8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): December 9, 2008

Erie Indemnity Company
__________________________________________
(Exact name of registrant as specified in its charter)

Pennsylvania	0-24000	25-0466020
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
100 Erie Insurance Place, Erie, Pennsylvania		16530
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: (814)870-2000

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

On December 11, 2008, Erie Indemnity Company issued a press release regarding the Board of Director's approval of an increase in shareholders' dividends and the management fee rate charged to the Erie Insurance Exchange. See the Press Release attached as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

Exhibit 99.1 Press Release dated December 11, 2008

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Erie Indemnity Company
December 11, 2008	By:	Philip A. Garcia
		Name: Philip A. Garcia
		Title: Executive Vice President & CFO

Exhibit Index

Exhibit No.	Description
99.1	Press Release dated December 11, 2008

EX-99.1

Exhibit 99.1

Erie Indemnity Increases Dividend and Maintains Management Fee Rate

Erie, Pa. — December 11, 2008 — At its December 9, 2008, regular meeting the Board of Directors of Erie Indemnity Company (NASDAQ: ERIE) approved increases in shareholders’ dividends and set the management fee rate charged to Erie Insurance Exchange.

The Board increased the regular quarterly cash dividend from $0.44 to $0.45 on each Class A share and from $66.00 to $67.50 on each Class B share. The dividend is payable January 20, 2009, to shareholders of record as of January 5, 2009, with a dividend ex-date of December 31, 2008. This represents a 2.3 percent increase in the payout per share over the current dividend rate.  This is the 75^th consecutive year Erie Indemnity Company has paid dividends.

In a separate action, the Board voted to maintain the management fee rate paid to Erie Indemnity Company by Erie Insurance Exchange at 25 percent, effective January 1, 2009. The management fee rate was 25 percent for the period January 1 through December 31, 2008. The Board has the authority to change the management fee rate at its discretion; however, the maximum fee rate permissible by agreement is 25 percent. This action was taken after the Board’s consideration and review of the relative financial position of Erie Insurance Exchange and Erie Indemnity Company.

Erie Indemnity Company provides management services to the member companies of the Erie Insurance Group, which includes Erie Insurance Exchange, Flagship City Insurance Company, Erie Insurance Company, Erie Insurance Property and Casualty Company, Erie Insurance Company of New York and Erie Family Life Insurance Company.

According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 16^th largest automobile insurer in the United States based on direct premiums written and the 21^st largest property/casualty insurer in the United States based on total lines net premium written. The Group, rated A+ (Superior) by A.M. Best Company, has almost 4.0 million policies in force and operates in 11 states and the District of Columbia. Erie Insurance Group ranks 488 on the FORTUNE 500.  

Most recently, Erie Insurance earned J.D. Power and Associates’ award for “Highest in Customer Satisfaction with the Auto Insurance Purchase Experience.” This award recognizes the top rankings in J.D. Power’s 2008 Insurance New Buyer Study, which assesses customers’ experience in purchasing a new auto insurance policy.

News releases and more information about Erie Insurance Group are available at http://www.erieinsurance.com

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: Certain forward-looking statements contained herein involve risks and uncertainties. These forward-looking statements reflect Erie Indemnity Company’s current views about future events, are based on assumptions and are subject to known and unknown risks and uncertainties that may cause results to differ materially from those anticipated in those statements. Many of the factors that will determine future events or achievements are beyond our ability to control or predict. For example, the ability of Erie Indemnity Company to continue to pay a cash dividend, or to pay a cash dividend at the level currently paid, will depend on a number of factors, including but not limited to Erie Indemnity Company maintaining a profitable level of operations. Also, by way of example, the level of the management fee charged to Erie Insurance Exchange will depend on a number of factors, including but not limited to the relative financial condition of Erie Indemnity Company and Erie Insurance Exchange, as stated above. The Company assumes no obligation whatsoever to publicly update or revise any forward-looking statements.