Erie Indemnity (ERIE) 10-Q 28 Jul 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 15, 2016
Entity Registrant Name	ERIE INDEMNITY CO
Entity Central Index Key	922,621
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Class A
Entity Common Stock, Shares Outstanding		46,189,068
Class B
Entity Common Stock, Shares Outstanding		2,542

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Operating revenue
Management fee revenue, net	$ 416,665	$ 394,224	$ 784,123	$ 737,458
Service agreement revenue	7,219	7,436	14,489	15,033
Total operating revenue	423,884	401,660	798,612	752,491
Operating expenses
Commissions	235,794	223,731	444,508	417,448
Salaries and employee benefits	55,025	57,354	108,314	112,373
All other operating expenses	47,306	50,592	92,366	100,257
Total operating expenses	338,125	331,677	645,188	630,078
Net revenue from operations	85,759	69,983	153,424	122,413
Investment income
Net investment income	4,891	4,435	9,553	8,976
Net realized investment gains (losses)	399	598	(689)	358
Net impairment losses recognized in earnings	0	(35)	(345)	(155)
Equity in earnings of limited partnerships	2,114	10,707	1,444	13,065
Total investment income	7,404	15,705	9,963	22,244
Income before income taxes	93,163	85,688	163,387	144,657
Income tax expense	31,854	29,538	56,183	49,674
Net income	$ 61,309	$ 56,150	$ 107,204	$ 94,983
Class A
Net income per share
Common stock - basic (in dollars per share)	$ 1.32	$ 1.21	$ 2.30	$ 2.04
Common stock - diluted (in dollars per share)	$ 1.17	$ 1.07	$ 2.04	$ 1.81
Weighted average shares outstanding – Basic
Common stock - basic (in shares)	46,188,867	46,189,068	46,188,967	46,189,068
Weighted average shares outstanding – Diluted
Common stock - diluted (in shares)	52,392,862	52,562,514	52,458,394	52,598,633
Dividends declared per share
Common stock (in dollars per share)	$ 0.730	$ 0.681	$ 1.460	$ 1.362
Class B
Net income per share
Common stock - basic (in dollars per share)	197	181	345	306
Common stock - diluted (in dollars per share)	$ 197	$ 180	$ 345	$ 305
Weighted average shares outstanding – Basic
Common stock - basic (in shares)	2,542	2,542	2,542	2,542
Weighted average shares outstanding – Diluted
Common stock - diluted (in shares)	2,542	2,542	2,542	2,542
Dividends declared per share
Common stock (in dollars per share)	$ 109.500	$ 102.150	$ 219	$ 204.300

STATEMENTS OF COMPREHENSIVE INC

STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 61,309	$ 56,150	$ 107,204	$ 94,983
Other comprehensive income (loss), net of tax
Change in unrealized holding gains (losses) on available-for-sale securities	3,026	(2,583)	6,491	(2,483)
Comprehensive income	$ 64,335	$ 53,567	$ 113,695	$ 92,500

STATEMENTS OF FINANCIAL POSITIO

STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 124,111	$ 182,889
Available-for-sale securities	46,087	62,067
Trading securities	496
Receivables from Erie Insurance Exchange and affiliates	387,273	348,055
Prepaid expenses and other current assets	33,885	24,697
Federal income taxes recoverable	0	11,947
Accrued investment income	5,816	5,491
Total current assets	597,668	635,146
Available-for-sale securities	607,548	537,874
Limited partnership investments	70,952	88,535
Fixed assets, net	58,986	59,087
Deferred income taxes, net	35,780	40,686
Note receivable from Erie Family Life Insurance Company	25,000	25,000
Other assets	18,892	20,968
Total assets	1,414,826	1,407,296
Current liabilities:
Commissions payable	217,203	195,542
Agent bonuses	58,235	106,752
Accounts payable and accrued liabilities	90,856	88,532
Dividends payable	33,996	33,996
Deferred executive compensation	13,252	20,877
Federal income taxes payable	1,960	0
Total current liabilities	415,502	445,699
Defined benefit pension plans	170,619	172,700
Employee benefit obligations	910	1,234
Deferred executive compensation	12,461	16,580
Other long-term liabilities	140	1,580
Total liabilities	599,632	637,793
Shareholders’ equity
Additional paid-in-capital	16,300	16,311
Accumulated other comprehensive loss	(90,373)	(96,864)
Retained earnings	2,033,187	1,993,976
Total contributed capital and retained earnings	1,961,284	1,915,593
Treasury stock, at cost; 22,110,132 shares held	(1,155,301)	(1,155,108)
Deferred compensation	9,211	9,018
Total shareholders’ equity	815,194	769,503
Total liabilities and shareholders’ equity	1,414,826	1,407,296
Class A
Shareholders’ equity
Common stock	1,992	1,992
Class B
Shareholders’ equity
Common stock	$ 178	$ 178

STATEMENTS OF FINANCIAL POSITI5

STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Treasury stock (in shares)	22,110,132	22,110,132
Class A
Common stock, stated value per share (in dollars per share)	$ 0.0292	$ 0.0292
Common stock, authorized (in shares)	74,996,930	74,996,930
Common stock, issued (in shares)	68,299,200	68,299,200
Common stock, outstanding (in shares)	46,189,068	46,189,068
Class B
Common stock, stated value per share (in dollars per share)	$ 70	$ 70
Common stock, authorized (in shares)	3,070	3,070
Common stock, issued (in shares)	2,542	2,542
Common stock, outstanding (in shares)	2,542	2,542
Ratio for converting shares of Class B common stock into shares of Class A common stock (as a percent)	2400.00%	2400.00%

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities
Management fee received	$ 757,193	$ 714,217
Service agreement fee received	14,489	15,033
Net investment income received	12,921	12,980
Limited partnership distributions	5,418	9,360
Decrease in reimbursements collected from affiliates	(12,288)	(10,415)
Commissions paid to agents	(363,968)	(345,986)
Agents bonuses paid	(107,170)	(90,245)
Salaries and wages paid	(90,509)	(78,266)
Pension contribution and employee benefits paid	(31,631)	(28,263)
General operating expenses paid	(91,715)	(110,519)
Income taxes paid	(42,258)	(46,018)
Net cash provided by operating activities	50,482	41,878
Purchase of investments:
Available-for-sale securities	(161,835)	(111,216)
Limited partnerships	(367)	(597)
Proceeds from investments:
Available-for-sale securities	112,030	108,939
Trading securities	3,146
Limited partnerships	11,246	14,708
Net purchase of fixed assets	(7,257)	(5,266)
Net collections (distributions) on agent loans	1,770	(184)
Net cash (used in) provided by investing activities	(41,267)	6,384
Cash flows from financing activities
Dividends paid to shareholders	(67,993)	(63,429)
Net cash used in financing activities	(67,993)	(63,429)
Net decrease in cash and cash equivalents	(58,778)	(15,167)
Cash and cash equivalents, beginning of period	182,889	91,747
Cash and cash equivalents, end of period	$ 124,111	$ 76,580

Nature of Operations

Nature of Operations	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	Note 1. Nature of Operations Erie Indemnity Company ("Indemnity", "we", "us", "our") is a publicly held Pennsylvania business corporation that has since its incorporation in 1925 served as the attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange ("Exchange"). The Exchange, which also commenced business in 1925, is a Pennsylvania-domiciled reciprocal insurer that writes property and casualty insurance. We function solely as the management company and all insurance operations are performed by the Exchange. Our primary function, as attorney-in-fact, is to perform certain services for the Exchange relating to the sales, underwriting, and issuance of policies on behalf of the Exchange. This is done in accordance with a subscriber’s agreement (a limited power of attorney) executed individually by each subscriber (policyholder), which appoints us as their common attorney-in-fact to transact certain business on their behalf and to manage the affairs of the Exchange. Pursuant to the subscriber’s agreement and for its services as attorney-in-fact, we earn a management fee calculated as a percentage of the direct and assumed premiums written by the Exchange. The services we provide to the Exchange are related to the sales, underwriting and issuance of policies. The sales related services we provide include agent compensation and certain sales and advertising support services. Agent compensation includes scheduled commissions to agents based upon premiums written as well as additional commissions and bonuses to agents, which are earned by achieving targeted measures. The underwriting services we provide include underwriting and policy processing. The remaining services we provide include customer service and administrative support. We also provide information technology services that support all the functions listed above. By virtue of its legal structure as a reciprocal insurer, the Exchange does not have the ability to enter into contractual relationships and therefore Indemnity serves as the attorney-in-fact on behalf of the Exchange for all claims handling services and certain other common overhead and service department functions in accordance with the subscriber’s agreement. The amounts Indemnity incurs on behalf of the Exchange in this capacity are reimbursed to Indemnity from the Exchange at cost. See Note 11, "Related Party" contained within this report. Our results of operations are tied to the growth and financial condition of the Exchange. If any events occurred that impaired the Exchange’s ability to grow or sustain its financial condition, including but not limited to reduced financial strength ratings, disruption in the independent agency relationships, significant catastrophe losses, or products not meeting customer demands, the Exchange could find it more difficult to retain its existing business and attract new business. A decline in the business of the Exchange almost certainly would have as a consequence a decline in the total premiums paid and a correspondingly adverse effect on the amount of the management fees we receive. We also have an exposure to a concentration of credit risk related to the unsecured receivables due from the Exchange for its management fee. See Note 12, "Concentrations of Credit Risk" contained within this report.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Significant Accounting Policies	Note 2. Significant Accounting Policies Basis of presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . For further information, refer to the financial statements and footnotes included in our Form 10-K for the year ended December 31, 2015 as filed with the Securities and Exchange Commission on February 25, 2016 . The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain prior period amounts have been reclassified on the statements of financial position to conform to the current period presentation. These reclassifications had no effect on the previously reported results of operations. Recently issued accounting standards In February 2015, the Financial Accounting Standards Board ("FASB") updated Accounting Standards Codification ("ASC") 810 "Consolidation" , which amended the existing guidance for determining if a reporting entity has a variable interest in a legal entity. We adopted the new accounting principle on a retrospective basis as of December 31, 2015. In accordance with the new accounting guidance, Indemnity is not deemed to have a variable interest in the Exchange as the fees paid for services provided to the Exchange no longer represent a variable interest. The compensation received from the attorney-in-fact fee arrangement with the subscribers is for services provided by Indemnity acting in its role as attorney-in-fact and is commensurate with the level of effort required to perform those services. Under the previously issued accounting guidance, Indemnity was deemed to be the primary beneficiary of the Exchange and its financial position and operating results were consolidated with Indemnity. Following adoption of the new accounting guidance, the Exchange’s results are no longer required to be consolidated with Indemnity. There was no cumulative effect to Indemnity's shareholders’ equity or net income from no longer consolidating the Exchange's results with ours. In June 2016, the FASB issued Accounting Standards Update ("ASU") 2016-13, "Financial Instruments-Credit Losses" , which requires financial assets measured at amortized cost to be presented at the net amount expected to be collected through the use of a new forward-looking expected loss model and credit losses relating to available-for-sale debt securities to be recognized through an allowance for credit losses. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption for interim and annual periods beginning after December 15, 2018 is permitted. We are currently evaluating the potential impact of this guidance on our financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases", which requires lessees to recognize assets and liabilities arising from operating leases on the statement of financial position and to disclose key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted. We are currently evaluating the potential impact of this guidance on our financial statements. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall" . ASU 2016-01 revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. We are currently evaluating the potential impact of this guidance on our financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" . ASU 2014-09 requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period. We do not expect the adoption of this guidance to have a material impact on our financial statements.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share	Note 3. Earnings Per Share Class A and Class B basic earnings per share and Class B diluted earnings per share are calculated under the two-class method. The two-class method allocates earnings to each class of stock based upon its dividend rights. Class B shares are convertible into Class A shares at a conversion ratio of 2,400 to 1. See Note 9, "Capital Stock". Class A diluted earnings per share are calculated under the if-converted method, which reflects the conversion of Class B shares to Class A shares. Diluted earnings per share calculations include the dilutive effect of assumed issuance of stock-based awards under compensation plans that have the option to be paid in stock using the treasury stock method. A reconciliation of the numerators and denominators used in the basic and diluted per-share computations is presented as follows for each class of common stock: (dollars in thousands, except per share data) Three months ended June 30, 2016 2015 Allocated net income (numerator) Weighted shares (denominator) Per-share amount Allocated net income (numerator) Weighted shares (denominator) Per-share amount Class A – Basic EPS: Income available to Class A stockholders $ 60,807 46,188,867 $ 1.32 $ 55,690 46,189,068 $ 1.21 Dilutive effect of stock-based awards 0 103,195 — 0 272,646 — Assumed conversion of Class B shares 502 6,100,800 — 460 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 61,309 52,392,862 $ 1.17 $ 56,150 52,562,514 $ 1.07 Class B – Basic EPS: Income available to Class B stockholders $ 502 2,542 $ 197 $ 460 2,542 $ 181 Class B – Diluted EPS: Income available to Class B stockholders $ 502 2,542 $ 197 $ 458 2,542 $ 180 (dollars in thousands, except per share data) Six months ended June 30, 2016 2015 Allocated net income (numerator) Weighted shares (denominator) Per-share amount Allocated net income (numerator) Weighted shares (denominator) Per-share amount Class A – Basic EPS: Income available to Class A stockholders $ 106,327 46,188,967 $ 2.30 $ 94,205 46,189,068 $ 2.04 Dilutive effect of stock-based awards 0 168,627 — 0 308,765 — Assumed conversion of Class B shares 877 6,100,800 — 778 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 107,204 52,458,394 $ 2.04 $ 94,983 52,598,633 $ 1.81 Class B – Basic EPS: Income available to Class B stockholders $ 877 2,542 $ 345 $ 778 2,542 $ 306 Class B – Diluted EPS: Income available to Class B stockholders $ 877 2,542 $ 345 $ 776 2,542 $ 305

Fair Value

Fair Value	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value	Note 4. Fair Value Our available-for-sale and trading securities are recorded at fair value, which is the price that would be received to sell the asset in an orderly transaction between willing market participants as of the measurement date. Valuation techniques used to derive the fair value of our available-for-sale and trading securities are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources. Unobservable inputs reflect our own assumptions regarding fair market value for these securities. Although the majority of our prices are obtained from third party sources, we also perform an internal pricing review for securities with low trading volumes under current market conditions. Financial instruments are categorized based upon the following characteristics or inputs to the valuation techniques: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 – Unobservable inputs for the asset or liability. Estimates of fair values for our investment portfolio are obtained primarily from a nationally recognized pricing service. Our Level 1 category includes those securities valued using an exchange traded price provided by the pricing service. The methodologies used by the pricing service that support a Level 2 classification of a financial instrument include multiple verifiable, observable inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. Pricing service valuations for Level 3 securities are based upon proprietary models and are used when observable inputs are not available or in illiquid markets. In limited circumstances we adjust the price received from the pricing service when, in our judgment, a better reflection of fair value is available based upon corroborating information and our knowledge and monitoring of market conditions such as a disparity in price of comparable securities and/or non-binding broker quotes. In other circumstances, certain securities are internally priced because prices are not provided by the pricing service. We perform continuous reviews of the prices obtained from the pricing service. This includes evaluating the methodology and inputs used by the pricing service to ensure that we determine the proper classification level of the financial instrument. Price variances, including large periodic changes, are investigated and corroborated by market data. We have reviewed the pricing methodologies of our pricing service as well as other observable inputs, such as data, and transaction volumes and believe that their prices adequately consider market activity in determining fair value. Our review process continues to evolve based upon accounting guidance and requirements. When a price from the pricing service is not available, values are determined by obtaining broker/dealer quotes and/or market comparables. When available, we obtain multiple quotes for the same security. The ultimate value for these securities is determined based upon our best estimate of fair value using corroborating market information. Our evaluation includes the consideration of benchmark yields, reported trades, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. For certain securities in an illiquid market, there may be no prices available from a pricing service and no comparable market quotes available. In these situations, we value the security using an internally-developed, risk-adjusted discounted cash flow model. The following tables present our fair value measurements on a recurring basis by asset class and level of input: At June 30, 2016 Fair value measurements using: (in thousands) Total Quoted prices in Level 1 Observable inputs Level 2 Unobservable inputs Level 3 Available-for-sale securities: States & political subdivisions $ 241,824 $ 0 $ 241,824 $ 0 Corporate debt securities 290,028 0 281,177 8,851 Residential mortgage-backed securities 14,029 0 14,029 0 Commercial mortgage-backed securities 40,023 0 39,020 1,003 Collateralized debt obligations 56,633 0 55,433 1,200 Other debt securities 1,984 0 1,984 0 Total fixed maturities 644,521 0 633,467 11,054 Common stock 9,114 9,114 0 0 Total available-for-sale securities 653,635 9,114 633,467 11,054 Trading securities: Common stock 496 496 0 0 Other investments (1) 3,908 — — — Total $ 658,039 $ 9,610 $ 633,467 $ 11,054 At December 31, 2015 Fair value measurements using: (in thousands) Total Quoted prices in active markets for identical assets Level 1 Observable inputs Level 2 Unobservable inputs Level 3 Available-for-sale securities: States & political subdivisions $ 231,847 $ 0 $ 231,847 $ 0 Corporate debt securities 250,333 0 250,264 69 Residential mortgage-backed securities 13,513 0 13,513 0 Commercial mortgage-backed securities 37,571 0 37,571 0 Collateralized debt obligations 51,745 0 43,168 8,577 Other debt securities 2,200 0 2,200 0 Total fixed maturities 587,209 0 578,563 8,646 Common stock 12,732 12,732 0 0 Total available-for-sale securities 599,941 12,732 578,563 8,646 Other investments (1) 4,526 — — — Total $ 604,467 $ 12,732 $ 578,563 $ 8,646 (1) Other investments measured at fair value represent real estate funds included on the balance sheet as limited partnership investments that are reported under the fair value option using the net asset value practical expedient. These amounts are not required to be categorized in the fair value hierarchy. The investments can never be redeemed with the funds. Instead, distributions are received when liquidation of the underlying assets of the funds occur. It is estimated that the underlying assets will generally be liquidated between 5 and 10 years from the inception of the funds. The fair value of these investments is based on the net asset value (NAV) information provided by the general partner. Fair value is based on our proportionate share of the NAV based on the most recent partners' capital statements received from the general partners, which is generally one quarter prior to our balance sheet date. These values are then analyzed to determine if the NAV represents fair value at our balance sheet date, with adjustment being made where appropriate. We consider observable market data and perform a review validating the appropriateness of the NAV at each balance sheet date. It is likely that all of the investments will be redeemed at a future date for an amount different than the NAV of our ownership interest in partners' capital as of June 30, 2016 and December 31, 2015 . During the six months ended June 30, 2016 , no contributions were made and distributions totaling $0.7 million were received from these investments. During the year ended December 31, 2015, no contributions were made and distributions totaling $3.5 million were received from these investments. The amount of unfunded commitments related to the investments was $0.3 million as of June 30, 2016 , and $0.6 million as of December 31, 2015 . Level 3 Assets – Quarterly Change: (in thousands) Beginning balance at March 31, 2016 Included in earnings (1) Included income Purchases Sales Transfers Level 3 Ending balance at June 30, 2016 Available-for-sale securities: Corporate debt securities $ 4,821 $ 30 $ 54 $ 5,131 $ (551 ) $ (634 ) $ 8,851 Commercial mortgage-backed securities 0 0 3 1,000 0 0 1,003 Collateralized debt obligations 12,037 0 0 1,200 0 (12,037 ) 1,200 Total fixed maturities 16,858 30 57 7,331 (551 ) (12,671 ) 11,054 Total available-for-sale securities 16,858 30 57 7,331 (551 ) (12,671 ) 11,054 Total Level 3 assets $ 16,858 $ 30 $ 57 $ 7,331 $ (551 ) $ (12,671 ) $ 11,054 (1) These amounts are reported in the Statement of Operations as net investment income and net realized investment gains (losses) for the three months ended June 30, 2016 on Level 3 securities. We review the fair value hierarchy classifications each reporting period. Transfers between hierarchy levels may occur due to changes in the available market observable inputs. Transfers in and out of level classifications are reported as having occurred at the beginning of the quarter in which the transfers occurred. There were no transfers between Level 1 and Level 2 for the three months ended June 30, 2016 . Level 2 to Level 3 transfers totaled $ 1.7 million for seven fixed maturity holdings due to the use of unobservable market data to determine the fair value at June 30, 2016 . Level 3 to Level 2 transfers totaled $ 14.3 million for 21 fixed maturity holdings due to the use of observable market data to determine the fair value at June 30, 2016 . Level 3 Assets – Year-to-Date Change: (in thousands) Beginning balance at December 31, 2015 Included in earnings (1) Included income Purchases Sales Transfers Level 3 Ending balance at June 30, 2016 Available-for-sale securities: Corporate debt securities $ 69 $ 45 $ 81 $ 8,670 $ (606 ) $ 592 $ 8,851 Commercial mortgage-backed securities 0 0 3 1,000 0 0 1,003 Collateralized debt obligations 8,577 4 (12 ) 4,722 (54 ) (12,037 ) 1,200 Total fixed maturities 8,646 49 72 14,392 (660 ) (11,445 ) 11,054 Total available-for-sale securities 8,646 49 72 14,392 (660 ) (11,445 ) 11,054 Total Level 3 assets $ 8,646 $ 49 $ 72 $ 14,392 $ (660 ) $ (11,445 ) $ 11,054 (1) These amounts are reported in the Statement of Operations as net investment income and net realized investment gains (losses) for the six months ended June 30, 2016 on Level 3 securities. There were no transfers between Level 1 and Level 2 for the six months ended June 30, 2016 . Level 2 to Level 3 transfers totaled $3.0 million for 16 fixed maturity holdings due to the use of unobservable market data to determine the fair value at June 30, 2016 . Level 3 to Level 2 transfers totaled $14.4 million for 22 fixed maturity holdings due to the use of observable market data to determine the fair value at June 30, 2016 . Level 3 Assets – Quarterly Change: (in thousands) Beginning balance at March 31, 2015 Included in earnings Included in other comprehensive income Purchases Sales Transfers Level 3 Ending balance at June 30, 2015 Available-for-sale securities: Corporate debt securities $ 110 $ 0 $ 0 $ 0 $ 0 $ (110 ) $ 0 Collateralized debt obligations 0 0 0 660 0 0 660 Total fixed maturities 110 0 0 660 0 (110 ) 660 Total available-for-sale securities 110 0 0 660 0 (110 ) 660 Total Level 3 assets $ 110 $ 0 $ 0 $ 660 $ 0 $ (110 ) $ 660 There were no transfers between Level 1 and Level 2 or from Level 2 to Level 3 for the three months ended June 30, 2015 . Level 3 to Level 2 transfers totaled $0.1 million for one fixed maturity holding due to the use of observable market data to determine the fair value at June 30, 2015 . Level 3 Assets – Year-to-Date Change: (in thousands) Beginning balance at December 31, 2014 Included in earnings Included in other comprehensive income Purchases Sales Transfers Level 3 Ending balance at June 30, 2015 Available-for-sale securities: Corporate debt securities $ 0 $ 0 $ 0 $ 110 $ 0 $ (110 ) $ 0 Collateralized debt obligations 0 0 0 660 0 0 660 Total fixed maturities 0 0 0 770 0 (110 ) 660 Total available-for-sale securities 0 0 0 770 0 (110 ) 660 Total Level 3 assets $ 0 $ 0 $ 0 $ 770 $ 0 $ (110 ) $ 660 There were no transfers between Level 1 and Level 2 or from Level 2 to Level 3 for the six months ended June 30, 2015 . Level 3 to Level 2 transfers totaled $0.1 million for one fixed maturity holding due to the use of observable market data to determine the fair value at June 30, 2015 . Quantitative and Qualitative Disclosures about Unobservable Inputs When a non-binding broker quote was the only input available, the security was classified within Level 3. Use of non-binding brokers quotes totaled $11.1 million at June 30, 2016 . The unobservable inputs are not reasonably available to us. The following table presents our fair value measurements on a recurring basis by pricing source: (in thousands) At June 30, 2016 Total Level 1 Level 2 Level 3 Fixed maturities: Priced via pricing services $ 642,318 $ 0 $ 633,467 $ 8,851 Priced via market comparables/broker quotes 2,203 0 0 2,203 Total fixed maturities 644,521 0 633,467 11,054 Common stock: Priced via pricing services 9,610 9,610 0 0 Total common stock 9,610 9,610 0 0 Other investments: Priced via unobservable inputs (1) 3,908 — — — Total other investments 3,908 — — — Total $ 658,039 $ 9,610 $ 633,467 $ 11,054 (1) Other investments measured at fair value represent real estate funds included on the balance sheet as limited partnership investments that are reported under the fair value option using the net asset value practical expedient. These amounts are not required to be categorized in the fair value hierarchy. The fair value of these investments is based on the net asset value (NAV) information provided by the general partner. There were no assets measured at fair value on a nonrecurring basis during the six months ended June 30, 2016 .

Investments

Investments	6 Months Ended
	Jun. 30, 2016
Investments [Abstract]
Investments	Note 5. Investments Available-for-sale securities The following table summarizes the cost and fair value of our available-for-sale securities: At June 30, 2016 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: States & political subdivisions $ 227,669 $ 14,155 $ 0 $ 241,824 Corporate debt securities 288,887 2,361 1,220 290,028 Residential mortgage-backed securities 14,125 43 139 14,029 Commercial mortgage-backed securities 40,503 292 772 40,023 Collateralized debt obligations 56,761 104 232 56,633 Other debt securities 2,000 0 16 1,984 Total fixed maturities 629,945 16,955 2,379 644,521 Common stock 8,949 165 0 9,114 Total available-for-sale securities $ 638,894 $ 17,120 $ 2,379 $ 653,635 At December 31, 2015 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: States & political subdivisions $ 221,093 $ 10,761 $ 7 $ 231,847 Corporate debt securities 254,464 281 4,412 250,333 Residential mortgage-backed securities 13,639 4 130 13,513 Commercial mortgage-backed securities 38,630 30 1,089 37,571 Collateralized debt obligations 51,905 61 221 51,745 Other debt securities 2,241 0 41 2,200 Total fixed maturities 581,972 11,137 5,900 587,209 Common stock 12,865 0 133 12,732 Total available-for-sale securities $ 594,837 $ 11,137 $ 6,033 $ 599,941 The amortized cost and estimated fair value of fixed maturities at June 30, 2016 are shown below by remaining contractual term to maturity. Mortgage-backed securities are allocated based upon their stated maturity dates. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At June 30, 2016 (in thousands) Amortized Estimated cost fair value Due in one year or less $ 45,685 $ 45,799 Due after one year through five years 296,550 300,336 Due after five years through ten years 188,270 195,896 Due after ten years 99,440 102,490 Total fixed maturities $ 629,945 $ 644,521 Available-for-sale securities in a gross unrealized loss position are as follows. Data is provided by length of time for securities in a gross unrealized loss position. At June 30, 2016 (dollars in thousands) Less than 12 months 12 months or longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses No. of holdings Available-for-sale securities: Corporate debt securities 65,341 666 21,953 554 87,294 1,220 260 Residential mortgage-backed securities 5,051 18 2,599 121 7,650 139 7 Commercial mortgage-backed securities 1,283 7 17,931 765 19,214 772 18 Collateralized debt obligations 19,843 118 13,681 114 33,524 232 17 Other debt securities 0 0 1,984 16 1,984 16 1 Total fixed maturities 91,518 809 58,148 1,570 149,666 2,379 303 Total available-for-sale securities $ 91,518 $ 809 $ 58,148 $ 1,570 $ 149,666 $ 2,379 303 Quality breakdown of fixed maturities: Investment grade $ 42,174 $ 170 $ 47,584 $ 1,069 $ 89,758 $ 1,239 56 Non-investment grade 49,344 639 10,564 501 59,908 1,140 247 Total fixed maturities $ 91,518 $ 809 $ 58,148 $ 1,570 $ 149,666 $ 2,379 303 At December 31, 2015 (dollars in thousands) Less than 12 months 12 months or longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses No. of holdings Available-for-sale securities: States & political subdivisions $ 5,867 $ 7 $ 0 $ 0 $ 5,867 $ 7 3 Corporate debt securities 172,831 2,447 19,086 1,965 191,917 4,412 349 Residential mortgage-backed securities 9,827 84 936 46 10,763 130 9 Commercial mortgage-backed securities 13,081 68 19,081 1,021 32,162 1,089 24 Collateralized debt obligations 27,981 103 9,174 118 37,155 221 19 Other debt securities 1,960 40 241 1 2,201 41 2 Total fixed maturities 231,547 2,749 48,518 3,151 280,065 5,900 406 Common stock 12,732 133 0 0 12,732 133 1 Total available-for-sale securities $ 244,279 $ 2,882 $ 48,518 $ 3,151 $ 292,797 $ 6,033 407 Quality breakdown of fixed maturities: Investment grade $ 174,723 $ 1,296 $ 38,369 $ 1,256 $ 213,092 $ 2,552 105 Non-investment grade 56,824 1,453 10,149 1,895 66,973 3,348 301 Total fixed maturities $ 231,547 $ 2,749 $ 48,518 $ 3,151 $ 280,065 $ 5,900 406 The above securities have been evaluated and determined to be temporary impairments for which we expect to recover our entire principal plus interest. The primary components of this analysis include a general review of market conditions and financial performance of the issuer along with the extent and duration at which fair value is less than cost. Any securities that we intend to sell or will more likely than not be required to sell before recovery are included in other-than-temporary impairments with the impairment charges recognized in earnings. Net investment income Interest and dividend income are recognized as earned and recorded to net investment income. Investment income, net of expenses, was generated from the following portfolios: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Fixed maturities $ 4,858 $ 4,150 $ 9,384 $ 8,229 Equity securities 47 240 82 500 Cash equivalents and other 321 281 645 575 Total investment income 5,226 4,671 10,111 9,304 Less: investment expenses 335 236 558 328 Net investment income $ 4,891 $ 4,435 $ 9,553 $ 8,976 Realized investment gains (losses) Realized gains and losses on sales of securities are recognized in income based upon the specific identification method. Realized gains (losses) on investments were as follows: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Available-for-sale securities: Fixed maturities: Gross realized gains $ 438 $ 340 $ 572 $ 371 Gross realized losses (209 ) (104 ) (1,792 ) (375 ) Net realized gains (losses) 229 236 (1,220 ) (4 ) Equity securities: Gross realized gains 0 362 0 362 Gross realized losses 0 0 (34 ) 0 Net realized gains (losses) 0 362 (34 ) 362 Trading securities: Common stock: Gross realized gains 586 0 586 0 Gross realized losses 0 0 0 0 Decreases in fair value (1) (416 ) 0 (21 ) 0 Net realized gains 170 0 565 0 Net realized investment gains (losses) $ 399 $ 598 $ (689 ) $ 358 (1) The fair value of our common stocks is determined based upon exchange traded prices provided by a nationally recognized pricing service. Net impairment losses The components of other-than-temporary impairments on investments were as follows: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Fixed maturities $ 0 $ (35 ) $ (345 ) $ (155 ) Total other-than-temporary impairments 0 (35 ) (345 ) (155 ) Portion recognized in other comprehensive income 0 0 0 0 Net impairment losses recognized in earnings $ 0 $ (35 ) $ (345 ) $ (155 ) In considering if fixed maturity securities were credit-impaired, some of the factors considered include: potential for the default of interest and/or principal, level of subordination, collateral of the issue, compliance with financial covenants, credit ratings and industry conditions. We have the intent to sell all credit-impaired fixed maturity securities; therefore, the entire amount of the impairment charges were included in earnings and no non-credit impairments were recognized in other comprehensive income. Limited partnerships Limited partnership investments, excluding certain real estate limited partnerships recorded at fair value, are generally reported on a one-quarter lag; therefore, our year-to-date limited partnership results through June 30, 2016 are comprised of partnership financial results for the fourth quarter of 2015 and the first quarter of 2016. Given the lag in reporting, our limited partnership results do not reflect the market conditions of the second quarter of 2016 . Cash contributions made to and distributions received from the partnerships are recorded in the period in which the transaction occurs. Amounts included in equity in earnings of limited partnerships by method of accounting are included below: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Equity in earnings of limited partnerships accounted for under the equity method $ 2,058 $ 10,707 $ 1,342 $ 13,319 Change in fair value of limited partnerships accounted for under the fair value option 56 0 102 (254 ) Equity in earnings of limited partnerships $ 2,114 $ 10,707 $ 1,444 $ 13,065 The following table summarizes limited partnership investments by sector: (in thousands) At June 30, 2016 At December 31, 2015 Private equity $ 39,917 $ 48,397 Mezzanine debt 10,355 12,701 Real estate 16,772 22,911 Real estate - fair value option 3,908 4,526 Total limited partnerships $ 70,952 $ 88,535 See also Note 13, "Commitments and Contingencies" for investment commitments related to limited partnerships.

Bank Line of Credit

Bank Line of Credit	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Bank Line of Credit	Note 6. Bank Line of Credit As of June 30, 2016 , we have access to a $100 million bank revolving line of credit with a $25 million letter of credit sublimit that expires on November 3, 2020 . As of June 30, 2016 , a total of $99.0 million remains available under the facility due to $1.0 million outstanding letters of credit, which reduce the availability for letters of credit to $24.0 million . We had no borrowings outstanding on our line of credit as of June 30, 2016 . Bonds with a fair value of $111.1 million were pledged as collateral on the line at June 30, 2016 . The securities pledged as collateral have no trading restrictions and are reported as available-for-sale securities in the Statements of Financial Position as of June 30, 2016 . The bank requires compliance with certain covenants, which include leverage ratios, for our line of credit. We are in compliance with all bank covenants at June 30, 2016 .

Postretirement Benefits

Postretirement Benefits	6 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Postretirement Benefits	Note 7. Postretirement Benefits Pension plans Our pension plans consist of a noncontributory defined benefit pension plan covering substantially all employees and an unfunded supplemental employee retirement plan for certain members of executive and senior management. Although we are the sponsor of these postretirement plans and record the funded status of these plans, the Exchange reimburses us for approximately 58% of the annual benefit expense of these plans, which represents pension benefits for our employees performing claims and life insurance functions. A $17.4 million contribution was made to the defined benefit pension plan in the first quarter of 2016. Prior to 2003, the employee pension plan purchased annuities from Erie Family Life Insurance Company ("EFL"), a wholly owned subsidiary of the Exchange, for certain plan participants that were receiving benefit payments under the pension plan. These are nonparticipating annuity contracts under which EFL has unconditionally contracted to provide specified benefits to beneficiaries; however, the pension plan remains the primary obligor to the beneficiaries. A contingent liability of $21.8 million at June 30, 2016 exists in the event EFL does not honor the annuity contracts. The cost of our pension plans are as follows: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Service cost for benefits earned $ 7,050 $ 7,608 $ 14,100 $ 15,216 Interest cost on benefits obligation 8,282 7,689 16,563 15,378 Expected return on plan assets (9,880 ) (8,980 ) (19,760 ) (17,960 ) Prior service cost amortization 174 167 348 334 Net actuarial loss amortization 2,027 3,508 4,055 7,016 Pension plan cost (1) $ 7,653 $ 9,992 $ 15,306 $ 19,984 (1) Pension plan costs represent the total cost before reimbursements from the Exchange and EFL.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Note 8. Income Taxes Our effective tax rate is calculated after consideration of permanent differences related to our investment revenues. Given that these amounts represent over 98% of the total permanent differences, the effective tax rate is approximately 35% when the investment related permanent differences are excluded.

Capital Stock

Capital Stock	6 Months Ended
	Jun. 30, 2016
Class of Stock Disclosures [Abstract]
Capital Stock	Note 9. Capital Stock Class A and B common stock Holders of Class B shares may, at their option, convert their shares into Class A shares at the rate of 2,400 Class A shares per Class B share. There were no shares of Class B common stock converted into Class A common stock during the six months ended June 30, 2016 and the year ended December 31, 2015 . There is no provision for conversion of Class A shares to Class B shares, and Class B shares surrendered for conversion cannot be reissued. Stock repurchase program In October 2011 , our Board of Directors approved a continuation of the current stock repurchase program for a total of $150 million , with no time limitation. There were no shares repurchased under this program during the six months ended June 30, 2016 and the year ended December 31, 2015 . We had approximately $17.8 million of repurchase authority remaining under this program at June 30, 2016 .

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)	Note 10. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component, including amounts reclassified out of accumulated other comprehensive income (loss) and the related line item in the Statements of Operations where net income is presented, are as follows: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Investment securities: Accumulated other comprehensive income, beginning of the period $ 5,992 $ 6,907 $ 2,527 $ 6,807 Other comprehensive income (loss) before reclassifications, net of tax (expense) benefit of $(1,710), $1,194, $(2,936) and $1,266, respectively 3,175 (2,217 ) 5,452 (2,351 ) Reclassifications: Realized investment (gains) losses, net of tax benefit (expense) of $80, $209, $(439), and $125, respectively (149 ) (389 ) 815 (233 ) Impairment losses, net of tax expense of $0, $12, $121 and $54, respectively 0 23 224 101 Other comprehensive income (loss), net of tax 3,026 (2,583 ) 6,491 (2,483 ) Accumulated other comprehensive income, end of the period $ 9,018 $ 4,324 $ 9,018 $ 4,324 Pension and other postretirement plans (1) : Accumulated other comprehensive loss, beginning of the period $ (99,391 ) $ (124,508 ) $ (99,391 ) $ (124,508 ) Other comprehensive income (loss) before reclassifications, net of tax 0 0 0 0 Reclassifications: Amortization of prior service costs, net of tax 0 0 0 0 Amortization of net actuarial loss, net of tax 0 0 0 0 Other comprehensive income (loss), net of tax 0 0 0 0 Accumulated other comprehensive loss, end of the period $ (99,391 ) $ (124,508 ) $ (99,391 ) $ (124,508 ) Total Accumulated other comprehensive loss, beginning of the period $ (93,399 ) $ (117,601 ) $ (96,864 ) $ (117,701 ) Investment securities 3,026 (2,583 ) 6,491 (2,483 ) Pension and other postretirement plans 0 0 0 0 Other comprehensive income (loss), net of tax 3,026 (2,583 ) 6,491 (2,483 ) Accumulated other comprehensive loss, end of the period $ (90,373 ) $ (120,184 ) $ (90,373 ) $ (120,184 ) (1) There are no comprehensive income items or amounts reclassified out of accumulated other comprehensive loss related to postretirement plan items during interim periods.

Related Party

Related Party	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Party	Note 11. Related Party Amounts incurred on behalf of the Exchange and EFL As discussed in Note 1, "Nature of Operations", all claims handling services for the Exchange are performed by our employees who are entirely dedicated to claims related activities. All costs associated with these employees, including postretirement benefits, are reimbursed to us from the Exchange’s revenues in accordance with the subscriber’s agreement. Also, we are reimbursed by EFL from its revenues for all costs, including postretirement benefits, associated with employees who perform life insurance related operating activities for EFL in accordance with its service agreement with us. See also Note 7, "Postretirement Benefits" for a discussion of intercompany expense allocations under the postretirement benefit plans. In addition, common overhead expenses and certain service department costs incurred by us on behalf of the Exchange and EFL are reimbursed by the proper entity based upon appropriate utilization statistics (employee count, square footage, vehicle count, project hours, etc.) specifically measured to accomplish proportional allocations, which we believe are reasonable. All reimbursements are made on an actual cost basis and do not include a profit component. We record these reimbursements as receivables from the Exchange and EFL with a corresponding reduction to our expenses. Reimbursements are settled on a monthly basis. The amounts incurred on behalf of the Exchange and EFL were as follows: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Erie Insurance Exchange $ 115,868 $ 104,530 $ 226,263 $ 207,046 Erie Family Life Insurance 9,944 10,205 19,504 18,756 Total cash settlements $ 125,812 $ 114,735 $ 245,767 $ 225,802

Concentrations of Credit Risk

Concentrations of Credit Risk	6 Months Ended
	Jun. 30, 2016
Risks and Uncertainties [Abstract]
Concentrations of Credit Risk	Note 12. Concentrations of Credit Risk Financial instruments could potentially expose us to concentrations of credit risk, including unsecured receivables from the Exchange. A large majority of our revenue and receivables are from the Exchange and affiliates. See also Note 1, "Nature of Operations". Management fee amounts and other reimbursements due from the Exchange and affiliates were $387.3 million and $348.1 million at June 30, 2016 and December 31, 2015 , respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 13. Commitments and Contingencies We have contractual commitments to invest up to $18.9 million related to our limited partnership investments at June 30, 2016 . These commitments are split among private equity securities of $7.2 million , mezzanine debt securities of $8.4 million , and real estate activities of $3.3 million . These commitments will be funded as required by the limited partnership agreements. We are involved in litigation arising in the ordinary course of conducting business. In accordance with current accounting standards for loss contingencies and based upon information currently known to us, we establish reserves for litigation when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss or range of loss can be reasonably estimated. When no amount within the range of loss is a better estimate than any other amount, we accrue the minimum amount of the estimable loss. To the extent that such litigation against us may have an exposure to a loss in excess of the amount we have accrued, we believe that such excess would not be material to our financial condition, results of operations, or cash flows. Legal fees are expensed as incurred. We believe that our accruals for legal proceedings are appropriate and, individually and in the aggregate, are not expected to be material to our financial condition, results of operations, or cash flows. We review all litigation on an ongoing basis when making accrual and disclosure decisions. For certain legal proceedings, we cannot reasonably estimate losses or a range of loss, if any, particularly for proceedings that are in their early stages of development or where the plaintiffs seek indeterminate damages. Various factors, including, but not limited to, the outcome of potentially lengthy discovery and the resolution of important factual questions, may need to be determined before probability can be established or before a loss or range of loss can be reasonably estimated. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. In the event that a legal proceeding results in a substantial judgment against, or settlement by, us, there can be no assurance that any resulting liability or financial commitment would not have a material adverse effect on the financial condition, results of operations, or cash flows.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Note 14. Subsequent Events No items were identified in this period subsequent to the financial statement date that required adjustment or additional disclosure.

Significant Accounting Polici21

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . For further information, refer to the financial statements and footnotes included in our Form 10-K for the year ended December 31, 2015 as filed with the Securities and Exchange Commission on February 25, 2016 .
Use of estimates	The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Reclassifications	Certain prior period amounts have been reclassified on the statements of financial position to conform to the current period presentation. These reclassifications had no effect on the previously reported results of operations.
Recently issued accounting standards	Recently issued accounting standards In February 2015, the Financial Accounting Standards Board ("FASB") updated Accounting Standards Codification ("ASC") 810 "Consolidation" , which amended the existing guidance for determining if a reporting entity has a variable interest in a legal entity. We adopted the new accounting principle on a retrospective basis as of December 31, 2015. In accordance with the new accounting guidance, Indemnity is not deemed to have a variable interest in the Exchange as the fees paid for services provided to the Exchange no longer represent a variable interest. The compensation received from the attorney-in-fact fee arrangement with the subscribers is for services provided by Indemnity acting in its role as attorney-in-fact and is commensurate with the level of effort required to perform those services. Under the previously issued accounting guidance, Indemnity was deemed to be the primary beneficiary of the Exchange and its financial position and operating results were consolidated with Indemnity. Following adoption of the new accounting guidance, the Exchange’s results are no longer required to be consolidated with Indemnity. There was no cumulative effect to Indemnity's shareholders’ equity or net income from no longer consolidating the Exchange's results with ours. In June 2016, the FASB issued Accounting Standards Update ("ASU") 2016-13, "Financial Instruments-Credit Losses" , which requires financial assets measured at amortized cost to be presented at the net amount expected to be collected through the use of a new forward-looking expected loss model and credit losses relating to available-for-sale debt securities to be recognized through an allowance for credit losses. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption for interim and annual periods beginning after December 15, 2018 is permitted. We are currently evaluating the potential impact of this guidance on our financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases", which requires lessees to recognize assets and liabilities arising from operating leases on the statement of financial position and to disclose key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted. We are currently evaluating the potential impact of this guidance on our financial statements. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall" . ASU 2016-01 revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. We are currently evaluating the potential impact of this guidance on our financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" . ASU 2014-09 requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period. We do not expect the adoption of this guidance to have a material impact on our financial statements.
Earnings per share	Class A and Class B basic earnings per share and Class B diluted earnings per share are calculated under the two-class method. The two-class method allocates earnings to each class of stock based upon its dividend rights. Class B shares are convertible into Class A shares at a conversion ratio of 2,400 to 1. See Note 9, "Capital Stock". Class A diluted earnings per share are calculated under the if-converted method, which reflects the conversion of Class B shares to Class A shares. Diluted earnings per share calculations include the dilutive effect of assumed issuance of stock-based awards under compensation plans that have the option to be paid in stock using the treasury stock method.
Fair value of financial instruments	Our available-for-sale and trading securities are recorded at fair value, which is the price that would be received to sell the asset in an orderly transaction between willing market participants as of the measurement date. Valuation techniques used to derive the fair value of our available-for-sale and trading securities are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources. Unobservable inputs reflect our own assumptions regarding fair market value for these securities. Although the majority of our prices are obtained from third party sources, we also perform an internal pricing review for securities with low trading volumes under current market conditions. Financial instruments are categorized based upon the following characteristics or inputs to the valuation techniques: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 – Unobservable inputs for the asset or liability. Estimates of fair values for our investment portfolio are obtained primarily from a nationally recognized pricing service. Our Level 1 category includes those securities valued using an exchange traded price provided by the pricing service. The methodologies used by the pricing service that support a Level 2 classification of a financial instrument include multiple verifiable, observable inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. Pricing service valuations for Level 3 securities are based upon proprietary models and are used when observable inputs are not available or in illiquid markets. In limited circumstances we adjust the price received from the pricing service when, in our judgment, a better reflection of fair value is available based upon corroborating information and our knowledge and monitoring of market conditions such as a disparity in price of comparable securities and/or non-binding broker quotes. In other circumstances, certain securities are internally priced because prices are not provided by the pricing service. We perform continuous reviews of the prices obtained from the pricing service. This includes evaluating the methodology and inputs used by the pricing service to ensure that we determine the proper classification level of the financial instrument. Price variances, including large periodic changes, are investigated and corroborated by market data. We have reviewed the pricing methodologies of our pricing service as well as other observable inputs, such as data, and transaction volumes and believe that their prices adequately consider market activity in determining fair value. Our review process continues to evolve based upon accounting guidance and requirements. When a price from the pricing service is not available, values are determined by obtaining broker/dealer quotes and/or market comparables. When available, we obtain multiple quotes for the same security. The ultimate value for these securities is determined based upon our best estimate of fair value using corroborating market information. Our evaluation includes the consideration of benchmark yields, reported trades, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. For certain securities in an illiquid market, there may be no prices available from a pricing service and no comparable market quotes available. In these situations, we value the security using an internally-developed, risk-adjusted discounted cash flow model.
Fair value of financial instruments, transfers between levels	We review the fair value hierarchy classifications each reporting period. Transfers between hierarchy levels may occur due to changes in the available market observable inputs. Transfers in and out of level classifications are reported as having occurred at the beginning of the quarter in which the transfers occurred.
Investments - Limited partnerships	Limited partnership investments, excluding certain real estate limited partnerships recorded at fair value, are generally reported on a one-quarter lag; therefore, our year-to-date limited partnership results through June 30, 2016 are comprised of partnership financial results for the fourth quarter of 2015 and the first quarter of 2016. Given the lag in reporting, our limited partnership results do not reflect the market conditions of the second quarter of 2016 . Cash contributions made to and distributions received from the partnerships are recorded in the period in which the transaction occurs.
Related party transaction, terms and manner of settlement	All reimbursements are made on an actual cost basis and do not include a profit component. We record these reimbursements as receivables from the Exchange and EFL with a corresponding reduction to our expenses. Reimbursements are settled on a monthly basis.
Commitments and contingencies	We are involved in litigation arising in the ordinary course of conducting business. In accordance with current accounting standards for loss contingencies and based upon information currently known to us, we establish reserves for litigation when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss or range of loss can be reasonably estimated. When no amount within the range of loss is a better estimate than any other amount, we accrue the minimum amount of the estimable loss. To the extent that such litigation against us may have an exposure to a loss in excess of the amount we have accrued, we believe that such excess would not be material to our financial condition, results of operations, or cash flows. Legal fees are expensed as incurred. We believe that our accruals for legal proceedings are appropriate and, individually and in the aggregate, are not expected to be material to our financial condition, results of operations, or cash flows. We review all litigation on an ongoing basis when making accrual and disclosure decisions. For certain legal proceedings, we cannot reasonably estimate losses or a range of loss, if any, particularly for proceedings that are in their early stages of development or where the plaintiffs seek indeterminate damages. Various factors, including, but not limited to, the outcome of potentially lengthy discovery and the resolution of important factual questions, may need to be determined before probability can be established or before a loss or range of loss can be reasonably estimated. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. In the event that a legal proceeding results in a substantial judgment against, or settlement by, us, there can be no assurance that any resulting liability or financial commitment would not have a material adverse effect on the financial condition, results of operations, or cash flows.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of reconciliation of the numerators and denominators used in the basic and diluted per-share computations	A reconciliation of the numerators and denominators used in the basic and diluted per-share computations is presented as follows for each class of common stock: (dollars in thousands, except per share data) Three months ended June 30, 2016 2015 Allocated net income (numerator) Weighted shares (denominator) Per-share amount Allocated net income (numerator) Weighted shares (denominator) Per-share amount Class A – Basic EPS: Income available to Class A stockholders $ 60,807 46,188,867 $ 1.32 $ 55,690 46,189,068 $ 1.21 Dilutive effect of stock-based awards 0 103,195 — 0 272,646 — Assumed conversion of Class B shares 502 6,100,800 — 460 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 61,309 52,392,862 $ 1.17 $ 56,150 52,562,514 $ 1.07 Class B – Basic EPS: Income available to Class B stockholders $ 502 2,542 $ 197 $ 460 2,542 $ 181 Class B – Diluted EPS: Income available to Class B stockholders $ 502 2,542 $ 197 $ 458 2,542 $ 180 (dollars in thousands, except per share data) Six months ended June 30, 2016 2015 Allocated net income (numerator) Weighted shares (denominator) Per-share amount Allocated net income (numerator) Weighted shares (denominator) Per-share amount Class A – Basic EPS: Income available to Class A stockholders $ 106,327 46,188,967 $ 2.30 $ 94,205 46,189,068 $ 2.04 Dilutive effect of stock-based awards 0 168,627 — 0 308,765 — Assumed conversion of Class B shares 877 6,100,800 — 778 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 107,204 52,458,394 $ 2.04 $ 94,983 52,598,633 $ 1.81 Class B – Basic EPS: Income available to Class B stockholders $ 877 2,542 $ 345 $ 778 2,542 $ 306 Class B – Diluted EPS: Income available to Class B stockholders $ 877 2,542 $ 345 $ 776 2,542 $ 305

Fair Value (Tables)

Fair Value (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of fair value measurements on a recurring basis by asset class and level of input	The following tables present our fair value measurements on a recurring basis by asset class and level of input: At June 30, 2016 Fair value measurements using: (in thousands) Total Quoted prices in Level 1 Observable inputs Level 2 Unobservable inputs Level 3 Available-for-sale securities: States & political subdivisions $ 241,824 $ 0 $ 241,824 $ 0 Corporate debt securities 290,028 0 281,177 8,851 Residential mortgage-backed securities 14,029 0 14,029 0 Commercial mortgage-backed securities 40,023 0 39,020 1,003 Collateralized debt obligations 56,633 0 55,433 1,200 Other debt securities 1,984 0 1,984 0 Total fixed maturities 644,521 0 633,467 11,054 Common stock 9,114 9,114 0 0 Total available-for-sale securities 653,635 9,114 633,467 11,054 Trading securities: Common stock 496 496 0 0 Other investments (1) 3,908 — — — Total $ 658,039 $ 9,610 $ 633,467 $ 11,054 At December 31, 2015 Fair value measurements using: (in thousands) Total Quoted prices in active markets for identical assets Level 1 Observable inputs Level 2 Unobservable inputs Level 3 Available-for-sale securities: States & political subdivisions $ 231,847 $ 0 $ 231,847 $ 0 Corporate debt securities 250,333 0 250,264 69 Residential mortgage-backed securities 13,513 0 13,513 0 Commercial mortgage-backed securities 37,571 0 37,571 0 Collateralized debt obligations 51,745 0 43,168 8,577 Other debt securities 2,200 0 2,200 0 Total fixed maturities 587,209 0 578,563 8,646 Common stock 12,732 12,732 0 0 Total available-for-sale securities 599,941 12,732 578,563 8,646 Other investments (1) 4,526 — — — Total $ 604,467 $ 12,732 $ 578,563 $ 8,646 (1) Other investments measured at fair value represent real estate funds included on the balance sheet as limited partnership investments that are reported under the fair value option using the net asset value practical expedient. These amounts are not required to be categorized in the fair value hierarchy. The investments can never be redeemed with the funds. Instead, distributions are received when liquidation of the underlying assets of the funds occur. It is estimated that the underlying assets will generally be liquidated between 5 and 10 years from the inception of the funds. The fair value of these investments is based on the net asset value (NAV) information provided by the general partner. Fair value is based on our proportionate share of the NAV based on the most recent partners' capital statements received from the general partners, which is generally one quarter prior to our balance sheet date. These values are then analyzed to determine if the NAV represents fair value at our balance sheet date, with adjustment being made where appropriate. We consider observable market data and perform a review validating the appropriateness of the NAV at each balance sheet date. It is likely that all of the investments will be redeemed at a future date for an amount different than the NAV of our ownership interest in partners' capital as of June 30, 2016 and December 31, 2015 . During the six months ended June 30, 2016 , no contributions were made and distributions totaling $0.7 million were received from these investments. During the year ended December 31, 2015, no contributions were made and distributions totaling $3.5 million were received from these investments. The amount of unfunded commitments related to the investments was $0.3 million as of June 30, 2016 , and $0.6 million as of December 31, 2015 .
Schedule of roll forward of Level 3 fair value measurements on a recurring basis	Level 3 Assets – Year-to-Date Change: (in thousands) Beginning balance at December 31, 2014 Included in earnings Included in other comprehensive income Purchases Sales Transfers Level 3 Ending balance at June 30, 2015 Available-for-sale securities: Corporate debt securities $ 0 $ 0 $ 0 $ 110 $ 0 $ (110 ) $ 0 Collateralized debt obligations 0 0 0 660 0 0 660 Total fixed maturities 0 0 0 770 0 (110 ) 660 Total available-for-sale securities 0 0 0 770 0 (110 ) 660 Total Level 3 assets $ 0 $ 0 $ 0 $ 770 $ 0 $ (110 ) $ 660 Level 3 Assets – Year-to-Date Change: (in thousands) Beginning balance at December 31, 2015 Included in earnings (1) Included income Purchases Sales Transfers Level 3 Ending balance at June 30, 2016 Available-for-sale securities: Corporate debt securities $ 69 $ 45 $ 81 $ 8,670 $ (606 ) $ 592 $ 8,851 Commercial mortgage-backed securities 0 0 3 1,000 0 0 1,003 Collateralized debt obligations 8,577 4 (12 ) 4,722 (54 ) (12,037 ) 1,200 Total fixed maturities 8,646 49 72 14,392 (660 ) (11,445 ) 11,054 Total available-for-sale securities 8,646 49 72 14,392 (660 ) (11,445 ) 11,054 Total Level 3 assets $ 8,646 $ 49 $ 72 $ 14,392 $ (660 ) $ (11,445 ) $ 11,054 (1) These amounts are reported in the Statement of Operations as net investment income and net realized investment gains (losses) for the six months ended June 30, 2016 on Level 3 securities. Level 3 Assets – Quarterly Change: (in thousands) Beginning balance at March 31, 2016 Included in earnings (1) Included income Purchases Sales Transfers Level 3 Ending balance at June 30, 2016 Available-for-sale securities: Corporate debt securities $ 4,821 $ 30 $ 54 $ 5,131 $ (551 ) $ (634 ) $ 8,851 Commercial mortgage-backed securities 0 0 3 1,000 0 0 1,003 Collateralized debt obligations 12,037 0 0 1,200 0 (12,037 ) 1,200 Total fixed maturities 16,858 30 57 7,331 (551 ) (12,671 ) 11,054 Total available-for-sale securities 16,858 30 57 7,331 (551 ) (12,671 ) 11,054 Total Level 3 assets $ 16,858 $ 30 $ 57 $ 7,331 $ (551 ) $ (12,671 ) $ 11,054 (1) These amounts are reported in the Statement of Operations as net investment income and net realized investment gains (losses) for the three months ended June 30, 2016 on Level 3 securities. Level 3 Assets – Quarterly Change: (in thousands) Beginning balance at March 31, 2015 Included in earnings Included in other comprehensive income Purchases Sales Transfers Level 3 Ending balance at June 30, 2015 Available-for-sale securities: Corporate debt securities $ 110 $ 0 $ 0 $ 0 $ 0 $ (110 ) $ 0 Collateralized debt obligations 0 0 0 660 0 0 660 Total fixed maturities 110 0 0 660 0 (110 ) 660 Total available-for-sale securities 110 0 0 660 0 (110 ) 660 Total Level 3 assets $ 110 $ 0 $ 0 $ 660 $ 0 $ (110 ) $ 660
Schedule of fair value measurements on a recurring basis by pricing source	The following table presents our fair value measurements on a recurring basis by pricing source: (in thousands) At June 30, 2016 Total Level 1 Level 2 Level 3 Fixed maturities: Priced via pricing services $ 642,318 $ 0 $ 633,467 $ 8,851 Priced via market comparables/broker quotes 2,203 0 0 2,203 Total fixed maturities 644,521 0 633,467 11,054 Common stock: Priced via pricing services 9,610 9,610 0 0 Total common stock 9,610 9,610 0 0 Other investments: Priced via unobservable inputs (1) 3,908 — — — Total other investments 3,908 — — — Total $ 658,039 $ 9,610 $ 633,467 $ 11,054 (1) Other investments measured at fair value represent real estate funds included on the balance sheet as limited partnership investments that are reported under the fair value option using the net asset value practical expedient. These amounts are not required to be categorized in the fair value hierarchy. The fair value of these investments is based on the net asset value (NAV) information provided by the general partner.

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2016
Investments [Abstract]
Schedule of reconciliation of cost to fair value of available-for-sale securities	The following table summarizes the cost and fair value of our available-for-sale securities: At June 30, 2016 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: States & political subdivisions $ 227,669 $ 14,155 $ 0 $ 241,824 Corporate debt securities 288,887 2,361 1,220 290,028 Residential mortgage-backed securities 14,125 43 139 14,029 Commercial mortgage-backed securities 40,503 292 772 40,023 Collateralized debt obligations 56,761 104 232 56,633 Other debt securities 2,000 0 16 1,984 Total fixed maturities 629,945 16,955 2,379 644,521 Common stock 8,949 165 0 9,114 Total available-for-sale securities $ 638,894 $ 17,120 $ 2,379 $ 653,635 At December 31, 2015 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: States & political subdivisions $ 221,093 $ 10,761 $ 7 $ 231,847 Corporate debt securities 254,464 281 4,412 250,333 Residential mortgage-backed securities 13,639 4 130 13,513 Commercial mortgage-backed securities 38,630 30 1,089 37,571 Collateralized debt obligations 51,905 61 221 51,745 Other debt securities 2,241 0 41 2,200 Total fixed maturities 581,972 11,137 5,900 587,209 Common stock 12,865 0 133 12,732 Total available-for-sale securities $ 594,837 $ 11,137 $ 6,033 $ 599,941
Schedule of amortized cost and estimated fair value of fixed maturities by remaining contractual term to maturity	The amortized cost and estimated fair value of fixed maturities at June 30, 2016 are shown below by remaining contractual term to maturity. Mortgage-backed securities are allocated based upon their stated maturity dates. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At June 30, 2016 (in thousands) Amortized Estimated cost fair value Due in one year or less $ 45,685 $ 45,799 Due after one year through five years 296,550 300,336 Due after five years through ten years 188,270 195,896 Due after ten years 99,440 102,490 Total fixed maturities $ 629,945 $ 644,521
Schedule of available-for-sale securities in a gross unrealized loss position by length of time	Available-for-sale securities in a gross unrealized loss position are as follows. Data is provided by length of time for securities in a gross unrealized loss position. At June 30, 2016 (dollars in thousands) Less than 12 months 12 months or longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses No. of holdings Available-for-sale securities: Corporate debt securities 65,341 666 21,953 554 87,294 1,220 260 Residential mortgage-backed securities 5,051 18 2,599 121 7,650 139 7 Commercial mortgage-backed securities 1,283 7 17,931 765 19,214 772 18 Collateralized debt obligations 19,843 118 13,681 114 33,524 232 17 Other debt securities 0 0 1,984 16 1,984 16 1 Total fixed maturities 91,518 809 58,148 1,570 149,666 2,379 303 Total available-for-sale securities $ 91,518 $ 809 $ 58,148 $ 1,570 $ 149,666 $ 2,379 303 Quality breakdown of fixed maturities: Investment grade $ 42,174 $ 170 $ 47,584 $ 1,069 $ 89,758 $ 1,239 56 Non-investment grade 49,344 639 10,564 501 59,908 1,140 247 Total fixed maturities $ 91,518 $ 809 $ 58,148 $ 1,570 $ 149,666 $ 2,379 303 At December 31, 2015 (dollars in thousands) Less than 12 months 12 months or longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses No. of holdings Available-for-sale securities: States & political subdivisions $ 5,867 $ 7 $ 0 $ 0 $ 5,867 $ 7 3 Corporate debt securities 172,831 2,447 19,086 1,965 191,917 4,412 349 Residential mortgage-backed securities 9,827 84 936 46 10,763 130 9 Commercial mortgage-backed securities 13,081 68 19,081 1,021 32,162 1,089 24 Collateralized debt obligations 27,981 103 9,174 118 37,155 221 19 Other debt securities 1,960 40 241 1 2,201 41 2 Total fixed maturities 231,547 2,749 48,518 3,151 280,065 5,900 406 Common stock 12,732 133 0 0 12,732 133 1 Total available-for-sale securities $ 244,279 $ 2,882 $ 48,518 $ 3,151 $ 292,797 $ 6,033 407 Quality breakdown of fixed maturities: Investment grade $ 174,723 $ 1,296 $ 38,369 $ 1,256 $ 213,092 $ 2,552 105 Non-investment grade 56,824 1,453 10,149 1,895 66,973 3,348 301 Total fixed maturities $ 231,547 $ 2,749 $ 48,518 $ 3,151 $ 280,065 $ 5,900 406
Schedule of investment income, net of expenses, from portfolios	Interest and dividend income are recognized as earned and recorded to net investment income. Investment income, net of expenses, was generated from the following portfolios: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Fixed maturities $ 4,858 $ 4,150 $ 9,384 $ 8,229 Equity securities 47 240 82 500 Cash equivalents and other 321 281 645 575 Total investment income 5,226 4,671 10,111 9,304 Less: investment expenses 335 236 558 328 Net investment income $ 4,891 $ 4,435 $ 9,553 $ 8,976
Schedule of realized gains (losses) and other-than-temporary impairments on investments recognized in income	Realized gains and losses on sales of securities are recognized in income based upon the specific identification method. Realized gains (losses) on investments were as follows: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Available-for-sale securities: Fixed maturities: Gross realized gains $ 438 $ 340 $ 572 $ 371 Gross realized losses (209 ) (104 ) (1,792 ) (375 ) Net realized gains (losses) 229 236 (1,220 ) (4 ) Equity securities: Gross realized gains 0 362 0 362 Gross realized losses 0 0 (34 ) 0 Net realized gains (losses) 0 362 (34 ) 362 Trading securities: Common stock: Gross realized gains 586 0 586 0 Gross realized losses 0 0 0 0 Decreases in fair value (1) (416 ) 0 (21 ) 0 Net realized gains 170 0 565 0 Net realized investment gains (losses) $ 399 $ 598 $ (689 ) $ 358 (1) The fair value of our common stocks is determined based upon exchange traded prices provided by a nationally recognized pricing service. Net impairment losses The components of other-than-temporary impairments on investments were as follows: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Fixed maturities $ 0 $ (35 ) $ (345 ) $ (155 ) Total other-than-temporary impairments 0 (35 ) (345 ) (155 ) Portion recognized in other comprehensive income 0 0 0 0 Net impairment losses recognized in earnings $ 0 $ (35 ) $ (345 ) $ (155 )
Schedule of limited partnership results, generally reported on a one-quarter lag	Amounts included in equity in earnings of limited partnerships by method of accounting are included below: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Equity in earnings of limited partnerships accounted for under the equity method $ 2,058 $ 10,707 $ 1,342 $ 13,319 Change in fair value of limited partnerships accounted for under the fair value option 56 0 102 (254 ) Equity in earnings of limited partnerships $ 2,114 $ 10,707 $ 1,444 $ 13,065 The following table summarizes limited partnership investments by sector: (in thousands) At June 30, 2016 At December 31, 2015 Private equity $ 39,917 $ 48,397 Mezzanine debt 10,355 12,701 Real estate 16,772 22,911 Real estate - fair value option 3,908 4,526 Total limited partnerships $ 70,952 $ 88,535

Postretirement Benefits (Tables

Postretirement Benefits (Tables)	6 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Schedule of cost of pension plans	The cost of our pension plans are as follows: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Service cost for benefits earned $ 7,050 $ 7,608 $ 14,100 $ 15,216 Interest cost on benefits obligation 8,282 7,689 16,563 15,378 Expected return on plan assets (9,880 ) (8,980 ) (19,760 ) (17,960 ) Prior service cost amortization 174 167 348 334 Net actuarial loss amortization 2,027 3,508 4,055 7,016 Pension plan cost (1) $ 7,653 $ 9,992 $ 15,306 $ 19,984 (1) Pension plan costs represent the total cost before reimbursements from the Exchange and EFL.

Accumulated Other Comprehensi26

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of changes in accumulated other comprehensive income (loss) by component, including amounts reclassified out of accumulated other comprehensive income (loss) and the related line item in the Statements of Operations where net income is presented	Changes in accumulated other comprehensive income (loss) by component, including amounts reclassified out of accumulated other comprehensive income (loss) and the related line item in the Statements of Operations where net income is presented, are as follows: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Investment securities: Accumulated other comprehensive income, beginning of the period $ 5,992 $ 6,907 $ 2,527 $ 6,807 Other comprehensive income (loss) before reclassifications, net of tax (expense) benefit of $(1,710), $1,194, $(2,936) and $1,266, respectively 3,175 (2,217 ) 5,452 (2,351 ) Reclassifications: Realized investment (gains) losses, net of tax benefit (expense) of $80, $209, $(439), and $125, respectively (149 ) (389 ) 815 (233 ) Impairment losses, net of tax expense of $0, $12, $121 and $54, respectively 0 23 224 101 Other comprehensive income (loss), net of tax 3,026 (2,583 ) 6,491 (2,483 ) Accumulated other comprehensive income, end of the period $ 9,018 $ 4,324 $ 9,018 $ 4,324 Pension and other postretirement plans (1) : Accumulated other comprehensive loss, beginning of the period $ (99,391 ) $ (124,508 ) $ (99,391 ) $ (124,508 ) Other comprehensive income (loss) before reclassifications, net of tax 0 0 0 0 Reclassifications: Amortization of prior service costs, net of tax 0 0 0 0 Amortization of net actuarial loss, net of tax 0 0 0 0 Other comprehensive income (loss), net of tax 0 0 0 0 Accumulated other comprehensive loss, end of the period $ (99,391 ) $ (124,508 ) $ (99,391 ) $ (124,508 ) Total Accumulated other comprehensive loss, beginning of the period $ (93,399 ) $ (117,601 ) $ (96,864 ) $ (117,701 ) Investment securities 3,026 (2,583 ) 6,491 (2,483 ) Pension and other postretirement plans 0 0 0 0 Other comprehensive income (loss), net of tax 3,026 (2,583 ) 6,491 (2,483 ) Accumulated other comprehensive loss, end of the period $ (90,373 ) $ (120,184 ) $ (90,373 ) $ (120,184 ) (1) There are no comprehensive income items or amounts reclassified out of accumulated other comprehensive loss related to postretirement plan items during interim periods.

Related Party (Tables)

Related Party (Tables)	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Schedule of cash settlements	The amounts incurred on behalf of the Exchange and EFL were as follows: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Erie Insurance Exchange $ 115,868 $ 104,530 $ 226,263 $ 207,046 Erie Family Life Insurance 9,944 10,205 19,504 18,756 Total cash settlements $ 125,812 $ 114,735 $ 245,767 $ 225,802

Significant Accounting Polici28

Significant Accounting Policies (Details)	Jun. 30, 2016USD ($)
Cumulative-Effect Adjustment, Deconsolidation of Variable Interest Entity
ASU 2015-02 cumulative-effect adjustment, deconsolidation of variable interest entity
Cumulative effect to Indemnity's shareholders' equity and net income due to adoption of ASU 2015-02	$ 0

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Class A
Income available to stockholders (Basic EPS:)
Allocated net income (numerator) (in dollars)	$ 60,807	$ 55,690	$ 106,327	$ 94,205
Weighted shares (denominator) (in shares)	46,188,867	46,189,068	46,188,967	46,189,068
Per-share amount (in dollars per share)	$ 1.32	$ 1.21	$ 2.30	$ 2.04
Dilutive effect of stock-based awards
Allocated net income (numerator) (in dollars)	$ 0	$ 0	$ 0	$ 0
Weighted shares (denominator) (in shares)	103,195	272,646	168,627	308,765
Assumed conversion of Class B shares
Allocated net income (numerator) (in dollars)	$ 502	$ 460	$ 877	$ 778
Weighted shares (denominator) (in shares)	6,100,800	6,100,800	6,100,800	6,100,800
Income available to stockholders on equivalent shares (Diluted EPS:)
Allocated net income (numerator) (in dollars)	$ 61,309	$ 56,150	$ 107,204	$ 94,983
Weighted shares (denominator) (in shares)	52,392,862	52,562,514	52,458,394	52,598,633
Per-share amount (in dollars per share)	$ 1.17	$ 1.07	$ 2.04	$ 1.81
Class B
Reconciliation of the numerators and denominators used in the basic and diluted per-share computations
Ratio for converting shares of Class B common stock into shares of Class A common stock (as a percent)	2400.00%		2400.00%		2400.00%
Income available to stockholders (Basic EPS:)
Allocated net income (numerator) (in dollars)	$ 502	$ 460	$ 877	$ 778
Weighted shares (denominator) (in shares)	2,542	2,542	2,542	2,542
Per-share amount (in dollars per share)	$ 197	$ 181	$ 345	$ 306
Income available to stockholders on equivalent shares (Diluted EPS:)
Allocated net income (numerator) (in dollars)	$ 502	$ 458	$ 877	$ 776
Weighted shares (denominator) (in shares)	2,542	2,542	2,542	2,542
Per-share amount (in dollars per share)	$ 197	$ 180	$ 345	$ 305

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	$ 653,635		$ 599,941
Other investments:
Contributions made to the funds	367	$ 597
Distributions received from the funds	11,246	$ 14,708
Fair value measurements on a recurring basis
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	653,635		599,941
Total	658,039		604,467
Fair value measurements on a recurring basis | Fixed maturities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	644,521		587,209
Fair value measurements on a recurring basis | States & political subdivisions
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	241,824		231,847
Fair value measurements on a recurring basis | Corporate debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	290,028		250,333
Fair value measurements on a recurring basis | Residential mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	14,029		13,513
Fair value measurements on a recurring basis | Commercial mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	40,023		37,571
Fair value measurements on a recurring basis | Collateralized debt obligations
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	56,633		51,745
Fair value measurements on a recurring basis | Other debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	1,984		2,200
Fair value measurements on a recurring basis | Common stock
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	9,114		12,732
Trading securities	496
Fair value measurements on a recurring basis | Real estate
Fair value measurements on a recurring basis by asset class and level of input
Other investments	3,908		4,526
Fair value measurements on a recurring basis | Level 1
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	9,114		12,732
Total	9,610		12,732
Fair value measurements on a recurring basis | Level 1 | Fixed maturities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0		0
Fair value measurements on a recurring basis | Level 1 | States & political subdivisions
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0		0
Fair value measurements on a recurring basis | Level 1 | Corporate debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0		0
Fair value measurements on a recurring basis | Level 1 | Residential mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0		0
Fair value measurements on a recurring basis | Level 1 | Commercial mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0		0
Fair value measurements on a recurring basis | Level 1 | Collateralized debt obligations
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0		0
Fair value measurements on a recurring basis | Level 1 | Other debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0		0
Fair value measurements on a recurring basis | Level 1 | Common stock
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	9,114		12,732
Trading securities	496
Fair value measurements on a recurring basis | Level 2
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	633,467		578,563
Total	633,467		578,563
Fair value measurements on a recurring basis | Level 2 | Fixed maturities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	633,467		578,563
Fair value measurements on a recurring basis | Level 2 | States & political subdivisions
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	241,824		231,847
Fair value measurements on a recurring basis | Level 2 | Corporate debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	281,177		250,264
Fair value measurements on a recurring basis | Level 2 | Residential mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	14,029		13,513
Fair value measurements on a recurring basis | Level 2 | Commercial mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	39,020		37,571
Fair value measurements on a recurring basis | Level 2 | Collateralized debt obligations
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	55,433		43,168
Fair value measurements on a recurring basis | Level 2 | Other debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	1,984		2,200
Fair value measurements on a recurring basis | Level 2 | Common stock
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0		0
Trading securities	0
Fair value measurements on a recurring basis | Level 3
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	11,054		8,646
Total	11,054		8,646
Fair value measurements on a recurring basis | Level 3 | Fixed maturities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	11,054		8,646
Fair value measurements on a recurring basis | Level 3 | States & political subdivisions
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0		0
Fair value measurements on a recurring basis | Level 3 | Corporate debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	8,851		69
Fair value measurements on a recurring basis | Level 3 | Residential mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0		0
Fair value measurements on a recurring basis | Level 3 | Commercial mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	1,003		0
Fair value measurements on a recurring basis | Level 3 | Collateralized debt obligations
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	1,200		8,577
Fair value measurements on a recurring basis | Level 3 | Other debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0		0
Fair value measurements on a recurring basis | Level 3 | Common stock
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0		0
Trading securities	0
Fair value measurements on a recurring basis | Level 3 | Real estate
Other investments:
Contributions made to the funds	0		0
Distributions received from the funds	700		3,500
Unfunded commitments	$ 300		$ 600
Minimum | Fair value measurements on a recurring basis | Level 3 | Real estate
Other investments:
Underlying assets, liquidation period from inception of fund (in years)	5 years		5 years
Maximum | Fair value measurements on a recurring basis | Level 3 | Real estate
Other investments:
Underlying assets, liquidation period from inception of fund (in years)	10 years		10 years

Fair Value (Details 2)

Fair Value (Details 2) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)Holdings	Jun. 30, 2015USD ($)Holdings	Jun. 30, 2016USD ($)Holdings	Jun. 30, 2015USD ($)Holdings
Fair value transfers due to changes in available market observable inputs
Transfers from level 1 to level 2	$ 0	$ 0	$ 0	$ 0
Transfers from level 2 to level 1	0	0	0	0
Transfers from level 2 to level 3	1,700	0	3,000	0
Transfers from level 3 to level 2	$ 14,300	$ 100	$ 14,400	$ 100
Fixed maturities
Fair value transfers due to changes in available market observable inputs
No. of securities transferred between Level 2 and Level 3 | Holdings	7		16
No. of securities transferred between Level 3 and Level 2 | Holdings	21	1	22	1
Level 3
Roll forward of consolidated level 3 fair value measurements on a recurring basis
Beginning balance	$ 16,858	$ 110	$ 8,646	$ 0
Included in earnings	30	0	49	0
Included in other comprehensive income	57	0	72	0
Purchases	7,331	660	14,392	770
Sales	(551)	0	(660)	0
Transfers in and (out) of Level 3	(12,671)	(110)	(11,445)	(110)
Ending balance	11,054	660	11,054	660
Level 3 | Available-for-sale securities
Roll forward of consolidated level 3 fair value measurements on a recurring basis
Beginning balance	16,858	110	8,646	0
Included in earnings	30	0	49	0
Included in other comprehensive income	57	0	72	0
Purchases	7,331	660	14,392	770
Sales	(551)	0	(660)	0
Transfers in and (out) of Level 3	(12,671)	(110)	(11,445)	(110)
Ending balance	11,054	660	11,054	660
Level 3 | Fixed maturities | Available-for-sale securities
Roll forward of consolidated level 3 fair value measurements on a recurring basis
Beginning balance	16,858	110	8,646	0
Included in earnings	30	0	49	0
Included in other comprehensive income	57	0	72	0
Purchases	7,331	660	14,392	770
Sales	(551)	0	(660)	0
Transfers in and (out) of Level 3	(12,671)	(110)	(11,445)	(110)
Ending balance	11,054	660	11,054	660
Level 3 | Corporate debt securities | Available-for-sale securities
Roll forward of consolidated level 3 fair value measurements on a recurring basis
Beginning balance	4,821	110	69	0
Included in earnings	30	0	45	0
Included in other comprehensive income	54	0	81	0
Purchases	5,131	0	8,670	110
Sales	(551)	0	(606)	0
Transfers in and (out) of Level 3	(634)	(110)	592	(110)
Ending balance	8,851	0	8,851	0
Level 3 | Commercial mortgage-backed securities | Available-for-sale securities
Roll forward of consolidated level 3 fair value measurements on a recurring basis
Beginning balance	0		0
Included in earnings	0		0
Included in other comprehensive income	3		3
Purchases	1,000		1,000
Sales	0		0
Transfers in and (out) of Level 3	0		0
Ending balance	1,003		1,003
Level 3 | Collateralized debt obligations | Available-for-sale securities
Roll forward of consolidated level 3 fair value measurements on a recurring basis
Beginning balance	12,037	0	8,577	0
Included in earnings	0	0	4	0
Included in other comprehensive income	0	0	(12)	0
Purchases	1,200	660	4,722	660
Sales	0	0	(54)	0
Transfers in and (out) of Level 3	(12,037)	0	(12,037)	0
Ending balance	$ 1,200	$ 660	$ 1,200	$ 660

Fair Value (Details 3)

Fair Value (Details 3) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair value by pricing source
Available-for-sale securities	$ 653,635	$ 599,941
Fair value measurements on a recurring basis
Fair value by pricing source
Available-for-sale securities	653,635	599,941
Total	658,039	604,467
Fair value measurements on a recurring basis | Fixed maturities
Fair value by pricing source
Available-for-sale securities	644,521	587,209
Fair value measurements on a recurring basis | Fixed maturities | Priced via pricing services
Fair value by pricing source
Available-for-sale securities	642,318
Fair value measurements on a recurring basis | Fixed maturities | Priced via market comparables/broker quotes
Fair value by pricing source
Available-for-sale securities	2,203
Fair value measurements on a recurring basis | Common stock
Fair value by pricing source
Available-for-sale securities	9,114	12,732
Trading and available-for-sale securities	9,610
Fair value measurements on a recurring basis | Common stock | Priced via pricing services
Fair value by pricing source
Trading and available-for-sale securities	9,610
Fair value measurements on a recurring basis | Real estate
Fair value by pricing source
Other investments	3,908	4,526
Fair value measurements on a recurring basis | Real estate | Priced via unobservable inputs
Fair value by pricing source
Other investments	3,908
Fair value measurements on a recurring basis | Level 1
Fair value by pricing source
Available-for-sale securities	9,114	12,732
Total	9,610	12,732
Fair value measurements on a recurring basis | Level 1 | Fixed maturities
Fair value by pricing source
Available-for-sale securities	0	0
Fair value measurements on a recurring basis | Level 1 | Fixed maturities | Priced via pricing services
Fair value by pricing source
Available-for-sale securities	0
Fair value measurements on a recurring basis | Level 1 | Fixed maturities | Priced via market comparables/broker quotes
Fair value by pricing source
Available-for-sale securities	0
Fair value measurements on a recurring basis | Level 1 | Common stock
Fair value by pricing source
Available-for-sale securities	9,114	12,732
Trading and available-for-sale securities	9,610
Fair value measurements on a recurring basis | Level 1 | Common stock | Priced via pricing services
Fair value by pricing source
Trading and available-for-sale securities	9,610
Fair value measurements on a recurring basis | Level 2
Fair value by pricing source
Available-for-sale securities	633,467	578,563
Total	633,467	578,563
Fair value measurements on a recurring basis | Level 2 | Fixed maturities
Fair value by pricing source
Available-for-sale securities	633,467	578,563
Fair value measurements on a recurring basis | Level 2 | Fixed maturities | Priced via pricing services
Fair value by pricing source
Available-for-sale securities	633,467
Fair value measurements on a recurring basis | Level 2 | Fixed maturities | Priced via market comparables/broker quotes
Fair value by pricing source
Available-for-sale securities	0
Fair value measurements on a recurring basis | Level 2 | Common stock
Fair value by pricing source
Available-for-sale securities	0	0
Trading and available-for-sale securities	0
Fair value measurements on a recurring basis | Level 2 | Common stock | Priced via pricing services
Fair value by pricing source
Trading and available-for-sale securities	0
Fair value measurements on a recurring basis | Level 3
Fair value by pricing source
Available-for-sale securities	11,054	8,646
Total	11,054	8,646
Fair value measurements on a recurring basis | Level 3 | Non-binding broker quotes classified within Level 3
Fair value by pricing source
Available-for-sale securities	11,100
Fair value measurements on a recurring basis | Level 3 | Fixed maturities
Fair value by pricing source
Available-for-sale securities	11,054	8,646
Fair value measurements on a recurring basis | Level 3 | Fixed maturities | Priced via pricing services
Fair value by pricing source
Available-for-sale securities	8,851
Fair value measurements on a recurring basis | Level 3 | Fixed maturities | Priced via market comparables/broker quotes
Fair value by pricing source
Available-for-sale securities	2,203
Fair value measurements on a recurring basis | Level 3 | Common stock
Fair value by pricing source
Available-for-sale securities	0	$ 0
Trading and available-for-sale securities	0
Fair value measurements on a recurring basis | Level 3 | Common stock | Priced via pricing services
Fair value by pricing source
Trading and available-for-sale securities	0
Fair value measurements on a nonrecurring basis
Fair value by pricing source
Total	$ 0

Investments (Details)

Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Available-for-sale securities
Amortized cost, fixed maturities	$ 629,945
Amortized cost	638,894	$ 594,837
Gross unrealized gains	17,120	11,137
Gross unrealized losses	2,379	6,033
Estimated fair value, fixed maturities	644,521
Estimated fair value	653,635	599,941
Fixed maturities
Available-for-sale securities
Amortized cost, fixed maturities	629,945	581,972
Gross unrealized gains, fixed maturities	16,955	11,137
Gross unrealized losses, fixed maturities	2,379	5,900
Estimated fair value, fixed maturities	644,521	587,209
States & political subdivisions
Available-for-sale securities
Amortized cost, fixed maturities	227,669	221,093
Gross unrealized gains, fixed maturities	14,155	10,761
Gross unrealized losses, fixed maturities	0	7
Estimated fair value, fixed maturities	241,824	231,847
Corporate debt securities
Available-for-sale securities
Amortized cost, fixed maturities	288,887	254,464
Gross unrealized gains, fixed maturities	2,361	281
Gross unrealized losses, fixed maturities	1,220	4,412
Estimated fair value, fixed maturities	290,028	250,333
Residential mortgage-backed securities
Available-for-sale securities
Amortized cost, fixed maturities	14,125	13,639
Gross unrealized gains, fixed maturities	43	4
Gross unrealized losses, fixed maturities	139	130
Estimated fair value, fixed maturities	14,029	13,513
Commercial mortgage-backed securities
Available-for-sale securities
Amortized cost, fixed maturities	40,503	38,630
Gross unrealized gains, fixed maturities	292	30
Gross unrealized losses, fixed maturities	772	1,089
Estimated fair value, fixed maturities	40,023	37,571
Collateralized debt obligations
Available-for-sale securities
Amortized cost, fixed maturities	56,761	51,905
Gross unrealized gains, fixed maturities	104	61
Gross unrealized losses, fixed maturities	232	221
Estimated fair value, fixed maturities	56,633	51,745
Other debt securities
Available-for-sale securities
Amortized cost, fixed maturities	2,000	2,241
Gross unrealized gains, fixed maturities	0	0
Gross unrealized losses, fixed maturities	16	41
Estimated fair value, fixed maturities	1,984	2,200
Common stock
Available-for-sale securities
Amortized cost, equity securities	8,949	12,865
Gross unrealized gains, equity securities	165	0
Gross unrealized losses, equity securities	0	133
Estimated fair value, equity securities	$ 9,114	$ 12,732

Investments (Details 2)

Investments (Details 2) $ in Thousands	Jun. 30, 2016USD ($)
Amortized cost
Due in one year or less	$ 45,685
Due after one year through five years	296,550
Due after five years through ten years	188,270
Due after ten years	99,440
Amortized cost, fixed maturities	629,945
Estimated fair value
Due in one year or less	45,799
Due after one year through five years	300,336
Due after five years through ten years	195,896
Due after ten years	102,490
Estimated fair value, fixed maturities	$ 644,521

Investments (Details 3)

Investments (Details 3) $ in Thousands	Jun. 30, 2016USD ($)Holdings	Dec. 31, 2015USD ($)Holdings
Fair value
Less than 12 months	$ 91,518	$ 244,279
12 months or longer	58,148	48,518
Total	149,666	292,797
Unrealized losses
Less than 12 months	809	2,882
12 months or longer	1,570	3,151
Total	$ 2,379	$ 6,033
No. of holdings | Holdings	303	407
Investment grade
Fair value
Less than 12 months	$ 42,174	$ 174,723
12 months or longer	47,584	38,369
Total	89,758	213,092
Unrealized losses
Less than 12 months	170	1,296
12 months or longer	1,069	1,256
Total	$ 1,239	$ 2,552
No. of holdings | Holdings	56	105
Non-investment grade
Fair value
Less than 12 months	$ 49,344	$ 56,824
12 months or longer	10,564	10,149
Total	59,908	66,973
Unrealized losses
Less than 12 months	639	1,453
12 months or longer	501	1,895
Total	$ 1,140	$ 3,348
No. of holdings | Holdings	247	301
Fixed maturities
Fair value
Less than 12 months	$ 91,518	$ 231,547
12 months or longer	58,148	48,518
Total	149,666	280,065
Unrealized losses
Less than 12 months	809	2,749
12 months or longer	1,570	3,151
Total	$ 2,379	$ 5,900
No. of holdings | Holdings	303	406
States & political subdivisions
Fair value
Less than 12 months		$ 5,867
12 months or longer		0
Total		5,867
Unrealized losses
Less than 12 months		7
12 months or longer		0
Total		$ 7
No. of holdings | Holdings		3
Corporate debt securities
Fair value
Less than 12 months	$ 65,341	$ 172,831
12 months or longer	21,953	19,086
Total	87,294	191,917
Unrealized losses
Less than 12 months	666	2,447
12 months or longer	554	1,965
Total	$ 1,220	$ 4,412
No. of holdings | Holdings	260	349
Residential mortgage-backed securities
Fair value
Less than 12 months	$ 5,051	$ 9,827
12 months or longer	2,599	936
Total	7,650	10,763
Unrealized losses
Less than 12 months	18	84
12 months or longer	121	46
Total	$ 139	$ 130
No. of holdings | Holdings	7	9
Commercial mortgage-backed securities
Fair value
Less than 12 months	$ 1,283	$ 13,081
12 months or longer	17,931	19,081
Total	19,214	32,162
Unrealized losses
Less than 12 months	7	68
12 months or longer	765	1,021
Total	$ 772	$ 1,089
No. of holdings | Holdings	18	24
Collateralized debt obligations
Fair value
Less than 12 months	$ 19,843	$ 27,981
12 months or longer	13,681	9,174
Total	33,524	37,155
Unrealized losses
Less than 12 months	118	103
12 months or longer	114	118
Total	$ 232	$ 221
No. of holdings | Holdings	17	19
Other debt securities
Fair value
Less than 12 months	$ 0	$ 1,960
12 months or longer	1,984	241
Total	1,984	2,201
Unrealized losses
Less than 12 months	0	40
12 months or longer	16	1
Total	$ 16	$ 41
No. of holdings | Holdings	1	2
Common stock
Fair value
Less than 12 months		$ 12,732
12 months or longer		0
Total		12,732
Unrealized losses
Less than 12 months		133
12 months or longer		0
Total		$ 133
No. of holdings | Holdings		1

Investments (Details 4)

Investments (Details 4) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Investment income from portfolios
Total investment income	$ 5,226	$ 4,671	$ 10,111	$ 9,304
Less: investment expenses	335	236	558	328
Net investment income	4,891	4,435	9,553	8,976
Fixed maturities
Investment income from portfolios
Total investment income	4,858	4,150	9,384	8,229
Equity securities
Investment income from portfolios
Total investment income	47	240	82	500
Cash equivalents and other
Investment income from portfolios
Total investment income	$ 321	$ 281	$ 645	$ 575

Investments (Details 5)

Investments (Details 5) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Realized investment gains (losses)
Net realized investment gains (losses)	$ 399	$ 598	$ (689)	$ 358
Other-than-temporary impairments on investments
Other -than-temporary impairments on investments	0	(35)	(345)	(155)
Portion recognized in other comprehensive income	0	0	0	0
Net impairment losses recognized in earnings	0	(35)	(345)	(155)
Fixed maturities
Available-for-sale securities:
Gross realized gains	438	340	572	371
Gross realized losses	(209)	(104)	(1,792)	(375)
Net realized gains (losses)	229	236	(1,220)	(4)
Other-than-temporary impairments on investments
Other -than-temporary impairments on investments	0	(35)	(345)	(155)
Equity securities
Available-for-sale securities:
Gross realized gains	0	362	0	362
Gross realized losses	0	0	(34)	0
Net realized gains (losses)	0	362	(34)	362
Common stock
Trading securities:
Gross realized gains	586	0	586	0
Gross realized losses	0	0	0	0
Decreases in fair value	(416)	0	(21)	0
Net realized gains	$ 170	$ 0	$ 565	$ 0

Investments (Details 6)

Investments (Details 6) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Investments in limited partnerships
Equity in earnings of limited partnerships	$ 2,114	$ 10,707	$ 1,444	$ 13,065
Equity method of accounting
Investments in limited partnerships
Equity in earnings of limited partnerships	2,058	10,707	1,342	13,319
Fair value option
Investments in limited partnerships
Equity in earnings of limited partnerships	$ 56	$ 0	$ 102	$ (254)

Investments (Details 7)

Investments (Details 7) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Investments in limited partnerships
Asset recorded	$ 70,952	$ 88,535
Private equity
Investments in limited partnerships
Asset recorded	39,917	48,397
Mezzanine debt
Investments in limited partnerships
Asset recorded	10,355	12,701
Real estate
Investments in limited partnerships
Asset recorded	16,772	22,911
Fair value option | Real estate
Investments in limited partnerships
Asset recorded	$ 3,908	$ 4,526

Bank Line of Credit (Details)

Bank Line of Credit (Details) - Revolving line of credit $ in Millions	6 Months Ended
	Jun. 30, 2016USD ($)
Bank Line of Credit
Maximum borrowing capacity under the bank revolving line of credit	$ 100
Maximum letter of credit sublimit under the bank revolving line of credit	$ 25
Expiration date of the bank revolving line of credit	Nov. 3, 2020
Available borrowing capacity under the bank revolving line of credit, due to outstanding letters of credit	$ 99
Outstanding amount of letters of credit under the bank revolving line of credit	1
Available amount of letters of credit under the bank revolving line of credit	24
Borrowings outstanding under the bank revolving line of credit	0
Fair value of bonds pledged as collateral on the bank revolving line of credit	$ 111.1

Postretirement Benefits (Detail

Postretirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Cost of pension plans
Service cost for benefits earned	$ 7,050	$ 7,608	$ 14,100	$ 15,216
Interest cost on benefits obligation	8,282	7,689	16,563	15,378
Expected return on plan assets	(9,880)	(8,980)	(19,760)	(17,960)
Prior service cost amortization	174	167	348	334
Net actuarial loss amortization	2,027	3,508	4,055	7,016
Pension plan cost	7,653	$ 9,992	15,306	$ 19,984
Employee pension plan
Postretirement Benefits
Employer contribution			$ 17,400
Erie Insurance Exchange (EIE)
Postretirement Benefits
Postretirement annual benefit expense reimbursed to Indemnity from the Exchange (as a percent)			58.00%
Erie Family Life Insurance Company (EFL) | Employee pension plan
Postretirement Benefits
Contingent liability for amount of nonparticipating annuity contracts the employee pension plan purchased from EFL	$ 21,800		$ 21,800

Income Taxes (Details)

Income Taxes (Details)	6 Months Ended
	Jun. 30, 2016
Income taxes
Effective tax rate when investment related permanent tax differences are excluded (as a percent)	35.00%
Minimum
Income taxes
Percent of total permanent tax differences related to investment revenues (as a percent)	98.00%

Capital Stock (Details)

Capital Stock (Details) - Class B - shares	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Common Stock
Ratio for converting shares of Class B common stock into shares of Class A common stock (as a percent)	2400.00%	2400.00%
Class B common stock shares converted into Class A common stock shares (in shares)	0	0

Capital Stock (Details 2)

Capital Stock (Details 2) - Class A - Stock repurchase program - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Oct. 31, 2011
Stock repurchases
Amount of authorized stock repurchases approved for continuation under the current stock repurchase program			$ 150
Shares repurchased under the current stock repurchase program (in shares)	0	0
Approximate amount of repurchase authority remaining under the current stock repurchase program	$ 17.8

Accumulated Other Comprehensi45

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Changes in accumulated other comprehensive income (loss) by component, including amounts reclassified out of accumulated other comprehensive income (loss) and the related line item in the Statements of Operations where net income is presented
Accumulated other comprehensive income (loss), beginning of the period	$ (93,399)	$ (117,601)	$ (96,864)	$ (117,701)
Other comprehensive income (loss), net of tax	3,026	(2,583)	6,491	(2,483)
Other comprehensive income (loss), net of tax	3,026	(2,583)	6,491	(2,483)
Accumulated other comprehensive income (loss), end of the period	(90,373)	(120,184)	(90,373)	(120,184)
Investment securities:
Changes in accumulated other comprehensive income (loss) by component, including amounts reclassified out of accumulated other comprehensive income (loss) and the related line item in the Statements of Operations where net income is presented
Accumulated other comprehensive income (loss), beginning of the period	5,992	6,907	2,527	6,807
Other comprehensive income (loss) before reclassifications, net of tax (expense) benefit of $(1,710), $1,194, $(2,936) and $1,266, respectively	3,175	(2,217)	5,452	(2,351)
Realized investment (gains) losses, net of tax benefit (expense) of $80, $209, $(439), and $125, respectively	(149)	(389)	815	(233)
Impairment losses, net of tax expense of $0, $12, $121 and $54, respectively	0	23	224	101
Other comprehensive income (loss), net of tax	3,026	(2,583)	6,491	(2,483)
Accumulated other comprehensive income (loss), end of the period	9,018	4,324	9,018	4,324
Pension and other postretirement plans:
Changes in accumulated other comprehensive income (loss) by component, including amounts reclassified out of accumulated other comprehensive income (loss) and the related line item in the Statements of Operations where net income is presented
Accumulated other comprehensive income (loss), beginning of the period	(99,391)	(124,508)	(99,391)	(124,508)
Other comprehensive income (loss) before reclassifications, net of tax	0	0	0	0
Amortization of prior service costs, net of tax	0	0	0	0
Amortization of net actuarial loss, net of tax	0	0	0	0
Other comprehensive income (loss), net of tax	0	0	0	0
Accumulated other comprehensive income (loss), end of the period	$ (99,391)	$ (124,508)	$ (99,391)	$ (124,508)

Accumulated Other Comprehensi46

Accumulated Other Comprehensive Income (Loss) (Details 2) - Investment securities - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Other comprehensive income (loss), tax
Other comprehensive income (loss), unrealized holding gain (loss) on investment securities, tax (expense) benefit	$ (1,710)	$ 1,194	$ (2,936)	$ 1,266
Reclassification adjustment for realized investment (gains) losses, tax benefit (expense)	80	209	(439)	125
Reclassification adjustment for impairment losses, tax expense	$ 0	$ 12	$ 121	$ 54

Related Party (Details)

Related Party (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transactions
Cash settlements for payments made by Indemnity on the account of related parties	$ 125,812	$ 114,735	$ 245,767	$ 225,802
Erie Insurance Exchange (EIE)
Related Party Transactions
Cash settlements for payments made by Indemnity on the account of related parties	115,868	104,530	226,263	207,046
Erie Family Life Insurance Company (EFL)
Related Party Transactions
Cash settlements for payments made by Indemnity on the account of related parties	$ 9,944	$ 10,205	$ 19,504	$ 18,756

Concentrations of Credit Risk (

Concentrations of Credit Risk (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Concentrations of credit risk from unsecured receivables
Receivables from Erie Insurance Exchange and affiliates	$ 387,273	$ 348,055

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	6 Months Ended
	Jun. 30, 2016USD ($)
Contractual commitments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	$ 18.9
Description of commitment: contractual commitment to invest in limited partnership investments	Contractual commitments to invest in limited partnership investments, consisting of private equity securities, mezzanine debt securities, and real estate activities.
Private equity
Contractual commitments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	$ 7.2
Mezzanine debt
Contractual commitments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	8.4
Real estate
Contractual commitments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	$ 3.3