EX-99.2

Exhibit 99.2

ERIE INDEMNITY COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in millions, except per share data)


	Three			Three			Six		Six
	months			months			months		months
	ended			ended			ended		ended
	June 30,			June 30,			June 30,		June 30,
Revenues	2011			2010			2011		2010
Premiums earned	$	1,047		$	989		$	2,077	$	1,967
Net investment income		113			108			218		212
Net realized investment gains (losses)		39			(213	)		188		(88	)
Net impairment losses recognized in earnings		0			(4	)		0		(6	)
Equity in earnings of limited partnerships		38			27			110		30
Other income		8			9			17		17

Total revenues		1,245			916			2,610		2,132

Benefits and expenses
Insurance losses and loss expenses		1,170			737			1,876		1,498
Policy acquisition and underwriting expenses		249			230			496		457

Total benefits and expenses		1,419			967			2,372		1,955

(Loss) income from operations before income taxes
and noncontrolling interest		(174	)		(51	)		238		177
Provision for income taxes		(67	)		(20	)		71		46

Net (loss) income		(107	)		(31	)		167		131
Less: Net (loss) income attributable to noncontrolling
interest in consolidated entity – Exchange		(159	)		(80	)		71		35

Net income attributable to Indemnity	$	52		$	49		$	96	$	96

Earnings Per Share
Net income attributable to Indemnity per share
Class A common stock – basic	$	1.05		$	0.96		$	1.93	$	1.87

Class A common stock – diluted	$	0.94		$	0.86		$	1.72	$	1.68

Class B common stock – basic and diluted	$	158.33		$	138.21		$	291.07	$	271.03

Weighted average shares outstanding attributable to
Indemnity – Basic
Class A common stock		49,250,061			51,013,358			49,518,069		51,099,071

Class B common stock		2,546			2,546			2,546		2,546

Weighted average shares outstanding attributable to
Indemnity – Diluted
Class A common stock		55,436,976			57,197,603			55,704,984		57,282,684

Class B common stock		2,546			2,546			2,546		2,546

Dividends declared per share
Class A common stock	$	0.515		$	0.48		$	1.03	$	0.96

Class B common stock	$	77.25		$	72.00		$	154.50	$	144.00

ERIE INDEMNITY COMPANY

RESULTS OF THE GROUP’S OPERATIONS BY INTEREST (Unaudited)

(in millions)


																	Eliminations of
																	related party
	Indemnity shareholder interest								Noncontrolling interest (Exchange)								transactions						Erie Insurance Group
				Three months ended							Three months ended						Three months ended						Three months ended
				June 30,							June 30,						June 30,						June 30,
	Percent			2011		2010			Percent		2011			2010			2011			2010			2011			2010
Management operations:

Management fee revenue, net		100.0	%	$	285	$	270				$	0		$	0		$	(285	)	$	(270	)	$	0		$	0
Service agreement revenue		100.0	%		9		9					0			0			0			0			9			9

Total revenue from management operations					294		279					0			0			(285	)		(270	)		9			9
Cost of management operations		100.0	%		230		217					0			0			(230	)		(217	)		0			0

*Income from management operations before taxes*					64		62					0			0			(55	)		(53	)		9			9

Property and casualty insurance operations: ⁽²⁾

Net premiums earned		5.5%⁽²⁾			0		53			94.5%⁽²⁾		1,030			921			0			0			1,030			974
Losses and loss expenses		5.5%⁽²⁾			0		40			94.5%⁽²⁾		1,147			677			(2	)		(2	)		1,145			715
Policy acquisition and other underwriting expenses		5.5%⁽²⁾			0		15			94.5%⁽²⁾		298			261			(56	)		(54	)		242			222

*(Loss) income from property and casualty insurance operations before taxes*					0		(2	)				(415	)		(17	)		58			56			(357	)		37

Life insurance operations:⁽¹⁾

Total revenue		21.6%⁽³⁾			0		9			78.4%⁽³⁾		44			32			(1	)		(1	)		43			40
Total benefits and expenses		21.6%⁽³⁾			0		6			78.4%⁽³⁾		32			24			0			0			32			30

*Income from life insurance operations before taxes*					0		3					12			8			(1	)		(1	)		11			10

Investment operations:

Net investment income ⁽²⁾					4		9					88			78			(2	)		(2	)		90			85
Net realized gains (losses) on investments ⁽²⁾					6		(3	)				30			(213	)		0			0			36			(216	)
Net impairment losses recognized in earnings⁽²⁾					0		(1	)				0			(1	)		0			0			0			(2	)
Equity in earnings of limited partnerships					7		6					30			20			0			0			37			26

*Income (loss) from investment operations before taxes* ⁽²⁾					17		11					148			(116	)		(2	)		(2	)		163			(107	)

Income (loss) from operations before income taxes and noncontrolling interest					81		74					(255	)		(125	)		0			0			(174	)		(51	)
Provision for income taxes					29		25					(96	)		(45	)		0			0			(67	)		(20	)
Net income (loss)				$	52	$	49				$	(159	)	$	(80	)	$	0		$	0		$	(107	)	$	(31	)

(1) Earnings on life insurance related invested assets are integral to the evaluation of the life insurance operations because of the long duration of life products. On that basis, for presentation purposes, the life insurance operations in the table above include life insurance related investment results.

(2) Prior to and through December 31, 2010, the underwriting results retained by EIC and ENY and the investment results of EIC, ENY and EPC 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 and all investment results for these companies accrue to the interest of the subscribers (policyholders) of the Exchange, or noncontrolling interest, after December 31, 2010.

(3) Prior to and through March 31, 2011, Indemnity retained a 21.6% ownership interest in EFL, which accrued to the Indemnity shareholder interest, and the Exchange retained a 78.4% ownership interest in EFL, which accrued to the interest of the subscribers (policyholders) of the Exchange, or noncontrolling interest. Due to the sale of Indemnity’s 21.6% ownership interest in EFL to the Exchange on March 31, 2011, 100% of the life insurance results of EFL will accrue to the interest of the subscribers (policyholders) of the Exchange, or noncontrolling interest, after March 31, 2011.

ERIE INDEMNITY COMPANY

RESULTS OF THE ERIE INSURANCE GROUP’S OPERATIONS BY INTEREST (Unaudited)
(in millions)


																	Eliminations of
																	related party
	Indemnity shareholder interest								Noncontrolling interest (Exchange)								transactions						Erie Insurance Group
																	Six months
				Six months ended							Six months ended						ended						Six months ended
				June 30,							June 30,						June 30,						June 30,
	Percent			2011		2010			Percent		2011			2010			2010			2010			2011			2010
Management operations:

Management fee revenue, net		100.0	%	$	536	$	507				$	0		$	0		$	(536	)	$	(507	)	$	0		$	0
Service agreement revenue		100.0	%		17		17					0			0			0			0			17			17

Total revenue from management operations					553		524					0			0			(536	)		(507	)		17			17
Cost of management operations		100.0	%		441		409					0			0			(441	)		(409	)		0			0

*Income from management operations before taxes*					112		115					0			0			(95	)		(98	)		17			17

Property and casualty insurance operations: ⁽²⁾

Net premiums earned		5.5%⁽²⁾			0		106			94.5%⁽²⁾		2,044			1,830			0			0			2,044			1,936
Losses and loss expenses		5.5%⁽²⁾			0		80			94.5%⁽²⁾		1,830			1,375			(3	)		(3	)		1,827			1,452
Policy acquisition and other underwriting expenses		5.5%⁽²⁾			0		30			94.5%⁽²⁾		580			511			(98	)		(100	)		482			441

(*Loss) income from property and casualty insurance operations before taxes*					0		(4	)				(366	)		(56	)		101			103			(265	)		43

Life insurance operations:⁽¹⁾

Total revenue		21.6%⁽³⁾			10		18			78.4%⁽³⁾		78			66			(1	)		(1	)		87			83
Total benefits and expenses		21.6%⁽³⁾			7		13			78.4%⁽³⁾		56			50			0			(1	)		63			62

*Income from life insurance operations before taxes*					3		5					22			16			(1	)		0			24			21

Investment operations:

Net investment income ⁽²⁾					8		18					169			153			(5	)		(5	)		172			166
Net realized gains (losses) on investments ⁽²⁾					7		2					174			(98	)		0			0			181			(96	)
Net impairment losses recognized in earnings⁽²⁾					0		(1	)				0			(3	)		0			0			0			(4	)
Equity in earnings of limited partnerships					18		6					91			24			0			0			109			30

*Income from investment operations before taxes* ⁽²⁾					33		25					434			76			(5	)		(5	)		462			96

Income from operations before income taxes and noncontrolling interest					148		141					90			36			0			0			238			177
Provision for income taxes					52		45					19			1			0			0			71			46
Net income				$	96	$	96				$	71		$	35		$	0		$	0		$	167		$	131

ERIE INDEMNITY COMPANY

RECONCILIATION OF OPERATING INCOME TO NET INCOME (Unaudited)

Reconciliation of operating income to net income

We believe that an investors’ understanding of our performance related to the Indemnity shareholder interest is enhanced by the disclosure of operating income, a non-GAAP financial measure. Our method of calculating this measure may differ from those used by other companies, and therefore comparability may be limited.

Indemnity defines operating income as income generated from management operations, life insurance operations⁽¹⁾, property and casualty insurance underwriting operations⁽²⁾, net investment income⁽²⁾, and equity in earnings or losses of limited partnerships, net of related federal income taxes. It does not include realized capital gains and losses, impairment losses and related federal income taxes.

Indemnity uses operating income to evaluate the results of its operations. It reveals trends that may be obscured by the net effects of realized capital gains and losses including impairment losses. Realized capital gains and losses, including impairment losses, may vary significantly between periods and are generally driven by business decisions and economic developments such as capital market conditions which are not related to our ongoing operations. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our performance. We are 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 prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and does not reflect Indemnity’s overall profitability.

The following table reconciles operating income and net income for the Indemnity shareholder interest:^{(1) (2)}


	Indemnity Shareholder interest
	Three			Three			Six			Six
	months ended			months ended			months ended			months ended
	June 30,			June 30,			June 30,			June 30,
	2011			2010			2011			2010
(in millions, except per share data)
Operating income attributable to Indemnity	$	48		$	51		$	91		$	95

Net realized gains (losses) and impairments on investments		6			(4	)		7			1
Income tax (expense) benefit		(2	)		2			(2	)		0

Realized gains (losses) and impairments, net of income taxes		4			(2	)		5			1

Net income attributable to Indemnity	$	52		$	49		$	96		$	96

Per Indemnity Class A common share – diluted:
Operating income attributable to Indemnity	$	0.87		$	0.89		$	1.64		$	1.66

Net realized gains (losses) and impairments on investments		0.10			(0.07	)		0.12			0.02
Income tax (expense) benefit		(0.03	)		0.04			(0.04	)		0.00

Realized gains (losses) and impairments, net of income taxes		0.07			(0.03	)		0.08			0.02

Net income attributable to Indemnity	$	0.94		$	0.86		$	1.72		$	1.68

(1) Prior to and through March 31, 2011, Indemnity retained a 21.6% ownership interest in EFL, which accrued to the Indemnity shareholder interest, and the Exchange retained a 78.4% ownership interest in EFL, which accrued to the interest of the subscribers (policyholders) of the Exchange or noncontrolling interest. Due to the sale of Indemnity’s 21.6% ownership interest in EFL to the Exchange on March 31, 2011, 100% of the life insurance results of EFL will accrue to the benefit of the subscribers (policyholders) of the Exchange, or noncontrolling interest, after March 31, 2011.

ERIE INDEMNITY COMPANY

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in millions)


	June 30,		December 31,
	2011		2010
Assets	(Unaudited)
Investments-Indemnity
Available-for-sale securities, at fair value:
Fixed maturities	$	525	$	264
Equity securities		20		24
Trading securities, at fair value		30		28
Limited partnerships		224		216
Other invested assets		1		1
Investments-Exchange
Available-for-sale securities, at fair value:
Fixed maturities		7,380		7,279
Equity securities		610		570
Trading securities, at fair value		2,513		2,306
Limited partnerships		1,166		1,108
Other invested assets		19		19

Total investments		12,488		11,815
Cash and cash equivalents (Exchange portion of $61 and $120, respectively)		109		430
Premiums receivable from policyholders – Exchange		1,017		942
Reinsurance recoverable – Exchange		198		201
Deferred acquisition costs – Exchange		484		467
Other assets (Exchange portion of $316 and $357, respectively)		427		489
Total assets	$	14,723	$	14,344

Liabilities and shareholders’ equity
Liabilities
Indemnity liabilities
Deferred income taxes	$	1	$	26
Other liabilities		390		382
Exchange liabilities
Losses and loss expense reserves		3,791		3,584
Life policy and deposit contract reserves		1,637		1,603
Unearned premiums		2,196		2,082
Deferred income taxes		250		257
Other liabilities		76		76

Total liabilities		8,341		8,010

Indemnity’s shareholders’ equity		866		912
Noncontrolling interest in consolidated entity – Exchange		5,516		5,422

Total equity		6,382		6,334

Total liabilities, shareholders’ equity and noncontrolling interest	$	14,723	$	14,344