		90.2	%		88.5	%		91.2	%
06/30/03		92.2			91.1			90.5			88.4			89.4			88.4			91.0
09/30/03		91.9			90.4			90.1			88.0			88.9			88.4			90.6
12/31/03		91.6			89.8			89.5			87.5			88.1			88.2			90.2
03/31/04		91.2			89.7			89.0			87.6			88.1			87.5			89.8
06/30/04		90.7			89.0			88.4			86.7			86.7			86.8			89.2
09/30/04		90.3			88.5			87.9			86.0			86.2			86.0			88.7
12/31/04		90.0			88.3			87.6			85.3			85.8			85.8			88.4
03/31/05		89.9			88.2			87.6			85.5			85.9			85.5			88.3

*CML = Commercial

ERIE INDEMNITY COMPANY

PROPERTY & CASUALTY GROUP ADJUSTED COMBINED RATIO BY
MAJOR LINES OF BUSINESS (SAP BASIS)

	Year to date			Year to date
	Mar. 31			Mar. 31
	2005			2004
Private passenger auto		88.7	%		98.7	%
Home protector		67.4	%		81.5	%
Other personal lines		73.7	%		80.9	%
Total personal		82.5	%		93.9	%
Commercial multi-peril		59.6	%		93.3	%
Commercial auto		80.2	%		81.9	%
Workers’ compensation		73.6	%		101.5	%
Other commercial lines		69.1	%		88.1	%
Total commercial		69.8	%		92.1	%
Grand total-direct business only		78.8	%		93.5	%