Supplementary Data on Cash Flows

12 Months Ended

Dec. 31, 2014

Supplemental Cash Flow Information [Abstract]

Supplementary Data on Cash Flows

Note 20.  Supplementary Data on Cash Flows

Indirect method of cash flows

A reconciliation of net income to net cash provided by operating activities as presented in the Consolidated Statements of Cash Flows is as follows for the years ended December 31:

(in millions)	Erie Insurance Group
	2014			2013			2012
Cash flows from operating activities:
Net income	$	573		$	1,048		$	619
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	23			21			17
Amortization of deferred policy acquisition costs	849			778			715
Deferred income tax expense	4			198			118
Realized gains and impairments on investments	(189		)	(758		)	(418		)
Equity in earnings of limited partnerships	(113		)	(161		)	(131		)
Net amortization of bond premium	49			36			28
Increase in deferred compensation	6			8			2
Limited partnership distributions	131			176			164
Increase in receivables, reinsurance recoverables and reserve credits	(159		)	(112		)	(166		)
(Increase) decrease in prepaid expenses	(2		)	24			63
Increase in deferred policy acquisition costs	(892		)	(816		)	(743		)
Increase (decrease) in accounts payable and accrued expenses	98			18			(28		)
Increase in accrued commissions and agent bonuses	35			28			20
Increase in loss reserves	106			148			99
Increase in future life policy benefits and claims reserves	24			34			31
Increase in unearned premiums	236			233			187
Net cash provided by operating activities	$	779		$	903		$	577