Supplementary Data on Cash Flows

12 Months Ended

Dec. 31, 2012

Supplemental Cash Flow Information [Abstract]

Supplementary Data on Cash Flows

Note 21.  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
	2012			2011			2010
Cash flows from operating activities:
Net income	$	619		$	268		$	660
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	17			4			12
Amortization of deferred policy acquisition costs	715			680			652
Impairment of goodwill	—			—			22
Deferred income tax expense (benefit)	118			(105		)	342
Realized (gains) losses and impairments on investments	(418		)	6			(307		)
Equity in earnings of limited partnerships	(131		)	(149		)	(128		)
Net amortization of bond premium	28			26			9
Increase in deferred compensation	2			4			7
Limited partnership distributions	164			166			122
(Increase) decrease in receivables, reinsurance recoverables and reserve credits	(166		)	91			(158		)
Decrease (increase) in prepaid expenses	63			(56		)	10
Increase in deferred policy acquisition costs	(743		)	(701		)	(667		)
(Decrease) increase in accounts payable and accrued expenses	(28		)	83			18
Increase in accrued commissions and agent bonuses	20			4			1
Increase (decrease) in loss reserves	99			(85		)	(11		)
Increase in future life policy benefits and claims reserves	31			28			21
Increase in unearned premiums	187			96			116
Net cash provided by operating activities	$	577		$	360		$	721