Erie Indemnity (ERIE) 8-K Erie Indemnity Reports Full Year and Fourth Quarter 2017 Results

Exhibit 99.2

Erie Indemnity Company

Statements of Operations

(dollars in thousands, except per share data)

	Three months ended December 31,						Twelve months ended December 31,
	2017			2016			2017			2016
	(Unaudited)
Operating revenue
Management fee revenue, net	$	394,034		$	372,169		$	1,662,625		$	1,567,431
Service agreement revenue	7,368			7,444			29,149			29,200
Total operating revenue	401,402			379,613			1,691,774			1,596,631
Operating expenses
Commissions	226,943			216,837			947,481			893,800
Salaries and employee benefits	59,168			51,777			240,181			213,356
All other operating expenses	57,333			54,314			215,740			197,111
Total operating expenses	343,444			322,928			1,403,402			1,304,267
Operating income	57,958			56,685			288,372			292,364
Investment income
Net investment income	6,424			5,663			24,608			20,547
Net realized (losses) gains on investments	(205		)	643			1,334			672
Net impairment losses recognized in earnings	0			(71		)	(182		)	(416		)
Equity in earnings of limited partnerships	902			7,304			2,801			7,025
Total investment income	7,121			13,539			28,561			27,828
Interest expense, net	438			101			1,238			101
Income before income taxes	64,641			70,123			315,695			320,091
Income tax expense	32,588			24,337			118,696			109,725
Net income	$	32,053		$	45,786		$	196,999		$	210,366
Earnings Per Share
Net income per share
Class A common stock – basic	$	0.69		$	0.98		$	4.23		$	4.52
Class A common stock – diluted	$	0.61		$	0.87		$	3.76		$	4.01
Class B common stock – basic	$	103		$	147		$	635		$	678
Class B common stock – diluted	$	103		$	147		$	634		$	677
Weighted average shares outstanding – Basic
Class A common stock	46,188,972			46,188,895			46,186,831			46,188,952
Class B common stock	2,542			2,542			2,542			2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,322,478			52,413,119			52,337,463			52,435,303
Class B common stock	2,542			2,542			2,542			2,542
Dividends declared per share
Class A common stock	$	0.8400		$	0.7825		$	3.1875		$	2.9725
Class B common stock	$	126.000		$	117.375		$	478.125		$	445.875

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Erie Indemnity Company

Statements of Financial Position

(in thousands)

	December 31, 2017		December 31, 2016
Assets
Current assets:
Cash and cash equivalents	$	215,721	$	189,072
Available-for-sale securities	71,190		56,138
Receivables from Erie Insurance Exchange and affiliates	418,328		378,540
Prepaid expenses and other current assets	34,890		30,169
Federal income taxes recoverable	29,900		5,260
Note receivable from Erie Family Life Insurance Company	25,000		0
Accrued investment income	6,853		6,337
Total current assets	801,882		665,516
Available-for-sale securities	687,523		657,153
Limited partnership investments	45,122		58,159
Fixed assets, net	83,149		69,142
Deferred income taxes, net	19,390		53,889
Note receivable from Erie Family Life Insurance Company	0		25,000
Other assets	28,793		20,096
Total assets	$	1,665,859	$	1,548,955
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	228,124	$	210,559
Agent bonuses	122,528		114,772
Accounts payable and accrued liabilities	104,533		88,153
Dividends payable	39,116		36,441
Deferred executive compensation	15,605		19,675
Total current liabilities	509,906		469,600
Defined benefit pension plan	207,530		221,827
Employee benefit obligations	423		756
Deferred executive compensation	14,452		13,233
Long-term borrowings	74,728		24,766
Other long-term liabilities	1,476		1,863
Total liabilities	808,515		732,045
Shareholders' equity	857,344		816,910
Total liabilities and shareholders' equity	$	1,665,859	$	1,548,955

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