HomeMy WebLinkAbout07-2756a~- a75~ ~~
COMMONWEALTH OF PENNSYLVANIA
INSURANCE DEPARTMENT
,~
Harrisburg, PA April 1, 2007
ti'Vhereas, the ERIE INSURANCE COMPANY, located at Erie, PA, has filed in this Department a
certified copy of its charter and a detailed statement of its Assets and Liabilities, and otherwise complied with
the requirements of Section 661 of the Act of Assembly of the Commonwealth of Pennsylvania, entitled "An
act relating to insurance; amending, revising and consolidating the Law &c.," approved the 17`h day of May,
A.D. 1921, as well as with the requirements of the laws of this Commonwealth applicable to such company in
doing business herein.
Now Therefore, I, Randolph L. Rohrbaugh, Acting Insurance Commissioner of the Commonwealth of
Pennsylvania, do hereby certify, in accordance with Section 1, of the Act of Assembly approved June 29, 1923
and known as act No. 373 of the Laws of 1923, that the Erie Insurance Company, of Erie, PA, is duly
authorized to become and be accepted as sole surety on all bonds, undertakings and obligations required or
permitted by law or the ordinances, rules or regulations of any municipality, board, body, organization, or
public officer.
In Witness Whereo I have here et my hand and
affixed my offs ' s 1, t a d first above written.
Acting Insurance Commissioner
PROPERTY AND CASUALTY COMPANIES • ASSOCIATION EDITION
+ 2 8 2 8 3 2 0 0 6 2 0 1 0 0 1 0 1
ANNUAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2006
OF THE CONDTTION AND AFFAIltS OF THE
ERIE INSURANCE COMPANY
NAIC Group Code 213 213 NAIC Company Code 26263 Employer's ID Number 25-1232960
(Carat[ Period) (Prior Period)
Organized under the Laws of the State of PENNSYLVANIA State of Domicile or Port of Entry PENNSYLVANIA
Country of Domicile U_S. Incorporated September 11. 1972 Commenced Business January 1. 1973
Statutory Home Office 100 Erie Insurance Place Erie, PA 16530
(Street and Number) (City or Town, State and Zip Code)
Main Administrative Office 100 Erie hlsltrance Place Erie. PA 16530 814-870.2000
(Stmt and Number) (City or Town, State and Zip Code) (Area Code) (Telephone Number)
Mail Address 100 Erie Instrraace Place Erie PA 16530
(Street and Number) (City m Town. State and Zip Code)
Primary Location of Books and Records 100 Erie Insurance Place Erie. PA 16530 814-870-2000
(Street and Number) (City or Town, State and Zip Code) (Area Code) (Telephone Number)
Internet Website Address www.erieinstrrance.com
Statutory Statement Contact Christina Marie Marsh 814-870-2000 x2785
(Name) (Area Code) (Telephone Nurrtber) (Extension)
christina.marsh r7a.erieinsurance com 814-870-4040
(E-Mail Addross) (Area Code) (Fax Number)
Policyowner Relations ContaM Rollin Richard Swanson 100 Erie Instrance Place Erie. PA 16530 814-870.2000
(Name) (Street and Number) (City, State and Zip Code) (Area Code) (Telephone Number)
OFFICERS
Chairman of the Board: Frank William Hirt President & Chief Executive Office: Jeffrey Alan Ludrof
Acting Secretary & Executive Vice President &
General Counsel: Jan Reid Van Gorder Chief Financial Officer: Philip Alan Garcia
Executive Vice President: Michael Joseph Krahe Senior Vice President, Treasury &
Executive Vice President: Thomas Brian Morgan Chief [nvetmatt Officer: Douglas Frank Ziegler
SENIOR VICE PRESIDENTS
lames Mark Antiere Eugene Charley Connell George David Dufala Lorianne Feltz-IJppaman
Cheryl Amt Fame Timothy Gerard NeCastro Patricia Anne Rech Eric Douglas Root
Jeffrey Daniel Stempora Michael Stephen Zavaslcy
REGIONAL VICE PRESIDENTS
]affray William Hrinling, Senior RVP Louis Felix Cohtirzo Terry Lynn Hammon Christopher John Zimmer
VICE PRESIDENTS
Mark Kevin Banks Paul Steven Bata James Michael Cazlucci Ronnie Lee Chamberlain
Marc Cipriani I)amis Gale Conley John Patrick Dean Douglas Norrtmn Fitzgerald
Charles Michel Fletcher Ross Clark Fonticella David Vann Freeman David Charles Froelich
Richard Jame Hinman James Gerald Horvat Richard Scott Huber Jolm David Keys
Karen Kraus Phillips Linda Davis Kuhl Raymtond Edward Leeds Charles Thomas Longues
Timothy Gerard Meshy Terry Lee McConnell Karen Jean McEnery Donald Edward Moczulski
Robert Fredrick Morgan, h. Lisa Amt Mttrzymski Matthew Wayne Myers Karen Barbara Palmer
Bnue Edward Peterson David Joseph Rioux John David Robertson Patrick William Safstrom
Ann Karmazon Swtt William Amour Stevens Karl Jame Shearer, Jr. James Patrick Stoik
James Thomas Timm Gary David Veheao James Edgar Wevy Carol Sue Wevich
Richard John Wisniewski Christy Sprncer Yousefnejad
DIRECTORS OR TRUSTEES
Kaj Ahlmann John Thomas Baily John Ralph Borneman, Jr. Patricia Gamson-Corbin
John Ray Graham Jonathan Hirt Hagen Susan Hirt Hagen Charles Scott Harnc
Frank William Hirt Claude Clifford filly, ~ Ieffiey Alan Ludrof Lucian Leeds Monson
Thomas Warttn Pahner Robot Charles Wilburn
State of Pennsylvania / SS
County of Erie /
The officers of this reporting entity being duly swum, ech depose and say that they are the described officers of said reporting entity, and that on the
reporting period stated above, all of the herein desrn'bed assets was the absolute property of the said teporting atuty, free and clear from any liens or claims
thereon, except as herein stated, and that this statement, together with elated exhrbits, schedule and explanations therein contained, armexed or referred to,
is a full and true statement of all the assets and liabilitle and of the condition end affairs of the said reporting entity as of the reporting period stated above,
and of its income and deductiorm therofrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and
Acrnunting Practices and Procedures manual except to the extent that (1) state law may differ; a, (2) that state rule or regulations require differences in
reporting not rotated to accotmring practices and procedure, according to the bat of their information, knowledge and belief, respectively. Furthermore, the
scope of this attestation by the described officers also include the [elated coresponding elxtronic filing with the NA[C, what required, that is an exact
copy of the enclosed statement (except for formatting differences due to electronic filing). The electronic filing maybe requested by various rogulatora in
lieu of or in addition to the encl sea ~I "
Jeffrey Alan Ludro ,President & CEO Jan Reid Van Gorden, Philip Alan Garcia, Executive Vice
Acting Seyetary & General Counsel President & CFO
COMftAONWEALTH OF PENNSYLVANIA (a) Is this an original filing? Yes (X) No Q
Subscribed and sworn to before me this NoQarial ~~ (b) if no: (i) State the amendment Hamby:
22n des of Bab fltyry 20"07 J"' ^- 1. , ~ ~ (ii) Date filed:
T~Hb' s-tW N~t+-+ ~~ ~~ ~ m Numby of
City Of Erie, Erie Courtly C) pages attached:
My Commission Expires Sept, t3, 2009
Member, Pennsylvania Association of Notaries
Annual$lat&nenifatnayear2006a1MeErie Insurance Company
ASSETS
Current Year Prior Year
1 2 3 4
Net Admitted
Nonadmitled Assets Net
Assets Assets Cols. 1- 2 Admitted Assets
1. Bonds (Schedule D) ........................................................................................................... .............350,400,041 ................................... .............350,400.041 .............329,215,710
2. Stocks (Schedule D):
2.1 Preferred stocks ....................................................................................................... ...............29,579,235 ................................... ...............29,579,235 ...............23,438,096
2.2 Comnan stocks ....................................................................................................... ...............16,046,158 ................................... ...............16.046.158 ...............13.816.775
3. Mortgage loans on real estate (Schedule B):
3.1 Firslliens .................................................................................................................. ................................... ................................... ...............................0 ...................................
3.2 Other than first kens ................................................................................................. ................................... ................................... ...............................0 ...................................
4. Real estate (Schedule A):
4.1 Prc><iertles occupied by the company (less 5..........0
erwvmbrarras) .......................................................................................................: ................................... ................................... ...............................0 ...................................
4.2 Prapertles hekf for the productlon of imm~re (kiss 5..........0
enamGarices) ........................................................................................................ ................................... ................................... ...............................0 ...................................
4.3 Propertles heM for sale (less 5..........0 eaxrrnbrarrces) .......................................... ................................... ................................... ...............................0 ...................................
5. Cash (5.....(94,252), Sch. E~Part 1), cash equNalerrb (5...•.2,486,
Sch. E-Part 2) and short-term investmenb (5.....8,798,515, Sch. OA) ............................. .................8,706,749 ................................... .................8,706,749 ...............24,776,567
6. Caibact bans (indrxfing 5..........0 premium notes) .......................................................... ................................... ................................... ...............................0 ...................................
7. Other invested assets (Sriiedule BA) ................................................................................ ................................... ................................... ...............................0 ...................................
8. Receivables forsearitles .................................................................................................. ....................318.950 ................................... ....................318,950 .................1,112,046
9. Aggregate wdte-ins fa irnes~d asseb ............................................................................. ...............................0 ...............................0 ...............................D ...............................0
10. Subtotab, ash and irnested asseb (Lines 1 to 9) ........................................................... .............405.051.133 ...............................0 .............405,051.133 .............392.359.194
1 t. Title planb less 5..........0 charged o8 (tor Title insurers only) ........................................... ................................... ........................_......... ...............................0 ...
................................
12. Investment income due and acaued ................................................................................. .................4,479,700 ................................... .................4,479,700 .................4,034,705
13. Premiums and mnsidere8ons:
13.1 Uncollec0ed premiums and a9enb' balances in cause of mtlectlori ..................... ...............52,444.192 ....................356.621 ...............52,087,57D ...............52.192.567
13.2 Deterred premiums, agents' balances and insfaMmenb booked but deterred
and not yet due (Indud'mg 5..........0 eanred but untitled premiums) ...................... .............133,648,987 ..................._............... .............133.648,987 .............144,004,935
13.3 Amrued retrospectlve premiums ............................................................................. ................................... ................................... ...............................0 ...................................
14. Reinsurarxxi:
14.1 Amounts recoverable from reinwrers ..................................................................... ......................23.225 ................................... ......................23,225 ....................239,592
14.2 Funds held by or deposited wtlh reinsured companies ........................................... .................1.304.205 ................................... .................1,304.205 .................1,472,027
14.3 Other amount receivable under rebwrence mnbacb ......................................... ................................... ................................... ...............................0 ...................................
15. Amounts receivable rela8rg b unktsured plans ................................................................ ................................... ................................... ...............................0 ...................................
16.1 Current federal and foreign income tax recoverable and krbrest thereon ....................... .................1,813,058
..................................
.
...
..............1,813,058 ....................637,336
16.2 Net deferred tax asset ....................................................................................................... .................3.713.1100 ................................... .................3,713.1100 .................4,427,786
17. Guaranty funds receivable or an depceil .......................................................................... ................................... ................................... ...............................0 ...................................
18. Electlonic data processing equipment and software ......................................................... .
..................................
...................................
...............................0
...................................
19. Fumihrre and equipment irxiudirrg h~tlh are delivery assets (5..........0) ..................... ................................... ................................... ...............................0 ...................................
20. Net adjusbnent in asset and Bab0i8es due to foreign exdtange rebs ............................ ................................... . .............. ...............................0
21. RecefvaWes from parent sutukliaries and a8i8etes ......................................................... ................................... ................................... ...............................0 ...................................
22. HeaBh care (5..........0) and other amount receivaMe ...................................................... ................................... ................................... ...............................0 ...................................
23. Aggregate vrrib-kis hx other tltari invesdad asaeb ........................................................... ....................814 345 ...............................0 ....................614345 ....................503 947
24. Total assets exdud'ng Separate Amourib, Segregated Aocourib and Protected
Cetl AcmuMS (Lines 1010 23) ........................................................................................... .............603.291,845 .................._.356.621 .............602,935,224 .............600,872,091
25. From Separate Amounts. Segregated Acoounb and Pmbcted Cell Aaounb ............... ................................... ................................... ...............................0 ...................................
Z6. TOTALS (Lkres 24 and 25) ................................................................................................ .............603,291,845 ....................356,621 .............602.935,224 .............600.872,091
DETAILS OF YYRRE-INS
0901 ............................................................................................................................................. ................................... ................................... ..............................:0 ...................................
0902 ............................................................................................................................................. ................................... ................................... ...............................0 ...................................
0903 ............................................................................................................................................. ................................... . .......0
0998. Summary of remaining write-krs for Line 9 fmm overflow page ........................................ ................
...............0
...............................0
...............................0 ...0
............................
0999. Totals Lkres 0901 thru 0903 us 11998 line 9 above .................................................. ...............................0 ...............................0 ...............................0 ...............................0
2301. Premium Taz Credib .......................................................................................................... ....................652,100 ................................... ....................652,100 ....................362,704
2302.OIharAaounb Receivables .............................................................................................. ....................155,389 ................................... ....................155,389 ....................135,394
2303. Equities and Deposits in Pmis and Assoraatbns .............................................................. ........................6.856 . .........6.856 ......5.848
2398. Summary of remaining write-ins for Line 23 from overflow page ...................................... ...............................0 ...............................0 ...............................0 ...............................0
2399. Totals Lines 2301 thru 2303 us 2398 lJne 23 above ................................................ ....................814345 ...............................0 ....................814 345 ....................503 947
Mnual Statdnent brtlre year 2006 of the Erie Insurance Company
LIABILII IES, SUKI'W5 ANU V 1 F1tK tU1VU~
1. Losses (Part 2A, Line 34, Column 8) .................................................................................................................................. ................... ...................160,499,675 ... ................152,067,365
2. Reinsurance payable on paid losses and bss adjustment expenses (Schedule F, Part 1, Column 6) ............................ ................... ............................76,575 .. ........................176,878
3. Loss adjusoment expenses (Part 2A, Line 34, Column 9) .................................................................................................. ................... .....................27,920,996 .. ...................28,018,451
4. Commissions payable. contingent commissions and other similar charges ...................................................................... ................... ............................16,788 .. ..........................27,110
5. Other expenses (exduding taxes, Ncenses and (ees) ........................................................................................................ ................... ............................76,841 .. ........................225,483
6. Taxes, licenses and fees (excluding federal and foreign income taxes) ........................................................................... .................... .......................1,919,846 .. .....................2.171,399
7.1 Current federal and foreign income taxes (induding 5..........0 on realized ppitai gains (losses)) ................................... ................... ......................................... ... ......................................
7.2 Net deferred tax Ilabiliry ....................................................................................................................................................... ................... ......................................... ... ......................................
8. ~rrowed money 5..........0 and interest thereon 5..........0 ................................................................................................. ................... ......................................... ... ......................................
9. Unearned premiums (Part 1A, Line 37, Coumn 5) (af0er deluding unearned premiums for oeded reinsurance of
5.....215,458,648 and'vrckrdirrg wartanry reserves of 5..........0) ........................................................................................ ................... .....................74,257,884 ... ..................78,463,442
10. Advance premiums ............................................................................................................................................................. .................... .......................1.439,611 ... ....................1,411,452
11. DNidends declared and unpaid:
11.1 Stodchoyers ............................................................................................................................................................... .................... ......................................... ... ......................................
11.2 PolicyhoWers ............................................................................................................................................................... ................... ..........................780,811 .. .....................1,107.820
12. Ceded reinsurance premiums payable (net o1 ceding cortxnissions- ................................................................................ ................... ...................139,505,672 .. .................146,662,725
13. Funds held by comparry under reinsurance bealios (Sdredule F, Part 3, Column 19) .................................................... .................... ......................................... ... ......................................
14. Arrrounts withheld or retaared M company for accormt of others ...................................................................................... ................... ..........................825,064 .. ........................932,943
15. Remitlances and i0ems not a8ocated ................................................................................................................................. .................... ..........................298,984 ... ...................................._
16. Provision for reinsurance (Sdreduk F, Part 7) .................................................................................................................. .................... ......................................... ... ......................................
17. Net adjustmerds in assets and 5abiG8er due to foreign exchange rates ........................................................................... .................... ......................................... ... ......................................
18. Dregs outstanding .............................................................................................................................................................. .................... ......................................... ... ......................................
19. Payable to parent. subsidiaries and alBMates .................................................................................................................... .................... .......................9,032.343 .. .....................6.772.614
20. Payable far seari8es ......................................................................................................................................................... .................... ......................................... .. ..........................73,642
21. Liability br amounts heW under uninsured plans .............................................................................................................. .................... ......................................... ... ......................................
22. Capital notes 5...........0 and interest Crereorr 5..........0 ...................................................................................................... .................... ......................................... ... ......................................
23. Aggregate wriro-ins for fiat)4ides ........................................................................................................................................ .................... ......................................0 .. ...................19 075389
24. Total liabiktias excluding protedad Dell 8abiiUes (Lines 1 thnwgh 23) ............................................................................. .................... ...................416,651,090 .. .................439,186.712
25. Protected ceN dabil~'es ....................................................................................................................................................... .................... ......................................... ... ......................................~
26. Total liabgities (Lines 24 and 25) ........................................................................................................................................ .................... ...................416 651090 .. .................439186 712
27. Aggregate write-ins for special surpkrs funds .................................................................................................................... .................... .
.....................................0 ...
i
...................................0
28. Common capital stock ....................................................................................................................................................... .................... .......................2.350.000 .. .....................2,350.000
29. Preferred capital sbrJc ............................................................_.......................................................................................... .................... ......................................... .. .......................................
30. Aggregate wdEe-ins for other than speaal surpus funds ................................................................................................. .................... ......................................0 .. ....................................o
31. Surplus no0as ..................................................................................................................................................................... ..................... ......................................... .
.
.......................................
32. Gross paid in and conbibu~d surphu ............................................................................................................................... .................... .....................81,482,000 .. ...................81,482,000
33. Unassigned lands (surplus) ............................................................................................................................................... ..............._.... ...................102,452.134 .. ._................77.853.379
34. Less treasury s0oric, at cost
34.1 ..........0.000 shares cannon (value included in Une 28 5..........0) ....................................................................... ..................... ......................................... .. .......................................
34.2 ..........0.000 shares preferred (vaWe incauded in Line 29 5..........0- ...................................................................... ..................... ......................................... .. .......................................
35. Surpus as regards policyholders (Lines 27 Oo 33, less 34) (Page 4, Une 39) ................................................................. ..................... ...................186 284134 .. .................161685 379
36. TOTALS (Page 2, Line 26, Cd. 3) .................................................................................................................................... ..................... ...................602,935,224 .. .................600,872,097
2301. Securi8es t.end'uq Cdlaterel ..............................................
2302 . .............................................................................................
2303 . .............................................................................................
2398. Summary of emaning wdk-ina for Line 23lran over8ax
2701 . ..............................................................................................
2702 . ..............................................................................................
2703 . ..............................................................................................
2798. Summary of remaining wri~ins to line 27 from overfbw
3001 . .............................................................................................
3002 . .............................................................................................
3003 . .............................................................................................
3098. Summary of remainirg wrke-ins for Lme 30 from oveAbw
19,075,389
......................................o)......................................a
......................................0 ......................................0
.......0
3
A~~~~~,a~srma,aYaarzooa~a~.Erie Insurance Company
STATEMENT OF INCOME
2
UNDERWRITING INCOME Current Year Prior Year
1. Premiums earned (Part 1, Line 34, Column 4) ............................................................................................................................ .....................194,481,746 .....................195,923,328
DEDUCTIONS
2. Losses inwrred (Part 2, Line 34, Coumn 7) ............................................................................................................................... .....................109,146,1170 .....................108,212,547
3. Loss expenses inrxrned (Part 3, Line 25, Column 1) .................................................................................................................. .......................17,864,346 .......................19,413,860
4. Other underwritrng expenses irxxrned (Part 3, Line 25. Column 2) ............................................................................................ .......................53,283,884 .......................52,294,252
5. Aggregate write-ins for undervvritrng deducBons ......................................................................................................................... ............................273080 ................................5 841
6. Trial undenxdOnq deductrons (Lines 2 thnwgh 5) ...................................................................................................................... .....................180 568180 .....................179 926 500
7. Net inrxxne of protected ceNs ....................................................................................................................................................... .......................................... ..........................................
8. Net underwrifing gain (bss) (Line t minty Line 6 plw Line 7) ................................................................................................... .......................13,893,566 .......................15,996,828
INVESTMENT INCOME
9. Net investment income earned (Exhibit d Net Investment Income. Line 17) ............................................................................. .......................20,707,722 .......................17,988,093
Net realized capital gains (losses) bss ppihal gains lax d 5.....15,994 (Exhibit of Capital Gains (Losses)) ...........:.................
10 ............................166 450 ............................148 677
.
11. Net investment gain (loss) (Lines 9 + 10) .................................................................................................................................... .......................20,874,172 .......................18,136,770
OTHER INCOME
12. Net gain (bss) from agents' or premium balances charged oR (amount recovered 5.....2,486.866
amount charged off 5.....3,134,947) ............................................................................................................................................ ...........................(648,081) ...........................(731.907)
13. Finance and service charges rat included M premiums ............................................................................................................. .......................................... ..........................................
14. Aggregate wri0a-ins for mLgoallaneous income ............................................................................................................................ ............................147 479 ..............................55042
..............
15. Tohal other inoome (Lines 12 through 14) ......................................................................................................................
........................... 500602
........................... 676 865
16. Net income before dHidends a poicyholders, alter capllal gains tax and before a0 other federal are foreign
income lazes (Lines 8 + 11 « 15) ................................................................................................................................................. .......................34,267.137 .......................33,456,733
17. Dividends to policyholders ................................................................................................................................................:........... ............................881981 .........................1322963
18. Net income, after dwiderxis b poicyholders, attar apital gars tax and before all other federal and foreign
income taxes (Line 16 minty Line 17) ......................................................................................................................................... .......................33.385.157 .......................32,133,770
19. Federal and foreign incnrne fazes incurted ................................................................................................................................. ....................... i 1683 976 .........................9194 D19
20. Net income (Line 18 minor Une 19) (to Line 22) ......................................................................................................................... .......................21,701,781 .......................22,939,751
CAPITAL AND SURPLUS ACCOUNT
21. Surplus as regards poNcyhdders, Dacernber 31 Prior Year (Page 4, Line 39, Cdunzr 2) ......................................................... .....................161,685,379 .....................740,423,602
22. Nat income (horn Lino 20} ............................................................................................................................................................ .......................21.701.161 .......................22,939,751
23. Nat transfers (to) hen Protected CeN accounLs ........................................................................................................................... .......................................... ..........................................
24. Change in net unr~Nzed capital gains or (losses) less capial gakrs tax of 5.....629,252 .......................................................... .........................1,1611,609 ............................661,104
25. Change M net unrealised foreign exchange capital gain (bas) ................................................................................................... .......................................... ..........................................
26. Charge in net deferred income fax .............................................................................................................................................. .............................(85,535) ........................(1.855,336)
27. Change b ranadmiged assets (Exhibit of Nonadmilted Assets, Line Z6 Column 3) ................................................................. .........................1,814,501 ...........................(663,742)
28. Change h provision for reinsurance (Page 3, Line 16, Column 2 nrbw Coumn t) .................................................................. ..........................................
.........................................
.
29. Change h surplus ratas ............................................................................................................................................................... .......................................... ..........................................
30. Surptw (contributed lo) withdrawn from probded ceNs .............................................................................................................. .......................................... ..........................................
31. Cumulative effect of changes in accauntig pdr~iples ................................................................................................................ .......................................... ..........................................
32. Capital dran9ea:
32.1 Paid in .................................................................................................................................................................................. .............................
.............
..........................................
32.2 Trensbned from surpbs (Stock Dividend) ......................................................................................................................... .......................................... ..........................................
32.3 Transferred to surpkrs ......................................................................................................................................................... .......................................... ..........................................
33. Surplw ad)ustrnents:
33.1 Paid in .................................................................................................................................................................................. .......................................... ..........................................
33.2 Trensferred b ppital (Stock Dividend- ............................................................................................................................... .......................................... ..........................................
33.3. Trensferred from capNal ..................................................................................................................................................... .......................................... ..........................................
34. Net rendtlarrces from or (to) Flame Office .................................................................................................................................... .......................................... ..........................................
35. Dividends ro stockholdere ............................................................................................................................................................. .......................................... ..........................................
', 36. Change in treasury sock (Page 3. Lines 34.1 and 34.2. Coumn 2 minty Column q ............................................................... .......................................... ..........................................
~ 37. Aggregatewrite-ins for gains and k>%es b surplw .................................................................................................................... .......................................D .......................................0
138. Change in surylw as regards potlcyhoklers for the year (Lines 22 through 37) ................................................
........................
.......................24 598 755
.......................21261777
39. Suryha as regards poNryholders, December 37 arrentyear (Line 27 Dlua Line 38) (Page 3, Line 351 ................................... .....................186,284,134 .....................161.665.379
0501. LAD Program -Expense ................................................................................................................. ............................................. ............................273,080 ...............................5,841
0502 .......................................................................................................................................................... ......................................:...... .......................................... ..........................................
0503 .......................................................................................................................................................... ............................................. .......................................... ..........................................
0598. Summary of remaining write-ins for line 5 hen overflow page ..................................................... ............................................. .......................................0 .......................................0
0599. Totals irres 0501 tluu 0503 0598 Line 5 above ............................................................... .............................................. ............................273080 ................................5 841
1401. Miscelaneous Income ..................................................................................................................... ............................................. ..............................26,106 ..............................34,5D2
1402. Miscellaneous Reinsurance Income ............................................................................................... ............................................. ............................121,373 ..............................2D.540
1403 .......................................................................................................................................................... ............................................. .......................................... ..........................................
1498. Summary of remaining write-ins for Line 14 from ovedbw page ................................................... ............................................. .......................................0 .......................................0
1499. Totals es 1401 thru 1403 w 1496 Line 14 above ............................................................. .................................:............ ............................147 479 ..............................55 042
3701 .......................................................................................................................................................... ............................................. .......................................... ..........................................
3702 .......................................................................................................................................................... ............................................. .......................................... ..........................................
3703 .......................................................................................................................................................... ............................................. .......................................... ..........................................
3798. Summary of rernairdng write-ins for Line 37 from overflow page ................................................... ............................................. .......................................0 ..................0
4
~„~~5,~,~ntkra~Ye~r2oaar4,aErie Insurance Company
CASH FLOW
CASH FROM OPERATIONS I
1. Premiums collected net of reinsurance .......................................................................................................................................... .....................192.415,214 .................. ...195,001,681
2. Netinvesbnentincome ................................................................................................................................................................... .......................20,546,470 .................. .....17,933,826
3. Miscellaneous income .................................................................................................................................................................... ........................... 500 602 .................. ......... 67fi 865
4. Total (Lines 1 through 3) ................................................................................................................................................................ .....................212,461.083 .................. ...212.258,642
5. Benefd and loss reWted paymenls ................................................................................................................................................. .....................100.430.675 .................. .....97,576,078
6. Net translers to Separate, Segregated Accounts and Protected CeN Accounts .......................................................................... ........................................... .................. .........................
7. Commissions, expenses paid and aggregate write-ins for deducficro ......................................................................................... .......................71,906,519 .................. .....70.416,707
8. Dividends paid to policyhalders ..................................................................................................................................................... .........................1,208,989 ................. ........1,198,500
9. Federal and foreign income taxes paid (recovered) 5.....15,994 net of tax on capihel gains (kxises) .......................................... .......................12 675 692 ................. ......10 075000
10. Total (Lines 5 through 9) ................................................................................................................................................................ .....................186221,875 ................. ....179266265
11. Net cash from operations (Line 4 minus Line 10) .......................................................................................................................... .......................26.239.207 ................. .....,32,992,357
CASH FROM INVESTMENTS
12. Proceeds from bvestments sold, matured or repaid:
12.1 Bonds ................................................................................................................................................................................... .......................93,914,967 ................. ......76,777,951
12.2 Stocks ................................................................................................................................................................................... .......................13,439.859 ................. ........2288,970
12.3 Mortgage k~ans .................................................................................................................................................................... ........................................... .................. .........................
12.4 Real estate ........................................................................................................................................................................... ........................................... .................. ..:......................
12.5 Other invesled assets .......................................................................................................................................................... ........................................... ................. ..........................
12.6 Net ganis or (kisses) on psh, cash equivalents and short-term investrnenls ................................................................... ........................................... ................. ..........................
12.7 Miscellaneous proceeds ...................................................................................................................................................... ............................793 096 ................. .............73642
12.6 Total investment proceeds (Lines 12.1 fo 12.7) .................................................................................................................. .....................108,147,922 ................. ......79.140,563
13. Cost of investrrrenb acquked (kxg-term Dory):
13.1 gonds ................................................................................................................................................................................... .....................114,838,165 ................. ......96,011,576
13.2 Stodrs ................................................................................................................................................................................... .......................20,442,890 ................ .........6,010.170
13.3 Mortgage bans .................................................................................................................................................................... ........................................... ................. ..........................
13.4 Real estate ........................................................................................................................................................................... ........................................... ................. ..........................
13.5 Other invested assets .......................................................................................................................................................... ........................................... ................. ..........................
13.6 Mrsce6aroous appticatlons .................................................................................................................................................. ..............................73642 ................ .........1073 788
13.7 Total investrnents acquired (l.kres 13.1 b 13.6- ................................................................................................................. .....................135 354 697 ................ .....103095
14. Nel inaease (decease) b contract hero and premium notes ..................................................................................................... ........................................... ................. ..........................
15. Net dsh from imeslmenLs (Line 12.8 ndnus Ones 13.7 and 14) ................................................................................................. ......................(27.206.775) ................ ......(23.954.971)
CASH FROM FINANCING AND MISCELLANEOUS SOURCES
16. Cash provided (applied):
16.1 Surplus rrotes. capital noles ................................................................................................................................................. ........................................... ................ ...........................
16.2 Capital and paid kr surpkw, kiss treasury stack ................................................................................................................. ........................................... ................ ...........................
16.3 Borrarwed funds .................................................................................................................................................................... ........................................... ................ ...........................
16.4 Net deposits on deposit-type eontracb and other irourance IiabrTitles ............................................................................... ........................................... ................ ...........................
16.5 Dividends to elOCkhOklers .................................................................................................................................................... ........................................... ................ ...........................
16.6 Otlrer cash provided (apptrad) ............................................................................................................................................. ...................... 15102 250 ............... ........12340096
17. Net psh from finandrg and mfscellaneoris sources (lines 16.1 to 16.4 mirxrs L'me 16.5 plus Line 16.6) ................................. ......:............... 15102 250 ............... ........12340 096
RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
18. Net change in cash, cash aquivalenls and short-krm krvestrrreMS (Line 11 plus Lkx 15 plus Line 17) .................................... ......................(16,069,818) ............... ........21.377,481
19. Cash, cash equivalents arM short-term investrrrenle:
19.1 Beginning ~ year .................................. ~........................................................................................................................... ........................24,776,567 ............... ..........3,399,066
Note: Su erdat disclosures of cash flow irdomWion for nontissh transac8ons:
20.0001 ....................................................................................................................................................................................................................................................................................
5
Annual yatement tp Ne year 2006 afrhe Erie Insurance Company
UNDERWRITING AND INVESTMENT EXHIBIT
PA RT 1 • PREMIUMS EARNED
1 2 3 4
Unearned Premiums Unearned Premiums
Net December3l December 3l Premiums
Premiums Prior Year- Current Year- Earned
Wrtltenper per Col. 3, per Col. 5, DudrgYear
Line of Business Column 6, Part 18 Last Yeafs Part 1 Part 1A Cols.1 +2 - 3
1
722
340 ..............................616,971 ..............................738,395 ...........................1,600,916
1. Fire ...................................................................................................... ,
...........................
,
172
358 ..............................139233 ..............................151,511 ..............................345,894
2. Allied lines ........................................................................................... ..............................
,
3. Famawners muNipie peril ................................................................... ............................................ ..................................2540 .....................................213 ..................................2,327
4. Homeowners multiple peril .................................................................. .........................36234,823 .........................14,993242 .........................14.533,413 .........................36,694.652
5. Commercial multiple Peril .................................................................... .........................24,104.150 ...........................9,046,121 ...........................8923290 .........................24.226,981
. .........................................0
6. Mor~age guaranry ..............................................................................
.....................
.......................
............................................
....................................
.......
....2 .........................................2 .........................................0
8. Ocean marine ...................................................................................... ............................................ .....................................
............................................................
9. Inland marine .......................... .............................927,564
. ..............................332,483 ..............................341205 ..............................918,842
.. .........................................0
10. Financial guaranty ............................................................................... ............................................ ............................................ ........................................
..
.........................0
.
..
11.1 Medical malpractice - axurrence ....................................................... ............................................ ............................................ ............................................ ........
....
.
11.2 Medical malpractice - claims-made ..................................................... ............................................ ............................................ ............................................ .........................................0
12. Earthquake .......................................................................................... .........................................1 ........................................(5) ........................................(6) .........................................2
13. Grotq accident and health .................................................................. ............................................ ............................................ ............................................ .........................................0
14. Credit accdent and h~lth (group and individual) .............................. ............................................ ............................................ ............................................ .........................................0
15. Other accdent and health ................................................................... ............................................ ............................................ ............................................ .........................................0
16. Worlaars' compensatan ....................................................................... .........................16,538,080 ...........................6257,744 ...........................5,658,771 .........................17,137,052
17.1 OBrer flability -occurrence .................................................................. ...........................2,444.553 ...........................1,123,422 ...........................1.033215 ...........................2.534,760
17.2 Otherliabilfty-claims-rtrade ................................................................ ................................14,795 ................................12,372 ................................13,160 ...............................,14,007
18.1 ProdudsGabiXty-ocartence ............................................................. ..............................114,551 ................................39,484 ................................40,920 ..............................113,115
18.2 Products liabfl8y -claims-made ........................................................... ............................................ ............................................ ............................................ .........................................0
19.1.19.2 Prtvatepassengeraublfabiiy ........................................................... .........................54,783,639 .........................23,048,174 .........................22,170,630 .........................55,661,183
19.3,19.4 Commercial auto Babilily ..................................................................... .........................11,882.228 ...........................4,644.807 ...........................4,509288 .........................12,017,749
21. Auto physical damage ......................................................................... .........................40,684,555 .........................17,854,518 .........................15,950,932 .........................42.58&141
............................................
22. Airaaft (all perils) .................................... ...........................................
. ............................................ ............................................ .........................................0
23. Fldefly ................................................................................................. ................................26921 ................................15,532 ................................13,312 ................................29,141
24. Surery .................................................................................................. ..............................283742 ..............................156.983 ..............................157,010 ..............................283.715
26. Burglary and tire(t ................................................................................ .....................................777 .....................................634 .....................................470 .....................................941
27. Boiler and machinery .......................................................................... ........................................{8) ............................................ ............................................ ........................................(8)
28. Credit .................................................................................................. ............................................ ............................................ ............................................ .........................................0
29. Intemytional ........................................................................................ ............................................ ............................................ ............................................ .........................................0
30. Reirtsurartce - nonproporflonal assumed properly ............................. ..............................155,214 ..............................179,184 ................................22,154 ..............................312244
31. Reinsurance - rronpropational assumed liabflily ............................... ........................................91 ............................................ ............................................ .......................................91
32. Reimurarroe - rtonproporflonal assumed fmaraial Grtes .................... ............................................. ............................................ ............................................ .........................................0
33. Aggregate write-ins for other floes of business .................................. ..........................................0 .........................................0 .........................................0 .........................................0
34. TOTALS ......................................................................................... .......................190.276,189 .........................78,463,442 .........................74,257,884 .......................194,481,747
ncTeu c ne wortc_wc
3301 . ............................................................................................................ ............................................ ............................................ ............................................ .........................................0
3302 . ............................................................................................................ ............................................ ............................................ ............................ .
...............
.........................................
3303 . ............................................................................................................ ............................................ ............................................ ............................................
......................................
...0
3398. Summary of remainktg write-Ins for Line 33 from overflow page ....... .........................................0 .........................................0 ...................................,.....0 .........................................0
3399. Totah Lines 3301 thru 3303 lus 3398 Line 33 above ................. .........................................0 .........................................0 .........................................0 .........................................0
s
Annual5talementkrtlreyear2006eftlreErie Insurance Company
UNDERWRITING AND INVESTMENT EXHIBIT
PART 1A • RECAPITULATION OF ALL PREMIUMS
1 2 3 4 5
I
~ Reserve for
Amount Uneamed Anwunt Uneamed Rate Credits Tobl Reserve
(Running One Year (Running more than and RelrospecBve for Uneamed
or Less from Date One Year from Earned But Adjustmenb Based Premiums
Line of Business of Pol' a Date of Pof a Unfilled Premium on Ex rience Cols.1 +2 +3 +4
1. Fire ................................................................................................. ......................738,395 .................................... .................................... .................................... ......................738.395
2. Allied lines ...................................................................................... ......................151,511 .................................... .................................... .................................... ......................151.511
3. Farmawners multiple pedl .............................................................. .............................213 .................................... .................................... .................................... ............................213
4. Homeowners multiple peril ............................................................. .................14.533,413 .................................... .................................... .................................... .................14,533,413
5. Commaraal mulBple penl ............................................................... ...................8.915780 ..........................7.510 .................................... .................................... ...................8.923290
......................................................
6. Mortgage guarenty .................
....................................
....................................
....................................
....................................
.................................0
B. Ocean marine ................................................................................ .................................2 .................................... .................................... .................................... .................................2
9. Inland madne ................................................................................. ......................340232 .............................973 .................................... .................................... ......................341205
10. Financial guaranty .......................................................................... .................................... .................................... .................................... .................................... .................................0
11.1 Medical malpractice -occurrence .................................................. .................................... .................................... .................................... .................................... .................................0
dke - daims-made
l
l
1
M
di ..................
. .................................... .................................... .................................... .................................0
.
...............................................................
pra
e
ma
ca
1.2
12. Eadhyuake ..................................................................................... ................................(6) .................................... .........._........................ .................................... ................................(6)
13. Gawp accident and hea8h ............................................................. .................................... .................................... .................................... .................................... .................................0
14. Credit acddent and treaflh (group and individuaq ......................... .................................... .................................... .................................... .................................... .................................0
15. Other accident and health .............................................................. .................................... .................................... .................................... .................................... .................................0
i6. Workers' compensation .................................................................. ...................5,657.156 ..........................1,615 .................................... .................................... ...................5.658.771
17.1 Other liabdily - otxarrrance ............................................................. ...................1,026,628 ..........................6.586 .................................... .................................... ...................1,033.215
17.2 Other 8afiflly - daims-made ........................................................... ........................13,160 .................................... .................................... .................................... ........................13.160
18.1 Pradtnds Ifafifdy - oocunence ........................................................ ........................40.920 .................................... .................................... .................................... ........................40.920
18.2 Pradtuls tiabitiry - dairto-made ..................................................... .................................... .................................... .................................... .................................... .................................0
19.1.19.2 PdvabpassengeraubBab~Tdy ...................................................... .................22.170.630 .................................... .................................... .................................... ................22,176630
19.3.19.4 Commercial auto flabiity ................................................................ ...................4.509.28fi .................................... .................................... .................................... ...................4,509.286
21. Auto physical damage .................................................................... .................75.950,932 .................................... .................................... .................................... .................15.950.932
22 Aircraft (aN pedls) ........................................................................... .................................... .................................... .................................... .................................... .................................D
23. Fideliry ............................................................................................ ........................12.759 .............................554 .................................... .................................... ........................13,312
24. Surety ............................................................................................. ......................122.726 ........................34,285 .................................... .................................... ......................157,010
26. Burglary and theft .......................................................................... .............................470 .................................... .................................... .................................... .............................470
27. Boiler and mechnery ..................................................................... .................................... .................................... .................................... .................................... .................................0
28. Cred'R .......................................................................................... ............................... ............................... ............................... ............................... ..............................0
29. Intemational ................................................................................... .................................... .................................... .................................... .................................... ................................:0
30. Reinsurance - nonpropoAknel assumed propeAy ....................... .........................22.154 .................................... .................................... .................................... ........................22,154 j
31. Reinsurance - rronpraporlbnal assumed lfafiflry .......................... .................................... .................................... .................................... .................................... .................................0
~ 32. Reinsurance - nonproportional assumed fxwrrdal Ikres ............... .................................... .................................... .................................... .................................... .................................0
Aggregate write•ins for other lines ofbusiness .............................
33 .................................0 .................................0 .................................0 .................................0 .................................0
.
34. TOTALS ......................................................................................... .................74206362 ........................51,522 .................................0 .................................0 .................74257,884
35. Accrued retrospective prernkxns based on axperience ............................................................................................................................................................................ ....................................
36. Earned but unfilled premiurns .................................................................................................................................................................................................................. ....................................
37. Balance (sum of Lines 34 tlr h 36 ....................................................................................................................................................................................................
uro~ we ..................74257.884
3301 . ....................................................................................................... .................................... .................................... .................................... .................................... .................................0
3302 . ....................................................................................................... .................................... .................................... .................................... .................................... .................................0
3303 . ....................................................................................................... .................................... .................................... .................................... .................................... .................................0
3398. Summary of remakring write-ins for Lkte 33 horn overflow page .. .................................0 .................................0 .................................0 .................................0 .................................0
3399. Totals (Lines 3301 fhN 3303 krs 3398 Lare 33 above ............ .................................0 .................................0 .................................0 .................................0 .................................0
(a) State here bas's nt oompufatkxt used tl @8C1 case: Npmhry rro-rata
7
Annual Stalemen[~atlre year 2006 of Ma Erie Insurance Company
UNDERWRITING AND INVESTMENT EXHIBIT
P
ine of Business ART 7 B • PRE
1
Diced
Business
a MIUMS WKI I I tN
Reinsurance Assumed
2 3
From Affiliates From Non-Afflia
Reinsurance Ceded
4 5
To Affiliates To Non-Affiliates
6
Net Premiums
Wdtlen
(Cols.1 +2 +3
- 4 - 5
................................................................
1. Fire ............................... ...............617,123
. .............1,722.340 .............................. 617,123 .............................. .............1,722.340
2. Allied lines .................................................................................... ................278,105 ................358172 .............................. ................278.105 .............................. ................358.172
.
..
... ...........................0
3. Famwwners multiple peril ............................................................ .............................. .............................. .............................. .............................. .................
..
....
.
4. Homeowners muliple peril .......................................................... ...........20,944.552 ...........36,234,823 .............................. ...........20,944,552 .............................. ...........36.234.823
5. Commeroial multiple peril ............................................................. ...........30,418290 ...........24,104,150 .............................. ...........30,250,688 ................167,602 ...........24,104,150
.
................ ...........................0
...............................
6. Mortgage guaranty ........................................ .............................
. .............................. .............................. .............................. ............
.
....... .............................. ...........................0
8. Ocean marine .............................................................................. .................
. ............................. .............................. .......................
.....................................................
9. IntaM marine .......................... ...............555.441
. ................927,564 .............................. ................555,441 .............................. ................927,564
.
. .............................. ...........................0
10. Financial guaranry ........................................................................ ..............................
I .............................. .............................. ........................
...
.
.
................... ...........................0
11.1 Medical malprectice - occurtence ................................................ .............................. .............................. ~ .............................. .............................. .........
.
11.2 Medical malpradice - claims-made ............................................. .............................. I .............................. I .............................. .............................. .............................. ...........................0
12. Eartiquake ...................................................................................
.............................
.
...........................1
..............................
..............................
..............................
...........................1
13. Group acadent and hea8h ........................................................... .............................. .............................. .............................. .............................. .............................. ...........................0
14. Credit acddent and hearth (group and'indMdual) ....................... .............................. .............................. .............................. .............................. .............................. ...........................0
15. Offrer acddent and heaMh ............................................................ .............................. .............................. .............................. .............................. .............................. ...........................0
16. Wolters' cempenantgn ................................................................ ...........37,075,345 ...........16,538,060 .......................203 ...........37,075.548 .............................. ...........16.538.080
17.1 Other liability - ocarrance ........................................................... .............3.179628 .............2444,553 .............................. ...........,.3.163.559 .........,........16.069 .............2.444,553
17.2 Ofherliahi8ty-claims-made ......................................................... ....................2,557 ..................14.795 .............................. ....................2,557 .............................. ..................14,795
18.1 Products liability - oocunance ...................................................... ..................42,010 ................114,551 .............................. ..................42.010 .............................. ................114.551
18.2 Products fiablity - daims~mede ................................................... .............................. .............................. .............................. .............................. .............................. ...........................0
19.1,19.2 Private passenger auto labtiiry .................................................... .........171,395,194 ...........54,783,639 .............................. .........169.980.118 .............1,415,076 ...........54.783,639
19.3.19.4 Comsrercial aura fiablly .............................................................. ...........33.354,539 ...........11,682,228 ...........15.310,666 ...........47.766.922 ................896283 ...........11.882.228
21 Auto hysicaldamanP ______...._ ............................................ .........124.308.166 ...........40.684,555 ................128,662 .........124,436,828 .............................. ...........40.684.555
p
22. Ainaalt (all pelts)..
23. FideGly ..........................................................................................
...............517.604
.
..................26.921
..............................
................517,604
24. Surety ........................................................................................... .............5,240,825 ................283.742 .............................. .............5,240.825
26. Burglary and theft ......................................................................... ..................13.949 .......................777 .............................. ..................13,949
27. Bdlerandrnachinery ................................................................... .............................. .........................(8) .............................. ..............................
28. Cred'd ........................................................................................... .............................. .............................. .............................. ..............................
29. IntemationaL ................................................................................ .............................. .............................. .............................. ..............................
30. Reirrarrsnce - nonproporlbrral assumed property ..................... .............XXX.....,..... .................155,214 .............................. ..............................
31. Reirourance - nonproportional assumed BabiYly ........................ ............XXX........... ..........................91 .............................. ..............................
32. Reinsurance - nonproportiaral assumed finarxial tines ............. ............XX)(........... ............................... .............................. ..............................
33. Aggregate write-ins for other fines of Iwsirress ........................... ...........................0 ...........................0 ...........................0 ...........................0
34. TOTALS ....................................................................................... .........427,943,327 .........190.276,189 ...........15,439,531 .........440.887,829
..................26.921
................283,742
....................... m
......................... (8 )
............. . .............0
...........................0
................155,214
.........................91
...........................0
...........................0
.........190,278,189
ncTSa c nc worrcws
3301 . ..................................................................................................... .............................. .............................. .............................. .............................. .............................. ...........................0
3302 . ..................................................................................................... .............................. ..............................
.........
.....................
..............................
.............................. ..........................0
.
3303 . ..................................................................................................... .............................. .............................. .............................. .......
.......................
.............................. ..........................0
.
3398. Summary of remainingwrite-Ins for Line 33 irons overlow peg ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0
3399. Totab Liners 33011hru 3303 us 3398 Line 33 above .......... ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0
(a) Does the canparq+s diced premiums wril~n kichrde premiums recorded on an instalment basis? Yes [ ] No ] X ]
If yes: t. The amount of such instalment premiums 5..........0.
2. Anqunt at which such inshalmeM premiums would have been reported had they been recorded on an annualised basis 5..........0.
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A,„„,~Sm~~~,~o~a,eYe~zo~aor~aErie Insurance Company
' ~ UNDERWRITING AND INVESTMENT EXHIBIT
PART3•EXPENSES
1 2 3 4
Other
LossAdjustmenl Undervwiting Investment
Ex rases Ex erases Ex erases Total
1. Claim adjustment services:
1.1 Direct .............................................................................................................................. ..................12.244,706 ..................................... ..................................... ..................12,244,706
1.2 Reinsurance assumed ................................................................................................... ....................7,466,439 ..................................... ..................................... ....................7,466,439
1.3 Reinsurance ceded ........................................................................................................ ..................14,280,909 ..................................... ..................................... ..................14,280,909
1.4 Nel dakn adjusbnent services (1.1 + 1.2 -1.3) ............................................................. ....................5,430,236 ..................................0 ..................................0 ....................5,430,236
2. Commission and brokerage:
2.1 Direct, exdudirn3 contingent ........................................................................................... ..................................... ..................47,650,794 ..................................... ..................47,650,794
2.2 Reinsurance assumed, exdudirg cant{rgent ................................................................ ..................................... ..................27,012,806 ..................................... ..................27,012,606
2.3 Reinsurance ceded, exduding c:ontlngeM ..................................................................... ..................................... ..................47,398,930 ..................................... ..................47,398,930
2.4 Contngent-direct .......................................................................................................... ..................................... ..................................... ..................................... ..................................0
2.5 ConBngeM -reinsurance ass,xned ................................................................................ ..................................... ..................................... ..................................... ..................................0
2.6 Contingent - reiraurarrce ceded ..................................................................................... ..................................... ..................................... ..................................... ..................................0
2.7 Policy and membership fees .......................................................................................... ..................................... ..................................... ..................................... ..................................0
2.8 Net commission and brokerage (2.1 +2.2 - 2.3 +2.4 + 2.5.2.6 +2.7) ........................ ..................................0 ..................27,264,670 .................................,0 ..................27,264,670
3. Allowances to managers and agents ....................................................................................... ..................................... ..................................... ..................................... ..................................0
4. Adverthing ............................................................................................................................... ..............................439 .......................531,878 ..................................... .......................532.317
5. Boards, twreaus and associations ........................................................................................... .........................57,140 .......................396,422 ..................................... .......................453,562
6. Surveys and underwriting reporls ............................................................................................ .........................19,881 ....................1,284.492 ..................................... ....................1.304,373
7. Audit of assureds'records ........................................................................................................ ..................................... .......................425,241 ..................................... .......................425,241
8. Salary and related items:
8.1 Salaries .......................................................................................................................... ....................7,042.637 ....................8,701,230 .......................104,455 ..................15,848.322
8.2 Payrdl taxes .................................................................................................................. ......._..............545,824 .......................617,1324 ...........................4,842 ....................1,168,290
9. Employee relations azd vrel(aze ............................................................................................... ....................2,049,100 ....................2,122,494 .........................16,678 ....................4,188,272
10. Insurance ................................................................................................................................. .......................125,247 .........................66,705 ................................36 .......................191.989
11. Directors' fees .......................................................................................................................... ..................................... .......................187,227 ..................................... ..........._..........187,227
12. Travel and travel items ............................................................................................................. .......................512,572 .......................359,153 ...........................5,331 .......................877.056
13. RerdaMrentitems .................................................................................................................. .......................357,772 .......................815.048 ...........................3,336 ....................1,176.157
14. Equiprrkmt ................................................................................................................................ .......................109.749 ....................1.242,892 .........................13,144 ....................1,365,785
15. Cast or depreciation of EDP equipnent and software_ ........................................................... .......................820,330 ..................................... ..................................... .......................820,330
16. Pdrdkrg and stationery ............................................................................................................. .........................80,254 .......................295,414 _.......................13.028 .......................388,696
17. Postage, teleptana and tebgraph, exd,ange and express ..................................................... .......................368,118 ....................1,403,19D .............................(519) ....................1,770,788
1 B. Legal and auditing .................................................................................................................... .......................278 564 .......................997 410 .........................21576 ....................1297 551
19. Totals (Lines 3 to 18) ............................................................................................................... ..................12,367,629 ..................19,446,420 .......................181,907 ..................31,995,955
20. Taxes, Ycenses and fees:
20.1 State and bcel insurance taxes deducting guaranty association aedlfs
of 5.....254.581 ............................................................................................................... ..................................... ....................4,178.437 ..................................... ....................4,178,437
20.2 Insurance department Ikxu,ses and peas ....................................................................... ..................................... .......................501,075 ..................................... .......................501,075
20.3 Gross guarxriy assodation assessnrents ..................................................................... ..................................... ......................(185,428) ..................................... ......................(185,428)
20.4 Afl other (exduding federal and foreign incortre and real estate- ................................... .........................18 060 ................................59 ................................16 .........................18,135
20.5 Total taxes, licenses and fees (20.1 +20.2 +20.3 +20.4) ............................................ .........................18,060 ....................4,494,143 ................................16 ....................4,512,219
21. Real estate p,%penSes .............................................................................................................. ..................................... ..................................... ..................................... ..................................0
22. Real elate laxes .................................................................................................................. ................................ ............................... ................................ ...............................0
23. Reimbursements by unirxsured plans ....................................................................................... ..................................... ..................................... ..................................... ..................................0
24. Aggregate write-iris for misceflarxorffi expenses ..................................................................... .........................68.421 ....................2.078 650 ..................................0 ....................2,147,072
25. Total expenses irxxxred ........................................................................................................... ..................17,884.346 ..................53283,864 .......................161,923 (a).............71.350.152
26. Lass unpa~ expenses - current yeaz ....................................................................................... ..................27,920,995 ....................1,936,634 .........................78,841 ..................29,934,470
27. Add unpaid expenses-priary~r .................._........................................................................ ..................28,018,451 ....................2.381,231 .........................42.761 ..................30.442,443
28. Amount receivabk: rela8ng to uNnsured plans, Prbr Year ..................................................... ..................................... ..................................... ..................................... ..................................0
29. Anrounls receivable relating to unkqured dace, current yar ................................................. ..................................... ..................................... ..................................... ..................................0
30. TOTAL EXPENSES PAID (Lines 25 - 26 +27.28+29) .............................................. ..................17,981,802 ..................53,728,481 .......................147,842 ..................71,858,125
2401. Miscellarraous Expense ........................................................................................................... .........................67,018 .......................217.974 ..................................... .......................284.992
2402. Contributions-Chadtles .......................................................................................................... ...........................1,403 ................................15 ..................................... ...........................1,416
2403. Assetvaiteoff ........................................................................................................................... ..................................... ....................1,860,662 ..................................... ....................1,860,662
2498. Summary of remaining write-ins for line 24 from overflow page ............................................. ..................................0 ..................................0 ..................................0 ..................................0
2499. Totals Lines 2401 thru 2403 us 2498 Line 24 above ....................................................... .........................68,421 ....................2 078,650 ..................................0 ....................2,147,072
(a) Indudes management fees of 5.....47,067,254 to afflNates and 5..........0 to non-afflflates.
11
Annua15talement la the year 2006 of~he Erie Insurance Company
EXHIBIT OF NET INVESTMENT INCOME
2
Collected Eamed
Dud Year Durin Year
1. U.S. government bonds ................................................................................................................................................................... (a)...............................485,(185 ...................................502,221
1 Bonds exempt from U.S. tax ...........................................................................................................................................................
1 (a)...............................699923 ...................................774,048
.
1.2 Other bands (unaffdiated) ................................................................................................................................................................ (a)..........................17,132,712 ..............................17,478,875
1.3 Bondsotaffdiates ............................................................................................................................................................................
...
.
.... (a).............................................
(b)............................1,715,075 .................................................
................................1,730.474
..
.
2.1 Preferred stocks (unaifiliated) ..............................................................................................................................................
2.11 Preferred stocks of affiliates ............................................................................................................................................................ (b)............................................. .................................................
2.2 Common stocks (unaffiliated) .......................................................................................................................................................... ................................................. .................................................
2.21 Common stocks of aifiliates ............................................................................................................................................................ ................................................. ................................ .
....................................................................
lage loans ............................................................................................................
3. MorU
(c).............................................
.................................................
,
4. Real estate ...................................................................................................................................................................................... (d)............................................. .................................................
5. Conhactbans .................................................................................................................................................................................
6. Cash, cash aqurvalents and short-term investments ....................................................................................................................... .................................................
(e)...............................395,276 .................................................
...................................388,044
7. Derivative insWments ..................................................................................................................................................................... (f).............................................. .................................................
B. Other invested assets ...................................................................................................................................................................... ................................................
.
.
...15
983 .................................................
.....................................15.983
9. Aggregate write-ins fa invasbnent ircome ..................................................................................................................................... ............................
...
.
,
444
654
.
..
...20 ..............................20,889,645
10. Total mss invesbnent income ........................................................................................................................................................ ,
......................
.
.
,
.....................................................................................
.
.. 19)...............................181,907
.
.
11. Irnesbnent expenses ................................................................................................................................. ......................................16
(g).
12. Investment farces, licenses and fees. excluding federal income taxes ............................................................................................................................................... .
13. Interest expanse .................................................................................................................................................................................................................................. (h5...........................................
0
(I)
14. Depreciamon on real estate and other imesled assets ....................................................................................................................................................................... ...........................................
15. Aggregap write-ins for deduc8oru from invesUnant income .............................................................................................................................................................. .............................................0
i6. Total deduc8ons (Lines 111hmugh 15) .............................................................................................................................................................................................. ...................................181.923
17. Net invesbrrent income (Line 10 minus Line 16) ................................................................................................................................................................................ ..............................20,707,722
DETAILS OF WRIrEdNS
0901. MlscelWneous Interest ..................................................................................................................................................................... .....................................15,983 .....................................15,983
0902 .......................................................................................................................................................................................................... ................................................. .................................................
0903 .......................................................................................................................................................................................................... ................................................. .................................................
0998. Summary of remahirg writ-ins for Line 9 from overfkxv page ..................................................................................................... .............................................0 ..............................................0
0999. Tools Lines 0901 thm 0903 us 0998 Line 9 above ................................................................................................................ .....................................15983 .....................................15.983
1501 .............................................................................................................................................................................................................................................................. .................................................
1502 .............................................................................................................................................................................................................................................................. .................................................
1503 .............................................................................................................................................................................................................................................................. .................................................
1598. Summary of remaining write-Ins for Una 15 from over8o+r Pa9e ....................................................................................................................................................... ..............................................0
(a) Inchrdes 5.....334,698 acrxrral of discount less 5•.••.661,458 amor8za8on of premium and less 5•....623,575 paid for aamred htarest an purohases.
(b) Includes 5....256 accual of discofMt less 5..........0 amontlze8on of premium and Jere 5..........0 paid for acaued divldenda on purchases.
(c) Indrxies 5..........0 aaxual of discount less 5..........0 amor8ze0ar of premum and less 5..........0 paid fa aanred kderest on purchases.
(d) Includes 5..........0 for campanys acasp~cy of its own buiMkgs; and excludes 5..........0 interest on encumbrences.
(e) Includes 5.....7,227 accrual of discauM less 5.....10,957 anar6za8on of premium and less 5.....135,981 paid for afxxued interest an purchases.
(f) Includes 5..........0 accrual of discount less 5..........0 anron8zatbn of premium.
19) Includes 5..........0 invesbnent expenses and 5..........0 inveahneM faxes, licenses and fees, excludYg federal inwme taxes, a8ributable to Segregated and Separate Accounts.
(h) Includes 5•••--•-0 interest on surpkis nods and 5.........,0 kdereston eap8al notes.
(i) Includes 5..........0 depreciation on real estate and 5..........0 deprecia8at on other invested assets.
EXHIBIT OF CAPITAL GAIN51L055E5
1 2 3
ReaNZed UnreaYzed
Gain (Loss) Other Irax~ses
on Sales Realized (Deaeases) by
1. U.S.govemmerdbonds ................................................................
1.1 Bonds exempt horn U.S. tax .........................................................
1.2 OBier bonds (urreflNia~d) .............................................................
1.3 Bonds oFaBifates ..........................................................................
2.1 Preferredstab(una88iatad) .......................................................
2.11 Preferred stocks of a87i ales ..........................................................
2.2 Common socks (unaffiNated) .......................................................
2.21 Common sacks of alfiliates ..........................................................
3. Mortgage bans .............................................................................
4. Real estals ....................................................................................
5. Contraetbans ...............................................................................
6. Cash, cash equivalents and short-arm investments ...................
7. Dedvative insbumenls ..................................................................
8. 08rer unrested asseb ...................................................................
9. A99re9ate writ-ins Tor cap8al gains (bases) ..............................
178
0901. Misrx311aneousCapilalGains ......................................................... ...................................25,178 ............................................... ............................................... ..................................25,i7B
0902 ....................................................................................................... ............................................... ............................................... ............................................... ............................................0
0903 ....................................................................................................... ............................................... ...............................................
.............................................. ....0
........................................
0998. Summary of remaining write-ins for Line 9 from overflow page ... ............................................0 ............................................0 ............................................0 .............................0
.............. .
0999. Totals Lines 0907 thm 0903 lus 0998 Line 9 above .............. ...................................25,178 ............................................0 ............................................0 ...................................25.178
12
A~eu~s~tameetbrar:o~~la>eErie Insurance Company
" ~ EXHIBIT OF NONADMITTED ASSETS
Current Year Prior Year Change in Total
Total Total Nonadmitted Assets
1. Bonds (Schedule D) ................................................................................................................ ................................ ............................................ .............................................0
2. Stocks (Schedule D):
2.1 Prefened stocks,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,0
2.2 Cannron stacks ............................................................................................................... .................................................. .................................................. ...............................................0
3. Mortgage loans on real estate (Schedule B):
3.1 Fast liens ....................................................................................................................... ............................................ ............................................. .............................................0
3.2 Otlter than first liens ........................................................................................................ .................................................. .................................................. ...............................................0
4. Reai estate (Schedule: A):
4.1 Properties ocppied by the company .............................................................................. .................................................. .................................................. ...............................................0
4.2 Properties hekl for the production of income .................................................................. .................................................. .................................................. ...............................................0
4.3 Properties held for sale ................................................................................................... .................................................. .................................................. ...............................................0
5. Cash (Schedule E-Part 1), cash equivalent (Sdtedule E-Part 2)
and shat-term investment (Schedule DA) .............................................................................. .................................................. .................................................. ...............................................0
6. Confrad bans ......................................................................................................................... ......................................... ............................................. ............................................0
7. Other inwested assets (Schedule BA) ....................................................................................... .................................................. .................................................. ...............................................0
8. Receivables for syceritieq .......................................................................................................... .................................................. .................................................. ...............................................0
9. Aggregate wrcite-ins for invested assets .................................................................................... ...............................................0 ............................................:..0 ...............................................0
10. Subtotab. psh and invested assets (Lines 1 b 9) ................................................................... ...............................................0 ...............................................0 ...............................................0
11. Title plaMS (for Title insurers only) ............................................................................................ .................................................. .................................................. ...............................................0
12. Investment income due and acaued ........................................................................................ .................................................. .................................................. ...............................................0
13. Premiums and considerations:
13.1 Urvollected Premiums and agents' balarxx3s b the course of cdlection ....................... ....................................356.621 ....................................363.596 ........................................6,977
13.2 Deferred prerdums, agents' balances and insttlment booked but
dekned and not yet due ................................................................................................. .................................................. .................................................. ...............................................0
13.3 Axnred retrospective premiums ..................................................................................... .................................................. .................................................. ...............................................0
14. Rekrsurance:
14.1 Amounts recoverable from reiruurers ............................................................................. .................................................. .................................................. ...............................................0
14.2 Furls held by or deposited vvlM rekrsrued companies .................................................. .................................................. .................................................. ...............................................0
14.3 Other amounts receivable under reinstrance oontracts ................................................. .................................................. .................................................. ...............................................0
15. Amount receivable relating to uninsured plans ....................................................................... .................................................. .................................................. ...............................................0
1fi.1 Current(aderal and foreign income tax recoverable and interestMeraon ............................... .................................................. .................................................. ...............................................0
16.2 Net defened tax asset .............................................................................................................. .................................................. .................................................. ...............................................D
17. Guaranty turxls receivable or on deposit ................................................................................. .................................................. .................................................. ...............................................0
18. Electronic data processing equipment and sofiware ................................................................ .................................................. .................................................. ...............................................0
19. Furniture and equipment. induding hearth pre delivery asset .............................................. .................................................. .................................................. ...............................................0
20. Net adjustrnent in assets and iabigties due b foreign exchange rates .................................... .................................................. .................................................. ...............................................0
21. Receivade from parent subsidiaries and afitiales ................................................................... .................................................. .................................................. ...............................................0
22. Health are and other amount receNable ............................................................................... .................................................. .................................................. ...............................................0
AggregaVe write-ins for other than ineesed assets ...................................................................
23 ...............................................0 .................................1 807 524 .................................1807 524
.
24. Total assets excluding Separate Aaount, Segregated Account and Protdad
Cell Acrount (Lines 10 through 23) ......................................................................................... ....................................356.621 .................................2,171,122 .................................1,814,501
25. From Separate Account, Segregated Amount and Protected Cell Aaount ...................... .................................................. .................................................. ...............................................0
26. TOTALS0.ines24and251 ....................................................................................................... ....................................356,621 .................................2,171,122 .................................1,814.501
...............................................0
...............................................0
...............................................0
0998. Summary of remainbrg wrife•Ins for Line 9 from overflow page ............................................... I ...............................................0 I ...............................................0 I ...............................................0
2301. Intangible
2302 .................
.............................................................................................
Summary of renralnkrg write-Ins for Llrte 23 from ovedlow
.............1.807,524 ............... 1, 807,524
............................. ...............................................0
...............................................0
...............................................o I ...............................................o I ...............................................D
13
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