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

Exhibit 99.2

Erie Indemnity Company

Statements of Operations

(dollars in thousands, except per share data)

	Three months ended September 30,					Nine months ended September 30,
	2017		2016			2017			2016
	(Unaudited)					(Unaudited)
Operating revenue
Management fee revenue, net	$	435,214	$	411,139		$	1,268,591		$	1,195,262
Service agreement revenue	7,278		7,267			21,781			21,756
Total operating revenue	442,492		418,406			1,290,372			1,217,018
Operating expenses
Commissions	248,677		232,455			720,538			676,963
Salaries and employee benefits	60,499		53,265			181,013			161,579
All other operating expenses	52,480		50,431			158,407			142,797
Total operating expenses	361,656		336,151			1,059,958			981,339
Operating income	80,836		82,255			230,414			235,679
Investment income
Net investment income	5,970		5,331			18,184			14,884
Net realized investment gains	899		718			1,539			29
Net impairment losses recognized in earnings	0		0			(182		)	(345		)
Equity in earnings (losses) of limited partnerships	1,537		(1,723		)	1,899			(279		)
Total investment income	8,406		4,326			21,440			14,289
Interest expense, net	377		—			800			—
Income before income taxes	88,865		86,581			251,054			249,968
Income tax expense	30,322		29,205			86,108			85,388
Net income	$	58,543	$	57,376		$	164,946		$	164,580
Earnings Per Share
Net income per share
Class A common stock – basic	$	1.26	$	1.23		$	3.54		$	3.53
Class A common stock – diluted	$	1.12	$	1.09		$	3.15		$	3.14
Class B common stock – basic	$	189	$	185		$	531		$	530
Class B common stock – diluted	$	189	$	185		$	531		$	529
Weighted average shares outstanding – Basic
Class A common stock	46,188,949		46,188,980			46,186,109			46,188,971
Class B common stock	2,542		2,542			2,542			2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,316,876		52,411,303			52,342,450			52,442,697
Class B common stock	2,542		2,542			2,542			2,542
Dividends declared per share
Class A common stock	$	0.7825	$	0.7300		$	2.3475		$	2.1900
Class B common stock	$	117.375	$	109.500		$	352.125		$	328.500

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Erie Indemnity Company

Statements of Financial Position

(in thousands)

	September 30, 2017		December 31, 2016
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	184,628	$	189,072
Available-for-sale securities	65,318		56,138
Receivables from Erie Insurance Exchange and affiliates	428,500		378,540
Prepaid expenses and other current assets	35,797		30,169
Federal income taxes recoverable	0		5,260
Accrued investment income	6,435		6,337
Total current assets	720,678		665,516
Available-for-sale securities	683,948		657,153
Limited partnership investments	49,451		58,159
Fixed assets, net	75,370		69,142
Deferred income taxes, net	47,558		53,889
Note receivable from Erie Family Life Insurance Company	25,000		25,000
Other assets	29,424		20,096
Total assets	$	1,631,429	$	1,548,955
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	236,056	$	210,559
Agent bonuses	93,448		114,772
Accounts payable and accrued liabilities	99,331		88,153
Dividends payable	36,441		36,441
Deferred executive compensation	12,794		19,675
Federal income taxes payable	5,331		0
Total current liabilities	483,401		469,600
Defined benefit pension plans	208,528		221,827
Employee benefit obligations	330		756
Deferred executive compensation	12,777		13,233
Long-term borrowings	49,734		24,766
Other long-term liabilities	1,509		1,863
Total liabilities	756,279		732,045
Shareholders’ equity	875,150		816,910
Total liabilities and shareholders’ equity	$	1,631,429	$	1,548,955

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