Indemnity Supplemental Information (Tables)

6 Months Ended

Jun. 30, 2015

Condensed financial statements

Schedule of Consolidating Statement of Financial Position

Consolidating Statement of Financial Position

	Erie Insurance Group
	At June 30, 2015
(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	$	561	$	9,372	$	—		$	9,933
Equity securities	22		817		—			839
Trading securities, at fair value	—		3,144		—			3,144
Limited partnerships	101		842		—			943
Other invested assets	1		21		—			22
Total investments	685		14,196		—			14,881
Cash and cash equivalents	77		344		—			421
Premiums receivable from policyholders	—		1,384		—			1,384
Reinsurance recoverable	—		162		—			162
Deferred income tax asset	44		—		—			44
Deferred acquisition costs	—		635		—			635
Other assets	123		419		—			542
Receivables from the Exchange and other affiliates	369		—		(369		)	—
Note receivable from EFL	25		—		(25		)	—
Total assets	$	1,323	$	17,140	$	(394	)	$	18,069
Liabilities
Losses and loss expense reserves	$	—	$	3,963	$	—		$	3,963
Life policy and deposit contract reserves	—		1,837		—			1,837
Unearned premiums	—		3,007		—			3,007
Deferred income tax liability	—		413		—			413
Other liabilities	591		490		(394		)	687
Total liabilities	591		9,710		(394		)	9,907
Shareholders’ equity and noncontrolling interest
Total Indemnity shareholders’ equity	732		—		—			732
Noncontrolling interest in consolidated entity – Exchange	—		7,430		—			7,430
Total equity	732		7,430		—			8,162
Total liabilities, shareholders’ equity, and noncontrolling interest	$	1,323	$	17,140	$	(394	)	$	18,069

Consolidating Statement of Financial Position

	Erie Insurance Group
	At December 31, 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	$	564	$	9,007	$	—		$	9,571
Equity securities	25		850		—			875
Trading securities, at fair value	—		3,223		—			3,223
Limited partnerships	113		866		—			979
Other invested assets	1		20		—			21
Total investments	703		13,966		—			14,669
Cash and cash equivalents	92		422		—			514
Premiums receivable from policyholders	—		1,281		—			1,281
Reinsurance recoverable	—		161		—			161
Deferred income tax asset	37		—		—			37
Deferred acquisition costs	—		595		—			595
Other assets	127		374		—			501
Receivables from the Exchange and other affiliates	335		—		(335		)	—
Note receivable from EFL	25		—		(25		)	—
Total assets	$	1,319	$	16,799	$	(360	)	$	17,758
Liabilities
Losses and loss expense reserves	$	—	$	3,853	$	—		$	3,853
Life policy and deposit contract reserves	—		1,812		—			1,812
Unearned premiums	—		2,834		—			2,834
Deferred income tax liability	—		490		—			490
Other liabilities	616		530		(360		)	786
Total liabilities	616		9,519		(360		)	9,775
Shareholders’ equity and noncontrolling interest
Total Indemnity shareholders’ equity	703		—		—			703
Noncontrolling interest in consolidated entity – Exchange	—		7,280		—			7,280
Total equity	703		7,280		—			7,983
Total liabilities, shareholders’ equity, and noncontrolling interest	$	1,319	$	16,799	$	(360	)	$	17,758

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,
	2015		2014		2015		2014
Management operations:
Management fee revenue, net	$	395	$	366	$	738	$	685
Service agreement revenue	7		8		15		15
Total revenue from management operations	402		374		753		700
Cost of management operations	332		306		630		574
Income from management operations before taxes	70		68		123		126
Investment operations:
Net investment income	5		4		9		8
Net realized investment gains	0		0		0		1
Net impairment losses recognized in earnings	0		0		0		0
Equity in earnings of limited partnerships	11		3		13		9
Income from investment operations before taxes	16		7		22		18
Income from operations before income taxes	86		75		145		144
Provision for income taxes	30		26		50		49
Net income attributable to Indemnity	$	56	$	49	$	95	$	95

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,
	2015			2014
Management fee received	$	714		$	659
Service agreement fee received	15			15
Net investment income received	13			11
Limited partnership distributions	9			8
Decrease in reimbursements collected from affiliates	(10		)	(13		)
Commissions and bonuses paid to agents	(436		)	(397		)
Salaries and wages paid	(78		)	(80		)
Pension contribution and employee benefits paid	(28		)	(29		)
General operating expenses paid	(111		)	(94		)
Income taxes paid	(46		)	(44		)
Net cash provided by operating activities	42			36
Net cash provided by investing activities	6			57
Net cash used in financing activities	(63		)	(79		)
Net (decrease) increase in cash and cash equivalents	(15		)	14
Cash and cash equivalents at beginning of period	92			49
Cash and cash equivalents at end of period	$	77		$	63