Erie Indemnity (ERIE) 10-Q 27 Oct 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 14, 2016
Entity Registrant Name	ERIE INDEMNITY CO
Entity Central Index Key	922,621
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating revenue
Management fee revenue, net	$ 411,139	$ 389,168	$ 1,195,262	$ 1,126,626
Service agreement revenue	7,267	7,469	21,756	22,502
Total operating revenue	418,406	396,637	1,217,018	1,149,128
Operating expenses
Commissions	232,455	223,741	676,963	641,189
Salaries and employee benefits	53,265	58,342	161,579	170,715
All other operating expenses	50,431	46,265	142,797	146,522
Total operating expenses	336,151	328,348	981,339	958,426
Net revenue from operations	82,255	68,289	235,679	190,702
Investment income
Net investment income	5,331	4,346	14,884	13,322
Net realized investment gains (losses)	718	(483)	29	(125)
Net impairment losses recognized in earnings	0	(480)	(345)	(635)
Equity in (losses) earnings of limited partnerships	(1,723)	3,837	(279)	16,902
Total investment income	4,326	7,220	14,289	29,464
Income before income taxes	86,581	75,509	249,968	220,166
Income tax expense	29,205	25,947	85,388	75,621
Net income	$ 57,376	$ 49,562	$ 164,580	$ 144,545
Class A
Net income per share
Common stock - basic (in dollars per share)	$ 1.23	$ 1.06	$ 3.53	$ 3.10
Common stock - diluted (in dollars per share)	$ 1.09	$ 0.94	$ 3.14	$ 2.75
Weighted average shares outstanding – Basic
Common stock - basic (in shares)	46,188,980	46,189,068	46,188,971	46,189,068
Weighted average shares outstanding – Diluted
Common stock - diluted (in shares)	52,411,303	52,602,083	52,442,697	52,599,783
Dividends declared per share
Common stock (in dollars per share)	$ 0.730	$ 0.681	$ 2.190	$ 2.043
Class B
Net income per share
Common stock - basic (in dollars per share)	185	160	530	466
Common stock - diluted (in dollars per share)	$ 185	$ 159	$ 529	$ 465
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	$ 328.500	$ 306.450

STATEMENTS OF COMPREHENSIVE INC

STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 57,376	$ 49,562	$ 164,580	$ 144,545
Other comprehensive income (loss), net of tax
Change in unrealized holding gains (losses) on available-for-sale securities	355	(521)	6,846	(3,004)
Comprehensive income	$ 57,731	$ 49,041	$ 171,426	$ 141,541

STATEMENTS OF FINANCIAL POSITIO

STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 139,813	$ 182,889
Available-for-sale securities	52,108	62,067
Receivables from Erie Insurance Exchange and affiliates	399,975	348,055
Prepaid expenses and other current assets	29,593	24,697
Federal income taxes recoverable	0	11,947
Accrued investment income	6,261	5,491
Total current assets	627,750	635,146
Available-for-sale securities	652,267	537,874
Limited partnership investments	65,949	88,535
Fixed assets, net	58,311	59,087
Deferred income taxes, net	36,161	40,686
Note receivable from Erie Family Life Insurance Company	25,000	25,000
Other assets	19,577	20,968
Total assets	1,485,015	1,407,296
Current liabilities:
Commissions payable	218,267	195,542
Agent bonuses	84,805	106,752
Accounts payable and accrued liabilities	94,504	88,532
Dividends payable	33,996	33,996
Deferred executive compensation	16,873	20,877
Federal income taxes payable	4,813	0
Total current liabilities	453,258	445,699
Defined benefit pension plans	178,257	172,700
Employee benefit obligations	751	1,234
Deferred executive compensation	12,057	16,580
Other long-term liabilities	1,763	1,580
Total liabilities	646,086	637,793
Shareholders’ equity
Additional paid-in-capital	16,300	16,311
Accumulated other comprehensive loss	(90,018)	(96,864)
Retained earnings	2,056,567	1,993,976
Total contributed capital and retained earnings	1,985,019	1,915,593
Treasury stock, at cost; 22,110,132 shares held	(1,155,571)	(1,155,108)
Deferred compensation	9,481	9,018
Total shareholders’ equity	838,929	769,503
Total liabilities and shareholders’ equity	1,485,015	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	Sep. 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	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Management fee received	$ 1,155,234	$ 1,094,122
Service agreement fee received	21,756	22,501
Net investment income received	19,643	18,972
Limited partnership distributions	7,222	12,077
Decrease in reimbursements collected from affiliates	(11,893)	(16,716)
Commissions paid to agents	(565,490)	(539,227)
Agents bonuses paid	(110,503)	(93,495)
Salaries and wages paid	(119,991)	(115,126)
Pension contribution and employee benefits paid	(37,341)	(34,125)
General operating expenses paid	(133,729)	(143,955)
Income taxes paid	(69,357)	(74,033)
Net cash provided by operating activities	155,551	130,995
Purchase of investments:
Available-for-sale securities	(269,237)	(173,330)
Limited partnerships	(449)	(693)
Proceeds from investments:
Available-for-sale securities	164,266	153,265
Trading securities	5,171
Limited partnerships	12,404	21,777
Net purchase of fixed assets	(10,415)	(7,176)
Net collections on agent loans	1,622	696
Net cash used in investing activities	(96,638)	(5,461)
Cash flows from financing activities
Dividends paid to shareholders	(101,989)	(95,143)
Net cash used in financing activities	(101,989)	(95,143)
Net (decrease) increase in cash and cash equivalents	(43,076)	30,391
Cash and cash equivalents, beginning of period	182,889	91,747
Cash and cash equivalents, end of period	$ 139,813	$ 122,138

Nature of Operations

Nature of Operations	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 nine months ended September 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 August 2016, the FASB issued Accounting Standards Update ("ASU") 2016-15, "Statement of Cash Flows" , which provides guidance on how certain cash receipts and cash payments are presented and classified to reduce diversity in practice. ASU 2016-15 is effective for interim and annual reporting periods beginning after December 31, 2017. Early adoption is permitted, including adoption in an interim period. We do not expect the adoption of this guidance to have a material impact on our financial statements. In June 2016, the FASB issued 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	9 Months Ended
	Sep. 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 September 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 $ 56,906 46,188,980 $ 1.23 $ 49,156 46,189,068 $ 1.06 Dilutive effect of stock-based awards 0 121,523 — 0 312,215 — Assumed conversion of Class B shares 470 6,100,800 — 406 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 57,376 52,411,303 $ 1.09 $ 49,562 52,602,083 $ 0.94 Class B – Basic EPS: Income available to Class B stockholders $ 470 2,542 $ 185 $ 406 2,542 $ 160 Class B – Diluted EPS: Income available to Class B stockholders $ 469 2,542 $ 185 $ 405 2,542 $ 159 (dollars in thousands, except per share data) Nine months ended September 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 $ 163,233 46,188,971 $ 3.53 $ 143,361 46,189,068 $ 3.10 Dilutive effect of stock-based awards 0 152,926 — 0 309,915 — Assumed conversion of Class B shares 1,347 6,100,800 — 1,184 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 164,580 52,442,697 $ 3.14 $ 144,545 52,599,783 $ 2.75 Class B – Basic EPS: Income available to Class B stockholders $ 1,347 2,542 $ 530 $ 1,184 2,542 $ 466 Class B – Diluted EPS: Income available to Class B stockholders $ 1,346 2,542 $ 529 $ 1,181 2,542 $ 465

Fair Value

Fair Value	9 Months Ended
	Sep. 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 September 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: U.S. government & agencies $ 2,048 $ 0 $ 2,048 $ 0 States & political subdivisions 246,259 0 246,259 0 Corporate debt securities 320,268 0 310,079 10,189 Residential mortgage-backed securities 17,145 0 17,145 0 Commercial mortgage-backed securities 40,985 0 40,985 0 Collateralized debt obligations 66,647 0 61,526 5,121 Other debt securities 2,003 0 2,003 0 Total fixed maturities 695,355 0 680,045 15,310 Common stock 9,020 9,020 0 0 Total available-for-sale securities 704,375 9,020 680,045 15,310 Other investments (1) 3,964 — — — Total $ 708,339 $ 9,020 $ 680,045 $ 15,310 At December 31, 2015 Fair value measurements using: (in thousands) Total Quoted prices in Observable inputs Unobservable inputs 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 September 30, 2016 and December 31, 2015 . During the nine months ended September 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 September 30, 2016 , and $0.6 million as of December 31, 2015 . Level 3 Assets – Quarterly Change: (in thousands) Beginning balance at June 30, 2016 Included in earnings (1) Included income Purchases Sales Transfers Level 3 Ending balance at September 30, 2016 Available-for-sale securities: Corporate debt securities $ 8,851 $ 22 $ 38 $ 3,217 $ (318 ) $ (1,621 ) $ 10,189 Commercial mortgage-backed securities 1,003 0 0 0 0 (1,003 ) 0 Collateralized debt obligations 1,200 0 7 3,000 0 914 5,121 Total fixed maturities 11,054 22 45 6,217 (318 ) (1,710 ) 15,310 Total available-for-sale securities 11,054 22 45 6,217 (318 ) (1,710 ) 15,310 Total Level 3 assets $ 11,054 $ 22 $ 45 $ 6,217 $ (318 ) $ (1,710 ) $ 15,310 (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 September 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 September 30, 2016 . Level 2 to Level 3 transfers totaled $ 4.6 million for 11 fixed maturity holdings due to the use of unobservable market data to determine the fair value at September 30, 2016 . Level 3 to Level 2 transfers totaled $ 6.3 million for 18 fixed maturity holdings due to the use of observable market data to determine the fair value at September 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 September 30, 2016 Available-for-sale securities: Corporate debt securities $ 69 $ 67 $ 119 $ 11,887 $ (924 ) $ (1,029 ) $ 10,189 Commercial mortgage-backed securities 0 0 3 1,000 0 (1,003 ) 0 Collateralized debt obligations 8,577 4 (5 ) 7,722 (54 ) (11,123 ) 5,121 Total fixed maturities 8,646 71 117 20,609 (978 ) (13,155 ) 15,310 Total available-for-sale securities 8,646 71 117 20,609 (978 ) (13,155 ) 15,310 Total Level 3 assets $ 8,646 $ 71 $ 117 $ 20,609 $ (978 ) $ (13,155 ) $ 15,310 (1) These amounts are reported in the Statement of Operations as net investment income and net realized investment gains (losses) for the nine months ended September 30, 2016 on Level 3 securities. There were no transfers between Level 1 and Level 2 for the nine months ended September 30, 2016 . Level 2 to Level 3 transfers totaled $7.6 million for 27 fixed maturity holdings due to the use of unobservable market data to determine the fair value at September 30, 2016 . Level 3 to Level 2 transfers totaled $20.8 million for 40 fixed maturity holdings due to the use of observable market data to determine the fair value at September 30, 2016 . Level 3 Assets – Quarterly Change: (in thousands) Beginning balance at June 30, 2015 Included in earnings (1) Included in other comprehensive income Purchases Sales Transfers Level 3 Ending balance at September 30, 2015 Available-for-sale securities: Corporate debt securities $ 0 $ (1 ) $ (58 ) $ 0 $ 0 $ 124 $ 65 Collateralized debt obligations 660 1 (3 ) 4,546 0 0 5,204 Total fixed maturities 660 0 (61 ) 4,546 0 124 5,269 Total available-for-sale securities 660 0 (61 ) 4,546 0 124 5,269 Total Level 3 assets $ 660 $ 0 $ (61 ) $ 4,546 $ 0 $ 124 $ 5,269 (1) These amounts are reported in the Statement of Operations as net investment income for the three months ended September 30, 2015 on Level 3 securities. There were no transfers between Level 1 and Level 2 or from Level 3 to Level 2 for the three months ended September 30, 2015 . Level 2 to Level 3 transfers totaled $0.1 million for one fixed maturity holding due to the use of unobservable market data to determine the fair value at September 30, 2015 . Level 3 Assets – Year-to-Date Change: (in thousands) Beginning balance at December 31, 2014 Included in earnings (1) Included in other comprehensive income Purchases Sales Transfers Level 3 Ending balance at September 30, 2015 Available-for-sale securities: Corporate debt securities $ 0 $ (1 ) $ (58 ) $ 110 $ 0 $ 14 $ 65 Collateralized debt obligations 0 1 (3 ) 5,206 0 0 5,204 Total fixed maturities 0 0 (61 ) 5,316 0 14 5,269 Total available-for-sale securities 0 0 (61 ) 5,316 0 14 5,269 Total Level 3 assets $ 0 $ 0 $ (61 ) $ 5,316 $ 0 $ 14 $ 5,269 (1) These amounts are reported in the Statement of Operations as net investment income for the nine months ended September 30, 2015 on Level 3 securities. There were no transfers between Level 1 and Level 2 for the nine months ended September 30, 2015 . Level 2 to Level 3 transfers totaled $0.1 million for one fixed maturity holding due to the use of unobservable market data to determine the fair value at September 30, 2016 . 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 September 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 $15.3 million at September 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 September 30, 2016 Total Level 1 Level 2 Level 3 Fixed maturities: Priced via pricing services $ 689,205 $ 0 $ 679,955 $ 9,250 Priced via market comparables/broker quotes 6,150 0 90 6,060 Total fixed maturities 695,355 0 680,045 15,310 Common stock: Priced via pricing services 9,020 9,020 0 0 Total common stock 9,020 9,020 0 0 Other investments: Priced via unobservable inputs (1) 3,964 — — — Total other investments 3,964 — — — Total $ 708,339 $ 9,020 $ 680,045 $ 15,310 (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 nine months ended September 30, 2016 .

Investments

Investments	9 Months Ended
	Sep. 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 September 30, 2016 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: U.S. government & agencies $ 2,008 $ 40 $ 0 $ 2,048 States & political subdivisions 234,111 12,207 59 246,259 Corporate debt securities 317,745 3,351 828 320,268 Residential mortgage-backed securities 17,246 65 166 17,145 Commercial mortgage-backed securities 41,565 213 793 40,985 Collateralized debt obligations 66,448 263 64 66,647 Other debt securities 2,000 3 0 2,003 Total fixed maturities 681,123 16,142 1,910 695,355 Common stock 8,949 71 0 9,020 Total available-for-sale securities $ 690,072 $ 16,213 $ 1,910 $ 704,375 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 September 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 September 30, 2016 (in thousands) Amortized Estimated cost fair value Due in one year or less $ 51,666 $ 51,821 Due after one year through five years 314,652 319,198 Due after five years through ten years 195,967 203,310 Due after ten years 118,838 121,026 Total fixed maturities $ 681,123 $ 695,355 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 September 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: States & political subdivisions $ 14,735 $ 59 $ 0 $ 0 $ 14,735 $ 59 7 Corporate debt securities 71,837 407 14,876 421 86,713 828 152 Residential mortgage-backed securities 7,225 27 2,816 139 10,041 166 11 Commercial mortgage-backed securities 18,373 107 8,426 686 26,799 793 25 Collateralized debt obligations 11,092 31 8,727 33 19,819 64 10 Total fixed maturities 123,262 631 34,845 1,279 158,107 1,910 205 Total available-for-sale securities $ 123,262 $ 631 $ 34,845 $ 1,279 $ 158,107 $ 1,910 205 Quality breakdown of fixed maturities: Investment grade $ 100,205 $ 296 $ 27,442 $ 688 $ 127,647 $ 984 79 Non-investment grade 23,057 335 7,403 591 30,460 926 126 Total fixed maturities $ 123,262 $ 631 $ 34,845 $ 1,279 $ 158,107 $ 1,910 205 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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Fixed maturities $ 5,245 $ 4,010 $ 14,629 $ 12,239 Equity securities 50 218 132 718 Cash equivalents and other 366 287 1,011 862 Total investment income 5,661 4,515 15,772 13,819 Less: investment expenses 330 169 888 497 Net investment income $ 5,331 $ 4,346 $ 14,884 $ 13,322 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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Available-for-sale securities: Fixed maturities: Gross realized gains $ 603 $ 120 $ 1,175 $ 491 Gross realized losses (27 ) (661 ) (1,819 ) (1,036 ) Net realized gains (losses) 576 (541 ) (644 ) (545 ) Equity securities: Gross realized gains 0 57 0 419 Gross realized losses 0 0 (34 ) 0 Net realized gains (losses) 0 57 (34 ) 419 Trading securities: Common stock: Gross realized gains 121 0 707 0 Gross realized losses 0 0 0 0 Increases in fair value (1) 21 0 0 0 Net realized gains 142 0 707 0 Miscellaneous: Gross realized gains 0 1 0 1 Gross realized losses 0 0 0 0 Net realized gains 0 1 0 1 Net realized investment gains (losses) $ 718 $ (483 ) $ 29 $ (125 ) (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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Fixed maturities $ 0 $ (480 ) $ (345 ) $ (635 ) Total other-than-temporary impairments 0 (480 ) (345 ) (635 ) Portion recognized in other comprehensive income 0 0 0 0 Net impairment losses recognized in earnings $ 0 $ (480 ) $ (345 ) $ (635 ) 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 September 30, 2016 are comprised of partnership financial results for the fourth quarter of 2015 and the first two quarters of 2016. Given the lag in reporting, our limited partnership results do not reflect the market conditions of the third quarter of 2016 . Cash contributions made to and distributions received from the partnerships are recorded in the period in which the transaction occurs. In October 2016, a real estate partnership had a sale of its remaining assets that resulted in a distribution, generating significant gains. Because this was a final distribution, the gain of approximately $7.5 million will be recorded in equity in earnings of limited partnerships from this investment in our fourth quarter 2016 financial statements. Amounts included in equity in earnings of limited partnerships by method of accounting are included below: (in thousands) Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Equity in (losses) earnings of limited partnerships accounted for under the equity method $ (1,778 ) $ 3,235 $ (436 ) $ 16,554 Change in fair value of limited partnerships accounted for under the fair value option 55 602 157 348 Equity in (losses) earnings of limited partnerships $ (1,723 ) $ 3,837 $ (279 ) $ 16,902 The following table summarizes limited partnership investments by sector: (in thousands) At September 30, 2016 At December 31, 2015 Private equity $ 37,248 $ 48,397 Mezzanine debt 8,404 12,701 Real estate 16,333 22,911 Real estate - fair value option 3,964 4,526 Total limited partnership investments $ 65,949 $ 88,535 See also Note 13, "Commitments and Contingencies" for investment commitments related to limited partnerships.

Bank Line of Credit

Bank Line of Credit	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Bank Line of Credit	Note 6. Bank Line of Credit As of September 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 September 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 September 30, 2016 . Bonds with a fair value of $109.4 million were pledged as collateral on the line at September 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 September 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 September 30, 2016 .

Postretirement Benefits

Postretirement Benefits	9 Months Ended
	Sep. 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 $21.4 million at September 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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Service cost for benefits earned $ 7,050 $ 7,608 $ 21,150 $ 22,824 Interest cost on benefits obligation 8,281 7,689 24,844 23,067 Expected return on plan assets (9,880 ) (8,980 ) (29,640 ) (26,940 ) Prior service cost amortization 174 168 522 502 Net actuarial loss amortization 2,029 3,507 6,084 10,523 Pension plan cost (1) $ 7,654 $ 9,992 $ 22,960 $ 29,976 (1) Pension plan costs represent the total cost before reimbursements from the Exchange and EFL.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 nine months ended September 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 nine months ended September 30, 2016 and the year ended December 31, 2015 . We had approximately $17.8 million of repurchase authority remaining under this program at September 30, 2016 .

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Investment securities: Accumulated other comprehensive income, beginning of the period $ 9,018 $ 4,324 $ 2,527 $ 6,807 Other comprehensive income (loss) before reclassifications, net of tax (expense) benefit of $(392), $618, $(3,328) and $1,884, respectively 729 (1,147 ) 6,181 (3,498 ) Reclassifications: Realized investment (gains) losses, net of tax benefit (expense) of $202, $(169), $(237), and $(44), respectively (374 ) 314 441 81 Impairment losses, net of tax expense of $0, $168, $121 and $222, respectively 0 312 224 413 Other comprehensive income (loss), net of tax 355 (521 ) 6,846 (3,004 ) Accumulated other comprehensive income, end of the period $ 9,373 $ 3,803 $ 9,373 $ 3,803 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 $ (90,373 ) $ (120,184 ) $ (96,864 ) $ (117,701 ) Investment securities 355 (521 ) 6,846 (3,004 ) Pension and other postretirement plans 0 0 0 0 Other comprehensive income (loss), net of tax 355 (521 ) 6,846 (3,004 ) Accumulated other comprehensive loss, end of the period $ (90,018 ) $ (120,705 ) $ (90,018 ) $ (120,705 ) (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	9 Months Ended
	Sep. 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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Erie Insurance Exchange $ 103,498 $ 106,307 $ 329,761 $ 313,353 Erie Family Life Insurance 9,535 8,517 29,039 27,273 Total cash settlements $ 113,033 $ 114,824 $ 358,800 $ 340,626

Concentrations of Credit Risk

Concentrations of Credit Risk	9 Months Ended
	Sep. 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 $400.0 million and $348.1 million at September 30, 2016 and December 31, 2015 , respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 13. Commitments and Contingencies We have contractual commitments to invest up to $18.6 million related to our limited partnership investments at September 30, 2016 . These commitments are split among private equity securities of $7.1 million , mezzanine debt securities of $8.4 million , and real estate activities of $3.1 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	9 Months Ended
	Sep. 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, other than the disclosure made in Note 5, "Investments" regarding limited partnerships.

Significant Accounting Polici21

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 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 nine months ended September 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 August 2016, the FASB issued Accounting Standards Update ("ASU") 2016-15, "Statement of Cash Flows" , which provides guidance on how certain cash receipts and cash payments are presented and classified to reduce diversity in practice. ASU 2016-15 is effective for interim and annual reporting periods beginning after December 31, 2017. Early adoption is permitted, including adoption in an interim period. We do not expect the adoption of this guidance to have a material impact on our financial statements. In June 2016, the FASB issued 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 September 30, 2016 are comprised of partnership financial results for the fourth quarter of 2015 and the first two quarters of 2016. Given the lag in reporting, our limited partnership results do not reflect the market conditions of the third 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)	9 Months Ended
	Sep. 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 September 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 $ 56,906 46,188,980 $ 1.23 $ 49,156 46,189,068 $ 1.06 Dilutive effect of stock-based awards 0 121,523 — 0 312,215 — Assumed conversion of Class B shares 470 6,100,800 — 406 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 57,376 52,411,303 $ 1.09 $ 49,562 52,602,083 $ 0.94 Class B – Basic EPS: Income available to Class B stockholders $ 470 2,542 $ 185 $ 406 2,542 $ 160 Class B – Diluted EPS: Income available to Class B stockholders $ 469 2,542 $ 185 $ 405 2,542 $ 159 (dollars in thousands, except per share data) Nine months ended September 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 $ 163,233 46,188,971 $ 3.53 $ 143,361 46,189,068 $ 3.10 Dilutive effect of stock-based awards 0 152,926 — 0 309,915 — Assumed conversion of Class B shares 1,347 6,100,800 — 1,184 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 164,580 52,442,697 $ 3.14 $ 144,545 52,599,783 $ 2.75 Class B – Basic EPS: Income available to Class B stockholders $ 1,347 2,542 $ 530 $ 1,184 2,542 $ 466 Class B – Diluted EPS: Income available to Class B stockholders $ 1,346 2,542 $ 529 $ 1,181 2,542 $ 465

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 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 September 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: U.S. government & agencies $ 2,048 $ 0 $ 2,048 $ 0 States & political subdivisions 246,259 0 246,259 0 Corporate debt securities 320,268 0 310,079 10,189 Residential mortgage-backed securities 17,145 0 17,145 0 Commercial mortgage-backed securities 40,985 0 40,985 0 Collateralized debt obligations 66,647 0 61,526 5,121 Other debt securities 2,003 0 2,003 0 Total fixed maturities 695,355 0 680,045 15,310 Common stock 9,020 9,020 0 0 Total available-for-sale securities 704,375 9,020 680,045 15,310 Other investments (1) 3,964 — — — Total $ 708,339 $ 9,020 $ 680,045 $ 15,310 At December 31, 2015 Fair value measurements using: (in thousands) Total Quoted prices in Observable inputs Unobservable inputs 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 September 30, 2016 and December 31, 2015 . During the nine months ended September 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 September 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, 2015 Included in earnings (1) Included income Purchases Sales Transfers Level 3 Ending balance at September 30, 2016 Available-for-sale securities: Corporate debt securities $ 69 $ 67 $ 119 $ 11,887 $ (924 ) $ (1,029 ) $ 10,189 Commercial mortgage-backed securities 0 0 3 1,000 0 (1,003 ) 0 Collateralized debt obligations 8,577 4 (5 ) 7,722 (54 ) (11,123 ) 5,121 Total fixed maturities 8,646 71 117 20,609 (978 ) (13,155 ) 15,310 Total available-for-sale securities 8,646 71 117 20,609 (978 ) (13,155 ) 15,310 Total Level 3 assets $ 8,646 $ 71 $ 117 $ 20,609 $ (978 ) $ (13,155 ) $ 15,310 (1) These amounts are reported in the Statement of Operations as net investment income and net realized investment gains (losses) for the nine months ended September 30, 2016 on Level 3 securities. Level 3 Assets – Quarterly Change: (in thousands) Beginning balance at June 30, 2016 Included in earnings (1) Included income Purchases Sales Transfers Level 3 Ending balance at September 30, 2016 Available-for-sale securities: Corporate debt securities $ 8,851 $ 22 $ 38 $ 3,217 $ (318 ) $ (1,621 ) $ 10,189 Commercial mortgage-backed securities 1,003 0 0 0 0 (1,003 ) 0 Collateralized debt obligations 1,200 0 7 3,000 0 914 5,121 Total fixed maturities 11,054 22 45 6,217 (318 ) (1,710 ) 15,310 Total available-for-sale securities 11,054 22 45 6,217 (318 ) (1,710 ) 15,310 Total Level 3 assets $ 11,054 $ 22 $ 45 $ 6,217 $ (318 ) $ (1,710 ) $ 15,310 (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 September 30, 2016 on Level 3 securities. Level 3 Assets – Quarterly Change: (in thousands) Beginning balance at June 30, 2015 Included in earnings (1) Included in other comprehensive income Purchases Sales Transfers Level 3 Ending balance at September 30, 2015 Available-for-sale securities: Corporate debt securities $ 0 $ (1 ) $ (58 ) $ 0 $ 0 $ 124 $ 65 Collateralized debt obligations 660 1 (3 ) 4,546 0 0 5,204 Total fixed maturities 660 0 (61 ) 4,546 0 124 5,269 Total available-for-sale securities 660 0 (61 ) 4,546 0 124 5,269 Total Level 3 assets $ 660 $ 0 $ (61 ) $ 4,546 $ 0 $ 124 $ 5,269 (1) These amounts are reported in the Statement of Operations as net investment income for the three months ended September 30, 2015 on Level 3 securities. Level 3 Assets – Year-to-Date Change: (in thousands) Beginning balance at December 31, 2014 Included in earnings (1) Included in other comprehensive income Purchases Sales Transfers Level 3 Ending balance at September 30, 2015 Available-for-sale securities: Corporate debt securities $ 0 $ (1 ) $ (58 ) $ 110 $ 0 $ 14 $ 65 Collateralized debt obligations 0 1 (3 ) 5,206 0 0 5,204 Total fixed maturities 0 0 (61 ) 5,316 0 14 5,269 Total available-for-sale securities 0 0 (61 ) 5,316 0 14 5,269 Total Level 3 assets $ 0 $ 0 $ (61 ) $ 5,316 $ 0 $ 14 $ 5,269 (1) These amounts are reported in the Statement of Operations as net investment income for the nine months ended September 30, 2015 on Level 3 securities.
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 September 30, 2016 Total Level 1 Level 2 Level 3 Fixed maturities: Priced via pricing services $ 689,205 $ 0 $ 679,955 $ 9,250 Priced via market comparables/broker quotes 6,150 0 90 6,060 Total fixed maturities 695,355 0 680,045 15,310 Common stock: Priced via pricing services 9,020 9,020 0 0 Total common stock 9,020 9,020 0 0 Other investments: Priced via unobservable inputs (1) 3,964 — — — Total other investments 3,964 — — — Total $ 708,339 $ 9,020 $ 680,045 $ 15,310 (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)	9 Months Ended
	Sep. 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 September 30, 2016 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: U.S. government & agencies $ 2,008 $ 40 $ 0 $ 2,048 States & political subdivisions 234,111 12,207 59 246,259 Corporate debt securities 317,745 3,351 828 320,268 Residential mortgage-backed securities 17,246 65 166 17,145 Commercial mortgage-backed securities 41,565 213 793 40,985 Collateralized debt obligations 66,448 263 64 66,647 Other debt securities 2,000 3 0 2,003 Total fixed maturities 681,123 16,142 1,910 695,355 Common stock 8,949 71 0 9,020 Total available-for-sale securities $ 690,072 $ 16,213 $ 1,910 $ 704,375 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 September 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 September 30, 2016 (in thousands) Amortized Estimated cost fair value Due in one year or less $ 51,666 $ 51,821 Due after one year through five years 314,652 319,198 Due after five years through ten years 195,967 203,310 Due after ten years 118,838 121,026 Total fixed maturities $ 681,123 $ 695,355
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 September 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: States & political subdivisions $ 14,735 $ 59 $ 0 $ 0 $ 14,735 $ 59 7 Corporate debt securities 71,837 407 14,876 421 86,713 828 152 Residential mortgage-backed securities 7,225 27 2,816 139 10,041 166 11 Commercial mortgage-backed securities 18,373 107 8,426 686 26,799 793 25 Collateralized debt obligations 11,092 31 8,727 33 19,819 64 10 Total fixed maturities 123,262 631 34,845 1,279 158,107 1,910 205 Total available-for-sale securities $ 123,262 $ 631 $ 34,845 $ 1,279 $ 158,107 $ 1,910 205 Quality breakdown of fixed maturities: Investment grade $ 100,205 $ 296 $ 27,442 $ 688 $ 127,647 $ 984 79 Non-investment grade 23,057 335 7,403 591 30,460 926 126 Total fixed maturities $ 123,262 $ 631 $ 34,845 $ 1,279 $ 158,107 $ 1,910 205 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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Fixed maturities $ 5,245 $ 4,010 $ 14,629 $ 12,239 Equity securities 50 218 132 718 Cash equivalents and other 366 287 1,011 862 Total investment income 5,661 4,515 15,772 13,819 Less: investment expenses 330 169 888 497 Net investment income $ 5,331 $ 4,346 $ 14,884 $ 13,322
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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Available-for-sale securities: Fixed maturities: Gross realized gains $ 603 $ 120 $ 1,175 $ 491 Gross realized losses (27 ) (661 ) (1,819 ) (1,036 ) Net realized gains (losses) 576 (541 ) (644 ) (545 ) Equity securities: Gross realized gains 0 57 0 419 Gross realized losses 0 0 (34 ) 0 Net realized gains (losses) 0 57 (34 ) 419 Trading securities: Common stock: Gross realized gains 121 0 707 0 Gross realized losses 0 0 0 0 Increases in fair value (1) 21 0 0 0 Net realized gains 142 0 707 0 Miscellaneous: Gross realized gains 0 1 0 1 Gross realized losses 0 0 0 0 Net realized gains 0 1 0 1 Net realized investment gains (losses) $ 718 $ (483 ) $ 29 $ (125 ) (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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Fixed maturities $ 0 $ (480 ) $ (345 ) $ (635 ) Total other-than-temporary impairments 0 (480 ) (345 ) (635 ) Portion recognized in other comprehensive income 0 0 0 0 Net impairment losses recognized in earnings $ 0 $ (480 ) $ (345 ) $ (635 )
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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Equity in (losses) earnings of limited partnerships accounted for under the equity method $ (1,778 ) $ 3,235 $ (436 ) $ 16,554 Change in fair value of limited partnerships accounted for under the fair value option 55 602 157 348 Equity in (losses) earnings of limited partnerships $ (1,723 ) $ 3,837 $ (279 ) $ 16,902 The following table summarizes limited partnership investments by sector: (in thousands) At September 30, 2016 At December 31, 2015 Private equity $ 37,248 $ 48,397 Mezzanine debt 8,404 12,701 Real estate 16,333 22,911 Real estate - fair value option 3,964 4,526 Total limited partnership investments $ 65,949 $ 88,535

Postretirement Benefits (Tables

Postretirement Benefits (Tables)	9 Months Ended
	Sep. 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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Service cost for benefits earned $ 7,050 $ 7,608 $ 21,150 $ 22,824 Interest cost on benefits obligation 8,281 7,689 24,844 23,067 Expected return on plan assets (9,880 ) (8,980 ) (29,640 ) (26,940 ) Prior service cost amortization 174 168 522 502 Net actuarial loss amortization 2,029 3,507 6,084 10,523 Pension plan cost (1) $ 7,654 $ 9,992 $ 22,960 $ 29,976 (1) Pension plan costs represent the total cost before reimbursements from the Exchange and EFL.

Accumulated Other Comprehensi26

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Investment securities: Accumulated other comprehensive income, beginning of the period $ 9,018 $ 4,324 $ 2,527 $ 6,807 Other comprehensive income (loss) before reclassifications, net of tax (expense) benefit of $(392), $618, $(3,328) and $1,884, respectively 729 (1,147 ) 6,181 (3,498 ) Reclassifications: Realized investment (gains) losses, net of tax benefit (expense) of $202, $(169), $(237), and $(44), respectively (374 ) 314 441 81 Impairment losses, net of tax expense of $0, $168, $121 and $222, respectively 0 312 224 413 Other comprehensive income (loss), net of tax 355 (521 ) 6,846 (3,004 ) Accumulated other comprehensive income, end of the period $ 9,373 $ 3,803 $ 9,373 $ 3,803 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 $ (90,373 ) $ (120,184 ) $ (96,864 ) $ (117,701 ) Investment securities 355 (521 ) 6,846 (3,004 ) Pension and other postretirement plans 0 0 0 0 Other comprehensive income (loss), net of tax 355 (521 ) 6,846 (3,004 ) Accumulated other comprehensive loss, end of the period $ (90,018 ) $ (120,705 ) $ (90,018 ) $ (120,705 ) (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)	9 Months Ended
	Sep. 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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Erie Insurance Exchange $ 103,498 $ 106,307 $ 329,761 $ 313,353 Erie Family Life Insurance 9,535 8,517 29,039 27,273 Total cash settlements $ 113,033 $ 114,824 $ 358,800 $ 340,626

Significant Accounting Polici28

Significant Accounting Policies (Details)	Sep. 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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Class A
Income available to stockholders (Basic EPS:)
Allocated net income (numerator) (in dollars)	$ 56,906	$ 49,156	$ 163,233	$ 143,361
Weighted shares (denominator) (in shares)	46,188,980	46,189,068	46,188,971	46,189,068
Per-share amount (in dollars per share)	$ 1.23	$ 1.06	$ 3.53	$ 3.10
Dilutive effect of stock-based awards
Allocated net income (numerator) (in dollars)	$ 0	$ 0	$ 0	$ 0
Weighted shares (denominator) (in shares)	121,523	312,215	152,926	309,915
Assumed conversion of Class B shares
Allocated net income (numerator) (in dollars)	$ 470	$ 406	$ 1,347	$ 1,184
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)	$ 57,376	$ 49,562	$ 164,580	$ 144,545
Weighted shares (denominator) (in shares)	52,411,303	52,602,083	52,442,697	52,599,783
Per-share amount (in dollars per share)	$ 1.09	$ 0.94	$ 3.14	$ 2.75
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)	$ 470	$ 406	$ 1,347	$ 1,184
Weighted shares (denominator) (in shares)	2,542	2,542	2,542	2,542
Per-share amount (in dollars per share)	$ 185	$ 160	$ 530	$ 466
Income available to stockholders on equivalent shares (Diluted EPS:)
Allocated net income (numerator) (in dollars)	$ 469	$ 405	$ 1,346	$ 1,181
Weighted shares (denominator) (in shares)	2,542	2,542	2,542	2,542
Per-share amount (in dollars per share)	$ 185	$ 159	$ 529	$ 465

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	$ 704,375		$ 599,941
Other investments:
Contributions made to the funds	449	$ 693
Distributions received from the funds	12,404	$ 21,777
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	704,375		599,941
Total	708,339		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	695,355		587,209
Fair value measurements on a recurring basis | U.S. government & agencies
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	2,048
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	246,259		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	320,268		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	17,145		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	40,985		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	66,647		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	2,003		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	9,020		12,732
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	3,964		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	9,020		12,732
Total	9,020		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 | U.S. government & agencies
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	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	9,020		12,732
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	680,045		578,563
Total	680,045		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	680,045		578,563
Fair value measurements on a recurring basis | Level 2 | U.S. government & agencies
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	2,048
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	246,259		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	310,079		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	17,145		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	40,985		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	61,526		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	2,003		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
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	15,310		8,646
Total	15,310		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	15,310		8,646
Fair value measurements on a recurring basis | Level 3 | U.S. government & agencies
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0
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	10,189		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	0		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	5,121		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
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		9 Months Ended
	Sep. 30, 2016USD ($)Holdings	Sep. 30, 2015USD ($)Holdings	Sep. 30, 2016USD ($)Holdings	Sep. 30, 2015USD ($)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	4,600	100	7,600	100
Transfers from level 3 to level 2	$ 6,300	$ 0	$ 20,800	$ 100
Fixed maturities
Fair value transfers due to changes in available market observable inputs
No. of securities transferred from Level 2 to Level 3 | Holdings	11	1	27	1
No. of securities transferred from Level 3 to Level 2 | Holdings	18		40	1
Level 3
Roll forward of level 3 fair value measurements on a recurring basis
Beginning balance	$ 11,054	$ 660	$ 8,646	$ 0
Included in earnings	22	0	71	0
Included in other comprehensive income	45	(61)	117	(61)
Purchases	6,217	4,546	20,609	5,316
Sales	(318)	0	(978)	0
Transfers in and (out) of Level 3	(1,710)	124	(13,155)	14
Ending balance	15,310	5,269	15,310	5,269
Level 3 | Available-for-sale securities
Roll forward of level 3 fair value measurements on a recurring basis
Beginning balance	11,054	660	8,646	0
Included in earnings	22	0	71	0
Included in other comprehensive income	45	(61)	117	(61)
Purchases	6,217	4,546	20,609	5,316
Sales	(318)	0	(978)	0
Transfers in and (out) of Level 3	(1,710)	124	(13,155)	14
Ending balance	15,310	5,269	15,310	5,269
Level 3 | Fixed maturities | Available-for-sale securities
Roll forward of level 3 fair value measurements on a recurring basis
Beginning balance	11,054	660	8,646	0
Included in earnings	22	0	71	0
Included in other comprehensive income	45	(61)	117	(61)
Purchases	6,217	4,546	20,609	5,316
Sales	(318)	0	(978)	0
Transfers in and (out) of Level 3	(1,710)	124	(13,155)	14
Ending balance	15,310	5,269	15,310	5,269
Level 3 | Corporate debt securities | Available-for-sale securities
Roll forward of level 3 fair value measurements on a recurring basis
Beginning balance	8,851	0	69	0
Included in earnings	22	(1)	67	(1)
Included in other comprehensive income	38	(58)	119	(58)
Purchases	3,217	0	11,887	110
Sales	(318)	0	(924)	0
Transfers in and (out) of Level 3	(1,621)	124	(1,029)	14
Ending balance	10,189	65	10,189	65
Level 3 | Commercial mortgage-backed securities | Available-for-sale securities
Roll forward of level 3 fair value measurements on a recurring basis
Beginning balance	1,003		0
Included in earnings	0		0
Included in other comprehensive income	0		3
Purchases	0		1,000
Sales	0		0
Transfers in and (out) of Level 3	(1,003)		(1,003)
Ending balance	0		0
Level 3 | Collateralized debt obligations | Available-for-sale securities
Roll forward of level 3 fair value measurements on a recurring basis
Beginning balance	1,200	660	8,577	0
Included in earnings	0	1	4	1
Included in other comprehensive income	7	(3)	(5)	(3)
Purchases	3,000	4,546	7,722	5,206
Sales	0	0	(54)	0
Transfers in and (out) of Level 3	914	0	(11,123)	0
Ending balance	$ 5,121	$ 5,204	$ 5,121	$ 5,204

Fair Value (Details 3)

Fair Value (Details 3) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair value by pricing source
Available-for-sale securities	$ 704,375	$ 599,941
Fair value measurements on a recurring basis
Fair value by pricing source
Available-for-sale securities	704,375	599,941
Total	708,339	604,467
Fair value measurements on a recurring basis | Fixed maturities
Fair value by pricing source
Available-for-sale securities	695,355	587,209
Fair value measurements on a recurring basis | Fixed maturities | Priced via pricing services
Fair value by pricing source
Available-for-sale securities	689,205
Fair value measurements on a recurring basis | Fixed maturities | Priced via market comparables/broker quotes
Fair value by pricing source
Available-for-sale securities	6,150
Fair value measurements on a recurring basis | Common stock
Fair value by pricing source
Available-for-sale securities	9,020	12,732
Fair value measurements on a recurring basis | Common stock | Priced via pricing services
Fair value by pricing source
Available-for-sale securities	9,020
Fair value measurements on a recurring basis | Real estate
Fair value by pricing source
Other investments	3,964	4,526
Fair value measurements on a recurring basis | Real estate | Priced via unobservable inputs
Fair value by pricing source
Other investments	3,964
Fair value measurements on a recurring basis | Level 1
Fair value by pricing source
Available-for-sale securities	9,020	12,732
Total	9,020	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	9,020	12,732
Fair value measurements on a recurring basis | Level 1 | Common stock | Priced via pricing services
Fair value by pricing source
Available-for-sale securities	9,020
Fair value measurements on a recurring basis | Level 2
Fair value by pricing source
Available-for-sale securities	680,045	578,563
Total	680,045	578,563
Fair value measurements on a recurring basis | Level 2 | Fixed maturities
Fair value by pricing source
Available-for-sale securities	680,045	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	679,955
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	90
Fair value measurements on a recurring basis | Level 2 | Common stock
Fair value by pricing source
Available-for-sale securities	0	0
Fair value measurements on a recurring basis | Level 2 | Common stock | Priced via pricing services
Fair value by pricing source
Available-for-sale securities	0
Fair value measurements on a recurring basis | Level 3
Fair value by pricing source
Available-for-sale securities	15,310	8,646
Total	15,310	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	15,300
Fair value measurements on a recurring basis | Level 3 | Fixed maturities
Fair value by pricing source
Available-for-sale securities	15,310	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	9,250
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	6,060
Fair value measurements on a recurring basis | Level 3 | Common stock
Fair value by pricing source
Available-for-sale securities	0	$ 0
Fair value measurements on a recurring basis | Level 3 | Common stock | Priced via pricing services
Fair value by pricing source
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	Sep. 30, 2016	Dec. 31, 2015
Available-for-sale securities
Amortized cost, fixed maturities	$ 681,123
Amortized cost	690,072	$ 594,837
Gross unrealized gains	16,213	11,137
Gross unrealized losses	1,910	6,033
Estimated fair value, fixed maturities	695,355
Estimated fair value	704,375	599,941
Fixed maturities
Available-for-sale securities
Amortized cost, fixed maturities	681,123	581,972
Gross unrealized gains, fixed maturities	16,142	11,137
Gross unrealized losses, fixed maturities	1,910	5,900
Estimated fair value, fixed maturities	695,355	587,209
U.S. government & agencies
Available-for-sale securities
Amortized cost, fixed maturities	2,008
Gross unrealized gains, fixed maturities	40
Gross unrealized losses, fixed maturities	0
Estimated fair value, fixed maturities	2,048
States & political subdivisions
Available-for-sale securities
Amortized cost, fixed maturities	234,111	221,093
Gross unrealized gains, fixed maturities	12,207	10,761
Gross unrealized losses, fixed maturities	59	7
Estimated fair value, fixed maturities	246,259	231,847
Corporate debt securities
Available-for-sale securities
Amortized cost, fixed maturities	317,745	254,464
Gross unrealized gains, fixed maturities	3,351	281
Gross unrealized losses, fixed maturities	828	4,412
Estimated fair value, fixed maturities	320,268	250,333
Residential mortgage-backed securities
Available-for-sale securities
Amortized cost, fixed maturities	17,246	13,639
Gross unrealized gains, fixed maturities	65	4
Gross unrealized losses, fixed maturities	166	130
Estimated fair value, fixed maturities	17,145	13,513
Commercial mortgage-backed securities
Available-for-sale securities
Amortized cost, fixed maturities	41,565	38,630
Gross unrealized gains, fixed maturities	213	30
Gross unrealized losses, fixed maturities	793	1,089
Estimated fair value, fixed maturities	40,985	37,571
Collateralized debt obligations
Available-for-sale securities
Amortized cost, fixed maturities	66,448	51,905
Gross unrealized gains, fixed maturities	263	61
Gross unrealized losses, fixed maturities	64	221
Estimated fair value, fixed maturities	66,647	51,745
Other debt securities
Available-for-sale securities
Amortized cost, fixed maturities	2,000	2,241
Gross unrealized gains, fixed maturities	3	0
Gross unrealized losses, fixed maturities	0	41
Estimated fair value, fixed maturities	2,003	2,200
Common stock
Available-for-sale securities
Amortized cost, equity securities	8,949	12,865
Gross unrealized gains, equity securities	71	0
Gross unrealized losses, equity securities	0	133
Estimated fair value, equity securities	$ 9,020	$ 12,732

Investments (Details 2)

Investments (Details 2) $ in Thousands	Sep. 30, 2016USD ($)
Amortized cost
Due in one year or less	$ 51,666
Due after one year through five years	314,652
Due after five years through ten years	195,967
Due after ten years	118,838
Amortized cost, fixed maturities	681,123
Estimated fair value
Due in one year or less	51,821
Due after one year through five years	319,198
Due after five years through ten years	203,310
Due after ten years	121,026
Estimated fair value, fixed maturities	$ 695,355

Investments (Details 3)

Investments (Details 3) $ in Thousands	Sep. 30, 2016USD ($)Holdings	Dec. 31, 2015USD ($)Holdings
Fair value
Less than 12 months	$ 123,262	$ 244,279
12 months or longer	34,845	48,518
Total	158,107	292,797
Unrealized losses
Less than 12 months	631	2,882
12 months or longer	1,279	3,151
Total	$ 1,910	$ 6,033
No. of holdings | Holdings	205	407
Investment grade
Fair value
Less than 12 months	$ 100,205	$ 174,723
12 months or longer	27,442	38,369
Total	127,647	213,092
Unrealized losses
Less than 12 months	296	1,296
12 months or longer	688	1,256
Total	$ 984	$ 2,552
No. of holdings | Holdings	79	105
Non-investment grade
Fair value
Less than 12 months	$ 23,057	$ 56,824
12 months or longer	7,403	10,149
Total	30,460	66,973
Unrealized losses
Less than 12 months	335	1,453
12 months or longer	591	1,895
Total	$ 926	$ 3,348
No. of holdings | Holdings	126	301
Fixed maturities
Fair value
Less than 12 months	$ 123,262	$ 231,547
12 months or longer	34,845	48,518
Total	158,107	280,065
Unrealized losses
Less than 12 months	631	2,749
12 months or longer	1,279	3,151
Total	$ 1,910	$ 5,900
No. of holdings | Holdings	205	406
States & political subdivisions
Fair value
Less than 12 months	$ 14,735	$ 5,867
12 months or longer	0	0
Total	14,735	5,867
Unrealized losses
Less than 12 months	59	7
12 months or longer	0	0
Total	$ 59	$ 7
No. of holdings | Holdings	7	3
Corporate debt securities
Fair value
Less than 12 months	$ 71,837	$ 172,831
12 months or longer	14,876	19,086
Total	86,713	191,917
Unrealized losses
Less than 12 months	407	2,447
12 months or longer	421	1,965
Total	$ 828	$ 4,412
No. of holdings | Holdings	152	349
Residential mortgage-backed securities
Fair value
Less than 12 months	$ 7,225	$ 9,827
12 months or longer	2,816	936
Total	10,041	10,763
Unrealized losses
Less than 12 months	27	84
12 months or longer	139	46
Total	$ 166	$ 130
No. of holdings | Holdings	11	9
Commercial mortgage-backed securities
Fair value
Less than 12 months	$ 18,373	$ 13,081
12 months or longer	8,426	19,081
Total	26,799	32,162
Unrealized losses
Less than 12 months	107	68
12 months or longer	686	1,021
Total	$ 793	$ 1,089
No. of holdings | Holdings	25	24
Collateralized debt obligations
Fair value
Less than 12 months	$ 11,092	$ 27,981
12 months or longer	8,727	9,174
Total	19,819	37,155
Unrealized losses
Less than 12 months	31	103
12 months or longer	33	118
Total	$ 64	$ 221
No. of holdings | Holdings	10	19
Other debt securities
Fair value
Less than 12 months		$ 1,960
12 months or longer		241
Total		2,201
Unrealized losses
Less than 12 months		40
12 months or longer		1
Total		$ 41
No. of holdings | Holdings		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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Investment income from portfolios
Total investment income	$ 5,661	$ 4,515	$ 15,772	$ 13,819
Less: investment expenses	330	169	888	497
Net investment income	5,331	4,346	14,884	13,322
Fixed maturities
Investment income from portfolios
Total investment income	5,245	4,010	14,629	12,239
Equity securities
Investment income from portfolios
Total investment income	50	218	132	718
Cash equivalents and other
Investment income from portfolios
Total investment income	$ 366	$ 287	$ 1,011	$ 862

Investments (Details 5)

Investments (Details 5) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Realized investment gains (losses)
Net realized investment gains (losses)	$ 718	$ (483)	$ 29	$ (125)
Other-than-temporary impairments on investments
Other-than-temporary impairments on investments	0	(480)	(345)	(635)
Portion recognized in other comprehensive income	0	0	0	0
Net impairment losses recognized in earnings	0	(480)	(345)	(635)
Fixed maturities
Available-for-sale securities:
Gross realized gains	603	120	1,175	491
Gross realized losses	(27)	(661)	(1,819)	(1,036)
Net realized gains (losses)	576	(541)	(644)	(545)
Other-than-temporary impairments on investments
Other-than-temporary impairments on investments	0	(480)	(345)	(635)
Equity securities
Available-for-sale securities:
Gross realized gains	0	57	0	419
Gross realized losses	0	0	(34)	0
Net realized gains (losses)	0	57	(34)	419
Common stock
Trading securities:
Gross realized gains	121	0	707	0
Gross realized losses	0	0	0	0
Increases in fair value	21	0	0	0
Net realized gains	142	0	707	0
Other investments
Miscellaneous:
Gross realized gains	0	1	0	1
Gross realized losses	0	0	0	0
Net realized gains	$ 0	$ 1	$ 0	$ 1

Investments (Details 6)

Investments (Details 6) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Investments in limited partnerships
Gain on the sale of remaining assets in a limited partnership to be recorded next quarter	$ 7,500
Equity in (losses) earnings of limited partnerships	(1,723)	$ 3,837	$ (279)	$ 16,902
Equity method of accounting
Investments in limited partnerships
Equity in (losses) earnings of limited partnerships	(1,778)	3,235	(436)	16,554
Fair value option
Investments in limited partnerships
Equity in (losses) earnings of limited partnerships	$ 55	$ 602	$ 157	$ 348

Investments (Details 7)

Investments (Details 7) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investments in limited partnerships
Asset recorded	$ 65,949	$ 88,535
Private equity
Investments in limited partnerships
Asset recorded	37,248	48,397
Mezzanine debt
Investments in limited partnerships
Asset recorded	8,404	12,701
Real estate
Investments in limited partnerships
Asset recorded	16,333	22,911
Fair value option | Real estate
Investments in limited partnerships
Asset recorded	$ 3,964	$ 4,526

Bank Line of Credit (Details)

Bank Line of Credit (Details) - Revolving line of credit $ in Millions	9 Months Ended
	Sep. 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	$ 109.4

Postretirement Benefits (Detail

Postretirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Cost of pension plans
Service cost for benefits earned	$ 7,050	$ 7,608	$ 21,150	$ 22,824
Interest cost on benefits obligation	8,281	7,689	24,844	23,067
Expected return on plan assets	(9,880)	(8,980)	(29,640)	(26,940)
Prior service cost amortization	174	168	522	502
Net actuarial loss amortization	2,029	3,507	6,084	10,523
Pension plan cost	7,654	$ 9,992	22,960	$ 29,976
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	$ 21,400		$ 21,400

Income Taxes (Details)

Income Taxes (Details)	9 Months Ended
	Sep. 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	9 Months Ended	12 Months Ended
	Sep. 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	9 Months Ended	12 Months Ended
	Sep. 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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 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	$ (90,373)	$ (120,184)	$ (96,864)	$ (117,701)
Other comprehensive income (loss), net of tax	355	(521)	6,846	(3,004)
Other comprehensive income (loss), net of tax	355	(521)	6,846	(3,004)
Accumulated other comprehensive income (loss), end of the period	(90,018)	(120,705)	(90,018)	(120,705)
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	9,018	4,324	2,527	6,807
Other comprehensive income (loss) before reclassifications, net of tax (expense) benefit of $(392), $618, $(3,328) and $1,884, respectively	729	(1,147)	6,181	(3,498)
Realized investment (gains) losses, net of tax benefit (expense) of $202, $(169), $(237), and $(44), respectively	(374)	314	441	81
Impairment losses, net of tax expense of $0, $168, $121 and $222, respectively	0	312	224	413
Other comprehensive income (loss), net of tax	355	(521)	6,846	(3,004)
Accumulated other comprehensive income (loss), end of the period	9,373	3,803	9,373	3,803
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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Other comprehensive income (loss), tax
Other comprehensive income (loss), unrealized holding gain (loss) on investment securities, tax (expense) benefit	$ (392)	$ 618	$ (3,328)	$ 1,884
Reclassification adjustment for realized investment (gains) losses, tax benefit (expense)	202	(169)	(237)	(44)
Reclassification adjustment for impairment losses, tax expense	$ 0	$ 168	$ 121	$ 222

Related Party (Details)

Related Party (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Related Party Transactions
Cash settlements for payments made by Indemnity on the account of related parties	$ 113,033	$ 114,824	$ 358,800	$ 340,626
Erie Insurance Exchange (EIE)
Related Party Transactions
Cash settlements for payments made by Indemnity on the account of related parties	103,498	106,307	329,761	313,353
Erie Family Life Insurance Company (EFL)
Related Party Transactions
Cash settlements for payments made by Indemnity on the account of related parties	$ 9,535	$ 8,517	$ 29,039	$ 27,273

Concentrations of Credit Risk (

Concentrations of Credit Risk (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Concentrations of credit risk from unsecured receivables
Receivables from Erie Insurance Exchange and affiliates	$ 399,975	$ 348,055

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Contractual commitments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	$ 18.6
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	$ 7.1
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	$ 3.1