Erie Indemnity (ERIE) 8-K Erie Indemnity Reports First Quarter 2018 Results

Exhibit 99.2

Erie Indemnity Company

Statements of Operations

(dollars in thousands, except per share data)

	Three months ended March 31,
	2018			2017
	(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services, net	$	405,978		$	392,058
Management fee revenue - administrative services, net	13,074			—
Administrative services reimbursement revenue	145,963			—
Service agreement revenue	7,145			7,258
Total operating revenue	572,160			399,316
Operating expenses
Cost of operations - policy issuance and renewal services	348,630			332,376
Cost of operations - administrative services	145,963			—
Total operating expenses	494,593			332,376
Operating income	77,567			66,940
Investment income
Net investment income	6,820			5,981
Net realized investment (losses) gains	(465		)	516
Net impairment losses recognized in earnings	0			(121		)
Equity in (losses) earnings of limited partnerships	(192		)	213
Total investment income	6,163			6,589
Interest expense, net	553			166
Other income (expense)	44			(409		)
Income before income taxes	83,221			72,954
Income tax expense	17,463			25,078
Net income	$	65,758		$	47,876
Earnings Per Share
Net income per share
Class A common stock – basic	$	1.41		$	1.03
Class A common stock – diluted	$	1.26		$	0.91
Class B common stock – basic and diluted	$	212		$	154
Weighted average shares outstanding – Basic
Class A common stock	46,187,908			46,188,522
Class B common stock	2,542			2,542
Weighted average shares outstanding – Diluted
Class A common stock	52,310,628			52,408,560
Class B common stock	2,542			2,542
Dividends declared per share
Class A common stock	$	0.8400		$	0.7825
Class B common stock	$	126.000		$	117.375

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Erie Indemnity Company

Statements of Financial Position

(in thousands)

	March 31, 2018		December 31, 2017
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	119,627	$	215,721
Available-for-sale securities	96,574		71,190
Receivables from Erie Insurance Exchange and affiliates	415,343		418,328
Prepaid expenses and other current assets	43,061		34,890
Federal income taxes recoverable	14,716		29,900
Note receivable from Erie Family Life Insurance Company	25,000		25,000
Accrued investment income	6,425		6,853
Total current assets	720,746		801,882
Available-for-sale securities	633,230		687,523
Equity securities	12,583		—
Limited partnership investments	44,114		45,122
Fixed assets, net	88,448		83,149
Deferred income taxes, net	29,055		19,390
Other assets	45,300		28,793
Total assets	$	1,573,476	$	1,665,859
Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$	240,848	$	228,124
Agent bonuses	30,232		122,528
Accounts payable and accrued liabilities	95,789		104,533
Dividends payable	39,119		39,116
Contract liability	31,951		—
Deferred executive compensation	9,710		15,605
Total current liabilities	447,649		509,906
Defined benefit pension plans	176,598		207,530
Employee benefit obligations	313		423
Contract liability	16,910		—
Deferred executive compensation	16,096		14,452
Long-term borrowings	74,726		74,728
Other long-term liabilities	1,029		1,476
Total liabilities	733,321		808,515
Shareholders’ equity	840,155		857,344
Total liabilities and shareholders’ equity	$	1,573,476	$	1,665,859

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