Indemnity Supplemental Information (Tables)

6 Months Ended

Jun. 30, 2014

Condensed financial statements

Schedule of Consolidating Statement of Financial Position

Consolidating Statement of Financial Position

	Erie Insurance Group
	At June 30, 2014
(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	$	497	$	8,701	$	—		$	9,198
Equity securities	26		914		—			940
Trading securities, at fair value	—		3,377		—			3,377
Limited partnerships	141		931		—			1,072
Other invested assets	1		20		—			21
Total investments	665		13,943		—			14,608
Cash and cash equivalents	63		237		—			300
Premiums receivable from policyholders	—		1,287		—			1,287
Reinsurance recoverable	—		168		—			168
Deferred income tax asset	1		0		—			1
Deferred acquisition costs	—		579		—			579
Other assets	112		405		—			517
Receivables from the Exchange and other affiliates	339		—		(339		)	—
Note receivable from EFL	25		—		(25		)	—
Total assets	$	1,205	$	16,619	$	(364	)	$	17,460
Liabilities
Losses and loss expense reserves	$	—	$	3,964	$	—		$	3,964
Life policy and deposit contract reserves	—		1,789		—			1,789
Unearned premiums	—		2,788		—			2,788
Deferred income tax liability	0		557		—			557
Other liabilities	450		455		(364		)	541
Total liabilities	450		9,553		(364		)	9,639
Shareholders’ equity and noncontrolling interest
Total Indemnity shareholders’ equity	755		—		—			755
Noncontrolling interest in consolidated entity – Exchange	—		7,066		—			7,066
Total equity	755		7,066		—			7,821
Total liabilities, shareholders’ equity, and noncontrolling interest	$	1,205	$	16,619	$	(364	)	$	17,460

Consolidating Statement of Financial Position

	Erie Insurance Group
	At December 31, 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	$	526	$	8,162	$	—		$	8,688
Equity securities	50		819		—			869
Trading securities, at fair value	—		3,202		—			3,202
Limited partnerships	146		940		—			1,086
Other invested assets	1		20		—			21
Total investments	723		13,143		—			13,866
Cash and cash equivalents	49		403		—			452
Premiums receivable from policyholders	—		1,167		—			1,167
Reinsurance recoverable	—		172		—			172
Deferred income tax asset	2		0		—			2
Deferred acquisition costs	—		566		—			566
Other assets	114		337		—			451
Receivables from the Exchange and other affiliates	300		—		(300		)	—
Note receivable from EFL	25		—		(25		)	—
Total assets	$	1,213	$	15,788	$	(325	)	$	16,676
Liabilities
Losses and loss expense reserves	$	—	$	3,747	$	—		$	3,747
Life policy and deposit contract reserves	—		1,758		—			1,758
Unearned premiums	—		2,598		—			2,598
Deferred income tax liability	0		450		—			450
Other liabilities	479		419		(325		)	573
Total liabilities	479		8,972		(325		)	9,126
Shareholders’ equity and noncontrolling interest
Total Indemnity shareholders’ equity	734		—		—			734
Noncontrolling interest in consolidated entity – Exchange	—		6,816		—			6,816
Total equity	734		6,816		—			7,550
Total liabilities, shareholders’ equity, and noncontrolling interest	$	1,213	$	15,788	$	(325	)	$	16,676

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,
	2014		2013		2014		2013
Management operations:
Management fee revenue, net	$	366	$	336	$	685	$	632
Service agreement revenue	8		8		15		15
Total revenue from management operations	374		344		700		647
Cost of management operations	306		285		574		539
Income from management operations before taxes	68		59		126		108
Investment operations:
Net investment income	4		3		8		7
Net realized gains on investments	0		0		1		0
Net impairment losses recognized in earnings	0		0		0		0
Equity in earnings of limited partnerships	3		5		9		8
Income from investment operations before taxes	7		8		18		15
Income from operations before income taxes	75		67		144		123
Provision for income taxes	26		23		49		42
Net income attributable to Indemnity	$	49	$	44	$	95	$	81

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,
	2014			2013
Management fee received	$	659		$	604
Service agreement fee received	15			15
Net investment income received	11			11
Limited partnership distributions	8			12
Decrease in reimbursements collected from affiliates	(13		)	0
Commissions and bonuses paid to agents	(397		)	(356		)
Salaries and wages paid	(80		)	(76		)
Pension contribution and employee benefits paid	(29		)	(28		)
General operating expenses paid	(94		)	(83		)
Income taxes paid	(44		)	(42		)
Net cash provided by operating activities	36			57
Net cash provided by investing activities	57			15
Net cash used in financing activities	(79		)	(45		)
Net increase in cash and cash equivalents	14			27
Cash and cash equivalents at beginning of period	49			12
Cash and cash equivalents at end of period	$	63		$	39