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Home My WebLink About02-1997COMMONWEALTH OF PENNSYLVANIA INSURANCE DEPARTMENT Harrisburg, PA April 1, 2002 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 17th day of May, A.D. 1921, as well as with the requirements of the laws of this Commonwealth applicable to such company in doing business herein. Now Therefore, I, M. Diane Koken: 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 ail bonds, undertakings and obligations required or permitted by law or the ordinances, rules or regulations of any municipality, board, body, organization, or public officer. In Witness Whereof, I have hereunto set my hand and affixed my official seal, the day and year first above written. Insurance Commissioner PROPERTY AND CASUALTY COMPANIES · ASSOCIATION EDITION IIIIlIIIIlilIIIIIIIIIIIB ANNUAL STATEMENT FOR THE YEAR ENDED DECElvIBER 3 I, 2001 OF THE CONDITION AND AFFAIRS OF THE ERIE INSURANCE COMPANY NAIC Group Code 213 213 NAIC Company Code 26263 Employer's 1D Number (Cur~nt Period) (Prior Period) Organized under the Laws of the State of PENNSYLVANIA ,using as the port of entry Incorporated September I Ir 1972 Commenced Business Statutory Home Office 100 Erie lnsta'ance Place Erie~ PA 16530 (So,et and Number) (City or To~n. State and Zip Code) 25-1232960 January l~ 1973 . Main Administrative Office 100 Erie Insurance Place Erie~ PA 16530 $14-870-2000 (S~ and Nmnbcr) (City or Town. State and Zip Code) (A~a Code) (Telephone Numbg~) 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 PlaceErie~ PA 16530 814-870-2000 (St,.et and Number) (City or Town. State and Zip COde) (Arco Code) (Telephone Number) Annual Statement Contact Gregory John Guttin,~ 814-870-2000 x.2785 (Nmne) (A~a Code) (Telephone Number) (Ext~nslon) gre~ory.&uttin~ ~erieinsurance.com 814-870-4040 (E-Mail Address) (Arco Code) (Tclephnne Number) OFFICERS Chaitmnn of the Board: Frank William Hivt President dc Chief Executive Officer: Stepben Allen Mithc Senior E.xgcutive Vice President. Executive Vice Pr, ident dc secretm-/dc Gencrai Counsel: Jan Raid Vnn Gorder Chief Finan¢iai Officer: Philip Alan Gareth ~(ecutive Vice President: Jeff~y Alan Lud~of Scstior Vic~ Ptc~ident. Treasurer dc Chief Investment Officer Douglas Frank Zieglcr SENIOR VICE PRESIDENTS Michael Joseph Krahn George Raymond Lucorc Thom~ Brian Morgan James Raymon Roehm John Pierce Sommcrwerck Ban~ Paul Stiles Eugene Charles Connell Timothy Dotard NeCnstro Michael Stephen Zav~sky REGIONAL VICE PRESIDENTS VICE PRESIDENTS DIRECTORS OR TRUSTEES Samuel Pnnon Black. [11 John Ralph Bomeman. Jr. Patricia Garrison-Cothin Susan HiK Hagen Frank William Hirt Samuel Polen Ka~ Claude Cliff~d Lilly, Ill Stephen Allen Milne Hemy Nathan Nassau John Matin Petetscn Jan Reid Van Oorder RobeK Charles Wilbum State Of Pennsylvania / SS County of Erie / (iii) number of p~es at~cbed NOTARY KA~LEEN A. EWING. NOTARY PUBLIC ERIE, ER)E COUNT~ PENNSYLVANIA Erie Insurance Company ASSETS 4J Ff~ occup~l by ~he carpeq' Oess $.,.......0 stick). 0 ................................ 4.3 Pmpetles held for ~d~ (le~ ~..........0 encumbrances). ......................................................................................................................................................... 0 ................................. o8o3 ...................................................................... i ..................................................... o .............. Erie Insurance Company LIABILITIES, SURPLUS AND OTHER FUNDS 9. Unewne~ P"emmms {Peri 2A, Lice 37, Calmm 5) (a4te' mdu~ unearned ~mmums ~ cec~J rem~rmee d $.....t e7,~,~$ 10.2 P~Jcyi~lder~ .............................................. i ........................................................................................................................................................................... 856.267 ..................... 667,320 Erie Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT I 2 STATEMENT OF INCOME Curr. I Year P~or Year UNDERWRITIN6 INCOME 1. Pre~iums eamed (Pa~l 2, Line 34, C~umn 4) 135,785,356 ............... 113,187,429 DEDUCTIONS 2. Los~ intuited (Part 3, Line 34, Column ~ ..................................................................................................................................................... 93,469,750 .................. 79,767,042 3. L~s expenses incu~ (Pa~ 4. Line 25. Celumn 1) ............................................................................................................................................... 13.360,416 ................. 10.940,563 4. Olha~ unde~ri6ng e~pen~ incun~:l (Parl 4, Une 25, CoJumn 2) ....................................................................................................................... 39,235,135 .................. 31,351,804 5. Agg~gate w~te-im for unde~witing deduct~ .............................................................................................................................................. :......,...239,~2 .................................. 6. Total und~wri~g ~:~uc~ (t.ine~ 2 t;~,ro~ 5} ................................................................................................................................................... 1406,305,926 ................. 7. Net unde~bng ga~ (k=~) (!Jne 1 mi~ Lire 6) ................................................................................................................................................ (19,520,570) ................... INVESTMENT INCOME 8. Net investment inc~nte earned (Parl 1, Line 15} ............................................................................................................................................... 15,881,393 .................. 15,740,823 9. Ne~ realized capital gain (losses) (Part IA, Line 10} ......................................................................................................................................... (628~326) ...................... 400r400 10. Net investment gain (loss) (Une~ 8 · 9) .................................................................................................................................................... 15,253,Q67 .................. 16,229,223 OTHER INCOME 11. Ne~ g~n (~s) frown agenls' ;x ixerniurn ba~ces charged off (arnounl recove'ed $+ +, J,473,756 an',o~nl charged off $ ....1,824.856) ....................................................................................................................................................... (351,1~ ................... (251,721) 14+ To~al other ]~e (Lines 11 through 13) ..................................................................................................................................................................... (317~4Q0) ...................... 16. Dividende to policyhalhars ................................................................................................................................................................................ 752,738 ....................... 850r754 17. Nel incon~e, afler '.clvi~ to PoP. cTha~ders bul bef~ ~ederal and foregn ~C°me lax~ (U~ 15 mh~ ~ ffi) .......................................... (5,337,641) ................. 5.653,740 18 FederaJ and foreign income taxes inc~.~Ted ...................................................................................................................................... (860,354) ................. 1,443r212 19 Net income (Line 17 minu~ Line 18) (to Line 21) ....................................................................................................................................... i4,477,287~ ................... 4,210,537 CAPITAL AND SURPLUS ACCOUNT 20. Sur~u~ as r~garde p~hcyl~lders, D~cember 31 p~o~ year (Page 4, Line 36, Column 2) .................................................................................... 82,516,140 ................. 74,978,953 GNN$ AND {LOSSES) IN SURPLUS 21. Ne~ ~:ome (from Lino 19) .................................................................................................................................................................................... (4,4T/',287 .................... 4,210,537 22. Net unrealized cap~ ga~ = {losses} ................................................................................................................................................................... 337,354 .................... 1,484,611 23. Change in net unn~iz~d fo~;, ex~ng* =~e~ g~,.~ 0~s) .................................................................................................................. 25+ Change in nonadrnilted asseto (Exhibit 1, L~ 6, Cd~umn 3) .................................................................................................................................. (113,565) ................................ 26. Change in pn:v=io~ ~ reinsurance (Page 3, Line 15, Co~u~nn 2 min~s C~umn 1) ..................................................................................................................................................... 27 Change in surplus notes .................................................................................................................................................................................................................... 29~ C;~oito~ changes: 29.1 Paid in .............................................................................................................................................................................................................. 303. TransferTed frown capitar ......................................................................................................................................................................................... 32. Dividende to $~ockholders ................................................................................................................................................................................................... 33. Change in Ireasu~y stock (Page 3, Line 31.1 and 31~2, Corumn 2 min~s Column 1) ........................................................................................................... 34. Aggregate vrrite-ins ~- gains and ~ses i~ surplus ................................................................................................................................... 0 ................ 1,842,0~0 36 Su~us a= r~Jarde pol~holder~. D;cernbe~ 31 currenl year {L~ne 20 plus LiM 35) (Page 3, Li~e 32) .......................................................... 84,526,101 .82,516,140 Erie Insurance Company CASH FLOW 1 2 Current Yeer P~a~ Year CASH FROM OPERATIONS I Premiums collecled net of reir~ u~a3ce : ................. 132,120,749 . ................. 110,638,798 2. Loss and kas a~lUslmenl ex~es peid (net of sabage and sub'ogatioe) 91,675,~o5 ................. 83.819,154 3. Unden~t~ng expenaee paid 37,391,521 ..................... 32,158,913 4. O~her undewrili~ ~ncome (e~3eases) (214,207 ....................................... 5. Cash from unden,a'~ting ~ne I minus Line 2 mi~us Line 3 plus ~ 4) 2,~39,066 ...................... (5,339,2~9) 6. hleHnve~tment income 15.843,2S9 ...................... 15,465,634 7. O~ mc°me(e~es): 7.1 ^gent~ balances cha~gnd off .................................................................................................................................................................... (351,100] .......................... (251,721: 7.2 Net funds held undei' reinsumr~e lrealies ................................................................................................................................................. 3~,045 ........................... 167,754 7.3 Net amouat wilhhekJ (x re~dnnd ~ account of o~-~em 203,993 ............................ 22,647I 7.4 Aggregale v~tedns fa' misce~aneous ilems 33~701 ............................ 44,~1 7.5 Total o~ha'income (Li~es 7.1 ~o 7.4)...'. 242,639 .......................... (16,339~ 8. Dbidends 1o polic,/holdets or, direc{ business, less $.....4,128,(~7 aWidends on ranSumr, ce ~ssumnd o~ ceded (net) ............................................ 564,7gt .......................... 509,403 g. Fndeml and foreign ~come taxes {paid) ~cove~nd (6~6~250) ....................... (1~040r380~ 10. Ne~ c~eh ~ operations (LJne 5 Hus Line $ plus Line 7.5 minus Line 8 ~ Line 9) ..................................................................................... 17,6~3,963 ....................... 8,560,243 CASH FROM INVESTMENTS CASH FROM FINANCING AND MISCELLANEOUS SOURCES EECONClUATION OF CASH AND SHORT-TEEIVl INVESTMENTS ~..~..,,.~..,.=,.~. EHe Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART 1 - INTEREST, DMDENDS AND REAL ESTATE INCOME 1 Cu~renl Year 5 6 2 3 4 P~- Y~u Due Earned Collected Due aed Accrued For~n Exchmlge and Accrued and During Year Schedu~ Du~] Yam Uneam~ 1. U.S. govemmenl bo~ds ...................................... D(a) ................ 549,702 ................ : ........................... 140,812 ......................................... 1,10,924 ................ 5,19.5~0 1.1 Brads ~emp~ from U.S. b~x ............................... D (a) ............ 2,36a,27S ......................................... 4Z6,954 .......................................... 466,732 ............. 2.378,500 1.20~erbmds (u~affiiated) .................................. D (a) ........... 10,662,100 ......................................... 2,257,345 .......................................... 2,2~,721 ........... 10,653,724 1.3 Be'~ of a~iat~ ................................................ D(a) .................................................................................................................................................................... 0 2.1 Pm fefr ed sl~:~ (urmf, aaled) ............................. D[b) ............. 1,937,7t8 .......................................... 73,739 ......................................... 135,~04 ............. 1.875,653 2.11 Prefofred sfocks of amliates .............................. O[b) 0 2.2 C~mm~n stock (a'~alfi~atad) ............................... D ................ 95.5~ ................................................................................................................................. g5,500 221 Common stock of affiliates ................................... D ................................................................................................................................................................... 0 3. M,~nge ~ ................................................a (c) 0 4. R~al estate ......................................................... A (d) ........................................................................................................................................................... 0 5.1 Cash ~ hand a~d on ~osit ................... : ........E .................. 9,233 ................................................................................................................. 9,233 5.2 Shod-tem~ investments ...................................... DA (e) .............. 346,527 ................................................................................................................ 6. Othe~ invested assets .......................................... BA ............................................................................................................................................................... 0 7. Derivativeinst~m~ts ....................................... D~t) ............................................................................................................................................................. 0 8. Aggregate w~te-ir~ for investment inco~ ........................... 84~924 ........................ 0 .................... 0 ........................ 0 ....................... 0 ................ 84~924 9. TOTALS ............................................................. 16}~3~3 0 2~948~850 ,0 .3~009~181 ........... 15~g93~652 DEDUCTIONS 10. Total i~ve~enl expe~se~ mcuff~ (F'arl 4, U~e 25, Column 3) ............................................................................................................................. 112,258 11. Interest expense .................................................................................................................................................................. ih) ....................... 12. Deprecis~ c~ rea~ estale .................................................................................................................................................................................... 13. Aggrngale w~te-klS for deducti~s ~rom im, eslm ent income ..................................................................................................................................... 0 14, Total deducl~o~s (Li~es 10 to 13) ................................................................................................................................................................................................................. 112~258 15. Net investment mc°me earned ILJne 9 minus Line NI Ire Pa~e 4, Une 81 ....................................................................................................................................... 15,8~1,394 0899. Totals (Lines 0801 Ibm 0803 plus 0898) (Part 1, Une 8) .84,924 O .0 .0 0 $4,924 1399. Tolais (IJ'~s 1301 Ihru 1303 plus 't3~) (Pm11, Line 13} ................................... 0 (a) Inciudes $.... 2~6,713 accma4 of ciscount less $...:. 107,2S9 amoftizalfon o f ixemium. (f) Includes $ ............... 0 accrual of c~scount less $ ............. 0 amortiza~n of pmmrum (~)lndudes$ .............. 0accmalofciscountless$ ............... 0amodiza~3~of~xemium. (g) Admifled items od, y. Statebasisofexdueio~s. (c} Indudes $ .............. 0 ac=ua~ of discount less $ ............... 0 amort~zalkm ol premium. (h) Include~ $ ............. O interest on surplus notes anti $ ............. 0 interest on caP;tal holes. ONINVESTMENTS DETNLS OF WRITEJHS Erie Insuranca Company UNDERWRITING AND INVESTMENT EXHIBIT PART 2 - PREMIUMS EARNED 29. ~otec~(iena~ .......................................................................................... (11 (1) ............................ (0) ~,,.~,.~,,~,,.~,, Erie Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART 2A- RECAPITULATION OF ALL PREMIUMS 1 2 3 4 5 Amounl Ur~amed Amour, l Unean'~l Res~ve for (R~ ~Y~ (R~ ~leC~ T~R~ ~ L~s ~ ~ ~ Y~ ~ ~ Re~ ~ U~ ~P~} ~le of ~) E~ A~ ~ 6. U~ ~amn~ 0 12 Ea~ke ~1 23. Fi~l~ 13.1~ ...................... 1,542 ................................................................................. 14.~ 37 Bala~ (sum of Lin~ 34 ~h ~} 51,1~.617 Erie Insurance Company UNDERWRITINO AND INVESTMENT EXHIBII PART 2B - PREMIUMS WRITrEN 8. Ocean marine ................................ : ....................................................................................................................................................................................... 0 Z t0 c Erie Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART 4. EXPENSES (a) Includes management fees of $.........0 to aEdiales and $..........0 to nomaEdiates. 12 ,,~.~.~.~,~. Erie insurance Company EXHIBIT 1 · ANALYSIS OF NONADMITTED ASSETS AND RELATED ITEMS t 2 3 Endo~ E~lof Chan~ ~r Yea' Culmrd Year F~ Year (Ina'ease} n~-~ 1. Summmy~tenmPage2, Lkms101o17a~dlgto21, Column2 ................................................................................... 280,585 ..,..:: .......................... 157,739 ................................ (122,828: 2.1 Bill mce4vabk n~ hlk~l for pmmkl~ ................................................................................................................................................................................................................................ 0 2.2 Furniture, equlpmerd and supplie~ ............................................................................................................................................................................................................................... 0 3. Tc~J (Lines 2.1 to 2.4) (Page 2, Uae Z3, C~unm 2) ..................................................................................................................... 0 ........................................... 0 ........................................... 0 0599. T~3~ (Lines 0501 Ihru 0503 plus 0598) (Line 5 above) ...................................................................... 0 .9,261 ............... 9~61 13