EX-99.1

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Net income attributable to Indemnity per share-diluted was $0.94 per share in the second quarter of 2011 compared to net income per share-diluted of $0.86 per share in the second quarter of 2010. The second quarter 2010 net income amount includes $0.10 per share related to operations sold to the Exchange.

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Operating income attributable to Indemnity per share-diluted (excluding net realized gains or losses, impairments on investments and related taxes) was $0.87 per share in the second quarter of 2011 compared to $0.89 per share in the second quarter of 2010. The second quarter 2010 operating income amount includes $0.09 per share related to operations sold to the Exchange.

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Gross margin from management operations was 21.6 percent in the second quarter of 2011 compared to 22.0 percent in the second quarter of 2010.

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Indemnity’s investment operations pretax income totaled $17 million for the second quarter of 2011 compared to $11 million for the second quarter of 2010.

Erie, Pa., August 2, 2011 – Erie Indemnity Company (NASDAQ: ERIE) today announced second quarter 2011 earnings of $52 million, compared to earnings of $49 million in the second quarter of 2010. Operating income was $48 million in the second quarter of 2011 compared to $51 million for the same period one year ago.

Note: The accompanying consolidated financial statements of Erie Indemnity Company (“Indemnity”) reflect the consolidated results of Indemnity and the Erie Insurance Exchange (“Exchange”), which we refer to collectively as the “Erie Insurance Group.”

Indemnity or Indemnity shareholder interest refers to the interest in Erie Indemnity Company owned by the Class A and Class B shareholders. The Exchange refers to the noncontrolling interest held for the interest of the subscribers (policyholders) and includes its interest in its property and casualty subsidiaries and Erie Family Life Insurance Company (“EFL”).

The following table shows the consolidated results of the Erie Insurance Group by operating segment:


Results of the Erie Insurance Group’s Operations
	Indemnity shareholder interest					Noncontrolling interest (Exchange)						Elimination of related party transactions						Erie Insurance Group
(dollars in millions)		2Q’11		2Q’10			2Q’11			2Q’10			2Q’11			2Q’10			2Q’11			2Q’10

Management operations	$	64	$	62		$	-		$	-		$	(55	)	$	(53	)	$	9		$	9
Property and casualty insurance operations		—		(2	)		(415	)		(17	)		58			56			(357	)		37
Life insurance operations		—		3			12			8			(1	)		(1	)		11			10
Investment operations		17		11			148			(116	)		(2	)		(2	)		163			(107	)

Income (loss) from operations before income taxes and noncontrolling interest		81		74			(255	)		(125	)		—			—			(174	)		(51	)
Provision for income taxes		29		25			(96	)		(45	)		—			—				(67)		(20	)

Net income (loss)	$	52	$	49		$	(159	)	$	(80	)	$	-		$	-		$	(107	)	$	(31	)

The following sections highlight and discuss the results of management operations, property and casualty insurance operations, life insurance operations and investment operations related to the Indemnity shareholder interest.


Management Operations
	Indemnity shareholder interest						Noncontrolling interest (Exchange)				Elimination of related party transactions						Erie Insurance Group
(dollars in millions)		2Q’11			2Q’10			2Q’11		2Q’10		2Q’11			2Q’10			2Q’11		2Q’10

Management fee revenue, net	$	285		$	270		$	—	$	—	$	(285	)	$	(270	)	$	—	$	—
Service agreement revenue		9			9			—		—		—			—			9		9

Total revenue from management operations		294			279			—		—		(285	)		(270	)		9		9
Cost of management operations		230			217			—		-		(230	)		(217	)		-		-

Income from management operations before taxes		$64		$	62		$	—	$	-	$	(55	)	$	(53	)	$	9	$	9

Gross margin		21.6	%		22.0	%

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The management fee rate was 25 percent for both the second quarters of 2011 and 2010. Direct written premiums of the property and casualty insurance operations, upon which the management fee is calculated, increased 5.3 percent in the second quarter of 2011, due to a 2.9 percent increase in policies in force and modest increases in average premium. The year-over-year average premium per policy for all lines of business increased 2.7 percent at June 30, 2011, compared to a decrease of 0.5 percent at June 30, 2010.

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The cost of management operations increased to $230 million in the second quarter 2011 from $217 million in the second quarter of 2010. Second quarter 2011 commissions increased $8 million compared to the second quarter of 2010, while second quarter 2011 non-commission expense increased $5 million. The increase in non-commission expense was primarily due to increases in personnel costs of $2 million, professional fees of $2 million and software expenses of $1 million.


Property and Casualty Insurance Operations
	Indemnity shareholder interest					Noncontrolling interest (Exchange)						Elimination of related party transactions						Erie Insurance Group
(dollars in millions)		2Q’11		2Q’10			2Q’11			2Q’10			2Q’11			2Q’10			2Q’11			2Q’10

Net premiums earned	$	—	$	53		$	1,030		$	921		$	-		$	-		$	1,030		$	974

Losses and loss expenses		—		40			1,147			677			(2	)		(2	)		1,145			715
Policy acquisition and other underwriting expenses		—		15			298			261			(56	)		(54	)		242			222

Total losses and expenses		—		55			1,445			938			(58	)		(56	)		1,387			937

(Loss) income from property and casualty insurance operations before taxes	$	—	$	(2	)	$	(415	)	$	(17	)	$	58		$	56		$	(357	)	$	37

Combined ratio		—		101.8	%		140.2	%		101.8	%

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Prior to and through December 31, 2010, the underwriting results retained by Erie Insurance Company (“EIC”) and Erie Insurance Company of New York (“ENY”) accrued to the Indemnity shareholder interest. Due to the sale of Indemnity’s property and casualty subsidiaries to the Exchange on December 31, 2010, all property and casualty underwriting results accrue to the interest of the subscribers (policyholders) of the Exchange, or noncontrolling interest, beginning in the first quarter of 2011.

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Beginning late in the first quarter and continuing through the second quarter of 2011, many of the Exchange’s operating territories experienced severe weather events. For the second quarter of 2011, the Exchange’s combined ratio totaled 140.2 and included 52.1 points, or $537 million of catastrophe related losses. These losses did not impact Indemnity’s financial results.


Life Insurance Operations
	Indemnity shareholder interest				Noncontrolling interest (Exchange)				Elimination of related party transactions						Erie Insurance Group
(dollars in millions)		2Q’11		2Q’10		2Q’11		2Q’10		2Q’11			2Q’10			2Q’11		2Q’10

Total revenue	$	—	$	9	$	44	$	32	$	(1	)	$	(1	)	$	43	$	40
Total benefits and expenses		—		6		32		24		0			0			32		30

Income from life insurance operations before taxes	$	—	$	3	$	12	$	8	$	(1	)	$	(1	)	$	11	$	10

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Prior to and through March 31, 2011, Indemnity retained a 21.6 percent ownership interest in EFL which accrued to the Indemnity shareholder interest. Due to the sale of Indemnity’s ownership interest in EFL to the Exchange on March 31, 2011, all life insurance results accrue to the interest of the subscribers (policyholders) of the Exchange, or noncontrolling interest, beginning in the second quarter of 2011.


Investment Operations
	Indemnity shareholder interest					Noncontrolling interest (Exchange)					Elimination of related party transactions						Erie Insurance Group
(dollars in millions)		2Q’11		2Q’10			2Q’11		2Q’10			2Q’11			2Q’10			2Q’11		2Q’10

Net investment income	$	4	$	9		$	88	$	78		$	(2	)	$	(2	)	$	90	$	85
Net realized gains (losses) on investments		6		(3	)		30		(213	)		—			—			36		(216	)
Net impairment losses recognized in earnings		0		(1	)		0		(1	)		—			—			0		(2	)
Equity in earnings of limited partnerships		7		6			30		20			—			—			37		26
Income (loss) from investment operations before taxes	$	17	$	11		$	148	$	(116	)	$	(2	)	$	(2	)	$	163	$	(107	)

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Net investment income, which primarily includes interest and dividends on bonds and stocks, decreased $5 million in the second quarter of 2011. The second quarter of 2010 includes $6 million of net investment income from EIC, ENY and Erie Insurance Property & Casualty Company which were sold to the Exchange on December 31, 2010.

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Net realized gains on investments totaled $6 million in the second quarter of 2011 compared to losses of $3 million recorded in the second quarter of 2010. The realized losses generated in the second quarter of 2010 were primarily due to decreases in the valuation on the common stock portfolio.

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Equity in earnings of limited partnerships increased $1 million in the second quarter of 2011 driven by improved performance in the real estate and private equity sectors compared to the second quarter of 2010.

Net income attributable to Indemnity per share-diluted increased to $1.72 per share for the six months ended June 30, 2011 from net income per share-diluted of $1.68 per share for the six months ended June 30, 2010. The net income for 2011 and 2010 includes $0.02 and $0.21 per share, respectively, related to operations sold to the Exchange.

Operating income attributable to Indemnity per share-diluted (excluding net realized gains or losses, impairments on investments and related taxes) was $1.64 per share in the first half of 2011 compared to $1.66 in the first half of 2010. The 2011 and 2010 operating income amounts include $0.02 and $0.18 per share, respectively, related to operations sold to the Exchange.

In the second quarter of 2011, we repurchased 0.8 million shares of our outstanding Class A nonvoting common stock at a total cost of $54 million in conjunction with our current stock repurchase plan. For the year through July 22, 2011, shares repurchased under this program totaled 1.4 million at a total cost of $95 million. In December 2010, our Board of Directors approved a continuation of the current stock repurchase program for a total of $150 million. As of July 22, 2011, we had approximately $51 million in repurchase authority remaining under the program.

According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 13th largest automobile and homeowners insurer in the United States based on direct premiums written and the 19th 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 over 4.3 million policies in force and operates in 11 states and the District of Columbia. Erie Insurance Group is a FORTUNE 500 company.
Erie Insurance is proud to be named a J.D. Power and Associates’ 2011 Customer Service Champion and is only one of 40 companies so named in the U.S. Erie Insurance has also been recognized on the list of Ward’s 50 Group of top performing insurance companies. The Ward’s 50 award analyzes the financial performance of 3,000 property and casualty companies and recognizes the top performers for achieving outstanding financial results in safety and consistency over a five-year period (2006-2010).

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

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
Statements contained herein that are not historical fact are forward-looking statements and, as such, are subject to risks and uncertainties that could cause actual events and results to differ, perhaps materially, from those discussed herein. Forward-looking statements relate to future trends, events or results and include, without limitation, statements and assumptions on which such statements are based that are related to our plans, strategies, objectives, expectations, intentions and adequacy of resources. Examples of forward-looking statements are discussions relating to premium and investment income, expenses, operating results, agency relationships, and compliance with contractual and regulatory requirements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Among the risks and uncertainties, in addition to those set forth in our filings with the Securities and Exchange Commission, that could cause actual results and future events to differ from those set forth or contemplated in the forward-looking statements include the following:

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dependence on Indemnity’s relationship with the Exchange and the management fee under the agreement with the subscribers at the Exchange;

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costs of providing services to the Exchange under the subscriber’s agreement;

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ability to maintain the uninterrupted operations of our business, including our information technology system;

Risk factors related to the non-controlling interest owned by the Exchange, which includes the Property and Casualty Group and EFL:

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government regulation of the insurance industry, including approval of rate increases and rating factors such as credit and prior experience, and required processes related to underwriting and claims handling;

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the uncertain role of the Federal Government, and the ongoing role of the States, in regulating the property/casualty or life insurance industries;

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premium rates and reserves must be established from forecasts of ultimate costs;

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emerging claims, coverage issues in the industry, and changes in reserve estimates related to the property and casualty business;

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severe weather conditions or other catastrophic losses, including terrorism;

A forward-looking statement speaks only as of the date on which it is made and reflects Indemnity’s analysis only as of that date. Indemnity undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changes in assumptions, or otherwise.