Erie Indemnity (ERIE) 8-K Erie Indemnity Reports First Quarter 2017 Results

Exhibit 99.2

Erie Indemnity Company

Statements of Operations

(dollars in thousands, except per share data)

	Three months ended March 31,
	2017			2016
	(Unaudited)
Operating revenue
Management fee revenue, net	$	392,058		$	367,458
Service agreement revenue	7,258			7,270
Total operating revenue	399,316			374,728
Operating expenses
Commissions	220,478			208,714
Salaries and employee benefits	59,740			53,289
All other operating expenses	52,564			45,060
Total operating expenses	332,782			307,063
Net revenue from operations	66,534			67,665
Investment income
Net investment income	5,978			4,662
Net realized investment gains (losses)	516			(1,088		)
Net impairment losses recognized in earnings	(121		)	(345		)
Equity in earnings (losses) of limited partnerships	213			(670		)
Total investment income	6,586			2,559
Interest expense, net	166			—
Income before income taxes	72,954			70,224
Income tax expense	25,078			24,329
Net income	$	47,876		$	45,895
Earnings Per Share
Net income per share
Class A common stock – basic	$	1.03		$	0.99
Class A common stock – diluted	$	0.91		$	0.87
Class B common stock – basic and diluted	$	154		$	148
Weighted average shares outstanding – Basic
Class A common stock	46,188,522			46,189,068
Class B common stock	2,542			2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,408,560			52,523,927
Class B common stock	2,542			2,542
Dividends declared per share
Class A common stock	$	0.7825		$	0.7300
Class B common stock	$	117.3750		$	109.5000

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Erie Indemnity Company

Statements of Financial Position

(in thousands)

	March 31, 2017		December 31, 2016
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	110,418	$	189,072
Available-for-sale securities	77,412		56,138
Receivables from Erie Insurance Exchange and affiliates	392,319		378,540
Prepaid expenses and other current assets	39,065		30,169
Federal income taxes recoverable	0		5,260
Accrued investment income	6,504		6,337
Total current assets	625,718		665,516
Available-for-sale securities	642,457		657,153
Limited partnership investments	54,457		58,159
Fixed assets, net	68,685		69,142
Deferred income taxes, net	52,495		53,889
Note receivable from Erie Family Life Insurance Company	25,000		25,000
Other assets	21,224		20,096
Total assets	$	1,490,036	$	1,548,955
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	219,256	$	210,559
Agent bonuses	32,882		114,772
Accounts payable and accrued liabilities	81,551		88,153
Dividends payable	36,441		36,441
Deferred executive compensation	14,613		19,675
Federal income taxes payable	19,478		0
Total current liabilities	404,221		469,600
Defined benefit pension plans	211,415		221,827
Employee benefit obligations	605		756
Deferred executive compensation	16,212		13,233
Long-term borrowings	24,753		24,766
Other long-term liabilities	2,972		1,863
Total liabilities	660,178		732,045
Shareholders’ equity	829,858		816,910
Total liabilities and shareholders’ equity	$	1,490,036	$	1,548,955

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