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

Exhibit 99.2

Erie Indemnity Company

Statements of Operations

(dollars in thousands, except per share data)

	Three months ended June 30,					Six months ended June 30,
	2017			2016		2017			2016
	(Unaudited)					(Unaudited)
Operating revenue
Management fee revenue, net	$	441,319		$	416,665	$	833,377		$	784,123
Service agreement revenue	7,245			7,219		14,503			14,489
Total operating revenue	448,564			423,884		847,880			798,612
Operating expenses
Commissions	251,383			235,794		471,861			444,508
Salaries and employee benefits	60,774			55,025		120,514			108,314
All other operating expenses	53,363			47,306		105,927			92,366
Total operating expenses	365,520			338,125		698,302			645,188
Operating income	83,044			85,759		149,578			153,424
Investment income
Net investment income	6,236			4,891		12,214			9,553
Net realized investment gains (losses)	124			399		640			(689		)
Net impairment losses recognized in earnings	(61		)	0		(182		)	(345		)
Equity in earnings of limited partnerships	149			2,114		362			1,444
Total investment income	6,448			7,404		13,034			9,963
Interest expense, net	257			—		423			—
Income before income taxes	89,235			93,163		162,189			163,387
Income tax expense	30,708			31,854		55,786			56,183
Net income	$	58,527		$	61,309	$	106,403		$	107,204
Earnings Per Share
Net income per share
Class A common stock – basic	$	1.26		$	1.32	$	2.28		$	2.30
Class A common stock – diluted	$	1.12		$	1.17	$	2.03		$	2.04
Class B common stock – basic and diluted	$	189		$	197	$	343		$	345
Class B common stock – diluted	$	188		$	197	$	343		$	345
Weighted average shares outstanding – Basic
Class A common stock	46,180,852			46,188,867		46,184,666			46,188,967
Class B common stock	2,542			2,542		2,542			2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,299,395			52,392,862		52,355,214			52,458,394
Class B common stock	2,542			2,542		2,542			2,542
Dividends declared per share
Class A common stock	$	0.7825		$	0.7300	$	1.565		$	1.460
Class B common stock	$	117.3750		$	109.5000	$	234.750		$	219.000

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Erie Indemnity Company

Statements of Financial Position

(in thousands)

	June 30, 2017		December 31, 2016
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	144,709	$	189,072
Available-for-sale securities	72,057		56,138
Receivables from Erie Insurance Exchange and affiliates	411,422		378,540
Prepaid expenses and other current assets	36,023		30,169
Federal income taxes recoverable	0		5,260
Accrued investment income	6,874		6,337
Total current assets	671,085		665,516
Available-for-sale securities	672,625		657,153
Limited partnership investments	53,230		58,159
Fixed assets, net	71,119		69,142
Deferred income taxes, net	51,811		53,889
Note receivable from Erie Family Life Insurance Company	25,000		25,000
Other assets	22,355		20,096
Total assets	$	1,567,225	$	1,548,955
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	232,905	$	210,559
Agent bonuses	62,845		114,772
Accounts payable and accrued liabilities	86,844		88,153
Dividends payable	36,441		36,441
Deferred executive compensation	9,898		19,675
Federal income taxes payable	2,088		0
Total current liabilities	431,021		469,600
Defined benefit pension plans	219,972		221,827
Employee benefit obligations	462		756
Deferred executive compensation	11,810		13,233
Long-term borrowings	49,742		24,766
Other long-term liabilities	1,004		1,863
Total liabilities	714,011		732,045
Shareholders’ equity	853,214		816,910
Total liabilities and shareholders’ equity	$	1,567,225	$	1,548,955

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