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f- 13 - a596 C iv i I Term N CE o °qq ?JQp �N2 COMMONWEALTH OF PENNSYLVANIA a� E- 4a " of? EN +b' INSURANCE DEPARTMENT Harrisburg, PA April 1, 2013 Whereas, 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 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, 1, Michael Consedine, 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, o% izal n, o" rn �: -� public officer.' -< n .r� rj4 ✓.. In Witness Whereof, I have hereunto set my viand and7< affixed my official seal, the day and year first above written. Insurance Commissioner 418.00 Po PLIrF 0 115a3(o PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDMON VIII 1111111111111111111111111111111 IN III nil oil 1111111111111111111111111 1111111 • 2 6 2 6 3 2 0 1 2 2 0 1 0 0 1 0 0 ANNUAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2012 OF THE CONDITION AND AFFAIRS OF THE ERIE INSURANCE COMPANY NAIC Group Code 213 213 NAIC Company Code 26263 Employer's ID Number 25- 1232960 (Current 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 Insurance Place Erie. PA 16530 814 - 870 -2000 (Street and Number) (City or Town, State and Zip Code) (Area Code) (Telephone Number) Mail Address 100 Erie Insurance Place Erie. PA 16530 (Street and Number) (City or 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, Stale and Zip Code) (Area Code) (Telephone Number) Internet Website Address www.erieinsurance.com Statutory Statement Contact Dwayne A. Gantz 814- 870 -2000 x2785 (Name) (Area Code) (Telephone Number) (Extension) DAMyme.Gantz crieinsurance.com 814- 8704040 (E -Mail Address) (Area Code) (Fax Number) DIRECTORS Terrence William Cavanaugh Marcia Ann Dail George David Dufala Thomas Bailey Hagen, Chairman John Francis Kearns lames Joseph Tanous Michael Stephen Zavasky EXECUTIVE OFFICERS President & Chief Executive Officer. Terrence William Cavanaugh Executive Vice President & Executive Vice President, Chief Financial O(ficer. Marcia Ann Dail Secretary & General Counsel: lames Joseph Tanous Executive Vice President: John Francis Kearns Executive Vice President & Executive Vice President: George David Dufala Chief Information Officer. Robert Coleman Ingram, III Executive Vice President: Michael Stephen Zavasky Executive Vice President: Richard Francis Burt, Jr. ........................ ............................... Senior Vice President & Controller: Gregory John Gutting Senior Vice President & Chief Investment Officer: Bradley G. Postema Vice President & Treasurer. Robert Wayne McNun State of Pennsylvania / SS County of Erie / The officers of this reporting entity being duly swom, each depose and say that they are the described oficem of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement. together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and we statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Proredums manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described offoccrs also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing maybe requested by various regulators in lieu of or in addition to the enclos statement. Teumce William Carauturh dames Josep =ous, Executive Vice M2r M Ann DA Extr:utice Vice PmtdeM & CEO resitimt Setxetul & Gmcal Counsel Tnadm& CFO Subscribed and swernto before me ibis (b uno S � 1 the anrm�rffi mobs: O ' v sn lttor rMSan (ii) Due filed: ar w owtr+ws.rr r,a.� (iii) Numbs of pages attached: A, 1Statan,entrwtne Erie Insurance Company ASSETS Current Year Prior Year 1 2 3 4 Net Admitted Nonadmihed Assets Net Assets Assets Cols 1 - 2 Admitted Assets 1. Bonds (Schedule O) ............................................................................ ............................... ............. 42, A3,493 ..... ............................... ..............4 42,43,493 ..............428,147.035 2. Stocks (Schedule D): 2.1 Preferred stocks .................................................................... ............................... .....................17.487,524 ..... ............................... ... .............. 17,487,524 .................15.622,190 2.2 Common stocks................................. ....................... ............................................... ................20,719,108 .............................. ................10.229,382 3. Mortgage loans on real estate (Schedule B): 3.1 First liens ................................................................................... ............................... ..... ............................... ..... ............................... ... ..............................0 ..... ............................... 3.2 Other than first liens .................................................................. ............................... ..... ............................... ..... ............................... ... ..............................0 ..... ............................... 4. Real estate (Schedule A): 4.1 Properties occupied by the company (less $..........0 encumbrances) ......................................................... ............................... 42 Properties held for the production of income (less $..........0 encumbrances) ......................................................................... ............................... 0 4.3 Pmperfies held for sale (less $..........0 encumbrances) ............................................... ............................... ..... ............................... ... ..............................0 ..... ............................... 5. Cash ($.....(188,851), Schedule E-Part 1), cash equivalents ($..........0, Schedule E -Part 2) and short -term investments ($.....17,601,696, Schedule DA) ........... ............... ..17,412,845 ..... ............................... .................17,412,845 ...................6,719,038 6. Contract bans (including $..........0 premium notes) ............................................................... ............................... ..... ............................... ... ..............................0 ..... ............................... 7. Derivatives (Schedule DB) ...................................................................................................... ............................... ..... ............................... ... ..............................0 ..... ............................... 8. Other invested assets (Schedule BA) ..................................................................................... ............................... ..... ............................... ... ..............................0 ..... ............................... 9. Receivables for securities ................................................................... ............................... ..........................1,798 ..... ............................... . .........................1,798 ..........................1.499 10. Securities lending reinvested collateral assets (Schedule DL) .......... ............................... ................. - ................. ..... ............................... ...... .......................A ..... ............................... 11. Aggregate write -ms for invested assets .............................................. ............................... ... ..............................0 ... ..............................0 ... ..............................0 ... ..............................0 12. Subtotals, cash and invested assets (Lines 1 to 11) .......................... ............................... ..............498,264,768 ... ........:.....................0 ..............498,264,768 ..............470,719,146 13. Title plants less $..........0 charged off (for Tide insurers only) ................................................ ............................... ..... ............................... ... ..............................0 ..... ............................... 14. Investment income due and accrued ............................................... ............................... ......................5.252.554 ..... ............................... ...................5252,554 ...................5,478,653 15. Premiums and considerations: 15.1 Uncollected premiums and agents' balances in the course of collection ............... ................28,444,372 ......................837,736 .................27,606,635 .................35,092,070 15.2 Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $..........0 earned but unbilled premiums) ...................... ..............175.903,431 ..... ............................... ..............175,903,431 ..............150,054,014 15.3 Accrued retrospective premiums ................................ ............................... .......... . ... ..............................0 . 16. Reinsurance: 16.1 Amounts recoverable from reinsurers ...................................... ............................... ..........................4,593 ..... ............................... ..........................4.593 ............ .............. 1,476 16.2 Funds held by or deposited with reinsured companies. ..................... .................... ................ 927,366 ..... ............................... ......................927,366 ......................751.162 16.3 Other amounts receivable under reinsurance contracts .............................................. ............................... ..... ............................... ... ..............................0 ..... ............................... 17. Amounts receivable relating to uninsured plans ..................................................................... ............................... ..... ............................... ... ..............................0 ..... ............................... 18.1 Current federal and foreign income tax recoverable and 'interest thereon ....................... ..... ............................... ..... ............................... ... ..............................0 ...................1,367,025 18.2 Net deferred tax asset ...................................................................... ............................... ......................8.779,169 ...................3.626.492 ...................5,152.677 ...................3,327,810 19. Guaranty funds receivable or on deposit ................................................................................ ............................... ..... ............................... ... ..............................0 ..... ............................... 20. Electronic data processing equipment and software ........................... - ............................ .................................... .. ..............................0 . 21. Furniture and equipment, including health care delivery assets ($.. ........0) ..................... ..... ............................... .. ..............................0 22. Net adjustment in assets and liabilities due to foreign exchange rates ................................. ............................... ..... ............................... ... ..............................0 ..... ............................... 23. Receivables from parent, subsidiaries and affiliates .......................... ............................... ..... ............................... ..... ............................... ... ..............................0 ..... ............................... 24. Health care ($..........0) and other amounts receivable ....................... ............................... ..... ............................... ..... ............................... ... ..............................0 ..... ............................... 25. Aggregate write-ins for other than invested assets................ ........................................... 143,386 ......................... (9,261) ......................152.647 ......................188.382 26. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25). .......................................................................................... ..............717,719,638 ...................4,454,967 ..............713,264,671 ..............666,979,738 27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts .................... ............................... ... ..............................0 28. TOTALS (Lines 26 and 27) ................................................................. ............................... ... ........... 717,719,638 ...................4,454,967 ..............713,264,671 ..............666.979.738 DETAILS OF WRITEANS 1101 .................................................................................................................................................. ............................... ..... ............................... ... ..............................0 ..... ............................... 1102 ................................. ............................... 0 ..... ............................... .............................................. ............................... . 1103 . ........ ........................................... ......................................... .............. ....................................... ...........................:... ..... ............................... ... ..............................0 ..... ............................... 1198. Summary of remaining write-ins for Line 11 from overflow page ....... ............................... ... ..............................0 ... ..............................0 ... ..............................0 ... ..............................0 1199. Totals Lines 1101 thru 1103 plus 1198 Line 11 above ................. ............................... ... ..............................0 ... ..............................0 ... ..............................0 ... ..............................0 2501. Premium Tax Credits ......................................... ...................................... ... ........................ ...................... 113,092 . ........................(9,261) ......................122,353 ......................151,635 2502. Other Accounts Receivable ................................................................ ............................... .........................11,949 ..... ............................... ........................11,949 ........................20,370 2503. Equities and Deposits in Pools and Associations ............................................... ............... ................ ........18,345 ..... ............................... ........................18,345 ........................16.377 2598. Summary of remaining write-ins for Line 25 from overflow page ....... ............................... ... ..............................0 ... ..............................0 ... ..............................0 ... ..............................0 2599. Totals Lines 2501 Ihm 2503 plus 2598 Line 25 above) ................. ............................... ......................143,386 1 ......................... 9.261) ......................152 647 1 188,382 2 Annual Statement br the y ear 2012.fth, Erie Insurance Company LIABILITIES SURPLUS AND OTHER FUNDS ' 1 2 Current Year Prior Year 1. Losses (Part 2A, Line 35, Column 8) ..................................................................................................................... ............................... ....................143.411.845 ...................139.553,544 2. Reinsurance payable on paid losses and loss adjustment expenses (Schedule F. Part 1, Column 6) ................ ............................... ... ........................ .73,122 ... .........................65,219 3. Loss adjustment expenses (Part 2A, Line 35, Column 9) ..... ............................... ..... ................ 28,888,928 .....................27.872,745 .................................................. ............................... C Commissions payable. contingent commissions and other similar charges ............................................................................................................................................ ............................... 5. Other expenses (excluding taxes, licenses and fees) ............................................................................................ ............................... ... .........................86.465 ... .........................39,558 6. Taxes. licenses and fees (excluding federal and foreign income taxes) ................................................................ ............................... ...... ................. 2,228,864 . ......................1.905,311 7.1 Current federal and foreign income taxes (including 8.....1,752,353 on realized capital gains ( losses)) .............. ............................... . ...................... .......... ............................... 7.2 Net deferred tax liability ............................................................................................................................................................................................................................. ............................... 8. Borrowed money 5..........0 and interest thereon $.......... 0 ..................................................................................... ............................... ................................................... ............................... 9. Unearned premiums (Pan IA, Lime 38, Column 5) (after deducting unearned premiums for ceded reinsurance of S.....259,607,941 and including warranty reserves of 8._.......0 and accrued accident and health experience rating refunds including 8..........0 for medical loss ratio rebate per the Pubic Health Service Act) .............................................. ............................... .....................92,435,678 .......... ........... 84,945,341 10. Advance premium .................................................................................................................................................... ............................... . ...................... . ......................1,526.005 11. Dividends declared and unpaid'. 11.1 Stockholders .................................. ................................ ................................................. ............................................. ................... ...................................... ............. ............................... 11.2 Policyholders ................................................................................................................................................... ............................... ................ 216,896 .. ........................181.933 ...... 12. Ceded reinsurance premiums payable (net of ceding canmissions) .................................................................... ............................... ...................150,487,606 ...................136,166,724 13. Funds held by company wider reinsurance treaties (Schedule F, Part 3. Column 19) ......................................... ............................... .. ........................797,402 .. ........................628,805 14. Amounts withheld or retained by company for account of others .......................................................................... ............................... .. ........................303.707 .. ........................422.129 15. Remittances and items not allocated ...................................................................................................................... ............................... .. ........................200.192 .. ........................337,685 16. Provision for reinsurance (including 5...........0 certified) (Schedule F. Pan 8) ......................................................................................................................................... ............................... 17. Net adjusbnents in assets and liabilities due to foreign exchange rates .................................................................................................................................................. ............................... 18. Drags cubtuxii ng ..................................................................................................................................................:........................................ .........................I..... . ......... ............................... 19. Payable to parent, subsidiaries and affiliates .................................. .................... ............................. ..................................................... ......... ............ 14,677.393 .....................13,322,440 20. Derivatives ............................................................................................................................................................................................. ............................... ..................... ............................... 21. Payable for securities ................................................................................................................................................................................................................................ ............................... 22. Payable for securities lending ................................................................................................................................................................................................................... ............................... 23. Liability for amounts held under uninsured plans. ........................................................ ....................................................................................................................... ............................... 24. Capital notes S...........0 and interest thereon $.......... 0 ............................................................................................................................................................................. ............................... 25. Aggregate write-ins for liabilities- ..................................... ................ ....................................................... ......................................... ...................................... 0 ........ ..............................0 26. Total liabilities excluding protected cell liabilities (tines 1 through 25) ........................ ... .............. ............ ..._...................................... ... ................ 436,843,043 ...................406,967,437 27. Protected cell liabilities .............................................................................................................................................................................................................................. ............................... 28. Toted liabilities (Lines 26 and 27) . ........................................ ....................................................................................... ............................ ...................436 843 043 ................... 406,967,437 29. Aggregate writeins for special surplus funds ................................................................................................................................................ ..............................0 ........ ..............................0 30. Common capital stock ............................................................................................................................................. ............................... . . ..................... 2,350.000 ......................2.350.000 31. Referred capital stock ............................................................................................................................................................................................................................... ............................... 32. Aggregate write-ns for other then special surplus kinds. ........................ ................ .......................... - .......... - _ ................................... 0 33. Surplus rates ............................................................................................................................................................................................................................................. ............................... 34. Gross paid in and contributed surplus................. ._ ................................................... .............. ............ .................................................. .....................81.482.000 .....................81,482.000 35. Unassigned funds ( surplus) ..................................................................................................................................... ............................... ...................192,589,628 ...................176,180,301 36. Less treasury stock, at cost: 36.1 ..........0.000 shares common (value included in Line 30 5.......... 0) ............................................................................................................................................... ............................... 362 ..........0.000 shares preferred (value included in Line 31 S.......... 0)............... ........................ .................................................... ......................................... ......................................... 37. Surplus as regards policyholders (Lines 29 to 35, less 36) (Page 4, Line 39) .............................................. ............................... ............................ 276.421,628 ..................260 012 301 38. TOTALS (Page 2. Lime 28. Col. 3) .......................................................................................................................... ............................... ...................713.264.677 1 ...................666,979,738 DETAILS OF WRITE4NS 2501 . .............................................................................................................. ............................... ...................................................................................................................... ............................... 2502 . ........................................................................................................................................................... ............................... ........... . . . . . . . ....................................................... ............................... 2503 . ....................................................................................................... ..................................... .................................................................................................................. ......... .. ... .................... .. 2598. Summary of remaining write-ins for Line 25 from overflow page .................................................................................................................. ..............................0 ........ ..............................0 2599. Totals Lines 2501 On 2503 plus 2598 Line 25 above ............................................................................................................................. ..............................0 ............... . ................... ..A 2901 . .................................................................................................................................................................... ............................................ ......................................... ......................................... 2902 . ................................................................................................................................................................................. ............................... . .................................................. ............................... 2903 . ...................................... ............................... ........................................................................................................................................................................................... ............................... 2998. Summary of remaining write- ins for Line 29 fan overflow page .................................................................................................................. .:............................0 ........ ..............................0 2999. Totals tines 29018w 2903 plus 2998 (Line 29 above .......................................................................................................................... ......................0 ........ ..............................0 3201 . .................................................................................................................................................................. .............................................. ...................... ................... ......................................... 3202- ....................................... .............. ................. ................ .......... ............................ ............................................. - .................................. ....................... ................. 3203 . ...................................................................................... ............................... 3298. Summary of remaining write-ins for Line 32 from overflow page .................................................................................................................. ..............................0 ........ ..............................0 3299. Totals (Lines 3201 ttvu 3203 plus 3298 Line 32 above). ........................................ ..................................................... ..................... I ...................................... 0 ........ ..............................0 3 Annual Statemerakxlheyear2012ofaie Erie Insurance Company STATEMENT OF INCOME UNDERWRITING INCOME Curre1 2 nt Vear Prior Year 1. Premiums earned (Pan 1, Line 35, Column 4) ............................................................................................. ............................... .. . ..... .... .......... 222.633,437 .. ....................208.445.322 DEDUCTIONS 2. Losses incurred (Pan 2, Line 35, Column 7) ................................................................................................ ............................... ... ....................145.084.993 ... ....................145.492.908 3. Loss adjustment expenses incurred (Part 3, Line 25, Column 1) ................................................................ ............................... ... ................... ..24,148.316 ... .....................21,957.832 4. Other underwriting expenses incurred (Part 3, Line 25, Column 2) ................................................................. ............................... .....................63.700,297 ...58,564.757 ...................... 5. Aggregate writewels for underwriting deductions .......................................................................................... ............................... .. ............................136 805 .. ............................170,362 6. Total underwriting deductions (Lines 2 through 5) ....................................................................................... ............................... ... ....................233,070.404 .. ....................226.185.859 7. Net income of protected cells ..................................................................................................................................................................... ............................... .............. ............................... 8. Net underwriting gain (loss) (Lime 1 minus Line 6 plus Line 7)... .......................................................................................... ..... ...................(10,436,967) ..... ...................(17.740,537) INVESTMENT INCOME 9. Net investment income earned (Exhibit of Net Investment Income, Lane 17)., ..................................... -- .............. ... .. . ..... .. .... .....................21,105,474 .... .....................21,638,955 10. Net realized capital gains (losses) less capital gams tax of 5.....1,752,353 (Exhibit of Capital Gains ( Losses)) ..................... .............................. 4,809,233 ...........................6A19.619 11. Net investment gain (loss) (L 9 t 10) ..................................................................................................... ............................... .... .....................25.914,706 .. ......................28858.574 OTHER INCOME 12. Net gain (loss) from agents' or premium balances charged off (amount recovered $ .....3,682,337 amountcharged o8 $ .....4,728, 626) ................................................................................................................... ............................... ....................(1,046.289) ............... .............. (873,506) 13. Finance and service charges riot included in premiums .............................................................................. ............................... .............. ............................... .............. ............................... 14. Aggregate wr8e4ns for miscellaneous income ............................................................................................. ............................... ... .............................63,751 .. ............................209.365 15. Total other income (Lines 12 through 14) ..................................................................................................... ............................... . ............................ (982,538) . ............................ (664,141 16. Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign incometaxes (Lines 8 + 11 t 15) .................................................................................................................. ............................... .... .....................14.495.201 ..... ......................9,653.896 17. Dividends to policyholders .................................................................................................................................. ............................... .........................204,426 . ............................206,313 18. Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign incometaxes (Lime 16 minus Line 17) .......................................................................................................... ............................... .... .....................14,290.775 ..... ......................9,447.583 19. Federal and foreign income taxes incurred ................................................................................... ............................... .............. . . ............................452,577 .. .............................29.935 . 20. Net income (Line 18 minus Line 19) (to Line 22). ....................... . ............................................................................................... ... . ..................... 13,838,198 ..... ......................9,417.648 CAPITAL AND SURPLUS ACCOUNT 21. Surplus as regards policyholders, December 31 prior year (Page 4, Line 39, Column 2) .......................... ............................... .. ....................260,012,301 .. ....................250,776.794 22. Net Income (tram Line 20) ............................................................................................................................. ............................... .... .....................13.838.198 ..... ......................9,417.648 23. Net transfers (to) from Protected Cell account s ...................................................................................................................................................................................... ............................... 24. Change in net unrealized capital gains or (losses) less capital gains tax of $ .... 221, 152 ........................... ............................... ...... ........................900,438 ..... ........................227.370 25. Change in net unrealized foreign exchange capital gain ( loss) ................................................................................................................. ............................... .............. ............................... 26. Change in net deferred income tax ......................... ............................... ..... ....................(1.359,184) ..... .....................(2,200292) ....................................................... ............................... . 27. Change in nonadmibed assets (Exhibit of Nonedmitted Assets, Line 28, Column 3) ................................. ............................... ..... ......................3,029.874 ..... ......................1,790,781 28. Change in provision for reinsurance (Page 3, Lime 16, Column 2 minus Column 1) ............................................................................................................................. ............................... 29. Change in surplus notes .......................................................................................................................................................................................................................... ............................... 30. Surplus (contributed to) withdrawn from protected cells ............................................................................................................................ ............................... .............. ............................... 31. Cumulative effect of changes in accounting principles .............................................................................................................................. ............................... .............. ............................... 32. Capital changes: 32.1 Paid in ............................................................................................................................................................................................................................................. ............................... 32.2 Transferred from surplus (Stock Dividend) ....................................................................................................................................... ............................... .............. ............................... 32.3 Transferred to surplus .......................................................................................................................... ............................... .............. ............................... .............. ............................... 33. Surplus adjustments: 33.1 Paid in ................................................................................................................................................................................................ ............................... .............. ............................... 33.2 Transferred to capital (Stock Dividend) ............................................................................................................................................. ............................... .............. ............................... 33.3. Transferred from capital ................................................................................................................................................................................................................ ............................... 34. Net remittances from or (to) Home Off ice ..................................................................................................... ............................... ........................................................... ............................... 35. Dividends to stockholders ........................................................................................................................................................................................................................ ............................... 36. Change in treasury stock (Page 3, Lines 36.1 and 36.2. Column 2 minus Column 1) ............................................................................. ............................... .............. ............................... 37. Aggregate wrdeins for gains and losses in surplus ......................................................... ............................... 38. Change in surplus as regards poticyhokfers for the year (Lines 22 through 37) ................ ......................... .................... .......16 409 327 .. .........................9 35 507 ........... . ............... 39. Surplus as regards policyholders, December 31 current year (Line 21 plus Line 38) (Page 3, Line 37).- ............. .................. ... ....................276,421,628 ... ....................260,012,301 DETAILS OF WRITE-INS 0501. LAD Program Expense................ ... .................................... ............................. ............................ ................ .. ....... ......... ............... ... ........................... 136,805 ...... ........................170.362 0502 ................................................................................. ............................... .................................................................................................................................................. ............................... 0503 .................................................................................................................................................................................................................................................................. ............................... 0598. Summary of remaining wrife4ns for Line 5 from overflow page ........... ............................... 0599. Totals Lines 0501 thru 0503 plus 0598 Lime 5 above .............................................................................. ............................... .. ............................136,805 ..... .........................170,362 1401. Miscellaneous Income ................................................................................................................................... ............................... ...... . ......................... 63,751 ...... ........................209,365 1402 ................................................................................. ............................... .................................................................................................................................................. ............................... 1403 .................................................................................................................................................................................................................................................................. ............................... 1498. Summary of remaining write-ins for Line 14 from overflow page ................................................................. ............................... ............ ..............................0 ............ ..............................0 1499. Totals Lines 1401 thru 1403 Dius 1498 Lane 14 above) ............................................................................ ............................... ... .............................63.751 ..... .........................209,365 3701. - .................................................................................... .............. ............................... 3702 ..................................................................................................... ............................ . ..... ................. ... ......... .... .... .. ... .. ................................................................ ............................... ............. 3703. ................................................................................................................................................................................................................................................................. ............................... 3798. Summary of remaining wf teans for Line 37 from overflow page ................................................................. ......... .. .................... ............ .............................. 0 ............ .............................. 0 3799. Totals Limes 3701 thru 3703 us 3798 (Line 37 above ....................................................................................................... .................. ..............................0 ............ ..............................0 4 Annual StatemeM for the year 2012 of core Erie Insurance Company CASH FLOW 1 2 Current Year Prior Year CASH FROM OPERATIONS I. Premiums collected net of reinsurance ........................................................................................................... ............................... . .................... . ....................210,004,850 2. Net investment income .................................................................................................................................... ............................... ......... .............. 22.794,500 .. .....................22,896,488 3. Miscellaneous income ..................................................................................................................................... ............................... ........................... (982,538 ........................... 664141 4. Total (Lines 1 through 3) ................................................................................................................................. ............................... . .................... ....................232.237.197 5. Benefit and loss related payments ....................... .. ........................... ....................................... ........................................ .............. . ................... . 141.398,108 . ....................147,368,090 6. Net transfers to Separate Accounts. Segregated Accounts and Protected Cell Accounts ........................... ............................... ....................................................... ............................... 7. Commissions. expenses paid and aggregate write -ins for deductions. ..................... ...................................... ............. . ..................... .. .....................81,032,960 8. Dividends paid to policyholders ...................................................................................................................... ............................... .... ........................169,463 .... ........................140,267 9. Federal and foreign income taxes paid (recovered) net of E..........0 lax on capital gains ( losses) ............... ............................... ........................... (447 ......................-.2,77,014 10. Total (Lines 5 through 9) ................................................................................................................................. ............................... . .................... . ....................231,318,331 11. Net cash from operations (Line 4 minus Lime 10) ........................................................................................... ............................... ......... ........... ..20,061.562 ............................ lit 8,867 CASH FROM INVESTMENTS 12. Proceeds from investments sold, matured or repaid: 12.1 Bonds .................. ....................135.939.516 .. .....................98,278,350 .................................................................................................................................. ............................... 12.2 Stocks ............. -- .................... ... ..................... ....................... ............................................................................................... ... ......................3,963,092 ........... .............. 4.640,493 12.3 Mortgage loans. .................................................................. ............... .................................... .................... _ .......... _ ............................. ........... ........................................... 12.4 Real estate .................................................................................................................................................................................................................................. ............................... 12.5 0ther invested assets. .............. ........................................................................ ..................................... ........................... ........................................... .................................... 12.6 Net gains or (losses) on cash, cash equivalents and shorHenn investments .................................... ............................... ....................................................... ............................... 12.7 Miscellaneous proceeds ................................................................................................................................................................ ........................... - -.. ....... ............................ 12.8 Total investment proceeds (Lines 12.1 to 12. 7).............. ................................................................................. ................... . .................... 139,902.607 . ....................102,918,958 13. Cast of investments acquired (long-term only): 13.1 Bonds .................................................................................................................................................... ............................... . .................... . ....................111,611,233 13.2 Stocks................................ ....................................... ......................... ........................................ .. .................. ....................... ... ....... ............... 4.979,600 ... ......................1,786,700 13.3 Mortgage bans ........................................................................................................................................................................................................................... ............................... 134 Real estate ....................................................................................................................................................................................... ............................... - .............. .........- ............. ... 13.5 Other invested assets ....................................... ........................................................... - ...................................................... ..................... ...................... ................... ........................ 13.6 M5scabneous applications ................................................................................................................... ............................... ...... ............................299 ............ ............................... 13.7 Total investments acquired (Limes 13.1 lo 13. 6) .................................................................................. ............................... .....................150 573 733 .....................113 397 934 14. Net increase (deasase) in contract bans and premium rotes .......... ...................................... ................................................. _ - ....................................................... ............................... 15. Net ash from investments (Line 12,8 minus Lines 13.7 minus Line 14) ...................................................... ............................... ... ...................(10,671,126) ... ...................(10.478,976) CASH FROM FINANCING AND MISCELLANEOUS SOURCES 16. Cash provided (applied): 16.1 Surplus rotes, capital rates ........................................................................................................................................................................................................ ............................... 16.2 Capital and paid in surplus, less treasury stock ................................................................................... ............................... 16.3 Borrowed funds ........................................................................................................................................................................................................................... ............................... 16.4 Net deposits on depos84ype contrails and other insurance liabilities ...................................................................................................................................... ............................... 16.5 Dividends to stocid olders ................................................................................................................................................................ ............................... -.......... ............................... 16.6 Other ash provided (applied).. ............ ............................. .........................1,303,371 . .............................61 107 ........................................................... ............................... 17. Net ash from Mnancing and miscellaneous sources (Lines 16.1 N 16.4 minus Lie 16.5 plus Line 16.6) •.•••••.•..•••.......••.••••• •••.•.•.•••.•............1,303,371 . .............................61,107 RECONCILIATION OF CASH, CASH EOUIVALENTS AND SHORT -TERM INVESTMENTS 18. Net change in cash, ash equivalents and short-term investments (Line i t plus Line 15 plus Line 17) ..... ............................... .. .....................10,693,807 .... ....................(9.499,003) 19. Cash, ash equivalents and short -term investments: 19.1 Beginning of year ......................................................... ................................................................................... :.................... ... ......................6,719.038 .. .....................16,218,040 19.2 End of year Lire 18 plus Line 19.1 ......_ .........................._......_..........._........................................ ._._.._........................ .............. -.17,412,845 .................... 6,719.038 Note: I disclosures of cash flow information for non-cash transactions: 20 .0001 ....... ............................... _................................................ ............................... _ ......... 5 Annual Statement tuft year 2012 otthe Erie Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART 1- PREMIUMS EARNED 1 2 3 4 Unearned Premiums Unearned Premiums Net December 31 December 31 Premiums Premiums Prior Year- Current Year- Earned Written per per Col. 3, per Col. 5, During Year Line of Business Column 6 Part 16 Last Year's Part 1 Part to Cols. 1 + 2 - 3 1. Fire.:.................................................................... ............................... .... ......................1,665.409 ...... ........................651.456 ...... ........................708.592 .... ......................1,608.273 2. Allied lines .......................................................... ............................... ...... ........................818.809 .. ...........................297A 14 ...... ........................337,202 ...... ........................779.021 3. Fammwners multiple peril .......................................................................................................................... ............................... ............. ............................... ........... ..............................0 4. Homeowners multiple *1 ................................. ............................... ... .....................52.629.558 ... .....................18,981.831 .. .....................22,143,761 ... .....................49,473,628 5. Commercial multiple peril ................................... ............................... ... .....................30.249.960 ... .....................10.596,669 ... .....................11.626.630 .....................29219.999 6. Mortgage guaranty ...................................................................................................... ............................... 0 ............................... ............. ............................... . 8. Ocean marine ............................................................................................................................................. ............................... ............. ............................... ........... ..............................0 9. Inland marine ...................................................... ............................... .... ......................1.131.524 ...... ........................395,465 ...... ........................422.043 .... ......................1,104,947 10. Financial guaranty....................... ...................................................... .................................... ... ..... ............................................ ............. ............................... ........... ..............................0 11.1 Medical professional kabilgy - occurrence ......... ............................... ....0 ........................................................ ............................... ............. ............................... ........... .......................... 11.2 Medical professional liability - claims- made ................................................... ............................... ............. ............................... ............. ............................... ........... ..............................0 12. Earthquake ......................................................... ............- ................. ............. ............................... ............. ............................... ............. ............................... ........... ..............................0 13. Group accident and health ............................................................................. ............................... ............. ............................... ............. ............................... ........... ..............................0 14. Credit accident and health (group and individual) ......................................... ............................... 15. OBrer accident and health .............................................................................. ............................... ............. ............................... ............. ............................... ........... ..............................0 16. Workers' compensahon ...................................... ............................... ... .....................16.377,299 .... ......................5.574.633 .... ......................6.351.331 ... .....................15,600,601 17.1 Other liability - occurrence ................................. ............................... .... ......................5.497,134 ... .......................1.882282 ... ......................2.054,251 .... ......................5.325.164 17.2 Otherliability - daims- made ..................................... ........... .............. ................................ 1,305 ....... .........................15.582 ....... .........................15.709 ...... .........................21.178 17.3 Excess workers' compensation ...................................................................... ............................... ............. ............................... ............. ............................... ........... ..............................0 18.1 Products liability - occurrence .....- ..................... ............................... ........ ... ................... 101,409 ....... .........................38.441 ....... .........................37.187 ...... ........................102.663 18.2 Products liability - claims-made ...................................................................... ............................... ......................................................... ............................... ........... ..............................0 19.1,19.2 Private passenger auto liability.. ......................... ............ ................ ... .....................59,671,492 .. .....................23,068,753 ... .....................24,034,669 ... .....................58.705,575 19.3, 19.4 Commercial auto iiability .................................... ............................... ... .....................12.595.450 .... ......................4,618.536 .... ......................4.875,519 ... .....................12.338,467 21. Auto physical damage ........................................ ............................... ... .....................48,986,729 ... .....................18.617.498 ... ..... ................ 19.627,980 .. ......................47.976246 22. Aircraft (all perils) ................................................ ............................... . 23. Fidelity ................................................................ ............................... ....... .........................49.235 ...... .........................24.464 ...... .........................26.244 ....... .........................47.454 24. Surety ................................................................. ............................... ...... ........................329,205 ...... ........................175.709 ...... ........................173.997 ...... ........................330.916 26. Burglary and theft ............................................... ............................... ......... ............................535 ... --- .......... .......... ........374 ......... ............................327 ......... ............................581 27. Boger and machinery ......................................... ............................... ......................................................... ............................... ............. ............................... ........... ..............................0 28. Credit................. ................................................ . ........... ..............................0 ............................................ ............................... ......................................................... ............................... 29. International ............... -- .............. .............................................. --- . ................. ............. ............ - ...- ......... ........ ........... .......... . ............. ............................... ........... ..............................0 30. Warranty ............................................................................................ ..................... ........ ......... ...... .............. ..... ... ........... ..... ..... ........ .. ............ ... ... ...... ....... ........ ..............................0 31. Reinsurance - nonproportional assumed property ........................... - ............ ..................(1264) ........ ............................236 ........ ............................236 ....... .........................(1264) 32. Reinsurance - nonproportional assumed liability 33. Reinsurance - nonproportional assumed financial Ines.. ........ ............. ............................... ............. ............................... ............. ............................... ........... ..............................0 34. Aggregate writemins for other Imes of business ............................................ ..............................0 ........... ..............................0 ........... ..............................0 ........... ..............................0 35. TOTALS ......................................................... ............................... ......................230123 773 . .......................84 945 341 ...... ........ ..........92,435.678 .....................ZT2 633.436 DETAILS OF WRITE -INS 3401. ........................................................................................................................ ............................... . ....................0 ........................................................ . . ........ ........ ... .............................. 3402 . ................................................................................................ ............................... :.... ....0 ................................................................................. ............................... . ..... .......................... 3403 . ........................................................................................................................ ............................... ... ....... .... ...- ... .... .......... ........ ............. ............................... ........... ..............................0 3498. Summary of remaining wrfte4ns for Line 34 from overflow page ................ ..............................0 ........... ..............................0 ........... ..............................0 ........... ..............................0 3499. Totals Lines 3401 thru 3403 plus 3498 Line 34 above ) .......... . . I ........... ..............................0 1 ........... ..............................0 ........... ..............................0 ........... ..............................0 6 Mruel Stat..tlmtheyear2012oflme Erie Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART 1A - RECAPITULATION OF ALL PREMIUMS 1 2 3 4 5 Reserve for Amount Unearned Amount Unearned Rate Credits Total Reserve (Running One Year (Running More Than and Retrospective for Uneamed or Less from Date One Year from Earned But Adjustments Based Premiums Line of Business of Policy) a Date of Policy) a Unbilted Premium on Experience Cols.1 + 2 + 3 +4 1. Fire ..................................................................... ............................... ....................706.586 .. ..............................5 .... ............................... .... ............................... .....................708,592 2. Allied lines... ................. ......................... - ..................... ..........337.190 . .............................12 ..... ............................... .. . ........................... - -. .....................337,202 3. Famnowners multiple peril ................................. ............................... .......................................................................... ............................... .... ............................... ... ..............................0 4. Homeowners multiple peril .............. .................... ---- ................... . ...............22,143.761 - ................................. ................................... .... ............................... ................22.143.761 5. Commensal multiple peril .................................. ............................... ...............11.613.381 ......................13.249 ....................................... ............................... ................11,626.630 6. Mortgage guaranty ...................................................................................................................................................... ............................... ...................................... ..............................0 B. Ocean marine .................................................... ............................... .... ............................... .... ............................... - ................. ........... ..... ................................... ............... ........... .......0 9. Inland marine ..................................................... ............................... ....................422.008 . .............................34 ....................................... ............................... .....................422.043 10. Financial guaranty ........ ..................................................... -- ........... .... ............................... .......................................................................... ............................... - ............................... 0 11.1 Medical professional liability - occurrence .................. I ........... .......... .... ............................... ................. I................. .... ............................... .... I.............................. ... ..............................0 11.2 Medical professional liability - daims- made ...... ............................... .... ............................... ............................................................................................................ ..............................0 12. Earltquake ............................................................................................ ............................... .... ............................... ......................................................................... ..............................0 13. Group accident and heath ................................ ............................... ....................................... ............................... ......................................................................... ..............................0 14. Credit accident and heath (group and individual). ............... -- ....... .... ............................... .......................................................................... ............................... - ............................... 0 15. Other accident and health ................................. ............................... ............................................................................................................................................... ..............................0 16. Workers' compensation ..................................... ............................... .................6.347.475 .........................3.856 ....................................... ............................... ..................6,351.331 17.1 Other lability - occurrence ................................. ............................... ................2,047.645 .........................6.606 ................................... ............. I .......... .......... .................2,054,251 17.2 OtheriabWity - claims- nade .............................. ............................... ......................15,709 ....................................... ............................... .... ............................... .......................15.709 17.3 Excess workers' compensation ......................... ............................... .... ............................... .... ............................... .... ............................... ...................................... ..............................0 18.1 Products kabilk - commence ............................ ............................... ......................36.690 ............................497 ....................................... ............................... .......................37,187 18.2 Products kabffhy - cla ms- made ................................. .................. - -. .... ............................... .......................................................................... ............................... ... ..............................0 19.1.19.2 Private passenger auto kablity .......................... ............................... ...............24.034,669 ....................................... ............................... .... ............................... ...............24,034,669 19.3.19.4 Commercial auto liatlWity .................................... ............................... .................4.875.519 .... ............................... -- ............................... .... .............................. ........ ..........4,875.519 21. Auto physical damage ....................................... ............................... ...............19,627.980 .......................................................................... ............................... ................19.627.980 22. Ah refl (all perils) ................................... ................ -- ...................... ................................... ................... . ............... ................................... ................................... .... ............................. 0 23. Fidelity.. ....... ...... ..................................................... ......... ......................21.391 .........................4,853 ....................................... ............................... .......................26.244 24. Surety ................................................................. ............................... ......... ........... 130,818 ......................43,179 ....................................... ............................... .....................173.997 26. Burglary and theft. .............................................. ............................... ............................327 ........................... ... ............................... .... ............................... .... ............................... . 27. Boiler and machinery ......................................... ............................... .... ............................... .... ............................... ......................................................................... ..............................0 28. Credit............... -- ......................................... ..................................... ............................. ............................. ............................. ..............................0 29. International ....................................................... ............................... - ....................... ............................................. ....................................... ............................... ... ..............................0 30, Warranty ............................................................................................. ............................... ............................. ............................. ..............................0 31. Rermirance - nonproportional assumed party .......................... ............................236 .......................................................................... ............................... ............................236 32. Reinsurance - nonproportional assumed liability ............................. ............................................................................................................................................... ..............................0 33. Reinsurance - nonproportional assumed financial Ines.._ .............. ..... ... .............. --- ....... ....... ............................ ............... .............. ......................................... ... ........... ................... 0 34. Aggregate write-ins for other lines of business . ............................... .. ..............................0 .. ..............................0 .. ..............................0 0 .. ..............................0 ... .............................. 35. TOTALS ............................................................. ............................... ...............92,363,386 1 ......................72.292 .. ..............................0 1 .. ..............................0 ................92,435,678 36. Accrued retrospective premiums based on experience .......................................................................................................................................... ............................... -... ............................... 37. Earned but unbilled premiums ................................................................................................................................................................................................................... ..............................0 38. Balance sum of Lines 35 thmuqh 37 ....................................................................................................................................................................................... .............................92 435.678 DETAILS OF WRITE-INS 3401 . ......... .............. .......................................... ................ . .......... - ........... ................................... ..................................... ............... .................... .... ............................... ... ..............................0 3402 . ........................... ................................................................................ ......... ............... -- ....... ................................... . 0 ...................................... ............................... . .. .............................. 3403 . ............................................................................................................... ............................... .... ............................... .................. 0 ................. .... ............................... . ............................... . 3496. Summary of remaining write-ins for tine 34 from overflow page .... .. ..............................0 .. ..............................0 .. ..............................0 .. ..............................0 ... ..............................0 3499. Totals Lines 3401 thru 3403 plus 3498 Line 34 above ................. ..............................0 .. ..............................0 .. ..............................0 .. ..............................0 ... ..............................0 (a) State here basis of computation used in each case: Monthly Pro -Rata 7 i Annual Statement roc the year 2012 or the Erie Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART 1B - PREMIUMS WRITTEN , 1 Reinsurance Assumed Reinsurance Ceded 6 2 3 4 5 Net Premiums Direct Written Buse From From To To (Cols. t + 2 + 3 Line of Business a ess Af6fiates Non - Affiliates Affiliates Non - Affiliates - 4.5 1. Fire.. ..................................................................... .......................... ...........1.059.437 ...........1.665,409 ...........2.059.437 1.665.409 2. Allied lines ........................................................ ............................... ............1.190,366 ..............818.809 1.190,368 ............................ ................818.809 3. Fannowners multiple peril ............. ............................... ............. ............................ ............................ 4. Homeowners multiple peril .............................. ............................... ..........78.615,030 .........52,629.558 ............... .. ... .........78.615,030 ... .................... ...........52.629.558 5. Commercial multiple peril ................................ ............................... ..........57.115.464 .........30,249,960 ............................ .........56.946.978 ..............166,486 ...........30149.960 6. Mortgage guaranty.....- .............................................................................................. ............................... 0 ............................ ............................ B. Ocean marine .................................................. ............................... 0 ........................... ............................... ............................ ............................ ............................ 9. Inland marine ........................................... ............................... ........................932.974 ...........1,131.524 ... ........... 932,974 .............1,131.524 10. Financial guaranty ........................................... ............................... .......... 0 ................. ............................... ............................ ............................ ............................ 11.1 Medical professional liability - occurrence ...................................... ............................... 0 ........................... ............................ ............................ ............................ 11.2 Medical professional liability - claims- made .... ............................... .......................... ............................... . ........................... ............................ ............................ ............................ 12. Earthquake .............................................. ............................... 13. Group accident and health .............................. ............................... 0 14. Credit accident and heats (group and individual ) ......................... .............................. .......................... ............................... ............................ ............................ ............................ 15. Other accident and health ........................... ............................... 0 .... ........................... ............................... ............................ ............................ ............................ 16. Workers' compensation ................................... ............................... ..........21,093.893 .........16,377,300 ........11,093,894 ...........16,377199 17.1 Other liability - occurrence ............................... ............................... ............6,993,653 ...........5,497,134 ............................ ...........6,984,903 ..................8,750 .............5.497,134 17.2 Otheriablity - claims- rnade ............................ ............................... ...................5,782 ................21.305 ..................5,782 ..................21.305 17.3 Excess workers' compensation ............................................... . ............................ ........................... ............................... ............................ ............................ ............................ 18.1 Productsliability - occurrence .......................... ............................... .................70,534 ..............101.409 ................70.534 .... ............ 101,409 18.2 Products liability - claims - made ....................... ............................... ............................... 0 ........................... ............................ ............................ ............................ 19.1,19.2 Private passenger auto liability ....................................................... .... ....151.241AM .........59,671,492 .................. . .......150,042121 ...........1,199,663 ...........59,671,492 ......... 19.3,19.4 Commercial auto liability .................................. ............................... ..........42,151,355 .........12.595,450 .........16.046,200 .........57.808,620 ..............388,935 ...........12,595.450 21. Auto physical damage ..................................... ............................... ........129,538,696 .........48,986.729 ...............18,861 .......129,567,557 ........... 48.986.729 ............................ 22. Aircraft (all perils) ............................................. ............................... ............................0 ........................... ............................ ............................ ............................ 23. Fidelity .............................................................. ............................... ...............973.997 ................49.235 ..............973,997 ..................49135 24. Surety ............................................................... ............................... ............6.232,906 ..............329105 ........... 6132,906 ................329.205 ............................ 26. Burglary and theft ............................................ ............................... .................10.227 .....................535 ................10127 ............................ .......................535 27. Roder and machinery ....................................... ............................... 28. Credit ............................................................:............................................................. ............................... ............................ 0 29. International ..................................................... ............................... ........................... ............................... 0 30. Warranty ..................................................................................................................... ............................... 0 31. Reinsurance - nanproportional assumed property......................... .... .......XXX. ........... .................(1164) ............................ ............................ ...................(1.264) 32. Reinsurance - nonproportional assumed liability ..................... . ..... ............ XXX .......... . ......................(13) ............................ (13) 33. Reinsurance - nonproportional assumed financial Ines ................ ........ .... XXX........ .... ........ ........... ......... ............................ ............................ ............................ ............................0 34. Aggregate writeans for other lines of business .............................. ..........................0 .........................0 .........................0 .........................0 .........................0 ............................0 35. TOTALS ........................................................... ............................... ........498 226 200 .......230123 774 .........16 ....-512,537,427 -......1 .........230123 773 DETAILS OF WRITE-INS 3401 . ......................................................................... ............................... ........................... ............................... 0 3402 . ......................................................................... ............................... ........................... ............................... 0 3403. ................. 3498. Summary of remaining wrfte4ns for Line 34 from overflow page .. ..........................0 .........................0 .........................0 .........................0 .........................0 ............................0 3499. Totals Lines 3401 thru 3403 Dlus 3498 Line 34 above ............. ..........................0 1 .........................0 1 .........................0 1 .........................0 1 .........................0 ............................0 (a) Does the company's direct premiums written include premiums recorded on an installment basis? Yes [ ] No [ X ] If yes: 1. The amount of such installment premiums $..........0. 2. Amount at which such installment premiums would have been reported had they been recorded on an annualized basis $..........0. 8 Annual Statement to; the year 2012 of the Erie Insurance Company ' UNDERWRITING AND INVESTMENT EXHIBIT PART 2 • LOSSES PAID AND INCURRED Losses Pad Less SaN 5 6 7 8 1 2 3 4 Percentage of Net Losses Losses Losses Marred Unpaid Net Losses Incurred (Col 7, Part 2) Direct Reinsurance Reinsurance Net Payments Current Year Unpaid Current Year to Premiums Earned Line of Business Business Assumed Recovered Cols. i + 2.3 Part 2A Col. 8 Prior Year Cols. 4 + 5 - 6 Col. 4 Part 1 1. Fire... ................... ................................ ............................... ....... ........................862.618 ........ .......................818.705 ........ ........................862.618 ........ ........................818.705 ....... ........................466,608 ........ ........................600.619 ................... ............. 684,695 ........... ..........................42.6 2. Allied Ines ............................................................ ............................... .............. .. ................ 568,202 ................... ............. 826,701 ........ ........................568.202 ......................826.701 ........ ........................111.205 .......... ........ ........................111.737 ........ ........................826,169 .......... ...........................106. t 3. Famrowners multiple peril., ................. .._.......... .... ........................ ... ................ ............................... .-............................................ ...... ......................................... ... .....-. .................................. 0 ............. .............................11 _ ........................................ 11 .........0 . 4. Homeowners multiple peril ................................... ............................... .... ..... ................ ...... .....................39.275,242 ...... .....................28.357,344 ...... .....................39,275.242 ....................... 11,159,562 ...... .....................13,190.842 ...... .....................37.243,962 ............ ...........................75.3 5. Commercial multiple peril ..................................... ............................... ...... .....................24,623.304 ...... .....................15.715,591 ...... .....................24.823,304 ...... .....................15,715,591 ..... ......................19215,426 ...... .....................19.218.755 .......... ................ 15.712,262 ............ ...........................53.8 6. Mortgage guaranty ............... ................ .... .......... ... ..... .... ...... .... .................... ...... . ......... ........ .......... .... ............................................................... ............................... .............. .............................. ................ ............................... ................ ............................... .............. ..............................0 ....................... .............. ......_... 8. Ocean manne ................................... .... ............................................... ............................................... ................ ............................... ................ ............................... .............. ..............................0 ........... ..........................5,731 .5.774 ....................... (44) . 9. Inland marine ........................................................ ............................... ........ ........................443.069 ................ ................ 584,847 ........ ........................443,069 ........ ........................584.847 ........ ........................183,982 ........ ......................,.166.064 ........ ........................602.765 ............ ...........................54.6 10. Financial guaranty ............................................................................................................................................................................................. ............................... .............. ..............................0 ................................................. ............................... .......... ..............................0 . 11.1 Medial professional liability - aarrenre ........... ............................... ....................... . ....................... ............................ ,........ 1.833 .......... ..................... .......... ..... ..................................... 1,833 ......... .........................21.458 .............. ............ ........23.291 .............. ..............................0 ................ ............................... 11 .2 Medical professional liability - daims- made ........................................................ ............................... ............................................................... ............................... .............. ..............................0 ................................................. ............................... 0 . 12. Earthquake.., .............................................. ...... - ................. . ................ ............................... ............................................................... ............................... .............. ..............................0 ............ ............................395 ............ ............................395 ............... ............................(0) ........... ..... ............................... 13. Group accident and health .................................................................................. ............................... ............................................................... ............................... .............. ..............................0 ............... ........................ .............. ....................0 . ............... ............... ............................... . ....... .......... ......... ............. ..._..........................0 .............. ............._................. 14. Credd cadent and health (group and individual) .................................. ............ ............................... . 0 . .............................................................. ............................... ............... . 15. Other accident and health ................................................................................................................................................................................. ............................... .............. ..............................0 ................ ............................... .--.......... ............................... .............. ..............................0 ................ ............................... 16. Workers' compensation ........................................ ............................... ...... .....................14.203.420 ...... .......................7,589,728 ..... ......................14230,188 ....... ......................7,562.960 ................. ..........28.262,797 ............. .............. 26.628,005 ............ ................. 9.197,752 ............ ...........................59.0 17.1 Other lability - occurrence .................................... ............................... ........ ........................403.806 .. ........................... 1.629,414 ........ ........................403,806 ....... ......................1,629.414 ...... .......................7291.239 ....... ......................6,518.205 ....... ......................2,402,449 ............ ...........................45.1 17.2 Otherlability - daims- made ............................................................................................ ............................... ............................725 ............... ............ ............................725 ........... ..........................7,141 ........... ..........................8.910 ........... ........................(1.044) ............. ..........................(4.9) to 17.3 Excess workers' oompensalion .......................................................................... ............................... ............................................................... ............................... .............. ..............................0 ................ ............................... 18.1 Products liability - occurrence .............................. ............................... ......... .........................13,487 ......... .........................22.042 ......... .........................13.487 ......... .........................22.042 ......... .........................40,192 ......... .........................47,374 ......... .........................14.860 ............ ..........................14.5 18.2 Products liability - daims - made ........................................................................... ............................... ............................................................... ............................... .............. ..............................0 ............................................................... ............................... .............. ..............................0 ................ ............................... 19.1, 19.2 Private passenger auto liability ............................ ............................... ... ...................... 105,772.767 ..... ......................38.310295 ..... ....................105.772.767 ...... .....................38,310.295 ...... .....................58.967,756 ...... .....................56,842,111 ...... .....................40.435.940 ............ ...........................68.9 19.3,19.4 Commercial auto liability ................................... ........... .................... ... ...... .....................18,320,495 ............ ............... 18.752,895 ...... .....................30.838.891 ....... ......................6,234,499 ...... .....................15.508.790 ...... .....................14.318,477 ....... ......................7.424,812 ........... ....................'......60.2 21. Auto physical damage .......................................... ............................... ...... ..................... 75,571,843 ...... .....................30.138.423 ...... .....................75.596,094 ...... .....................30,114.172 ........ ........................415.967 ................... .............. (24,326) ...... .....................30.554,466 ............ ...........................63.7 22. Aircraft (all perils) ................................................................................................ ............................... ................ ............................... ................ ............................... .............. ..............................0 . .............. ..............................0 . 23. Fidelity .............................. --............................................................... .................... ,........... 269211 ......... .........................13,475 ........ ........................269,211 ......... .........................13.475 ........... ..........................6,100 ........... ..........................8.379 ......... .........................11,196 ............ ...........................23.6 24. Surety ................................................................... ............................... .......- .. .... ................. 866,876 ......... .........................49.366 ........ ........................866,876 ...... ............................ 49,366 ........ ........................246.594 - .............................. 330,329 .............. ....... ... .........(34,369) ............ .........................(10.4) 26. Burglary and theft ................................................. ............................... ................ ............................... ............................................................... ............................... .............. ..............................0 ............ ............................187 ............ ............................185 .............. ..............................2 ............. ............................0.3 27. Boiler and machinery ......................... .................... ............................. .............................................................................................................. ............................... .............. ..............................0 ............ ............................231 .............. ..............................1 ............ ............................229 ............... ............................... . ...... ............................... ............................................................................................................. ............................... .............. ..............................0 ............................................................... ............................... .............. ..............................0 ................ ............................... 29 . International................................................. ..................... ........... .... .......... ........... ........ ........... . .......... ... ............ ..... .............0 ............. ..............................0 . 30. Warranty ............................................................... ............................... ................ ............................... ................ ............................... ................ ............................... .............. ..............................0 ................ ............................... ................ ............................... .............. ..............................0 ................ ............................... 31. Reinsurance - nonproporticnal assumed property ............................. .................. ..XXX.... ... ............. ........ ..........................22568 ................ ............................... ......... .........................22,566 ........ ........................543.745 ........ ........................637,483 .......... .......................(71,172) .......... ......................5,630.5 32. Reinsurance - nonproportional assumed liability .......... ..... ............... ...................... XXX.................... ......... .........................44.257 ................ ............................... ......... .........................44,257 ........ ........................956,728 ........ ........................920.923 ......... .........................80,061 ........ ....................(615.857.5) 33. Reinsurance - nonproportional assumed financial fines ............ ............................. XXX .................... ............................................ ... ........................ ... ...... ... ....... .I.. .............. ..............................0 ............................................................... ............................... .............. ..............................0 ............... ............................... 34. ale write ns for other l nes of business ................................................. ..............................0 .............. ..............................0 .............. ..............................0 .............. ..............................0 .............. ..............................0 .............. ..............................0 .............. ..............................0 ................ ............................... 35. TOTALS ............................................................. ............................... ............................270 276 441 .........................153 796107 .........................282845 856 .........................141 226 692 ... ......................143 411845 .........................139 553,545 .... .....................145.084 992 ............ ...........................65.2 ............................................................................ ............................... ................ ............................... ......... DETAILS OF WRITE -INS 3401. .. ...... ..............................0 ............... ......................0 3402 ............................ ...... .................. ..... ..... ................. .. .... ......... .... .... ........ . ............... ............................... ................ ............................... ................ ............................... .............. ..............................0 ................ ............................... ................ ............................... .............. ..............................0 ............... ..........._.................., 3403. ............................................................................................................................. ............................... .... ..... .... ........... ........... ..... .................. ......... ........... - ............ .............. ..............................0 ............. ..............................0 ................... 3498. Summary of remaining write -ins for Line 34 from overflow page. ...... ............................................ 0 .............. ..............................0 .............. ..............................0 .............. ..............................0 .............. ..............................0 .............. ..............................0 .............. ..............................0 ................ XXX........................ 3499. Totals Lines 3401 thru 3403 plus 3498 Line 34 above ................. .............. ..............................0 .............. ..............................0 .............. ..............................0 .............. ..............................0 .............. ..............................0 .............. ..............................0 .............. ..............................0 Annual Statement for the yew 2012 of the Erie Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART 2A - UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Reporte d Losses Incurred But Not Report 8 9 1 2 3 4 5 6 7 Deduct Reinsurance Net Losses Excluding Net Recoverable from incurred but Net Losses Unpaid Loss Reinsurance Authorized and not Reported Reinsurance Reinsurance Unpaid Adjustment Line of Business Direct Assumed Unauthorized Companies Cols. 1 + 2 - 3 Direct Assumed Ceded Cots. 4 . 5 + 6.7 Expenses 1. Fire ............................................................................ ............................... .. ........................171.989 .. ........................111.294 .. ........................171.989 .. ........................111.294 .. ........................123.288 .. ........................355.314 .. ........................123.288 ......................466.608 ............... 55,444 2. Allied Ones ................................................................. ............................... ... .........................64.705 ... .........................63.602 ... .........................64.705 ... .........................63.602 ... .........................52.322 ... .........................47.603 ... .........................52,322 .. ........................111.205 ... .........................30.391 '�. 3. Famrowners multiple peril. ............................................. ..................... ......... ............................... ...... .............................11 ............................................ ............................... 11 ......... ............................... ................................................. ............................... .... ............................... 11 ......... ............................... 4. Homeowners multiple peril ...................................... ............................... ....................7,423.235 . ......................6.157,797 . ......................7,423,235 . ......................6.157.797 . ......................3.589.680 . ......................5,001,764 . ......................3.589.680 .....................11.159.562 . ......................2,464.654 5. Commercial multiple peril .......................................... ............................... .....................26.806.351 .....................10,051.948 .....................26.806,351 .....................10.051,948 .....................17.742.886 . ......................9.163,479 .....................17,742.886 .....................19.215.426 . ......................9.336.141 6. Mortgage guaranty .................................................... ............................... ............................................................................................................................... ..............................0 ............................................................................................................................... ..............................0 . ........ ............................... 8. Ocean marine ......................................................................................................................................... ............................. .............................................. .............................68 ............. ............................... ..........................5.662 5.731 9. Inland marine ............................................................... ............................... ........................116.999 .. ........................127,304 ............ .............. 116,999 .. ........................127.304 ... .........................69.032 ... .........................56,678 ... .........................69.032 .. ........................183.982 ... .........................33.370 ..................... ..............................0 ......... ......... ............. ............................ 10. Financial guaranty ................................................... ............................... ... ............................... ... ............................... ... ............................... ............................... 0 - ............... .................... ............................................. .. ... .. .........................21 458 ...... .............................30 11.1 Medical professional liability - occurrence .............................................. ............. ............................. .................... ..........8,235 ............. ............................... ..........................8.235 ........... ............................... .......................... 1 3.223 ................. .......... ....... 11.2 Medical professional liability - claims- made .............. ............................... ............................................................................................................................... ..............................0 ............................................................................................. ............................... 12. Earthquake ............................................................................................................. ............................... ............................ .............. ............................... ............................395 .............................................................................................. ............................... ............................395 . ........ ............................... 13. Group accident and health ........................................ ............................... ............................................................................................................................... ..............................0 ......................................................................................... ............................... ( a).. ..............................0 . ........ ............................... 14. Credit accident and health (group and Individual) ..... ............................... ............................................................................................................................... ..............................0 ....................................................................................................................... ............................... . 15. Other accident and health ......................................... ............................... ............................................................................................................................... ..............................0 ......................................................................................... ............................... ( a).. ..............................0 ......... ............................... 16. Workers! compensation ........................................... ............................... ..................35.812.485 .....................13.130.303 .....................36.187.306 .....................12,755.481 .....................34.564.225 .....................18.349,167 .....................37.406.076 .....................28.262.797 . ......................3.640.734 17.1 Other liability - occurrence ........................................... ............................... ........................ . ......................2,394.980 .. ........................785,078 . ......................2.394.980 ...................... 4.951.547 .......................4,896259 ..................... -4,951,547 . ......................7,291.239 .. ........................772,164 17.2 Other liability - claims- made ...................................... ............................... .............. ............................... ............................910 .............. ............................... ............................910 .... ..........................3.525 ... ...........................6231 .... ..........................3,525 .... ..........................7.141 ... ...........................6293 17.3 Excess workers' compensation ................................. ............................... . CD 18.1 Products liability - occurrence .................................. . ....... .... .......... .......... ............. ............................... ..........................5.601 ............. ............................... ..........................5.601 ... .........................18.498 ... .........................34,591 ... .........................18.498 ... .........................40.192 ... .........................37.232 18.2 Products liability - claims- made ............................................................................................................................................................................................... ..............................0 ......................................................:........................................................................ ..............................0 ......... ............................... 19.1,19.2 Private passenger auto liability ................................. ................... .. ........... ... ................ 113.770,484 .....................28268.729 ...................113.770,484 .....................28.268,729 ...................153.487.367 .....................30.699.027 ...................153.487,367 ....... .............. 58.967,756 . ......................8.854.573 19.3.19.4 Commercial auto liability ................................................ ...... ..... ... ... .... .... . ...... ............... 25,069,546 .....................14.020.994 .....................32.852,338 .......................6238.202 .....................25,898.825 .....................21,333.979 .....................37.962215 .....................15.508.790 . ......................3.129.694 21. Auto physical damage .......................... ... ... .... ....... ..... ............................... ................... 5,158.702 . ......................2209.541 ........... ............ 5.169,711 . ......................2.198.532 . ....................(4,964,818) . ....................(1.786.035) .....................(4.968288) .. ........................415.967 ............ ..............406,684 22. Aircraft (all perils) ...................................................... ............................... ............................................................................................................................... ................:............. ............................................................................................................................... ..............................0 ......... ............................... 23. Fidelity .......................................................................... ............................... ......................... .... ..........................1250 .............. .............. 25,000 ... ...........................1250 ... .........................95,425 .... ..........................4.850 ... .........................95,425 .... ..........................6,100 .... ..........................2,475 ......................1.287,138 ... .........................78,991 . ......................3.129.175 ......167,604 . ......................3.129.175 .. ........................246,594 ..........................107 902 78,991 .............. .1287.138 ........................... � ....187 . ........ .... .......................... 24. Surety .............................................................................................. ............................... .... ............................185 ...... .............................33 ....... ..............................2 ...... .............................33 ............................. . 26. Burglary and theft ................................................................................................... ............................... ............................ ......... ............................... . 27. Boiler and machinery ..... ............................231 .............. ............................... ............................231 .............................................................................................. ............................... ............................231 ...................................... - 28. Credit ....................................................................................................................................................................................................................................... ..............................0 ........................................ ........... -- ......................... ....................................... .................. .................... 0 ......... ............................... 29. IntemaWnal ............................................................................................................................................................................................................................. ..............................0 ............................................................................................................................... ..............................0 ......... ............................... 30. Warranty .................................................................................................................................................................................................................................. ..............................0 ............................................................................................................................... ..............................0 ............. - ................. ........ 31. Reinsurance - nonproportional assumed property .... ............................... .. ........ ..-- )O(X ........... ... ... ............... ...........517.178 ........... ............................... ........................517.178 ................ XXX ................. ... ......................... 26,567 ........... ............................... ........................543.745 .... ..........................3.278 32. Reinsurance - nonproportional assumed liabilit y ...................................... ................ XXX ................. .......................... 373.396 ........... ............................... ........................373.396 ................ XXX ................. .... ...................... 583,332 ......................... ............... .......................... 956,728 .... ..........................7.870 33. Reinsurance - nonproportional assumed financial Ones .................. ......... ................ XXX ................. ............ ............................ .............................. .......... ......................... ............ 0 ................ XXX ................. ....... ................................ ............................... .......... ..................................... 0 ......... ............................... 34. ate vrt to -ins for other Ones of business ......... ............................... ....... ..............................0 ....... ..............................0 ....... ..............................0 ....... ..............................0 ....... ..............................0 ....... ..............................0 ....... ..............................0 ....... ..............................0 ....... ..............................0 35. TOTALS .................................................................... ............................... ...................216,491.712 .....................77.522.943 ...................224,660.334 .....................69.354.320 ...................238,761.009 .....................88.959.296 ...................253,662.781 ...................143,411.845 .....................28.888.928 DETAILS OF WRITE4NS 3401, .................................................................................. ............................... ............................................................................................................................... .............................. ............................................................................................................................... ..............................0 . ........ ............................... 3402. .............................................................................................................................. ..............................0 ............................................................................................................................... ..............................0 ......... .............................. ................. . .. ..... . . 3403. ....... ............................... ............................................................................................................................... ..............................0 ..................................-........................................................................................... ..............................0 ......... ............................... ......................... ....................... 3498. Summary of remaining wdtedns for Line 34 from overflow page ............. ....... ..............................0 ....... ..............................0 ....... ..............................0 ....... ..............................0 ....... ..............................0 ....... ..............................0 ...... ..............................0 ....... ..............................0 ....... ..............................0 3499. Totals Lines 3401 thru 3403 us 3498 Line 34 above) ............................... ..............................0 ....... ..............................0 ....... ..............................0 ....... ..............................0 ....... ................. 0 .............0 ....... .............................. ....... ..............................0 ....... ..............................0 ....... ..............................0 (a) Including $..........0 for present value of life indemnity claims. Annual sta,ement for ft y mr2012ofat Erie Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART 3 - EXPENSES 1 2 3 4 Omer Loss Adjustment Underwriting Investment ExDenses Expenses Expenses Total 1. Claim adjustment services: 1.1 Direct ....................................................................................... ............................... .....................14.354.446 ....... ............................... .....14,354,446 ....... ............................... .............. 1.2 Reinsurance assumed ............................................................. ............................... ......................9.132.133 ....... ............................... ....... ............................... .....................9,132.133 1.3 Reinsurance ceded.. ........................................................................................... .... ................... 16 316 010 ....... ............................... ....... ............................... ...................16.318,010 1.4 Net claim adjustment services (1.1 + 1.2 - 1. 3) ................... .... ................................ .......... ...........7,168.569 ..... ..............................0 ..... ..............................0 .....................7,168,569 2. Commission and brokerage: 21 Direct, excluding contingent ............................................................................................ ............................... ...................58.389.413 ....... ............................... ...................58.389,413 2.2 Reinsurance assumed, excluding contingent ................................................................. ............................... ...................30.972,975 ....... ............................... ...................30,972,975 23 Reinsurance ceded. excluding contingent .................................................................... ............................... ... ................ 59,911.355 ....... ............................... ...................59.911,355 2.4 Contingent - direct ........................................................................................................... ............................... .....................5,447.068 ....... ............................... .....................5.447,068 2.5 Contingent - reinsurance assumed .......................................... ............................... ....... ............................... ....................2.132,645 ....... ............................... ... .................. 2.132,645 2.6 Contingent - reinsurance ceded ..................................................................................... ............................... ......... ............ 5,447.068 ....... ............................... .....................5.447,068 2.7 Policy and membership f ees....................................... ................ .................. ........... ....... ............................... ....... ............................... ....... ............................... ..... ..............................0 2.8 Net commission and brokerage (2.1 + 22 - 2.3 + 2.4 + 2.5 - 2.6 + 2.7) ................. ..... ..............................0 ...................31,583,678 ..... ..............................0 ...................31,583,678 3. Allowances to manager and agents ................................. - ............................. 4 . Advertising ........................... .......................... ..................... .. .......... ........................ ............ .......................... 22,251 .....................1,139.112 ....... ............................... .....................1,161,364 5. Boards, bureaus and associations ....................................................... ............................... .........................80,016 ........................550.947 ....... ............................... ........................630.963 6. Surveys and underwriting reports ...................................................... ............................... . .........................28,493 ....1,608,162. ....................1.636,655 7. Audit ofassureds' records ......................................................................................................... ............................... ........................198,375 ..........198.375 ...... ............................... .............. 8. Salary and related items: 8.1 Salaries ............................. ............................................. _ ........................................ ..................... 9.526,316 ...................10.151.903 ........................211,203 ...................19,889,422 82 Payroll taxes.. ......................... .................... ........................................ ................... ........................ 690,452 ........................736.897 .. ..........................9,260 .....................1.436,608 9. Employee relations and welfare ......................................................... ............................... ......................3.023,871 .....................3.254,627 . .........................42,613 .....................6,321,111 10. Insurance ............................... ... ....................... ...................... ....................................... ....... .. ....................... 87,028 . .........................76,895 .. ..........................6.771 ........................170,694 11. Direclors' lees ............................................................................................................................ ............................... ..... ................... 152,705 ....... ............................... ........................152.705 12. Travel and travel items ........................................................................ ............................... ........................554.344 ........................515.189 .. ..........................3.209 .....................1,072,742 13. Rent and rent items .................... ............................... ...... .......................... .... ... ................. ........................322,779 ........................617.361 .. ..........................3,543 ........................943,682 . 14. Equipment ........................................................................................... ............................... .. ...................... 359,017 ........................602.542 .. ..........................3,073 ........................964,632 15. Cost or depreciation of EDP equipment and software ...................................................... ................ .....1,571,062 ....................2,206.512 . .........................28.417 .....................3.805.991 16. Printing and stationery-, ............................. __ .......................................... .................. ..... . .........................89,402 ........................280.512 . .........................18,094 ........................388.008 17. Postage, telephone and telegraph, exchange and express ............... ............................... ........................402.409 .....................1.666,090 ... ............................976 .....................2,069,476 18. Legal and auditing ............................................................................. ............................... .........................221570 .....................1.972.986 ..........................13,375 ..................... 2.207.931 19. Totals (Lines 3 to 18) ......................................................................... ............................... .....................16,979.010 ..................25,730.816 ........................340,534 ...................43,050,360 20. Taxes, licenses and lees: 20.1 State and local insurance taxes deducting guaranty association credits of5.....41. 058 .................................................................................................................. ............................... .....................5.138.520 ....... ............................... .....................5,138.520 202 Insurance department licenses and fees ........................................................................ ............................... ........................433.727 ... ............................733 ........................434.460 20.3 Gross guaranty association assessments ...................................................................... ............................... ........................112214 ....... ............................... ........................112.214 20.4 All other (excluding federal and foreign income and real estate ) ........................... . ...........................3,443 ..........................62,870 ............................ .....66 313 .......... ..................... 20.5 Total taxes, licenses and fees (20.1 + 20.2 + 20.3 + 20.4)_ .......... ....................... ...... ..................... 3,443 .....................5,747.331 ... ............................733 .....................5,751,507 21. Real estate expenses ................................................................................................................ ............................... .... ..............................0 ....... ............................... ....... ............................... . 22. Real estate taxes ....................................................................................................................... ............................... ....... ............................... ....... ............................... 0 ........................ ........... 23. Reimbursements by uninsured plans. ...................................................... . ....... ............................... ....... ............................... ....... ............................... ..... ..............................0 24. Aggregate write-ins for miscellaneous expenses .......................................................... ............................... (2,706) ........................638,466 ... ............................792 636 552 _792 ................... 636,552 25. Total expenses Incurred ........... ............. ..................................... ... .............. ....................... ...... ............. 24,148.316 ...................63,700291 ........................342,059 (a)_ ............ 88,190.665 26. Less unpaid expenses -current year .......................................... ....................................... ................. ..28.888,928 .....................2.228,864 . .........................86,465 ...................31204256 27. Add unpaid expenses - prior year...... ............ ............ ............. _ ........................... ............. 27,872,745 .....................1,905.311 . .........................39.558 ...................29.817.614 28. Amounts receivable relating to uninsured plans. prior year ..................................................... ............................... ....... ............................... ...__ ...................... ........ ..... ..............................0 29. Amounts receivable relating to uninsured plans- current year ................................................. ............................... - .......... .......................... ....... ............................... ..... ..............................0 30. TOTAL EXPENSES PAID (lines 25 - 26 + 27 - 28 + 29). ...................................... ................... 23,132,133 ...................63,376,738 ........................295,152 ...................86,804,023 DETAILS OF WRITEdNS 2401. Miscellaneous Expense ...................................................................... ............................... ... ........................(8,701) ........................638,416 ... ............................792 ........................630.507 2402. Contributions - Charities ...................................................................... ............................... .. ..........................5,995 .... .............................50 ....... ............................... .. ..........................6.045 2403 .................................................................................................................................................... ............................... .0 ...... ............................... ....... ............................... .. ... .... ......................... 2498. Summary of remaining write -ins for Line 24 from overflow page ....... ............................... ..... ..............................0 ..... ..............................0 ..... ..............................0 ..... ..............................0 2499. Totals Lines 2401 thru 2403 plus 2498 (Line 24 above ................. ............................... ........................... (2,706) ........................638 466 ... ............................792 ........................636,552 (a) includes management fees of E.....57,883,553 to affiliates and 3..........0 to ran - affiliates. 11 Annual Stalemerxkxmeyear2o12ofdhe Erie Insurance Company EXHIBIT OF NET INVESTMENT INCOME 1 2 , Collected Earned During Year During Year 1. U.S. government bonds ........................ ............................... .................. ............................. ...................... ........................ (a)........ ........................220.707 ............ ........................220.710 .......... 1.1 Bonds exempt from U.S. tax ........................................................................................................................ ............................... (a)....... ......................1.897.656 ........... ......................1.989.839 1.2 Other bonds ( unaffiliated)................ ... .................................. ..................... .......................... ............ ............. .............................. (a)...... .....................18.241.173 .......... .....................17.974.581 1.3 Bonds of affiliates ......................................................................................................................................... ............................... ( a)................................................................... ............................... 2.1 Preferred stocks ( unaffiliated) ...................................................................................................................... ............................... (b)....... ......................1.262.459 .......... .......................1248.639 2.11 Referred stocks of affiliates ......................................................................................................................... ............................... ( b).................................. .............................-- - --............................. 2.2 Common stocks ( unaffiliated) ............................................................................................................................................................. ............................... ..... ....... .......... ............................... 2.21 Common stocks of affiliates ............................................................................................................................................................................ ............................... .................... ............................... 3. Mortgage bans ............................................................................................................................................ ............................... (c) ............................................... .................... ............................ 4. Real estate ................................................................................................................................................... ............................... ( d)................................................................... ............................... 5. Contract loans., .................. - ....................................... .......................................... .................... ............................... 6. Cash, cash equivalents and short-term investments .................................................................................. ............................... (e)......... .........................51.634 .............. .........................13.763 7. Derivative instruments. ....................... ........................................ .............................................................................................. ( Q.................................................................... ............................... 8. Other invested assets .................................................................................................................................. ............................... .................... ............................... .................... ............................... 9. Aggregate write-ins for investment income ................................................................................................. ............................... .................. ..............................0 .................. ..............................0 10. Total oross investment income .................................................................................................................... ............................... . ............................. 673 631 ..... ..........................21 11. Investment expanses ......................................................................................................................................................................................... ............................... (9)........ ........................341.326 12. Investment taxes, licenses and fees, excluding federal income taxes ............................................................................................................. ............................... (g)........... ............................733 13. Interest expense. ...................................................................... ......................................................... 14. Depredation on real estate and other invested assets ..................................................................................................................................... ............................... ( i)............... ..............................0 15. Aggregate write -ins for deductions from investment income ............................................................................................................................ ....................... :....... .................. ..............................0 16. Total deductions (Lines 11 through 15) ............................................................................................................................................................ ............................... ......... ............................342 054 17. Net investment income Line 10 minus Line 16 ............................................................................................................................................... ............................... ......... .....................21.105.474 DETAILS OF WRITEINS 0901 ........................ ............................... ................. .................... ............................... ................................................................................................................ ............................... . ................... ............ .. 0902 .................. ..................................................................................................................................................... ............................... . 0903 ............................................................................................................................................................................................................................................................................. ............................... 0998.. Summary of remaining write-ins for Line 9 from overflow page ................................................................. ............................... .............. ............................... ...0 .................. ..............................0 0999. Totals Lines 0901 Mru 0903 plus 0998 Line 9 above ............................................................................ ............................... .................. ..............................0 .................. ..............................0 1501 . ........................................................................................................................................................................................................................... ............................... .................... ............................... 1502 . ....................... ............................... ..................................................................................................................................................................... ............................... . 1503 .- .............................. ............................. .................... ............................... 1598. Summary of remaining write-ins for Line 15 from overflow page ..................................................................................................................... ............................... .................. ..............................0 1599. Totals Lines 1501 thru 1503 plus 1598 Line 15 above ................................................................................................................................ ............................... .................. ..............................0 (a) Includes $.....419,233 accrual of discount less $.....1,921,718 amortization of premium and less $.....735,541 paid for accrued interest on purchases. (b) Includes $..........0 accrual of discount less $..........0 amortization of premium and less $..........0 paid for accrued dividends on purchases. (c) Includes $..........0 accrual of discount less $..........0 amortization of premium and less $..........0 paid for accrued interest on purchases. (d) Includes $..........0 for companys occupancy of its own buildings; and excludes S..........0 interest on encumbrances. (e) Includes $..........0 accrual of discount less $.....3,261 amortization of premium and less S..........0 paid for accrued interest on purchases. (f) Includes $..........0 accrual of discount less $..........0 amortization of premium. (g) Includes $..........0 investment expenses and $..........0 investment taxes, licenses and fees, excluding federal income taxes, attributable to Segregated and Separate Accounts. (h) Includes $..........0 interest on surplus notes and $..........0 interest on capital notes. (i) Includes $..........0 depredation on real estate and $..........0 depredation on other invested assets. EXHIBIT OF CAPITAL GAINS LOSSES 1 2 3 4 5 Realized Change in Gain (Loss) Other Total Realized Charge in Unrealized on Sales Realized Capital Gain (Lass) Unrealized Foreign Exchange or Maturity Ad'ustments Columns 1 + 2 Capital Gain Lass Capital Gain Loss 1 . U.S. government bonds ................................... ............................... ..........................2.953 ...... ............................... ..........................2.953 ...... ............................... ...... ............................... 1.1 Bonds exempt from U.S. tax ............................ ............................... .......................(84,448) ...... ............................... .......................(84.448) ...... ............................... ...... ............................... 12 Other bonds (unaffiliated) ................................ ............................... ...................6.397.095 . ........................(5,980) ...................6.391,115 .........................35.005 ...... ............................... 1.3 Bonds of affiliates. .............................................. ................. ..................... -- ..... ...... ............................... .... ..............................0 ........................................... ............................... 2.1 Referred stocks (unaffiliated). ....................... - ............................... ......................251.967 ...... ............................... .....................251.967 ......................596.859 ...... ............................... 2.11 Referred stocks of affiliates ....................................................................................................... ............................... .... ..............................0 ...... ............................... ...... ............................... 2.2 Common stocks ( unaffiliated) .......................... ............................... .............................................................................. ..............................0 ........................................... ............................... 2.21 Common stocks of affiliates ............................. ............................... ...... ............................... ...... ............................... .... ..............................0 ......................489.726 ...... ............................... 3. Mortgage loans ................................................ ............................... ........................................... ............................... .... ..............................0 . .......................................... ............................... 4. Real estate ....................................................... ............................... ... ............................... ............................... . ..............................0 ... .1............................. .........I .......... ........... 5. Contract loans.. ............................................................................... ........................................... ............................... .... ..............................0 ...... ............................... ...... ............................... 6. Cash, cash equivalents and short-term investments ................................................................. ............................... .... ..............................0 ...... ............................... ..... ............................... 7. Derivative instruments ................................................................................................................ ................... . . .......... .... ..............................0 ........................................... ........ .... ................... 8. Other invested assets ...................................... ............................... ........................................... ............................... .... ..............................0 ...... ...............4............... ...... ............................... 9. Aggregate write-ins for capital gains ( losses)......... I ....................... .... ..............................0 .... ..............................0 .... ..............................0 1 .... ..............................0 .... ..............................0 10. Total capital ains losses ............................... ............................... ...................6 567 566 ......................... 5 980 ...................6 561586 ...................1 121590 .... ..............................0 DETAILS OF WRITE -INS 0901 ................................................................................................................ ............................... ...... ............................... .... ..............................0 ...... ............................... ...... ............................... 0902 ................................................................................................................ ............................... ...... ............................... .... ..............................0 ........................................... ............................... 0903 ................................................................................................................ ............................... ...... .........................1..... .... ..............................0 ...... ............................... ...... ............................... 0998. Summary of remaining writeins for Line 9 from overflow page ......... ..............................0 .... ..............................0 .... ..............................0 .... ..............................0 .... ..............................0 0999. Totals Lines 09018uu 0903 plus 0998 Line 9 above) ............... .... ..............................0 .... ..............................0 .... ..............................0 ... ..............................0 .... ..............................0 12 Amual Statement for the year 2012 of the Erie Insurance Company EXHIBIT OF NONADMITTED ASSETS 1 2 3 Current Year Prior Year Change in Total Total Total Nonadmiaed Assets Nonadmiaed Assets Nonadmiaed Assets Col. 2 - Col. 1 1. Bonds (Schedule D) ................................................................................................................................... .................................. ....... .......... ............. .................... .............. ..............................0 2. Stocks (Schedule D): 2.1 Preferred stocks................... ................... .................. .... .... ..... ...................... ............ ..... ................... .... ... ..... .... ............. ..... ................... ............................... ................. ..............................0 2.2 Common stocks .................................................................................................................................................................................... ............................... ................. ..............................0 3. Mortgage bans on real estate (Schedule B): 3.1 First I' iens ............................................................................................................................................. ............................... ................... ............................... ................. ..............................0 32 Other than first lens................ ..... ................. .......... .... ................. ....... ......... .......... ......... ................... ............................... ................... ............................... ................. ..............................0 4. Real estate (Schedule A): 4 .1 Properties occupied by the company ................................................................................................. ............................... ................... ............................... ................. ..............................0 4.2 Properties held for the production of income ..................................................................................... ............................... ................... ............................... ................. ..............................0 4 .3 Properties held for sale., ................... .. . ..... .. . ..... ..... ....... . ........ ... ... .. ........... ... ................... ............................... ................... ............................... ................. ..............................0 5. Cash (Schedule E-Part 1), rash equivalents (Schedule E-Pad 2) andshort-term investrnents (Schedule DA) ................................................................................................. ............................... ................... ............................... ................. ..............................0 6. Contract bans ...................... - ...................... ..... .... ..... ........ ............................... ................. .... .... .............. ... ........ ......... ...... ......... . ................... ............................... ................. .............................. 7. Derivatives (Schedule DS) ......................................................................... ............................... ............ ................ ..... .......... . ........... . ........ ............................... ......... ..... .............. .................. .o ..... 8. Ocher invested assets (Schedule BA) .......................................................................................................... ............................... ................... ............................... ................. ..............................0 9. Receivables for securities ............................................................................................................................. ............................... ................... ............................... . ................ ..............................0 10. Secudbes lending reinvested collateral assets (Schedule DL) .................................................................... ............................... ................... ............................... ................. ..............................0 11. Aggregate write-ins for invested assets ..................................................... ............................... ................. ..............................0 ................. ..............................0 ................. ..............................0 12. Subtotals. rash and invested assets (Lines 1 to 11) .................................. ............................... ................. ..............................0 ................. ..............................0 ................. ..............................0 13. Title plants (for Tolle insures only) ................................... ....................................... .................. ........ . .. . .......... . .. ... ..... . . ... .................. ............................ ................. ..............................0 ................ 14. Investmerd income due and accrued ........................................................................................................... ............................... ................... ............................... ................. ..............................0 15. Premiums and considerations: 15.1 Uncollected premiums and agents' balances in the course o1 collection .... ............................... ........................837.736 ......................... ... ....... .462,408 ............. ......................(375,329) 151 Deterred premiums, agents' balances and instalirnents (rooked but deferredand rot yet due .................................................................. ............................... ................... ............................... ................... ............................... ................. ..............................0 15.3 Accrued retrospective Premiums ........................................................................................................ ............................... ................... ............................... ................. ..............................0 16. Reinsura oe: 16.1 Amounts recoverable from reinsurers ................................................................................................ ............................... ................... ............................... ................. ..............................0 161 Funds held by or deposited with reinsured companies .................................................. ............. ............. ... .... ... ................... ............................... ................. ..............................0 16.3 Other amounts receivable under reinsurance contracts .................................................................... ............................... ................... ............................... ................. ..............................0 17. Amounts receivable relating to uninsured Plans .......................................................................................... ............................... ................... ............................... ................. ..............................0 18.1 Current federal and foreign income tax recoverable and interest thereon .................................................. ............................... ................... ............................... ................. ..............................0 182 Net deferred tax asset ........................................... ................. ...... .............. -- ..... .... ..... ............ - .. ................. ............ 3.626.492 ........... ......................7,031,695 ........... ......................3,405,203 19. Guaranty funds receivable or an deposit. ............................................................ .................... ... ......................... ..................... .................................................. ................. ..............................0 20. Electronic data processing equipment and soavrare ....... .... ................ .................. ............ ....... ...... .......... ... . ........... ..... .............. ................... ............................... ................. ..............................0 21. FumiWre and equipment, including health rare delivery assets ............... ............................... ................... ............................... ................... ............................... ................. ..............................0 22. Net adjustment in assets and fablities due to foreign exchange rates ....................................................... ............................... ................... ............................... ................. ..............................0 21 Receivables from parent subsidiaries and affiliates. .............................. ............. . . ........ . . - ... .... ............... .. . .... ........ ................... ............................... ................. ..............................0 24. Wallin rare and other amounts receivable .................................................................................................. ............................... ... ..................................... I......... ................ ..............................0 25. Aggregate write-ins for other than invested assets................... -- ........... .... ....... ....... .. ............. ................... .................... (9.261) ........ ...............................(9261) ................. ..............................0 26. Trial assets excluding Separate Accounts, Segregated Accounts and Protected CeltAccounts (Lines 12 through 25) .............. ............... ....... ......... .... .................... ... ... ....... ....... ... .......... .................... 4.454,967 ........... ......................7,484,842 ............................ .....3,029.874 27. From Separate Accounts, Segregated Accounts and Protected Celt Accounts. ................... - 0 28. TOTALS ('Lines 26 and 27) .................... ................................... ..... ..... .......... ........... ..... ............ ................ ........... .....4.454,967 ........... ......................7.484.842 ........... ......................3,029.874 DETAILS OF WRITE4NS 1101 ..................................................................................................................... ............................... ................... ............................... ................... ............................... ................. ..............................0 1102 . ................... ............ ........... ......... ......... .............. ..... ....... ..... ....... .................... ... ... .... ....... ............ ......... -...... ....- ... ...................... . ................... ............................... ................. ..............................0 1103 ....................................................................................................................................................................... ............................... ................... ............................... ................. ..............................0 1198. Summary of remaining write-ins for Line 11 from overflow page .............. ............................... ................. ..............................0 ................. ..............................0 ................. ..............................0 1199. Totals Lanes 1101 thru 1103 us 1198 Line 11 above ......................... ............................... ................. ..............................0 ................. ..............................0 1 ................. ..............................0 2501. VA Premium Tax Correction ..................................................................................... ............................... .........................(9261) ............... ........................(9,261) ................. ..............................0 2502 ....................................................................................................................................................................... ............................... ................... ............................... ................. ..............................0 2503 ....................................................................................................................................................................... ............................... ................... ............................... ................. ..............................0 2598. Summary of remaining wraemins for Line 25 from overflow page .............. ............................... ................. ..............................0 ................. ..............................0 ................. ..............................0 2599. Totals Lines 2501 thru 2503 ohm 2598 (Line 25 above) ................................................................ ............................... (9,261) ........ ............................... (9.2611 ................. ..............................0 13 Annoal Statement for the year 2012 of the Erie Insurance Company SCHEDULE E - PART 1 - CASH 1 2 u 3 5 6 7 Arc l of Amp i of ' Rate IM-1 Interest Accrued pe Ao of Received December 31 of Coda Interest Yea; Curren) Year Balance M Itoriec ' PNCBank .................. .....__.......... .............. ............. ,............. ..... P PA 15222._............... ............. . ............_...._...._....._.. ......_... WA._ ................. _.........._...__(168.851) %XX 0199999. Total - i n De tanes ......... ..... ... ..... 0399999. Total Cash on Deposit . ... - .... 0599999. total Cash ... ...... ........................._....................................,............................... _................_............. _._.............. ....7W(...._......%%X..__,.. .... .......0 ... ... ...0 .. ............ ..._._......(188.851( %X%. TOTALS OF DEPOSITORY BALANCES ON THE LAST DAY OF EACH MONTH DURING THE CURRENT YEAR 1 .January_._..........._..__._... ....... ..`...__ ...............(29,817) �. ApriL ..._....._...._......._....... ..._. ..__........(247,781) zJ uly_ ......._.............._:._..... ...... ......_....._.........._11102) 1o. October ..................._....._ _..... .............._.....(2.61.959) 2. F,lry.........._...._ .......... ..... ........._....._......_(tl5.080) S. May.... .............................._ ._... ._.......,... . _....._........._ . .(165.909) 8. lugust ........._.................... ......... ......................(219.6931 11 .Nwemtrec....................... .... .._...._.............._1635105) 3. March .................._.._........ ...... ._......................130.738 6. June... ........._..................... ...... ._......................232.311 9. Se tember......................... ..._.. ........................105.319 12. December....................... ........_.....__._......_ 188.851 E25 knugSatarrr loftlear2012ofdre Erie Insurance Company SCHEDULE D - SUMMARY BY COUNTRY ' Long -Term Bonds and Stocks OWNED December 31 of Current Year 1 2 3 4 BooklAdjusted Per Value Descri Carrying Value Fair Value Actual Cos[ of Bonds BONDS 1. United Stales ........................ .......................5212,118 . ......................5,884,226 . ......................4,678,316 . ......................5,197,000 Governments(Including all obligations 2. Canada .. ............................... ..................................................................................................................................... ............................... guaranteed by governments) 3. Other Countries .................... ..................................................................................................................................... ............................... 4. Totals ..... ............................... .......................5 12118 ....................... 5,884.M ....................... 4,678,316 .......................5 U.S. States. Territories and Possessions and aranteed S. Totals ..... .....................4.4.44.... .......................7 .......................8631790 .......................7995135 .......................6.995000 U.S. Political Subdivisions of States, Territories and Possessions Direct and aranteedl 6. Totals..... 4444 ........................... .....................16 570 719 .....................17 543 033 .....................16 828 634 .....................15,235.000 U.S. Special Revenue and Special Assessment Obligations and All Non-Guaranteed Obligations of Agencies and Authodties of Governments and Their PoWcal Subdivisions 7. Totals ..... ............................... ....................53133 45 .....................56 286960 .....................53 938 365 ..................... 48700,480 Industrial and Miscellaneous and Hybrid 8. United States ........................ ...................320,085247 ....346,391,921 321,437,123 307.455,577 Securities (Unaffiliated) 9. Canada.......... 4 ...................... _ ............ ........ 8.018,624 . ......................9,018,100 .......................8,032250 ................... ...8,000.000 10. Other Countries......_ ............ .....................31767 333 ..................... 35,9M.660 .....................31,447.835 ..................... 344200.000 11. Totals ..... ............................... ................... 359,871 ...................391318 681 ................... M,917,208 .........._.......349 655 577 ParentSubsidiaries and Affiliates 12. Totals ............. .._.................. ..................................................................................................................................... ............................... 13. Total Bonds.......__._...._ ... ................... 442,643,493 ...................479 666 691 ................... 444,357,659 ...................d25 783 058 PREFERRED STOCKS 14. United States ........................ .....................15,826.172 ....................16.219,712 ........... ......... 15239.300 Mustdal and Miscellaneous (Unaffiliated) 15. Canada .. .............................4. ............................................................................................ .................4............. 16. Other Countries .................... .......................1.661.352 .......................1661 352 .......................1 17. Totals ..... .........................4444.. .....................17 487 524 .....................17 1 064 .....................16 902 500 Parent Subsidiaries and Affiliates 16. Totals..... ............................... ............................................................................................ ............................... 194 Tout Pr of. rrsd Stocks »__ . .....................17 487 524 .....................17 861064 .....................16 902 500 COMMON STOCKS 20. United States.. .......... 4 4 . ............................................................................................ ............................... Industrial and Miscellaneous (Unaffifiated) 21. Canada .. ......... ..................... I ............................................................................................ ............................... 22. Other Countries ............. ..... ..........._............................................................................... .4.4........................... 23. Totals ............... 4.................... ............. _ ....................... 0 ...-... . ............................. 0 ........ ..............................0 Parent Subsidiaries and Affiliates 24. Totals, 4 .... .... ....................20 719108 .....................20,719 .......................7135 463 25. Total Common Stocks___ ....................20719108 .............. .....20719108 .......................7135463 26. Total Stocks .____....._._ . .....................38 O6 632 .....................38,600 ....................24 037 963 27. Total Bonds and Stocks --- ...................480,850.125 ...................518266,862 ...................468.395.623 1 S104