Indemnity Supplemental Information (Tables)

6 Months Ended

Jun. 30, 2013

Condensed financial statements

Schedule of Consolidating Statement of Financial Position

Consolidating Statement of Financial Position

	Erie Insurance Group
	At June 30, 2013
(in millions)	Indemnity shareholder interest		Exchange noncontrolling interest		Reclassifications and eliminations			Erie Insurance Group
Assets
Investments
Available-for-sale securities, at fair value:
Fixed maturities	$	438	$	7,725	$	—		$	8,163
Equity securities	48		969		—			1,017
Trading securities, at fair value	0		2,724		—			2,724
Limited partnerships	166		1,011		—			1,177
Other invested assets	1		20		—			21
Total investments	653		12,449		—			13,102
Cash and cash equivalents	39		326		—			365
Premiums receivable from policyholders	—		1,191		—			1,191
Reinsurance recoverable	—		174		—			174
Deferred income tax asset	43		0		—			43
Deferred acquisition costs	—		553		—			553
Other assets	115		336		—			451
Receivables from the Exchange and other affiliates	309		—		(309		)	—
Note receivable from EFL	25		—		(25		)	—
Total assets	$	1,184	$	15,029	$	(334	)	$	15,879
Liabilities
Losses and loss expense reserves	$	—	$	3,668	$	—		$	3,668
Life policy and deposit contract reserves	—		1,739		—			1,739
Unearned premiums	—		2,553		—			2,553
Deferred income tax liability	0		312		—			312
Other liabilities	537		436		(334		)	639
Total liabilities	537		8,708		(334		)	8,911
Shareholders’ equity and noncontrolling interest
Total Indemnity shareholders’ equity	647		—		—			647
Noncontrolling interest in consolidated entity – Exchange	—		6,321		—			6,321
Total equity	647		6,321		—			6,968
Total liabilities, shareholders’ equity and noncontrolling interest	$	1,184	$	15,029	$	(334	)	$	15,879

Consolidating Statement of Financial Position

	Erie Insurance Group
	At December 31, 2012
(in millions)	Indemnity shareholder interest		Exchange noncontrolling interest		Reclassifications and eliminations			Erie Insurance Group
Assets
Investments
Available-for-sale securities, at fair value:
Fixed maturities	$	452	$	7,707	$	—		$	8,159
Equity securities	55		945		—			1,000
Trading securities, at fair value	0		2,417		—			2,417
Limited partnerships	180		1,037		—			1,217
Other invested assets	1		20		—			21
Total investments	688		12,126		—			12,814
Cash and cash equivalents	12		388		—			400
Premiums receivable from policyholders	—		1,062		—			1,062
Reinsurance recoverable	—		168		—			168
Deferred income tax asset	37		0		—			37
Deferred acquisition costs	—		504		—			504
Other assets	117		339		—			456
Receivables from the Exchange and other affiliates	281		—		(281		)	—
Note receivable from EFL	25		—		(25		)	—
Total assets	$	1,160	$	14,587	$	(306	)	$	15,441
Liabilities
Losses and loss expense reserves	$	—	$	3,598	$	—		$	3,598
Life policy and deposit contract reserves	—		1,708		—			1,708
Unearned premiums	—		2,365		—			2,365
Deferred income tax liability	0		365		—			365
Other liabilities	518		402		(306		)	614
Total liabilities	518		8,438		(306		)	8,650
Shareholders’ equity and noncontrolling interest
Total Indemnity shareholders’ equity	642		—		—			642
Noncontrolling interest in consolidated entity – Exchange	—		6,149		—			6,149
Total equity	642		6,149		—			6,791
Total liabilities, shareholders’ equity and noncontrolling interest	$	1,160	$	14,587	$	(306	)	$	15,441

Indemnity

Condensed financial statements

Schedule of Income attributable to Indemnity shareholder interest

Income attributable to Indemnity shareholder interest

	Indemnity Shareholder Interest
(in millions)	Three months ended June 30,					Six months ended June 30,
	2013		2012			2013		2012
Management operations:
Management fee revenue, net	$	336	$	308		$	632	$	577
Service agreement revenue	8		8			15		15
Total revenue from management operations	344		316			647		592
Cost of management operations	285		257			539		487
Income from management operations before taxes	59		59			108		105
Investment operations:
Net investment income	3		4			7		8
Net realized gains (losses) on investments	0		(1		)	0		2
Net impairment losses recognized in earnings	0		0			0		0
Equity in earnings of limited partnerships	5		3			8		4
Income from investment operations before taxes	8		6			15		14
Income from operations before income taxes	67		65			123		119
Provision for income taxes	23		22			42		40
Net income attributable to Indemnity	$	44	$	43		$	81	$	79

Schedule of Indemnity's components of direct cash flows as included in the Consolidated Statements of Cash Flows

Indemnity’s components of direct cash flows as included in the Consolidated Statements of Cash Flows

	Indemnity Shareholder Interest
(in millions)	Six months ended June 30,
	2013			2012
Management fee received	$	604		$	555
Service agreement fee received	15			15
Net investment income received	11			14
Limited partnership distributions	12			6
Decrease in reimbursements collected from affiliates	0			(1		)
Commissions and bonuses paid to agents	(356		)	(320		)
Salaries and wages paid	(76		)	(67		)
Pension contribution and employee benefits paid	(28		)	(30		)
General operating expenses paid	(83		)	(68		)
Income taxes paid	(42		)	(38		)
Net cash provided by operating activities	57			66
Net cash provided by investing activities	15			33
Net cash used in financing activities	(45		)	(97		)
Net increase in cash and cash equivalents	27			2
Cash and cash equivalents at beginning of period	12			11
Cash and cash equivalents at end of period	$	39		$	13