Indemnity Supplemental Information (Tables)

9 Months Ended

Sep. 30, 2014

Condensed financial statements

Schedule of Consolidating Statement of Financial Position

Consolidating Statement of Financial Position

	Erie Insurance Group
	At September 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	$	563	$	8,902	$	—		$	9,465
Equity securities	25		917		—			942
Trading securities, at fair value	—		3,125		—			3,125
Limited partnerships	134		939		—			1,073
Other invested assets	1		20		—			21
Total investments	723		13,903		—			14,626
Cash and cash equivalents	45		334		—			379
Premiums receivable from policyholders	—		1,323		—			1,323
Reinsurance recoverable	—		165		—			165
Deferred income tax asset	2		0		—			2
Deferred acquisition costs	—		603		—			603
Other assets	114		366		—			480
Receivables from the Exchange and other affiliates	343		—		(343		)	—
Note receivable from EFL	25		—		(25		)	—
Total assets	$	1,252	$	16,694	$	(368	)	$	17,578
Liabilities
Losses and loss expense reserves	$	—	$	3,933	$	—		$	3,933
Life policy and deposit contract reserves	—		1,801		—			1,801
Unearned premiums	—		2,896		—			2,896
Deferred income tax liability	0		465		—			465
Other liabilities	481		534		(368		)	647
Total liabilities	481		9,629		(368		)	9,742
Shareholders’ equity and noncontrolling interest
Total Indemnity shareholders’ equity	771		—		—			771
Noncontrolling interest in consolidated entity – Exchange	—		7,065		—			7,065
Total equity	771		7,065		—			7,836
Total liabilities, shareholders’ equity, and noncontrolling interest	$	1,252	$	16,694	$	(368	)	$	17,578

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 September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Management operations:
Management fee revenue, net	$	362	$	333	$	1,047	$	965
Service agreement revenue	8		8		23		23
Total revenue from management operations	370		341		1,070		988
Cost of management operations	308		281		882		820
Income from management operations before taxes	62		60		188		168
Investment operations:
Net investment income	4		4		12		11
Net realized gains on investments	0		1		1		1
Net impairment losses recognized in earnings	0		0		0		0
Equity in earnings of limited partnerships	4		5		13		13
Income from investment operations before taxes	8		10		26		25
Income from operations before income taxes	70		70		214		193
Provision for income taxes	23		24		72		66
Net income attributable to Indemnity	$	47	$	46	$	142	$	127

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)	Nine months ended September 30,
	2014			2013
Management fee received	$	1,011		$	933
Service agreement fee received	23			23
Net investment income received	16			16
Limited partnership distributions	12			18
Decrease in reimbursements collected from affiliates	(7		)	(8		)
Commissions and bonuses paid to agents	(576		)	(521		)
Salaries and wages paid	(116		)	(110		)
Pension contribution and employee benefits paid	(42		)	(33		)
General operating expenses paid	(140		)	(124		)
Income taxes paid	(70		)	(62		)
Net cash provided by operating activities	111			132
Net cash used in investing activities	(6		)	(33		)
Net cash used in financing activities	(109		)	(78		)
Net (decrease) increase in cash and cash equivalents	(4		)	21
Cash and cash equivalents at beginning of period	49			12
Cash and cash equivalents at end of period	$	45		$	33