EX-99.2 03.31.2013

Exhibit 99.2

Erie Indemnity Company

Consolidated Statements of Operations

(dollars in millions, except per share data)



	Three months ended March 31,
	2013		2012
Revenues	(Unaudited)
Premiums earned	$	1,175	$	1,087
Net investment income	103		108
Net realized investment gains	249		296
Net impairment losses recognized in earnings	0		0
Equity in earnings of limited partnerships	36		21
Other income	8		8
Total revenues	1,571		1,520
Benefits and expenses
Insurance losses and loss expenses	842		716
Policy acquisition and underwriting expenses	293		270
Total benefits and expenses	1,135		986
Income from operations before income taxes and noncontrolling interest	436		534
Provision for income taxes	146		180
Net income	290		354

Less: Net income attributable to noncontrolling interest in consolidated entity – Exchange	253		318
Net income attributable to Indemnity	$	37	$	36

Earnings Per Share
Net income attributable to Indemnity per share
Class A common stock – basic	$	0.78	$	0.76
Class A common stock – diluted	$	0.69	$	0.67
Class B common stock – basic and diluted	$	117	$	114

Weighted average shares outstanding attributable to Indemnity – Basic
Class A common stock	46,774,968		47,749,799
Class B common stock	2,542		2,545

Weighted average shares outstanding attributable to Indemnity – Diluted
Class A common stock	52,960,165		53,930,044
Class B common stock	2,542		2,545

Dividends declared per share
Class A common stock	$	0.5925	$	0.5525
Class B common stock	$	88.8750	$	82.8750

Erie Indemnity Company

Results of the Erie Insurance Group's operations by interest (Unaudited)

(in millions)



		Indemnity shareholder interest					Noncontrolling interest (Exchange)				Eliminations of related party transactions						Erie Insurance Group
		Three months ended March 31,					Three months ended March 31,				Three months ended March 31,						Three months ended March 31,
	Percent	2013		2012		Percent	2013		2012		2013			2012			2013		2012
Management operations:
Management fee revenue, net	100%	$	296	$	269		$	—	$	—	$	(296	)	$	(269	)	$	—	$	—
Service agreement revenue	100%	7		7			—		—		—			—			7		7
Total revenue from management operations		303		276			—		—		(296		)	(269		)	7		7
Cost of management operations	100%	254		230			—		—		(254		)	(230		)	—		—
Income from management operations before taxes		49		46			—		—		(42		)	(39		)	7		7
Property and casualty insurance operations:
Net premiums earned		—		—		100%	1,156		1,069		—			—			1,156		1,069
Losses and loss expenses		—		—		100%	817		692		(1		)	(1		)	816		691
Policy acquisition and underwriting expenses		—		—		100%	328		302		(44		)	(41		)	284		261
Income from property and casualty insurance operations before taxes		—		—			11		75		45			42			56		117
Life insurance operations: ⁽¹⁾
Total revenue		—		—		100%	46		43		0			0			46		43
Total benefits and expenses		—		—		100%	35		34		0			0			35		34
Income from life insurance operations before taxes		—		—			11		9		0			0			11		9
Investment operations:
Net investment income		4		4			79		83		(3		)	(3		)	80		84
Net realized gains on investments		0		3			246		293		—			—			246		296
Net impairment losses recognized in earnings		0		0			0		0		—			—			0		0
Equity in earnings of limited partnerships		3		1			33		20		—			—			36		21
Income from investment operations before taxes		7		8			358		396		(3		)	(3		)	362		401
Income from operations before income taxes and noncontrolling interest		56		54			380		480		—			—			436		534
Provision for income taxes		19		18			127		162		—			—			146		180
Net income		$	37	$	36		$	253	$	318	$	—		$	—		$	290	$	354

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

Erie Indemnity Company

Reconciliation of Operating Income to Net Income

Reconciliation of operating income to net income

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

Indemnity defines operating income as net income excluding realized capital gains and losses, impairment losses and related federal income taxes.

Indemnity uses operating income to evaluate the results of its operations. It reveals trends that may be obscured by the net effects of realized capital gains and losses including impairment losses. Realized capital gains and losses, including impairment losses, may vary significantly between periods and are generally driven by business decisions and economic developments such as capital market conditions which are not related to our ongoing operations. We are aware that the price to earnings multiple commonly used by investors as a forward-looking valuation technique uses operating income as the denominator. Operating income should not be considered as a substitute for net income prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and does not reflect Indemnity’s overall profitability.

The following table reconciles operating income and net income for the Indemnity shareholder interest:



	Indemnity Shareholder Interest
	Three months ended March 31,
(in millions, except per share data)	2013		2012
	(Unaudited)
Operating income attributable to Indemnity	$	37	$	34
Net realized gains and impairments on investments	0		3
Income tax expense	0		(1		)
Realized gains and impairments, net of income taxes	0		2
Net income attributable to Indemnity	$	37	$	36

Per Indemnity Class A common share-diluted:
Operating income attributable to Indemnity	$	0.69	$	0.64
Net realized gains and impairments on investments	0.00		0.05
Income tax expense	0.00		(0.02		)
Realized gains and impairments, net of income taxes	0.00		0.03
Net income attributable to Indemnity	$	0.69	$	0.67

Erie Indemnity Company

Consolidated Statements of Financial Position

(in millions)



	March 31, 2013		December 31, 2012
	(Unaudited)
Assets
Investments – Indemnity
Available-for-sale securities, at fair value:
Fixed maturities	$	421	$	452
Equity securities	49		55
Limited partnerships	167		180
Other invested assets	1		1
Investments – Exchange
Available-for-sale securities, at fair value:
Fixed maturities	7,891		7,707
Equity securities	943		945
Trading securities, at fair value	2,662		2,417
Limited partnerships	1,004		1,037
Other invested assets	20		20
Total investments	13,158		12,814

Cash and cash equivalents (Exchange portion of $347 and $388, respectively)	388		400
Premiums receivable from policyholders – Exchange	1,113		1,062
Reinsurance recoverable – Exchange	169		168
Deferred income taxes – Indemnity	39		37
Deferred acquisition costs – Exchange	510		504
Other assets (Exchange portion of $299 and $339, respectively)	414		456
Total assets	$	15,791	$	15,441

Liabilities and shareholders’ equity
Liabilities
Indemnity liabilities
Other liabilities	$	506	$	515
Exchange liabilities
Losses and loss expense reserves	3,628		3,598
Life policy and deposit contract reserves	1,726		1,708
Unearned premiums	2,399		2,365
Deferred income taxes	410		365
Other liabilities	105		99
Total liabilities	8,774		8,650

Indemnity's shareholders’ equity	636		642

Noncontrolling interest in consolidated entity – Exchange	6,381		6,149
Total equity	7,017		6,791
Total liabilities, shareholders’ equity and noncontrolling interest	$	15,791	$	15,441