Erie Indemnity (ERIE) 10-Q25 Oct 182018 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2018	Oct. 12, 2018
Entity Registrant Name	ERIE INDEMNITY CO
Entity Central Index Key	922,621
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Class A
Entity Common Stock, Shares Outstanding		46,189,068
Class B
Entity Common Stock, Shares Outstanding		2,542

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Operating revenue
Operating revenue	$ 612,126	$ 442,492	$ 1,805,744	$ 1,290,372
Operating expenses
Operating expenses	515,431	361,253	1,536,159	1,058,745
Operating income	96,695	81,239	269,585	231,627
Investment income
Net investment income	7,659	5,982	21,583	18,202
Net realized investment gains (losses)	0	899	(497)	1,539
Net impairment losses recognized in earnings	0	0	(646)	(182)
Equity in earnings of limited partnerships	772	1,537	361	1,899
Total investment income	8,431	8,418	20,801	21,458
Interest expense, net	709	377	1,864	800
Other income (expense)	54	(415)	156	(1,231)
Income before income taxes	104,471	88,865	288,678	251,054
Income tax expense	24,025	30,322	62,768	86,108
Net income	$ 80,446	$ 58,543	$ 225,910	$ 164,946
Class A
Net income per share
Common stock - basic (in dollars per share)	$ 1.73	$ 1.26	$ 4.85	$ 3.54
Common stock - diluted (in dollars per share)	$ 1.54	$ 1.12	$ 4.32	$ 3.15
Weighted average shares outstanding – Basic
Common stock - basic (in shares)	46,188,941	46,188,949	46,188,522	46,186,109
Weighted average shares outstanding – Diluted
Common stock - diluted (in shares)	52,317,438	52,316,876	52,313,642	52,342,450
Dividends declared per share
Common stock (in dollars per share)	$ 0.8400	$ 0.7825	$ 2.5200	$ 2.3475
Class B
Net income per share
Common stock - basic (in dollars per share)	259	189	728	531
Common stock - diluted (in dollars per share)	$ 259	$ 189	$ 727	$ 531
Weighted average shares outstanding – Basic
Common stock - basic (in shares)	2,542	2,542	2,542	2,542
Weighted average shares outstanding – Diluted
Common stock - diluted (in shares)	2,542	2,542	2,542	2,542
Dividends declared per share
Common stock (in dollars per share)	$ 126	$ 117.375	$ 378	$ 352.125
Management fee revenue, policy issuance and renewal services [Member]
Operating revenue
Operating revenue	$ 451,361	$ 435,214	$ 1,311,911	$ 1,268,591
Operating expenses
Operating expenses	375,259	361,253	1,103,517	1,058,745
Management fee revenue, administrative services [Member]
Operating revenue
Operating revenue	13,521		39,894
Administrative services reimbursements [Member]
Operating revenue
Operating revenue	140,172		432,642
Operating expenses
Operating expenses	140,172		432,642
Service agreement revenue [Member]
Operating revenue
Operating revenue	$ 7,072	$ 7,278	$ 21,297	$ 21,781

STATEMENTS OF COMPREHENSIVE INC

STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 80,446	$ 58,543	$ 225,910	$ 164,946
Other comprehensive (loss) income, net of tax
Change in unrealized holding (losses) gains on available-for-sale securities	(492)	(167)	(6,470)	2,446
Comprehensive income	$ 79,954	$ 58,376	$ 219,440	$ 167,392

STATEMENTS OF FINANCIAL POSITIO

STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 244,688	$ 215,721
Available-for-sale securities	105,031
Available-for-sale securities		71,190
Receivables from Erie Insurance Exchange and affiliates	463,620	418,328
Prepaid expenses and other current assets	44,014	34,890
Federal income taxes recoverable	0	29,900
Note receivable from Erie Family Life Insurance Company	25,000	25,000
Accrued investment income	6,504	6,853
Total current assets	888,857	801,882
Available-for-sale securities	599,164
Available-for-sale securities		687,523
Equity securities	12,511
Limited partnership investments	37,088	45,122
Fixed assets, net	121,684	83,149
Deferred income taxes, net	37,660	19,390
Other assets	62,539	28,793
Total assets	1,759,503	1,665,859
Current liabilities:
Commissions payable	257,015	228,124
Agent bonuses	79,308	122,528
Accounts payable and accrued liabilities	113,204	104,533
Dividends payable	39,119	39,116
Contract liability	34,086
Deferred executive compensation	11,071	15,605
Federal income taxes payable	9,310	0
Current portion of long-term borrowings	1,395	0
Total current liabilities	544,508	509,906
Defined benefit pension plans	154,736	207,530
Employee benefit obligations	69	423
Contract liability	17,903
Deferred executive compensation	13,104	14,452
Long-term borrowings	98,332	74,728
Other long-term liabilities	9,828	1,476
Total liabilities	838,480	808,515
Shareholders’ equity
Additional paid-in-capital	16,459	16,470
Accumulated other comprehensive loss	(162,529)	(156,059)
Retained earnings	2,211,013	2,140,853
Total contributed capital and retained earnings	2,067,113	2,003,434
Treasury stock, at cost; 22,110,132 shares held	(1,157,310)	(1,155,668)
Deferred compensation	11,220	9,578
Total shareholders’ equity	921,023	857,344
Total liabilities and shareholders’ equity	1,759,503	1,665,859
Class A
Shareholders’ equity
Common stock	1,992	1,992
Class B
Shareholders’ equity
Common stock	$ 178	$ 178

STATEMENTS OF FINANCIAL POSIT_2

STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Treasury stock (in shares)	22,110,132	22,110,132
Class A
Common stock, stated value per share (in dollars per share)	$ 0.0292	$ 0.0292
Common stock, authorized (in shares)	74,996,930	74,996,930
Common stock, issued (in shares)	68,299,200	68,299,200
Common stock, outstanding (in shares)	46,189,068	46,189,068
Class B
Common stock, stated value per share (in dollars per share)	$ 70	$ 70
Common stock, authorized (in shares)	3,070	3,070
Common stock, issued (in shares)	2,542	2,542
Common stock, outstanding (in shares)	2,542	2,542
Ratio for converting shares of Class B common stock into shares of Class A common stock (as a percent)	2400.00%	2400.00%

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities
Management fee received	$ 1,309,769	$ 1,225,966
Administrative services reimbursements received	428,071
Service agreement fee received	21,297	21,781
Net investment income received	26,625	23,593
Limited partnership distributions	6,008	2,993
Decrease in reimbursements collected from affiliates		(7,335)
Commissions paid to agents	(639,574)	(597,700)
Agents bonuses paid	(130,657)	(118,862)
Salaries and wages paid	(136,868)	(128,071)
Pension contribution and employee benefits paid	(106,718)	(62,837)
General operating expenses paid	(144,759)	(167,985)
Administrative services expenses paid	(427,852)
Income taxes paid	(29,208)	(70,504)
Interest paid	(1,820)	(705)
Net cash provided by operating activities	174,314	120,334
Purchase of investments:
Available-for-sale securities	(194,773)
Available-for-sale securities		(292,702)
Equity securities	(4,087)
Limited partnerships	(217)	(330)
Proceeds from investments:
Available-for-sale securities sales	125,913
Available-for-sale securities sales		120,418
Available-for-sale securities maturities/calls	98,922	146,434
Equity securities	4,159
Limited partnerships	3,046	7,986
Net purchase of fixed assets	(48,667)	(18,036)
Net distributions on agent loans	(37,271)	(4,185)
Net cash used in investing activities	(52,975)	(40,415)
Cash flows from financing activities
Dividends paid to shareholders	(117,355)	(109,324)
Net proceeds from long-term borrowings	24,983	24,961
Net cash used in financing activities	(92,372)	(84,363)
Net increase (decrease) in cash and cash equivalents	28,967	(4,444)
Cash and cash equivalents, beginning of period	215,721	189,072
Cash and cash equivalents, end of period	$ 244,688	$ 184,628

Nature of Operations

Nature of Operations	9 Months Ended
Nature of Operations	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	Note 1. Nature of Operations Erie Indemnity Company ("Indemnity", "we", "us", "our") is a publicly held Pennsylvania business corporation that has since its incorporation in 1925 served as the attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange ("Exchange"). The Exchange, which also commenced business in 1925, is a Pennsylvania-domiciled reciprocal insurer that writes property and casualty insurance. We function solely as the management company and all insurance operations are performed by the Exchange. Our primary function as attorney-in-fact is to perform policy issuance and renewal services on behalf of the subscribers at the Exchange. We also act as attorney-in-fact on behalf of the Exchange with respect to all claims handling and investment management services, as well as the service provider for all claims handling, life insurance, and investment management services for its insurance subsidiaries, collectively referred to as "administrative services". Acting as attorney-in-fact in these two capacities is done in accordance with a subscriber's agreement (a limited power of attorney) executed individually by each subscriber (policyholder), which appoints us as their common attorney-in-fact to transact certain business on their behalf. Pursuant to the subscriber's agreement for acting as attorney-in-fact in these two capacities, we earn a management fee calculated as a percentage of the direct and assumed premiums written by the Exchange. The policy issuance and renewal services we provide to the Exchange are related to the sales, underwriting and issuance of policies. The sales related services we provide include agent compensation and certain sales and advertising support services. Agent compensation includes scheduled commissions to agents based upon premiums written as well as additional commissions and bonuses to agents, which are earned by achieving targeted measures. The underwriting services we provide include underwriting and policy processing. The remaining services we provide include customer service and administrative support. We also provide information technology services that support all the functions listed above. Included in these expenses are allocations of costs for departments that support these policy issuance and renewal functions. By virtue of its legal structure as a reciprocal insurer, the Exchange does not have any employees or officers. Therefore, it enters into contractual relationships by and through an attorney-in-fact. Indemnity serves as the attorney-in-fact on behalf of the Exchange with respect to its administrative services. The Exchange's insurance subsidiaries also utilize Indemnity for these services in accordance with the service agreements between each of the subsidiaries and Indemnity. Claims handling services include costs incurred in the claims process, including the adjustment, investigation, defense, recording and payment functions. Life insurance management services include costs incurred in the management and processing of life insurance business. Investment management services are related to investment trading activity, accounting and all other functions attributable to the investment of funds. Included in these expenses are allocations of costs for departments that support these administrative functions. The amounts incurred for these services are reimbursed to Indemnity at cost in accordance with the subscriber's agreement and the service agreements. State insurance regulations require that intercompany service agreements and any material amendments be approved in advance by the state insurance department. Our results of operations are tied to the growth and financial condition of the Exchange. If any events occurred that impaired the Exchange’s ability to grow or sustain its financial condition, including but not limited to reduced financial strength ratings, disruption in the independent agency relationships, significant catastrophe losses, or products not meeting customer demands, the Exchange could find it more difficult to retain its existing business and attract new business. A decline in the business of the Exchange almost certainly would have as a consequence a decline in the total premiums paid and a correspondingly adverse effect on the amount of the management fees we receive. We also have an exposure to a concentration of credit risk related to the unsecured receivables due from the Exchange for its management fee. See Note 12, "Concentrations of Credit Risk".

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
Significant Accounting Policies	Sep. 30, 2018
Accounting Policies [Abstract]
Significant Accounting Policies	Note 2. Significant Accounting Policies Basis of presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . For further information, refer to the financial statements and footnotes included in our Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission on February 22, 2018 . Use of estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recently adopted accounting standards We adopted Accounting Standards Codification 606, "Revenue from Contracts with Customers" ("ASC 606") on January 1, 2018, using the modified retrospective method applied to all contracts. We recognized the cumulative effect of initially adopting ASC 606 as an adjustment to the opening balance of retained earnings at January 1, 2018. The comparative information for periods preceding January 1, 2018 has not been restated and continues to be reported under the accounting standards in effect for those periods. Under ASC 606, we determined that we have two performance obligations under the subscriber’s agreement. The first performance obligation is providing policy issuance and renewal services. The second performance obligation is acting as the attorney-in-fact on behalf of the Exchange, as well as the service provider for its insurance subsidiaries, with respect to all administrative services. Therefore, upon adoption of ASC 606 beginning January 1, 2018, the management fee earned per the subscriber’s agreement, currently 25% of all direct and assumed premiums written by the Exchange, is allocated between the two performance obligations. Prior to the adoption of ASC 606, the entire management fee was allocated to the policy issuance and renewal services. Additionally, the expenses we incur and related reimbursements we receive related to the administrative services are presented gross in our Statement of Operations effective January 1, 2018. There was no significant impact to service agreement revenue upon adoption of ASC 606. Revenue allocated to the policy issuance and renewal services continues to be recognized at the time of policy issuance or renewal because it is at the time of policy issuance or renewal when the economic benefits of the service Indemnity provides (i.e. the substantially completed policy issuance or renewal service) and the control of the promised asset (i.e. the executed insurance policy) transfers to the customer. A significant portion of the management fee is currently allocated to this performance obligation and therefore, the related revenue recognition pattern for the vast majority of our revenues remains unchanged. The revenue allocated to the second performance obligation is recognized over several years in correlation with the costs incurred because the economic benefit of the services provided (i.e. management of the administrative services) transfers to the customer over a period of time. The amounts incurred for these services are reimbursed to Indemnity at cost in accordance with the subscriber's agreement and the service agreements. On January 1, 2018, we established a contract liability of $48.5 million representing the portion of revenue not yet earned related to the administrative services to be provided in subsequent years. We recorded a related deferred tax asset of $10.2 million and a cumulative effect adjustment that reduced retained earnings by $38.3 million . The adoption of ASC 606 changed the presentation of our Statement of Cash Flows, but had no net impact to our cash flows. The cumulative effect of the changes made to our Statement of Financial Position at January 1, 2018 were as follows: (in thousands) Balance at December 31, 2017 Adjustments due to ASC 606 Balance at January 1, 2018 Statement of Financial Position: Assets Deferred tax asset $ 19,390 $ 10,188 $ 29,578 Liabilities Contract liability — 48,514 48,514 Equity Retained earnings 2,140,853 (38,326 ) 2,102,527 The impact of adoption on our Statement of Financial Position at September 30, 2018 was as follows: September 30, 2018 (in thousands) As Reported Balances without ASC 606 Impact of Change (Unaudited) Statement of Financial Position: Assets Deferred tax asset $ 37,660 $ 26,742 $ 10,918 Liabilities Contract liability 51,989 — 51,989 Equity Retained earnings 2,211,013 2,252,084 (41,071 ) The impact of adoption on our Statement of Operations at September 30, 2018 was as follows: Three months ended Nine months ended (in thousands) As Reported Balances without ASC 606 Impact of Change As Reported Balances without ASC 606 Impact of Change (Unaudited) (Unaudited) Statement of Operations: Management fee revenue allocated to policy issuance and renewal services, gross $ 451,070 $ 465,982 $ (14,912 ) $ 1,315,202 $ 1,358,680 $ (43,478 ) Less: change in allowance for management fee returned on cancelled policies 291 300 (9 ) (3,291 ) (3,400 ) 109 Management fee revenue allocated to policy issuance and renewal services, net $ 451,361 $ 466,282 $ (14,921 ) $ 1,311,911 $ 1,355,280 $ (43,369 ) Management fee revenue allocated to administrative services, gross $ 13,538 $ — $ 13,538 $ 39,939 $ — $ 39,939 Less: change in allowance for management fee returned on cancelled policies (17 ) — (17 ) (45 ) — (45 ) Management fee revenue allocated to administrative services, net 13,521 — 13,521 39,894 — 39,894 Administrative services reimbursement revenue 140,172 — 140,172 432,642 — 432,642 Total revenue allocated to administrative services $ 153,693 $ — $ 153,693 $ 472,536 $ — $ 472,536 Administrative services expenses $ 140,172 $ — $ 140,172 $ 432,642 $ — $ 432,642 In March 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-07, "Compensation-Retirement Benefits", which requires the service cost component of net benefit costs to be reported with other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit costs are required to be presented separately from the service cost component and outside of income from operations on a retrospective basis. This amendment also allows only the service cost component to be eligible for capitalization, when applicable, prospectively after the effective date. ASU 2017-07 is effective for interim and annual periods beginning after December 15, 2017. We adopted this guidance effective January 1, 2018 and have included the other components of net benefit costs in "Other income (expense)" in the Statements of Operations and conformed the prior-period presentation. The adoption of this guidance did not have a material impact on the presentation of our financial statements or related disclosures. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall" . ASU 2016-01 revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. We adopted this guidance on a prospective basis effective January 1, 2018. The adoption of this guidance resulted in reclassifying unrealized losses, net of tax, on equity securities from accumulated other comprehensive loss to retained earnings, which reduced retained earnings by $0.1 million at January 1, 2018. As of January 1, 2018, equity securities are presented separately in our Statement of Financial Position. Our disclosures were prepared in accordance with this guidance. Recently issued accounting standards In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other Internal-Use Software" , which align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The amendments under ASU 2018-15 may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. We are currently evaluating the impact of ASU 2018-15 on our financial statements and disclosures. In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General" , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other post retirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. We plan to adopt this guidance at December 31, 2018 and do not expect a material impact on our postretirement benefit disclosures. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement" , which is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. This guidance modifies and adds new disclosure requirements primarily related to Level 3 fair value measurements. We are currently evaluating the impact of this guidance on our fair value measurement disclosures. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses" , which requires financial assets measured at amortized cost to be presented at the net amount expected to be collected through the use of a new forward-looking expected loss model and credit losses relating to available-for-sale debt securities to be recognized through an allowance for credit losses. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption for interim and annual periods beginning after December 15, 2018 is permitted. We have evaluated the impact of this guidance on our invested assets. Our investments are not measured at amortized cost, and therefore do not require the use of a new expected loss model. Our available-for-sale debt securities will continue to be monitored for credit losses which would be reflected as an allowance for credit losses rather than a reduction of the carrying value of the asset. Other financial assets subject to this guidance include our receivables from Erie Insurance Exchange and its subsidiaries and agent loans. Given the financial strength of the Exchange, demonstrated by its strong surplus position and industry ratings, it is unlikely these receivables would have significant, if any, credit loss exposure. Accordingly, we do not expect a material impact on our financial statements or related disclosures as a result of this guidance. In February 2016, the FASB issued ASU 2016-02, "Leases" , which requires lessees to recognize assets and liabilities arising from operating leases on the Statements of Financial Position and to disclose key information about leasing arrangements. Under existing guidance, we recognize our operating lease expense in the Statements of Operations. The new lease guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In July 2018, the FASB issued ASU 2018-11, "Leases-Targeted Improvements" , which permits entities to apply the existing lease guidance in comparative periods and recognize any cumulative effect adjustment in the year of adoption. We expect to apply this optional transition method. Our primary leases for which an asset and related liability will be recognized include agreements for real estate, computer equipment, vehicles, and copiers. While we expect the recognition of lease assets and liabilities to be material to our Statement of Financial Position at adoption date, we do not expect the cumulative effect adjustment to be material. The increase in assets and liabilities will be based on the actual leases in effect at the date of adoption. New disclosures will be required with the adoption of this guidance. We do not expect a material impact to our results of operations or cash flows. Recognition of management fee revenue We earn management fees from the Exchange under the subscriber’s agreement for services provided. Pursuant to the subscriber’s agreement, we may retain up to 25% of all direct and assumed premiums written by the Exchange. The management fee rate is set at least annually by our Board of Directors. The management fee revenue is calculated by multiplying the management fee rate by the direct and assumed premiums written by the Exchange. Upon adoption of ASC 606 beginning January 1, 2018, we determined we have two performance obligations under the subscriber’s agreement. The first performance obligation is to provide policy issuance and renewal services. The second performance obligation is acting as the attorney-in-fact with respect to the administrative services. Beginning January 1, 2018, our management fee revenue is allocated to these two performance obligations. Prior to the adoption of ASC 606, the entire management fee was allocated to the policy issuance and renewal services. Management fee revenue allocated to the policy issuance and renewal services is recognized at the time of policy issuance or renewal, because it is at the time of policy issuance or renewal when the economic benefit of the service we provide (the substantially completed policy issuance or renewal service) and the control of the promised asset (the executed insurance policy) transfers to the customer. Management fee revenue allocated to the second performance obligation relates to us acting as the attorney-in-fact on behalf of the Exchange, as well as the service provider for its insurance subsidiaries, with respect to the administrative services and is recognized over a four -year period representing the time over which the economic benefit of the services provided (i.e. management of the administrative services) transfers to the customer. Administrative services By virtue of its legal structure as a reciprocal insurer, the Exchange does not have any employees or officers. Therefore, it enters into contractual relationships by and through an attorney-in-fact. Indemnity serves as the attorney-in-fact on behalf of the Exchange with respect to its administrative services in accordance with the subscriber's agreement. The Exchange's insurance subsidiaries also utilize Indemnity for these services in accordance with the service agreements between each of the subsidiaries and Indemnity. Claims handling services include costs incurred in the claims process, including the adjustment, investigation, defense, recording and payment functions. Life insurance management services include costs incurred in the management and processing of life insurance business. Investment management services are related to investment trading activity, accounting and all other functions attributable to the investment of funds. Included in these expenses are allocations of costs for departments that support these administrative functions. Common overhead expenses and certain service department costs incurred by us on behalf of the Exchange and its insurance subsidiaries are reimbursed by the proper entity based upon appropriate utilization statistics (employee count, square footage, vehicle count, project hours, etc.) specifically measured to accomplish proportional allocations, which we believe are reasonable. Prior to the adoption of ASC 606, we recorded the reimbursements we receive for the administrative services expenses as receivables from the Exchange and its subsidiaries with a corresponding reduction to our expenses. Upon adoption of ASC 606 on January 1, 2018, the expenses we incur and related reimbursements we receive for administrative services are presented gross in our Statement of Operations. Reimbursements are settled on a monthly basis. The amounts incurred for these services are reimbursed to Indemnity at cost in accordance with the subscriber's agreement and the service agreements. State insurance regulations require that intercompany service agreements and any material amendments be approved in advance by the state insurance department. Reclassifications Certain amounts previously reported in the 2017 financial statements have been reclassified for comparative purposes to conform to the current period’s presentation. One of the reclassifications resulted from new accounting guidance and only affected the Statements of Operations. Most notably, "Commissions", "Salaries and employee benefits", and "All other operating expenses" have been combined within "Cost of operations - policy issuance and renewal services" in the Statements of Operations (see Note 3, "Revenue"). This reclassification had no effect on previously reported net income.

Revenue

Revenue	9 Months Ended
Revenue	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue	Note 3. Revenue The majority of our revenue is derived from the subscriber’s agreement between us and the subscribers (policyholders) at the Exchange. Pursuant to the subscriber’s agreement, we earn a management fee calculated as a percentage, not to exceed 25% , of all direct and assumed written premiums of the Exchange. We account for management fee revenue earned under the subscriber’s agreement in accordance with ASC 606, which we adopted on January 1, 2018, using the modified retrospective method. See Note 2, "Significant Accounting Policies" for further discussion of the adoption, including the impact on our financial statements. We allocate a portion of our management fee revenue, currently 25% of the direct and assumed written premiums of the Exchange, between the two performance obligations we have under the subscriber’s agreement. The first performance obligation is to provide policy issuance and renewal services to the subscribers (policyholders) at the Exchange, and the second is to act as attorney-in-fact on behalf of the Exchange, as well as the service provider for its insurance subsidiaries, with respect to all administrative services. The transaction price, including management fee revenue and administrative service reimbursement revenue, is allocated based on the estimated standalone selling prices developed using industry information and other available information for similar services. The first performance obligation is to provide policy issuance and renewal services that result in executed insurance policies between the Exchange or one of its insurance subsidiaries and the subscriber (policyholder). Our customer, the subscriber (policyholder), receives economic benefits when substantially all the policy issuance or renewal services are complete and an insurance policy is issued or renewed by the Exchange or one of its insurance subsidiaries. It is at the time of policy issuance or renewal that the allocated portion of revenue is recognized. The Exchange, by virtue of its legal structure as a reciprocal insurer, does not have any employees or officers. Therefore, it enters into contractual relationships by and through an attorney-in-fact. Indemnity serves as the attorney-in-fact on behalf of the Exchange with respect to its administrative services in accordance with the subscriber's agreement. The Exchange's insurance subsidiaries also utilize Indemnity for these services in accordance with the service agreements between each of the subsidiaries and Indemnity. Collectively, these services represent a second performance obligation under the subscriber’s agreement and the service agreements. The revenue allocated to this performance obligation is recognized over time as these services are provided. The portion of revenue not yet earned is recorded as a contract liability in the Statement of Financial Position. We recorded a contract liability of $48.5 million at January 1, 2018, upon adoption of ASC 606. The management fee revenue recognized as earned for these services for the nine months ended September 30, 2018 was $39.9 million . Beginning with the adoption of ASC 606 on January 1, 2018, the administrative services expenses we incur and the related reimbursements we receive are recorded gross in the Statement of Operations. Indemnity records a receivable from the Exchange for management fee revenue when the premium is written or assumed by the Exchange. Indemnity collects the management fee from the Exchange when the Exchange collects the premiums from the subscribers (policyholders). As the Exchange issues policies with annual terms only, cash collections generally occur within one year. A constraining estimate exists around the management fee received as consideration related to the potential for management fee to be returned if a policy were to be cancelled mid-term. Management fees are returned to the Exchange when policyholders cancel their insurance coverage mid-term and unearned premiums are refunded to them. We maintain an estimated allowance to reduce the management fee to its estimated net realizable value to account for the potential of mid-term policy cancellations based on historical cancellation rates. This estimated allowance has been allocated between the two performance obligations consistent with the revenue allocation proportions. The following table disaggregates revenue by our two performance obligations: Three months ended September 30, Nine months ended September 30, (in thousands) 2018 2017 2018 2017 Management fee revenue - policy issuance and renewal services $ 451,361 $ 435,214 $ 1,311,911 $ 1,268,591 Management fee revenue - administrative services 13,521 — 39,894 — Administrative services reimbursement revenue 140,172 — 432,642 — Total administrative services $ 153,693 $ — $ 472,536 $ —

Earnings Per Share

Earnings Per Share	9 Months Ended
Earnings Per Share	Sep. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Share	Note 4. Earnings Per Share Class A and Class B basic earnings per share and Class B diluted earnings per share are calculated under the two-class method. The two-class method allocates earnings to each class of stock based upon its dividend rights. Class B shares are convertible into Class A shares at a conversion ratio of 2,400 to 1. See Note 10, "Capital Stock". Class A diluted earnings per share are calculated under the if-converted method, which reflects the conversion of Class B shares to Class A shares. Diluted earnings per share calculations include the dilutive effect of assumed issuance of stock-based awards under compensation plans that have the option to be paid in stock using the treasury stock method. A reconciliation of the numerators and denominators used in the basic and diluted per-share computations is presented as follows for each class of common stock: Three months ended September 30, 2018 2017 (dollars in thousands, except per share data) Allocated net income (numerator) Weighted shares (denominator) Per-share amount Allocated net income (numerator) Weighted shares (denominator) Per-share amount Class A – Basic EPS: Income available to Class A stockholders $ 79,787 46,188,941 $ 1.73 $ 58,064 46,188,949 $ 1.26 Dilutive effect of stock-based awards 0 27,697 — 0 27,127 — Assumed conversion of Class B shares 659 6,100,800 — 479 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 80,446 52,317,438 $ 1.54 $ 58,543 52,316,876 $ 1.12 Class B – Basic EPS: Income available to Class B stockholders $ 659 2,542 $ 259 $ 479 2,542 $ 189 Class B – Diluted EPS: Income available to Class B stockholders $ 658 2,542 $ 259 $ 479 2,542 $ 189 Nine months ended September 30, 2018 2017 (dollars in thousands, except per share data) Allocated net income (numerator) Weighted shares (denominator) Per-share amount Allocated net income (numerator) Weighted shares (denominator) Per-share amount Class A – Basic EPS: Income available to Class A stockholders $ 224,060 46,188,522 $ 4.85 $ 163,596 46,186,109 $ 3.54 Dilutive effect of stock-based awards 0 24,320 — 0 55,541 — Assumed conversion of Class B shares 1,850 6,100,800 — 1,350 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 225,910 52,313,642 $ 4.32 $ 164,946 52,342,450 $ 3.15 Class B – Basic EPS: Income available to Class B stockholders $ 1,850 2,542 $ 728 $ 1,350 2,542 $ 531 Class B – Diluted EPS: Income available to Class B stockholders $ 1,849 2,542 $ 727 $ 1,350 2,542 $ 531

Fair Value

Fair Value	9 Months Ended
Fair Value	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value	Note 5. Fair Value Our available-for-sale debt securities and equity securities are recorded at fair value, which is the price that would be received to sell the asset in an orderly transaction between willing market participants as of the measurement date. Valuation techniques used to derive the fair value of our available-for-sale debt securities and equity securities are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources. Unobservable inputs reflect our own assumptions regarding fair market value for these securities. Although virtually all of our prices are obtained from third party sources, we also perform an internal pricing review on outliers, which include securities with price changes inconsistent with current market conditions. Financial instruments are categorized based upon the following characteristics or inputs to the valuation techniques: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 – Unobservable inputs for the asset or liability. Estimates of fair values for our investment portfolio are obtained primarily from a nationally recognized pricing service. Our Level 1 category includes those securities valued using an exchange traded price provided by the pricing service. The methodologies used by the pricing service that support a Level 2 classification of a financial instrument include multiple verifiable, observable inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. Pricing service valuations for Level 3 securities are based upon proprietary models and are used when observable inputs are not available or in illiquid markets. In limited circumstances we adjust the price received from the pricing service when, in our judgment, a better reflection of fair value is available based upon corroborating information and our knowledge and monitoring of market conditions such as a disparity in price of comparable securities and/or non-binding broker quotes. In other circumstances, certain securities are internally priced because prices are not provided by the pricing service. We perform continuous reviews of the prices obtained from the pricing service. This includes evaluating the methodology and inputs used by the pricing service to ensure that we determine the proper classification level of the financial instrument. Price variances, including large periodic changes, are investigated and corroborated by market data. We have reviewed the pricing methodologies of our pricing service as well as other observable inputs, such as market data, and transaction volumes and believe that the prices adequately consider market activity in determining fair value. When a price from the pricing service is not available, values are determined by obtaining broker/dealer quotes and/or market comparables. When available, we obtain multiple quotes for the same security. The ultimate value for these securities is determined based upon our best estimate of fair value using corroborating market information. Our evaluation includes the consideration of benchmark yields, reported trades, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. Certain assets and liabilities are not carried at fair value on a recurring basis, including agent loans which are included in other assets (see Note 6, "Investments") and long-term borrowings (see Note 7, "Borrowing Arrangements"). Accordingly, such financial instruments are not included in the fair value hierarchy disclosure because they are not subject to re-measurement at fair value. There were no assets and liabilities measured at fair value on a non-recurring basis during the nine months ended September 30, 2018 . The following tables present our fair value measurements on a recurring basis by asset class and level of input: At September 30, 2018 Fair value measurements using: (in thousands) Total Quoted prices in Level 1 Observable inputs Level 2 Unobservable inputs Level 3 Available-for-sale securities: U.S. treasury $ 36,425 $ 0 $ 36,425 $ 0 States & political subdivisions 256,865 0 256,865 0 Corporate debt securities 277,669 0 269,399 8,270 Residential mortgage-backed securities 2,494 0 2,494 0 Commercial mortgage-backed securities 46,860 0 46,860 0 Collateralized debt obligations 65,294 0 65,294 0 Other debt securities 18,588 0 17,683 905 Total available-for-sale securities 704,195 0 695,020 9,175 Equity securities: Nonredeemable preferred stock - financial services sector 12,511 1,981 10,530 0 Total equity securities 12,511 1,981 10,530 0 Other limited partnership investments (1) 3,317 — — — Total $ 720,023 $ 1,981 $ 705,550 $ 9,175 At December 31, 2017 Fair value measurements using: (in thousands) Total Quoted prices in Observable inputs Unobservable inputs Available-for-sale securities: U.S. treasury $ 11,734 $ 0 $ 11,734 $ 0 States & political subdivisions 259,264 0 259,264 0 Foreign government securities 503 0 503 0 Corporate debt securities 346,523 0 338,644 7,879 Residential mortgage-backed securities 25,571 0 25,571 0 Commercial mortgage-backed securities 32,804 0 32,804 0 Collateralized debt obligations 58,034 0 55,834 2,200 Other debt securities 11,528 0 11,528 0 Total fixed maturities 745,961 0 735,882 10,079 Nonredeemable preferred stock - financial services sector 11,659 2,015 9,644 0 Nonredeemable preferred stock - utilities sector 1,093 0 1,093 0 Total available-for-sale securities 758,713 2,015 746,619 10,079 Other limited partnership investments (1) 4,816 — — — Total $ 763,529 $ 2,015 $ 746,619 $ 10,079 (1) Other limited partnership investments measured at fair value represent real estate funds included on the balance sheet as limited partnership investments that are reported under the fair value option using the net asset value practical expedient. These amounts are not required to be categorized in the fair value hierarchy. The investments can never be redeemed with the funds. Instead, distributions are received when liquidation of the underlying assets of the funds occur. It is estimated that the underlying assets will generally be liquidated between 5 and 10 years from the inception of the funds. The fair value of these investments is based on the net asset value (NAV) information provided by the general partner. Fair value is based on our proportionate share of the NAV based on the most recent partners' capital statements received from the general partners, which is generally one quarter prior to our balance sheet date. These values are then analyzed to determine if the NAV represents fair value at our balance sheet date, with adjustment being made where appropriate. We consider observable market data and perform a review validating the appropriateness of the NAV at each balance sheet date. It is likely that all of the investments will be redeemed at a future date for an amount different than the NAV of our ownership interest in partners' capital as of September 30, 2018 and December 31, 2017 . During the nine months ended September 30, 2018 , no contributions were made and distributions totaling $1.2 million were received from these investments. During the year ended December 31, 2017 , no contributions were made and distributions totaling $0.5 million were received from these investments. There were no unfunded commitments related to the investments as of September 30, 2018 and December 31, 2017 . We review the fair value hierarchy classifications each reporting period. Transfers between hierarchy levels may occur due to changes in available market observable inputs. Transfers into and out of level classifications in 2017 are reported as having occurred at the beginning of the quarter in which the transfers occurred. Effective January 1, 2018, we changed our policy to recognize transfers as occurring at the end of the quarter in which the transfers occurred. This change was applied prospectively due to the immaterial impact on prior year disclosures. There were no transfers between Level 1 and Level 2 for the three and nine months ended September 30, 2018 and 2017 . Level 3 Assets – 2018 Quarterly Change: Beginning balance at June 30, 2018 Included in earnings (1) Included Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at September 30, 2018 Available-for-sale securities: Corporate debt securities $ 11,120 $ 3 $ 71 $ 1,539 $ (1,416 ) $ 2,735 $ (5,782 ) $ 8,270 Other debt securities 0 0 0 905 0 0 0 905 Total Level 3 available-for-sale securities $ 11,120 $ 3 $ 71 $ 2,444 $ (1,416 ) $ 2,735 $ (5,782 ) $ 9,175 Level 3 Assets – 2018 Year-to-Date Change: (in thousands) Beginning balance at December 31, 2017 Included in earnings (1) Included income Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at September 30, 2018 Available-for-sale securities: Corporate debt securities $ 7,879 $ 4 $ 23 $ 4,586 $ (2,381 ) $ 10,517 $ (12,358 ) $ 8,270 Collateralized debt obligations 2,200 0 7 0 0 0 (2,207 ) 0 Other debt securities 0 0 0 905 0 0 0 905 Total Level 3 available-for-sale securities $ 10,079 $ 4 $ 30 $ 5,491 $ (2,381 ) $ 10,517 $ (14,565 ) $ 9,175 Level 3 Assets – 2017 Quarterly Change: Beginning balance at June 30, 2017 Included in earnings (1) Included Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at September 30, 2017 Available-for-sale securities: Corporate debt securities $ 9,295 $ 24 $ (60 ) $ 539 $ (1,240 ) $ 2,633 $ (3,276 ) $ 7,915 Total Level 3 available-for-sale securities $ 9,295 $ 24 $ (60 ) $ 539 $ (1,240 ) $ 2,633 $ (3,276 ) $ 7,915 Level 3 Assets – 2017 Year-to-Date Change: (in thousands) Beginning balance at December 31, 2016 Included in earnings (1) Included in other comprehensive income Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at September 30, 2017 Available-for-sale securities: Corporate debt securities $ 9,352 $ 3 $ (108 ) $ 4,520 $ (4,372 ) $ 8,444 $ (9,924 ) $ 7,915 Total Level 3 available-for-sale securities $ 9,352 $ 3 $ (108 ) $ 4,520 $ (4,372 ) $ 8,444 $ (9,924 ) $ 7,915 (1) These amounts are reported in the Statements of Operations as net investment income and net realized investment gains (losses) for the each of the periods presented above. (2) Transfers into and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. Quantitative and Qualitative Disclosures about Unobservable Inputs When a non-binding broker quote was the only input available, the security was classified within Level 3. Use of non-binding broker quotes totaled $9.2 million at September 30, 2018 . The unobservable inputs are not reasonably available to us. The following table presents our fair value measurements on a recurring basis by pricing source: At September 30, 2018 (in thousands) Total Level 1 Level 2 Level 3 Available-for-sale securities priced via pricing services $ 704,195 $ 0 $ 695,020 $ 9,175 Equity securities priced via pricing services 12,511 1,981 10,530 0 Other limited partnership investments priced via unobservable inputs (1) 3,317 — — — Total $ 720,023 $ 1,981 $ 705,550 $ 9,175 (1) Other limited partnership investments measured at fair value represent real estate funds included on the Statements of Financial Position as limited partnership investments that are reported under the fair value option using the NAV practical expedient. These amounts are not required to be categorized in the fair value hierarchy. The fair value of these investments is based on the NAV information provided by the general partner.

Investments

Investments	9 Months Ended
Investments	Sep. 30, 2018
Investments [Abstract]
Investments	Note 6. Investments Available-for-sale securities The following tables summarize the cost and fair value of our available-for-sale securities. See also Note 5, "Fair Value" for additional fair value disclosures. At September 30, 2018 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: U.S. treasury $ 36,799 $ 0 $ 374 $ 36,425 States & political subdivisions 257,612 2,392 3,139 256,865 Corporate debt securities 279,814 1,031 3,176 277,669 Residential mortgage-backed securities 2,524 0 30 2,494 Commercial mortgage-backed securities 47,491 12 643 46,860 Collateralized debt obligations 65,421 80 207 65,294 Other debt securities 18,621 7 40 18,588 Total available-for-sale securities $ 708,282 $ 3,522 $ 7,609 $ 704,195 At December 31, 2017 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: U.S. treasury $ 11,873 $ 0 $ 139 $ 11,734 States & political subdivisions 254,533 5,351 620 259,264 Foreign government securities 501 2 0 503 Corporate debt securities 346,759 1,688 1,924 346,523 Residential mortgage-backed securities 25,324 371 124 25,571 Commercial mortgage-backed securities 33,475 26 697 32,804 Collateralized debt obligations 57,838 237 41 58,034 Other debt securities 11,496 32 0 11,528 Total fixed maturities 741,799 7,707 3,545 745,961 Nonredeemable preferred stock - financial services sector 11,719 15 75 11,659 Nonredeemable preferred stock - utilities sector 1,118 0 25 1,093 Total available-for-sale securities $ 754,636 $ 7,722 $ 3,645 $ 758,713 The amortized cost and estimated fair value of available-for-sale securities at September 30, 2018 , are shown below by remaining contractual term to maturity. Mortgage-backed securities are allocated based upon stated maturity dates. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At September 30, 2018 Amortized Estimated (in thousands) cost fair value Due in one year or less $ 105,133 $ 105,031 Due after one year through five years 230,247 230,234 Due after five years through ten years 247,101 244,336 Due after ten years 125,801 124,594 Total available-for-sale securities $ 708,282 $ 704,195 Available-for-sale securities in a gross unrealized loss position are as follows. Data is provided by length of time for securities in a gross unrealized loss position. At September 30, 2018 Less than 12 months 12 months or longer Total (dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses No. of holdings Available-for-sale securities: U.S. treasury $ 24,910 $ 31 $ 11,515 $ 343 $ 36,425 $ 374 5 States & political subdivisions 104,325 1,995 23,592 1,144 127,917 3,139 67 Corporate debt securities 145,419 2,281 39,278 895 184,697 3,176 425 Residential mortgage-backed securities 790 3 1,703 27 2,493 30 3 Commercial mortgage-backed securities 22,564 216 13,352 427 35,916 643 30 Collateralized debt obligations 43,995 207 0 0 43,995 207 33 Other debt securities 12,580 40 0 0 12,580 40 14 Total available-for-sale securities $ 354,583 $ 4,773 $ 89,440 $ 2,836 $ 444,023 $ 7,609 577 Quality breakdown of available-for-sale securities: Investment grade $ 284,054 $ 3,207 $ 77,869 $ 2,325 $ 361,923 $ 5,532 213 Non-investment grade 70,529 1,566 11,571 511 82,100 2,077 364 Total available-for-sale securities $ 354,583 $ 4,773 $ 89,440 $ 2,836 $ 444,023 $ 7,609 577 At December 31, 2017 Less than 12 months 12 months or longer Total (dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses No. of holdings Available-for-sale securities: U.S. treasury $ 10,237 $ 110 $ 1,497 $ 29 $ 11,734 $ 139 4 States & political subdivisions 52,553 288 14,361 332 66,914 620 33 Corporate debt securities 171,154 1,585 31,113 339 202,267 1,924 331 Residential mortgage-backed securities 4,156 29 7,064 95 11,220 124 11 Commercial mortgage-backed securities 10,836 85 11,984 612 22,820 697 19 Collateralized debt obligations 21,598 41 0 0 21,598 41 12 Other debt securities 1,499 0 0 0 1,499 0 1 Total fixed maturities 272,033 2,138 66,019 1,407 338,052 3,545 411 Nonredeemable preferred stock - financial services sector 9,644 75 0 0 9,644 75 5 Nonredeemable preferred stock - utilities sector 1,093 25 0 0 1,093 25 1 Total available-for-sale securities $ 282,770 $ 2,238 $ 66,019 $ 1,407 $ 348,789 $ 3,645 417 Quality breakdown of fixed maturities: Investment grade $ 214,586 $ 1,064 $ 62,193 $ 985 $ 276,779 $ 2,049 158 Non-investment grade 57,447 1,074 3,826 422 61,273 1,496 253 Total fixed maturities $ 272,033 $ 2,138 $ 66,019 $ 1,407 $ 338,052 $ 3,545 411 The above securities have been evaluated and determined to be temporary impairments for which we expect to recover our entire principal plus interest. The primary components of this analysis include a general review of market conditions and financial performance of the issuer along with the extent and duration at which fair value is less than cost. Any securities that we intend to sell or will more likely than not be required to sell before recovery are included in other-than-temporary impairments, which are recognized in earnings. Net investment income Interest and dividend income are recognized as earned and recorded to net investment income. Investment income, net of expenses, was generated from the following portfolios: Three months ended September 30, Nine months ended September 30, (in thousands) 2018 2017 2018 2017 Fixed maturities (1) $ 6,243 $ 4,234 $ 18,616 $ 16,358 Equity securities 203 0 487 49 Cash equivalents and other 1,484 1,936 3,518 2,852 Total investment income 7,930 6,170 22,621 19,259 Less: investment expenses 271 188 1,038 1,057 Investment income, net of expenses $ 7,659 $ 5,982 $ 21,583 $ 18,202 (1) Includes interest earned on note receivable from Erie Family Life Insurance Company ("EFL") of $0.4 million and $1.3 million for the three and nine months ended September 30, 2018 and 2017 , respectively. Realized investment gains (losses) Realized gains and losses on sales of securities are recognized in income based upon the specific identification method. Realized gains (losses) on investments were as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2018 2017 2018 2017 Available-for-sale securities: Gross realized gains $ 525 $ 1,621 $ 1,100 $ 2,708 Gross realized losses (526 ) (722 ) (1,512 ) (1,261 ) Net realized (losses) gains on available-for-sale securities (1 ) 899 (412 ) 1,447 Equity securities (1 ) — (189 ) — Miscellaneous 2 0 104 92 Net realized investment gains (losses) $ 0 $ 899 $ (497 ) $ 1,539 The portion of net unrealized gains and losses recognized during the reporting period, related to equity securities still held at the reporting date, is calculated as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2018 2017 2018 2017 Equity securities: (1) Total net realized losses $ (1 ) $ — $ (189 ) $ — Less: net losses realized on securities sold (52 ) — (86 ) — Net unrealized gains (losses) recognized during the period on securities held at reporting date $ 51 $ — $ (103 ) $ — (1) With the adoption of ASU 2016-01, effective January 1, 2018, changes in unrealized gains and losses on equity securities are included in net realized investment gains (losses) in the Statement of Operations. The adoption of this guidance resulted in a reclassification of net unrealized losses of $0.1 million from accumulated other comprehensive loss to retained earnings at January 1, 2018. There were no other-than-temporary impairments on available-for-sale securities recognized in earnings for the three months ended September 30, 2018 and 2017 . Other-than-temporary impairments on available-for-sale securities recognized in earnings were $0.6 million and $0.2 million for the nine months ended September 30, 2018 and 2017 , respectively. We have the intent to sell all credit-impaired available-for-sale debt securities; therefore, the entire amount of the impairment charges were included in earnings and no non-credit impairments were recognized in other comprehensive income. Limited partnerships The majority of our limited partnership holdings are considered investment companies where the general partners record assets at fair value. These limited partnerships are recorded using the equity method of accounting and are generally reported on a one-quarter lag; therefore, our year-to-date limited partnership results through September 30, 2018 are comprised of partnership financial results for the fourth quarter of 2017 and first two quarters of 2018 . Given the lag in reporting, our limited partnership results do not reflect the market conditions of the third quarter of 2018 . We also own some real estate limited partnerships that do not meet the criteria of an investment company. These partnerships prepare audited financial statements on a cost basis. We have elected to report these limited partnerships under the fair value option, which is based on the NAV from our partner's capital statement reflecting the general partner's estimate of fair value for the fund's underlying assets. Fair value provides consistency in the evaluation and financial reporting for these limited partnerships and limited partnerships accounted for under the equity method. Cash contributions made to and distributions received from the partnerships are recorded in the period in which the transaction occurs. Amounts included in equity in earnings of limited partnerships by method of accounting are included below: Three months ended September 30, Nine months ended September 30, (in thousands) 2018 2017 2018 2017 Equity in earnings of limited partnerships accounted for under the equity method $ 645 $ 1,305 $ 624 $ 1,704 Change in fair value of limited partnerships accounted for under the fair value option 127 232 (263 ) 195 Equity in earnings of limited partnerships $ 772 $ 1,537 $ 361 $ 1,899 The following table summarizes limited partnership investments by sector: (in thousands) At September 30, 2018 At December 31, 2017 Private equity $ 29,632 $ 31,663 Mezzanine debt 1,922 3,516 Real estate 2,217 5,127 Real estate - fair value option 3,317 4,816 Total limited partnership investments $ 37,088 $ 45,122 See also Note 13, "Commitments and Contingencies" for investment commitments related to limited partnerships. Agent Loans Agent loans are issued to independent agents and are carried at unpaid principal balance. The carrying value of our agent loans at September 30, 2018 and December 31, 2017 was $59.1 million and $21.8 million , respectively, and are included in other assets in the Statements of Financial Position.

Borrowing Arrangements

Borrowing Arrangements	9 Months Ended
Borrowing Arrangements	Sep. 30, 2018
Debt Disclosure [Abstract]
Borrowing Arrangements	Note 7. Borrowing Arrangements Bank line of credit As of September 30, 2018 , we have access to a $100 million bank revolving line of credit with a $25 million letter of credit sublimit that expires on November 3, 2020 . As of September 30, 2018 , a total of $99.1 million remains available under the facility due to $0.9 million outstanding letters of credit, which reduce the availability for letters of credit to $24.1 million . We had no borrowings outstanding on our line of credit as of September 30, 2018 . Bonds with a fair value of $107.5 million were pledged as collateral on the line at September 30, 2018 . The securities pledged as collateral have no trading restrictions and are reported as available-for-sale securities in the Statements of Financial Position as of September 30, 2018 . The banks require compliance with certain covenants, which include leverage ratios and debt restrictions, for our line of credit. We are in compliance with all covenants at September 30, 2018 . Term loan credit facility In 2016, we entered into a credit agreement for a $100 million senior secured draw term loan credit facility ("Credit Facility") for the acquisition of real property and construction of an office building that will serve as part of our principal headquarters. Under the agreement, $25 million was drawn on December 1, 2016, June 1, 2017, and December 1, 2017. The final $25 million was completed on June 1, 2018, for a total drawn amount of $100 million . During the draw period from December 1, 2016 through December 31, 2018, we will make monthly interest payments under the Credit Facility. Upon the expiration of the draw period, the Credit Facility converts to a fully-amortized term loan with monthly payments of principal and interest over a period of 28 years , commencing on January 1, 2019. Borrowings under the Credit Facility bear interest at a fixed rate of 4.35% . In addition, we are required to pay a quarterly commitment fee of 0.08% on the unused portion of the Credit Facility during the draw period. Bonds with a fair value of $107.5 million were pledged as collateral for the facility and are reported as available-for-sale securities in the Statements of Financial Position as of September 30, 2018 . The bank requires compliance with certain covenants, which include leverage ratios, debt restrictions and minimum net worth, for our Credit Facility. We are in compliance with all covenants at September 30, 2018 . Amounts drawn from the Credit Facility are reported at carrying value on our Statements of Financial Position, net of unamortized loan origination and commitment fees. The estimated fair value of this borrowing at September 30, 2018 was $90.5 million . The estimated fair value was determined using estimates based upon interest rates and credit spreads and are classified as Level 3 in the fair value hierarchy as of September 30, 2018 . The scheduled maturity of the $100 million Credit Facility begins on January 1, 2019 with annual principal payments of $1.9 million in 2019 , $2.0 million in 2020 , $2.0 million in 2021 , $2.1 million in 2022 , $2.2 million in 2023 and $89.8 million thereafter.

Postretirement Benefits

Postretirement Benefits	9 Months Ended
Postretirement Benefits	Sep. 30, 2018
Retirement Benefits [Abstract]
Postretirement Benefits	Note 8. Postretirement Benefits Pension plans Our pension plans consist of a noncontributory defined benefit pension plan covering substantially all employees and an unfunded supplemental employee retirement plan for certain members of executive and senior management. Although we are the sponsor of these postretirement plans and record the funded status of these plans, the Exchange and its subsidiaries reimburse us for approximately 59% of the annual benefit expense of these plans, which represents pension benefits for employees performing administrative services and their allocated share of costs for employees in departments that support the administrative functions. Accelerated contributions of $80 million were made to the defined benefit pension plan in the first half of 2018 . Prior to 2003, the employee pension plan purchased annuities from EFL for certain plan participants that were receiving benefit payments under the pension plan. These are nonparticipating annuity contracts under which EFL has unconditionally contracted to provide specified benefits to beneficiaries; however, the pension plan remains the primary obligor to the beneficiaries. A contingent liability of $18.1 million at September 30, 2018 exists in the event EFL does not honor the annuity contracts. The cost of our pension plans are as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2018 2017 2018 2017 Service cost for benefits earned $ 9,513 $ 7,777 $ 28,539 $ 23,330 Interest cost on benefits obligation 8,845 8,569 26,536 25,706 Expected return on plan assets (12,815 ) (10,317 ) (38,444 ) (30,950 ) Prior service cost amortization 339 218 1,015 654 Net actuarial loss amortization 3,202 2,325 9,606 6,975 Pension plan cost (1) $ 9,084 $ 8,572 $ 27,252 $ 25,715 (1) The components of pension plan costs other than the service cost component are included in the line item "Other income (expense)" in the Statements of Operations after reimbursements from the Exchange and its subsidiaries.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 9. Income Taxes The effective tax rate may differ from the statutory federal tax rate primarily due to permanent differences for tax exempt interest income. Income tax amounts are estimates based on our initial analysis and interpretation of the Tax Cuts and Jobs Act ("TCJA") enacted in 2017. In the third quarter of 2018, the Internal Revenue Service issued guidance that clarifies the tax treatment for the TCJA items for which our accounting was incomplete. We are in the process of refining our analysis and determining the impact on our deferred tax assets and liabilities.

Capital Stock

Capital Stock	9 Months Ended
Capital Stock	Sep. 30, 2018
Class of Stock Disclosures [Abstract]
Capital Stock	Note 10. Capital Stock Class A and B common stock Holders of Class B shares may, at their option, convert their shares into Class A shares at the rate of 2,400 Class A shares per Class B share. There were no shares of Class B common stock converted into Class A common stock during the nine months ended September 30, 2018 and the year ended December 31, 2017 . There is no provision for conversion of Class A shares to Class B shares, and Class B shares surrendered for conversion cannot be reissued. Stock repurchases In 2011 , our Board of Directors approved a continuation of the current stock repurchase program of $150 million , with no time limitation. There were no shares repurchased under this program during the nine months ended September 30, 2018 and the year ended December 31, 2017 . We had approximately $17.8 million of repurchase authority remaining under this program at September 30, 2018 . During the nine months ended September 30, 2018 , we purchased 24,692 shares of our outstanding Class A nonvoting common stock outside of our publicly announced share repurchase program at a total cost of $2.9 million . Of this amount, we purchased 5,830 shares for $0.7 million , or $117.39 per share, for stock-based awards in conjunction with our equity compensation plan, for which the shares were delivered to plan participants in January and May 2018. We purchased 6,938 shares for $0.8 million , or $119.52 per share, to fund the rabbi trust for the outside director deferred stock compensation plan. The shares were transferred to the rabbi trust in March, May, and August 2018. The remaining 11,924 shares were purchased at a total cost of $1.4 million , or $119.20 per share, to fund the rabbi trust for the incentive compensation deferral plan. The shares were transferred to the rabbi trust in March, May, and August 2018. During the year ended December 31, 2017 , we purchased 60,332 shares of our outstanding Class A nonvoting common stock outside of our publicly announced share repurchase program at a total cost of $7.3 million . Of this amount, we purchased 3,785 shares for $0.4 million , or $111.55 per share, for stock-based awards in conjunction with our equity compensation plan. We purchased 9,663 shares for $1.2 million , or $121.85 per share, to fund the rabbi trust for the outside director deferred stock compensation plan. The remaining 46,884 shares were purchased at a total cost of $5.7 million , or $122.40 per share, for stock-based awards in conjunction with our long-term incentive plan. These shares were delivered in 2017.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
Accumulated Other Comprehensive Income (Loss)	Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)	Note 11. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income ("AOCI") (loss) by component, including amounts reclassified to other comprehensive income ("OCI") (loss) and the related line item in the Statements of Operations where net income is presented, are as follows: Three months ended Three months ended September 30, 2018 September 30, 2017 (in thousands) Before Tax Income Tax (1) Net Before Tax Income Tax (1) Net Investment securities: AOCI (loss), beginning of period $ (4,157 ) $ (873 ) $ (3,284 ) $ 7,974 $ 2,791 $ 5,183 OCI (loss) before reclassifications (624 ) (131 ) (493 ) 643 225 418 Realized investment losses (gains) 1 0 1 (899 ) (314 ) (585 ) OCI (loss) (623 ) (131 ) (492 ) (256 ) (89 ) (167 ) AOCI (loss), end of period $ (4,780 ) $ (1,004 ) $ (3,776 ) $ 7,718 $ 2,702 $ 5,016 Pension and other postretirement plans: (2) AOCI (loss), beginning of period $ (200,954 ) $ (42,201 ) $ (158,753 ) $ (190,695 ) $ (66,744 ) $ (123,951 ) AOCI (loss), end of period $ (200,954 ) $ (42,201 ) $ (158,753 ) $ (190,695 ) $ (66,744 ) $ (123,951 ) Total AOCI (loss), beginning of period $ (205,111 ) $ (43,074 ) $ (162,037 ) $ (182,721 ) $ (63,953 ) $ (118,768 ) Investment securities (623 ) (131 ) (492 ) (256 ) (89 ) (167 ) Pension and other postretirement plans 0 0 0 0 0 0 OCI (loss) (623 ) (131 ) (492 ) (256 ) (89 ) (167 ) AOCI (loss), end of period $ (205,734 ) $ (43,205 ) $ (162,529 ) $ (182,977 ) $ (64,042 ) $ (118,935 ) Nine months ended Nine months ended September 30, 2018 September 30, 2017 (in thousands) Before Tax Income Tax (1) Net Before Tax Income Tax (1) Net Investment securities: AOCI, beginning of period $ 3,410 $ 716 $ 2,694 $ 3,954 $ 1,384 $ 2,570 OCI (loss) before reclassifications (9,163 ) (1,924 ) (7,239 ) 5,029 1,760 3,269 Realized investment losses (gains) 412 86 326 (1,447 ) (506 ) (941 ) Impairment losses 646 136 510 182 64 118 Cumulative effect of adopting ASU 2016-01 (3) (85 ) (18 ) (67 ) — — — OCI (loss) (8,190 ) (1,720 ) (6,470 ) 3,764 1,318 2,446 AOCI (loss), end of period $ (4,780 ) $ (1,004 ) $ (3,776 ) $ 7,718 $ 2,702 $ 5,016 Pension and other postretirement plans: (2) AOCI (loss), beginning of period $ (200,954 ) $ (42,201 ) $ (158,753 ) $ (190,695 ) $ (66,744 ) $ (123,951 ) AOCI (loss), end of period $ (200,954 ) $ (42,201 ) $ (158,753 ) $ (190,695 ) $ (66,744 ) $ (123,951 ) Total AOCI (loss), beginning of period $ (197,544 ) $ (41,485 ) $ (156,059 ) $ (186,741 ) $ (65,360 ) $ (121,381 ) Investment securities (8,190 ) (1,720 ) (6,470 ) 3,764 1,318 2,446 Pension and other postretirement plans 0 0 0 0 0 0 OCI (loss) (8,190 ) (1,720 ) (6,470 ) 3,764 1,318 2,446 AOCI (loss), end of period $ (205,734 ) $ (43,205 ) $ (162,529 ) $ (182,977 ) $ (64,042 ) $ (118,935 ) (1) Deferred taxes were recognized at the corporate rate of 21% for the three and nine months ended September 30, 2018 and 35% for the three and nine months ended September 30, 2017 . (2) There are no comprehensive income items or amounts reclassified out of accumulated other comprehensive loss related to postretirement plan items during interim periods. (3) ASU 2016-01 required a reclassification of unrealized losses of equity securities from AOCI to retained earnings at January 1, 2018. See Note 2, "Significant Accounting Policies".

Concentrations of Credit Risk

Concentrations of Credit Risk	9 Months Ended
Concentrations of Credit Risk	Sep. 30, 2018
Risks and Uncertainties [Abstract]
Concentrations of Credit Risk	Note 12. Concentrations of Credit Risk Financial instruments could potentially expose us to concentrations of credit risk, including unsecured receivables from the Exchange. A large majority of our revenue and receivables are from the Exchange and its subsidiaries. See also Note 1, "Nature of Operations". Management fee amounts and other reimbursements due from the Exchange and its subsidiaries were $463.6 million and $418.3 million at September 30, 2018 and December 31, 2017 , respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 13. Commitments and Contingencies We have contractual commitments to invest up to $13.9 million related to our limited partnership investments at September 30, 2018 . These commitments are split among private equity securities of $5.5 million , mezzanine debt securities of $8.1 million , and real estate activities of $0.3 million . These commitments will be funded as required by the limited partnership agreements. We are involved in litigation arising in the ordinary course of conducting business. In accordance with current accounting standards for loss contingencies and based upon information currently known to us, we establish reserves for litigation when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss or range of loss can be reasonably estimated. When no amount within the range of loss is a better estimate than any other amount, we accrue the minimum amount of the estimable loss. To the extent that such litigation against us may have an exposure to a loss in excess of the amount we have accrued, we believe that such excess would not be material to our financial condition, results of operations, or cash flows. Legal fees are expensed as incurred. We believe that our accruals for legal proceedings are appropriate and, individually and in the aggregate, are not expected to be material to our financial condition, results of operations, or cash flows. We review all litigation on an ongoing basis when making accrual and disclosure decisions. For certain legal proceedings, we cannot reasonably estimate losses or a range of loss, if any, particularly for proceedings that are in their early stages of development or where the plaintiffs seek indeterminate damages. Various factors, including, but not limited to, the outcome of potentially lengthy discovery and the resolution of important factual questions, may need to be determined before probability can be established or before a loss or range of loss can be reasonably estimated. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. In the event that a legal proceeding results in a substantial judgment against, or settlement by, us, there can be no assurance that any resulting liability or financial commitment would not have a material adverse effect on the financial condition, results of operations, or cash flows.

Subsequent Events

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 14. Subsequent Events No items were identified in this period subsequent to the financial statement date that required adjustment or additional disclosure.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . For further information, refer to the financial statements and footnotes included in our Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission on February 22, 2018 .
Use of estimates	Use of estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Recent accounting standards	Recently adopted accounting standards We adopted Accounting Standards Codification 606, "Revenue from Contracts with Customers" ("ASC 606") on January 1, 2018, using the modified retrospective method applied to all contracts. We recognized the cumulative effect of initially adopting ASC 606 as an adjustment to the opening balance of retained earnings at January 1, 2018. The comparative information for periods preceding January 1, 2018 has not been restated and continues to be reported under the accounting standards in effect for those periods. Under ASC 606, we determined that we have two performance obligations under the subscriber’s agreement. The first performance obligation is providing policy issuance and renewal services. The second performance obligation is acting as the attorney-in-fact on behalf of the Exchange, as well as the service provider for its insurance subsidiaries, with respect to all administrative services. Therefore, upon adoption of ASC 606 beginning January 1, 2018, the management fee earned per the subscriber’s agreement, currently 25% of all direct and assumed premiums written by the Exchange, is allocated between the two performance obligations. Prior to the adoption of ASC 606, the entire management fee was allocated to the policy issuance and renewal services. Additionally, the expenses we incur and related reimbursements we receive related to the administrative services are presented gross in our Statement of Operations effective January 1, 2018. There was no significant impact to service agreement revenue upon adoption of ASC 606. Revenue allocated to the policy issuance and renewal services continues to be recognized at the time of policy issuance or renewal because it is at the time of policy issuance or renewal when the economic benefits of the service Indemnity provides (i.e. the substantially completed policy issuance or renewal service) and the control of the promised asset (i.e. the executed insurance policy) transfers to the customer. A significant portion of the management fee is currently allocated to this performance obligation and therefore, the related revenue recognition pattern for the vast majority of our revenues remains unchanged. The revenue allocated to the second performance obligation is recognized over several years in correlation with the costs incurred because the economic benefit of the services provided (i.e. management of the administrative services) transfers to the customer over a period of time. The amounts incurred for these services are reimbursed to Indemnity at cost in accordance with the subscriber's agreement and the service agreements. On January 1, 2018, we established a contract liability of $48.5 million representing the portion of revenue not yet earned related to the administrative services to be provided in subsequent years. We recorded a related deferred tax asset of $10.2 million and a cumulative effect adjustment that reduced retained earnings by $38.3 million . The adoption of ASC 606 changed the presentation of our Statement of Cash Flows, but had no net impact to our cash flows. The cumulative effect of the changes made to our Statement of Financial Position at January 1, 2018 were as follows: (in thousands) Balance at December 31, 2017 Adjustments due to ASC 606 Balance at January 1, 2018 Statement of Financial Position: Assets Deferred tax asset $ 19,390 $ 10,188 $ 29,578 Liabilities Contract liability — 48,514 48,514 Equity Retained earnings 2,140,853 (38,326 ) 2,102,527 The impact of adoption on our Statement of Financial Position at September 30, 2018 was as follows: September 30, 2018 (in thousands) As Reported Balances without ASC 606 Impact of Change (Unaudited) Statement of Financial Position: Assets Deferred tax asset $ 37,660 $ 26,742 $ 10,918 Liabilities Contract liability 51,989 — 51,989 Equity Retained earnings 2,211,013 2,252,084 (41,071 ) The impact of adoption on our Statement of Operations at September 30, 2018 was as follows: Three months ended Nine months ended (in thousands) As Reported Balances without ASC 606 Impact of Change As Reported Balances without ASC 606 Impact of Change (Unaudited) (Unaudited) Statement of Operations: Management fee revenue allocated to policy issuance and renewal services, gross $ 451,070 $ 465,982 $ (14,912 ) $ 1,315,202 $ 1,358,680 $ (43,478 ) Less: change in allowance for management fee returned on cancelled policies 291 300 (9 ) (3,291 ) (3,400 ) 109 Management fee revenue allocated to policy issuance and renewal services, net $ 451,361 $ 466,282 $ (14,921 ) $ 1,311,911 $ 1,355,280 $ (43,369 ) Management fee revenue allocated to administrative services, gross $ 13,538 $ — $ 13,538 $ 39,939 $ — $ 39,939 Less: change in allowance for management fee returned on cancelled policies (17 ) — (17 ) (45 ) — (45 ) Management fee revenue allocated to administrative services, net 13,521 — 13,521 39,894 — 39,894 Administrative services reimbursement revenue 140,172 — 140,172 432,642 — 432,642 Total revenue allocated to administrative services $ 153,693 $ — $ 153,693 $ 472,536 $ — $ 472,536 Administrative services expenses $ 140,172 $ — $ 140,172 $ 432,642 $ — $ 432,642 In March 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-07, "Compensation-Retirement Benefits", which requires the service cost component of net benefit costs to be reported with other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit costs are required to be presented separately from the service cost component and outside of income from operations on a retrospective basis. This amendment also allows only the service cost component to be eligible for capitalization, when applicable, prospectively after the effective date. ASU 2017-07 is effective for interim and annual periods beginning after December 15, 2017. We adopted this guidance effective January 1, 2018 and have included the other components of net benefit costs in "Other income (expense)" in the Statements of Operations and conformed the prior-period presentation. The adoption of this guidance did not have a material impact on the presentation of our financial statements or related disclosures. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall" . ASU 2016-01 revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. We adopted this guidance on a prospective basis effective January 1, 2018. The adoption of this guidance resulted in reclassifying unrealized losses, net of tax, on equity securities from accumulated other comprehensive loss to retained earnings, which reduced retained earnings by $0.1 million at January 1, 2018. As of January 1, 2018, equity securities are presented separately in our Statement of Financial Position. Our disclosures were prepared in accordance with this guidance. Recently issued accounting standards In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other Internal-Use Software" , which align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The amendments under ASU 2018-15 may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. We are currently evaluating the impact of ASU 2018-15 on our financial statements and disclosures. In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General" , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other post retirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. We plan to adopt this guidance at December 31, 2018 and do not expect a material impact on our postretirement benefit disclosures. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement" , which is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. This guidance modifies and adds new disclosure requirements primarily related to Level 3 fair value measurements. We are currently evaluating the impact of this guidance on our fair value measurement disclosures. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses" , which requires financial assets measured at amortized cost to be presented at the net amount expected to be collected through the use of a new forward-looking expected loss model and credit losses relating to available-for-sale debt securities to be recognized through an allowance for credit losses. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption for interim and annual periods beginning after December 15, 2018 is permitted. We have evaluated the impact of this guidance on our invested assets. Our investments are not measured at amortized cost, and therefore do not require the use of a new expected loss model. Our available-for-sale debt securities will continue to be monitored for credit losses which would be reflected as an allowance for credit losses rather than a reduction of the carrying value of the asset. Other financial assets subject to this guidance include our receivables from Erie Insurance Exchange and its subsidiaries and agent loans. Given the financial strength of the Exchange, demonstrated by its strong surplus position and industry ratings, it is unlikely these receivables would have significant, if any, credit loss exposure. Accordingly, we do not expect a material impact on our financial statements or related disclosures as a result of this guidance. In February 2016, the FASB issued ASU 2016-02, "Leases" , which requires lessees to recognize assets and liabilities arising from operating leases on the Statements of Financial Position and to disclose key information about leasing arrangements. Under existing guidance, we recognize our operating lease expense in the Statements of Operations. The new lease guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In July 2018, the FASB issued ASU 2018-11, "Leases-Targeted Improvements" , which permits entities to apply the existing lease guidance in comparative periods and recognize any cumulative effect adjustment in the year of adoption. We expect to apply this optional transition method. Our primary leases for which an asset and related liability will be recognized include agreements for real estate, computer equipment, vehicles, and copiers. While we expect the recognition of lease assets and liabilities to be material to our Statement of Financial Position at adoption date, we do not expect the cumulative effect adjustment to be material. The increase in assets and liabilities will be based on the actual leases in effect at the date of adoption. New disclosures will be required with the adoption of this guidance. We do not expect a material impact to our results of operations or cash flows.
Recognition of management fee revenue	Recognition of management fee revenue We earn management fees from the Exchange under the subscriber’s agreement for services provided. Pursuant to the subscriber’s agreement, we may retain up to 25% of all direct and assumed premiums written by the Exchange. The management fee rate is set at least annually by our Board of Directors. The management fee revenue is calculated by multiplying the management fee rate by the direct and assumed premiums written by the Exchange. Upon adoption of ASC 606 beginning January 1, 2018, we determined we have two performance obligations under the subscriber’s agreement. The first performance obligation is to provide policy issuance and renewal services. The second performance obligation is acting as the attorney-in-fact with respect to the administrative services. Beginning January 1, 2018, our management fee revenue is allocated to these two performance obligations. Prior to the adoption of ASC 606, the entire management fee was allocated to the policy issuance and renewal services. Management fee revenue allocated to the policy issuance and renewal services is recognized at the time of policy issuance or renewal, because it is at the time of policy issuance or renewal when the economic benefit of the service we provide (the substantially completed policy issuance or renewal service) and the control of the promised asset (the executed insurance policy) transfers to the customer. Management fee revenue allocated to the second performance obligation relates to us acting as the attorney-in-fact on behalf of the Exchange, as well as the service provider for its insurance subsidiaries, with respect to the administrative services and is recognized over a four -year period representing the time over which the economic benefit of the services provided (i.e. management of the administrative services) transfers to the customer.
Administrative services	Administrative services By virtue of its legal structure as a reciprocal insurer, the Exchange does not have any employees or officers. Therefore, it enters into contractual relationships by and through an attorney-in-fact. Indemnity serves as the attorney-in-fact on behalf of the Exchange with respect to its administrative services in accordance with the subscriber's agreement. The Exchange's insurance subsidiaries also utilize Indemnity for these services in accordance with the service agreements between each of the subsidiaries and Indemnity. Claims handling services include costs incurred in the claims process, including the adjustment, investigation, defense, recording and payment functions. Life insurance management services include costs incurred in the management and processing of life insurance business. Investment management services are related to investment trading activity, accounting and all other functions attributable to the investment of funds. Included in these expenses are allocations of costs for departments that support these administrative functions. Common overhead expenses and certain service department costs incurred by us on behalf of the Exchange and its insurance subsidiaries are reimbursed by the proper entity based upon appropriate utilization statistics (employee count, square footage, vehicle count, project hours, etc.) specifically measured to accomplish proportional allocations, which we believe are reasonable. Prior to the adoption of ASC 606, we recorded the reimbursements we receive for the administrative services expenses as receivables from the Exchange and its subsidiaries with a corresponding reduction to our expenses. Upon adoption of ASC 606 on January 1, 2018, the expenses we incur and related reimbursements we receive for administrative services are presented gross in our Statement of Operations. Reimbursements are settled on a monthly basis. The amounts incurred for these services are reimbursed to Indemnity at cost in accordance with the subscriber's agreement and the service agreements. State insurance regulations require that intercompany service agreements and any material amendments be approved in advance by the state insurance department.
Reclassifications	Reclassifications Certain amounts previously reported in the 2017 financial statements have been reclassified for comparative purposes to conform to the current period’s presentation. One of the reclassifications resulted from new accounting guidance and only affected the Statements of Operations. Most notably, "Commissions", "Salaries and employee benefits", and "All other operating expenses" have been combined within "Cost of operations - policy issuance and renewal services" in the Statements of Operations (see Note 3, "Revenue"). This reclassification had no effect on previously reported net income.
Earnings per share	Class A and Class B basic earnings per share and Class B diluted earnings per share are calculated under the two-class method. The two-class method allocates earnings to each class of stock based upon its dividend rights. Class B shares are convertible into Class A shares at a conversion ratio of 2,400 to 1. See Note 10, "Capital Stock". Class A diluted earnings per share are calculated under the if-converted method, which reflects the conversion of Class B shares to Class A shares. Diluted earnings per share calculations include the dilutive effect of assumed issuance of stock-based awards under compensation plans that have the option to be paid in stock using the treasury stock method.
Fair value of financial instruments	Our available-for-sale debt securities and equity securities are recorded at fair value, which is the price that would be received to sell the asset in an orderly transaction between willing market participants as of the measurement date. Valuation techniques used to derive the fair value of our available-for-sale debt securities and equity securities are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources. Unobservable inputs reflect our own assumptions regarding fair market value for these securities. Although virtually all of our prices are obtained from third party sources, we also perform an internal pricing review on outliers, which include securities with price changes inconsistent with current market conditions. Financial instruments are categorized based upon the following characteristics or inputs to the valuation techniques: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 – Unobservable inputs for the asset or liability. Estimates of fair values for our investment portfolio are obtained primarily from a nationally recognized pricing service. Our Level 1 category includes those securities valued using an exchange traded price provided by the pricing service. The methodologies used by the pricing service that support a Level 2 classification of a financial instrument include multiple verifiable, observable inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. Pricing service valuations for Level 3 securities are based upon proprietary models and are used when observable inputs are not available or in illiquid markets. In limited circumstances we adjust the price received from the pricing service when, in our judgment, a better reflection of fair value is available based upon corroborating information and our knowledge and monitoring of market conditions such as a disparity in price of comparable securities and/or non-binding broker quotes. In other circumstances, certain securities are internally priced because prices are not provided by the pricing service. We perform continuous reviews of the prices obtained from the pricing service. This includes evaluating the methodology and inputs used by the pricing service to ensure that we determine the proper classification level of the financial instrument. Price variances, including large periodic changes, are investigated and corroborated by market data. We have reviewed the pricing methodologies of our pricing service as well as other observable inputs, such as market data, and transaction volumes and believe that the prices adequately consider market activity in determining fair value. When a price from the pricing service is not available, values are determined by obtaining broker/dealer quotes and/or market comparables. When available, we obtain multiple quotes for the same security. The ultimate value for these securities is determined based upon our best estimate of fair value using corroborating market information. Our evaluation includes the consideration of benchmark yields, reported trades, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. Certain assets and liabilities are not carried at fair value on a recurring basis, including agent loans which are included in other assets (see Note 6, "Investments") and long-term borrowings (see Note 7, "Borrowing Arrangements"). Accordingly, such financial instruments are not included in the fair value hierarchy disclosure because they are not subject to re-measurement at fair value. There were no assets and liabilities measured at fair value on a non-recurring basis during the nine months ended September 30, 2018 .
Fair value of financial instruments, transfers between levels	We review the fair value hierarchy classifications each reporting period. Transfers between hierarchy levels may occur due to changes in available market observable inputs. Transfers into and out of level classifications in 2017 are reported as having occurred at the beginning of the quarter in which the transfers occurred. Effective January 1, 2018, we changed our policy to recognize transfers as occurring at the end of the quarter in which the transfers occurred. This change was applied prospectively due to the immaterial impact on prior year disclosures.
Realized investment gains (losses)	Realized investment gains (losses) Realized gains and losses on sales of securities are recognized in income based upon the specific identification method.
Investments - Limited partnerships	Limited partnerships The majority of our limited partnership holdings are considered investment companies where the general partners record assets at fair value. These limited partnerships are recorded using the equity method of accounting and are generally reported on a one-quarter lag; therefore, our year-to-date limited partnership results through September 30, 2018 are comprised of partnership financial results for the fourth quarter of 2017 and first two quarters of 2018 . Given the lag in reporting, our limited partnership results do not reflect the market conditions of the third quarter of 2018 . We also own some real estate limited partnerships that do not meet the criteria of an investment company. These partnerships prepare audited financial statements on a cost basis. We have elected to report these limited partnerships under the fair value option, which is based on the NAV from our partner's capital statement reflecting the general partner's estimate of fair value for the fund's underlying assets. Fair value provides consistency in the evaluation and financial reporting for these limited partnerships and limited partnerships accounted for under the equity method. Cash contributions made to and distributions received from the partnerships are recorded in the period in which the transaction occurs.
Commitments and contingencies	We are involved in litigation arising in the ordinary course of conducting business. In accordance with current accounting standards for loss contingencies and based upon information currently known to us, we establish reserves for litigation when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss or range of loss can be reasonably estimated. When no amount within the range of loss is a better estimate than any other amount, we accrue the minimum amount of the estimable loss. To the extent that such litigation against us may have an exposure to a loss in excess of the amount we have accrued, we believe that such excess would not be material to our financial condition, results of operations, or cash flows. Legal fees are expensed as incurred. We believe that our accruals for legal proceedings are appropriate and, individually and in the aggregate, are not expected to be material to our financial condition, results of operations, or cash flows. We review all litigation on an ongoing basis when making accrual and disclosure decisions. For certain legal proceedings, we cannot reasonably estimate losses or a range of loss, if any, particularly for proceedings that are in their early stages of development or where the plaintiffs seek indeterminate damages. Various factors, including, but not limited to, the outcome of potentially lengthy discovery and the resolution of important factual questions, may need to be determined before probability can be established or before a loss or range of loss can be reasonably estimated. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. In the event that a legal proceeding results in a substantial judgment against, or settlement by, us, there can be no assurance that any resulting liability or financial commitment would not have a material adverse effect on the financial condition, results of operations, or cash flows.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	9 Months Ended
Significant Accounting Policies (Tables)	Sep. 30, 2018
Accounting Policies [Abstract]
Schedule of the impact of adoption of ASC 606 on our Statement of Financial Position and Statement of Operations	The cumulative effect of the changes made to our Statement of Financial Position at January 1, 2018 were as follows: (in thousands) Balance at December 31, 2017 Adjustments due to ASC 606 Balance at January 1, 2018 Statement of Financial Position: Assets Deferred tax asset $ 19,390 $ 10,188 $ 29,578 Liabilities Contract liability — 48,514 48,514 Equity Retained earnings 2,140,853 (38,326 ) 2,102,527 The impact of adoption on our Statement of Financial Position at September 30, 2018 was as follows: September 30, 2018 (in thousands) As Reported Balances without ASC 606 Impact of Change (Unaudited) Statement of Financial Position: Assets Deferred tax asset $ 37,660 $ 26,742 $ 10,918 Liabilities Contract liability 51,989 — 51,989 Equity Retained earnings 2,211,013 2,252,084 (41,071 ) The impact of adoption on our Statement of Operations at September 30, 2018 was as follows: Three months ended Nine months ended (in thousands) As Reported Balances without ASC 606 Impact of Change As Reported Balances without ASC 606 Impact of Change (Unaudited) (Unaudited) Statement of Operations: Management fee revenue allocated to policy issuance and renewal services, gross $ 451,070 $ 465,982 $ (14,912 ) $ 1,315,202 $ 1,358,680 $ (43,478 ) Less: change in allowance for management fee returned on cancelled policies 291 300 (9 ) (3,291 ) (3,400 ) 109 Management fee revenue allocated to policy issuance and renewal services, net $ 451,361 $ 466,282 $ (14,921 ) $ 1,311,911 $ 1,355,280 $ (43,369 ) Management fee revenue allocated to administrative services, gross $ 13,538 $ — $ 13,538 $ 39,939 $ — $ 39,939 Less: change in allowance for management fee returned on cancelled policies (17 ) — (17 ) (45 ) — (45 ) Management fee revenue allocated to administrative services, net 13,521 — 13,521 39,894 — 39,894 Administrative services reimbursement revenue 140,172 — 140,172 432,642 — 432,642 Total revenue allocated to administrative services $ 153,693 $ — $ 153,693 $ 472,536 $ — $ 472,536 Administrative services expenses $ 140,172 $ — $ 140,172 $ 432,642 $ — $ 432,642

Revenue (Tables)

Revenue (Tables)	9 Months Ended
Revenue (Tables)	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenue by performance obligation	The following table disaggregates revenue by our two performance obligations: Three months ended September 30, Nine months ended September 30, (in thousands) 2018 2017 2018 2017 Management fee revenue - policy issuance and renewal services $ 451,361 $ 435,214 $ 1,311,911 $ 1,268,591 Management fee revenue - administrative services 13,521 — 39,894 — Administrative services reimbursement revenue 140,172 — 432,642 — Total administrative services $ 153,693 $ — $ 472,536 $ —

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of reconciliation of the numerators and denominators used in the basic and diluted per-share computations	A reconciliation of the numerators and denominators used in the basic and diluted per-share computations is presented as follows for each class of common stock: Three months ended September 30, 2018 2017 (dollars in thousands, except per share data) Allocated net income (numerator) Weighted shares (denominator) Per-share amount Allocated net income (numerator) Weighted shares (denominator) Per-share amount Class A – Basic EPS: Income available to Class A stockholders $ 79,787 46,188,941 $ 1.73 $ 58,064 46,188,949 $ 1.26 Dilutive effect of stock-based awards 0 27,697 — 0 27,127 — Assumed conversion of Class B shares 659 6,100,800 — 479 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 80,446 52,317,438 $ 1.54 $ 58,543 52,316,876 $ 1.12 Class B – Basic EPS: Income available to Class B stockholders $ 659 2,542 $ 259 $ 479 2,542 $ 189 Class B – Diluted EPS: Income available to Class B stockholders $ 658 2,542 $ 259 $ 479 2,542 $ 189 Nine months ended September 30, 2018 2017 (dollars in thousands, except per share data) Allocated net income (numerator) Weighted shares (denominator) Per-share amount Allocated net income (numerator) Weighted shares (denominator) Per-share amount Class A – Basic EPS: Income available to Class A stockholders $ 224,060 46,188,522 $ 4.85 $ 163,596 46,186,109 $ 3.54 Dilutive effect of stock-based awards 0 24,320 — 0 55,541 — Assumed conversion of Class B shares 1,850 6,100,800 — 1,350 6,100,800 — Class A – Diluted EPS: Income available to Class A stockholders on Class A equivalent shares $ 225,910 52,313,642 $ 4.32 $ 164,946 52,342,450 $ 3.15 Class B – Basic EPS: Income available to Class B stockholders $ 1,850 2,542 $ 728 $ 1,350 2,542 $ 531 Class B – Diluted EPS: Income available to Class B stockholders $ 1,849 2,542 $ 727 $ 1,350 2,542 $ 531

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
Fair Value (Tables)	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of fair value measurements on a recurring basis by asset class and level of input	The following tables present our fair value measurements on a recurring basis by asset class and level of input: At September 30, 2018 Fair value measurements using: (in thousands) Total Quoted prices in Level 1 Observable inputs Level 2 Unobservable inputs Level 3 Available-for-sale securities: U.S. treasury $ 36,425 $ 0 $ 36,425 $ 0 States & political subdivisions 256,865 0 256,865 0 Corporate debt securities 277,669 0 269,399 8,270 Residential mortgage-backed securities 2,494 0 2,494 0 Commercial mortgage-backed securities 46,860 0 46,860 0 Collateralized debt obligations 65,294 0 65,294 0 Other debt securities 18,588 0 17,683 905 Total available-for-sale securities 704,195 0 695,020 9,175 Equity securities: Nonredeemable preferred stock - financial services sector 12,511 1,981 10,530 0 Total equity securities 12,511 1,981 10,530 0 Other limited partnership investments (1) 3,317 — — — Total $ 720,023 $ 1,981 $ 705,550 $ 9,175 At December 31, 2017 Fair value measurements using: (in thousands) Total Quoted prices in Observable inputs Unobservable inputs Available-for-sale securities: U.S. treasury $ 11,734 $ 0 $ 11,734 $ 0 States & political subdivisions 259,264 0 259,264 0 Foreign government securities 503 0 503 0 Corporate debt securities 346,523 0 338,644 7,879 Residential mortgage-backed securities 25,571 0 25,571 0 Commercial mortgage-backed securities 32,804 0 32,804 0 Collateralized debt obligations 58,034 0 55,834 2,200 Other debt securities 11,528 0 11,528 0 Total fixed maturities 745,961 0 735,882 10,079 Nonredeemable preferred stock - financial services sector 11,659 2,015 9,644 0 Nonredeemable preferred stock - utilities sector 1,093 0 1,093 0 Total available-for-sale securities 758,713 2,015 746,619 10,079 Other limited partnership investments (1) 4,816 — — — Total $ 763,529 $ 2,015 $ 746,619 $ 10,079 (1) Other limited partnership investments measured at fair value represent real estate funds included on the balance sheet as limited partnership investments that are reported under the fair value option using the net asset value practical expedient. These amounts are not required to be categorized in the fair value hierarchy. The investments can never be redeemed with the funds. Instead, distributions are received when liquidation of the underlying assets of the funds occur. It is estimated that the underlying assets will generally be liquidated between 5 and 10 years from the inception of the funds. The fair value of these investments is based on the net asset value (NAV) information provided by the general partner. Fair value is based on our proportionate share of the NAV based on the most recent partners' capital statements received from the general partners, which is generally one quarter prior to our balance sheet date. These values are then analyzed to determine if the NAV represents fair value at our balance sheet date, with adjustment being made where appropriate. We consider observable market data and perform a review validating the appropriateness of the NAV at each balance sheet date. It is likely that all of the investments will be redeemed at a future date for an amount different than the NAV of our ownership interest in partners' capital as of September 30, 2018 and December 31, 2017 . During the nine months ended September 30, 2018 , no contributions were made and distributions totaling $1.2 million were received from these investments. During the year ended December 31, 2017 , no contributions were made and distributions totaling $0.5 million were received from these investments. There were no unfunded commitments related to the investments as of September 30, 2018 and December 31, 2017 .
Schedule of roll forward of Level 3 fair value measurements on a recurring basis	Level 3 Assets – 2018 Quarterly Change: Beginning balance at June 30, 2018 Included in earnings (1) Included Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at September 30, 2018 Available-for-sale securities: Corporate debt securities $ 11,120 $ 3 $ 71 $ 1,539 $ (1,416 ) $ 2,735 $ (5,782 ) $ 8,270 Other debt securities 0 0 0 905 0 0 0 905 Total Level 3 available-for-sale securities $ 11,120 $ 3 $ 71 $ 2,444 $ (1,416 ) $ 2,735 $ (5,782 ) $ 9,175 Level 3 Assets – 2018 Year-to-Date Change: (in thousands) Beginning balance at December 31, 2017 Included in earnings (1) Included income Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at September 30, 2018 Available-for-sale securities: Corporate debt securities $ 7,879 $ 4 $ 23 $ 4,586 $ (2,381 ) $ 10,517 $ (12,358 ) $ 8,270 Collateralized debt obligations 2,200 0 7 0 0 0 (2,207 ) 0 Other debt securities 0 0 0 905 0 0 0 905 Total Level 3 available-for-sale securities $ 10,079 $ 4 $ 30 $ 5,491 $ (2,381 ) $ 10,517 $ (14,565 ) $ 9,175 Level 3 Assets – 2017 Quarterly Change: Beginning balance at June 30, 2017 Included in earnings (1) Included Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at September 30, 2017 Available-for-sale securities: Corporate debt securities $ 9,295 $ 24 $ (60 ) $ 539 $ (1,240 ) $ 2,633 $ (3,276 ) $ 7,915 Total Level 3 available-for-sale securities $ 9,295 $ 24 $ (60 ) $ 539 $ (1,240 ) $ 2,633 $ (3,276 ) $ 7,915 Level 3 Assets – 2017 Year-to-Date Change: (in thousands) Beginning balance at December 31, 2016 Included in earnings (1) Included in other comprehensive income Purchases Sales Transfers into Level 3 (2) Transfers out of Level 3 (2) Ending balance at September 30, 2017 Available-for-sale securities: Corporate debt securities $ 9,352 $ 3 $ (108 ) $ 4,520 $ (4,372 ) $ 8,444 $ (9,924 ) $ 7,915 Total Level 3 available-for-sale securities $ 9,352 $ 3 $ (108 ) $ 4,520 $ (4,372 ) $ 8,444 $ (9,924 ) $ 7,915 (1) These amounts are reported in the Statements of Operations as net investment income and net realized investment gains (losses) for the each of the periods presented above. (2) Transfers into and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.
Schedule of fair value measurements on a recurring basis by pricing source	The following table presents our fair value measurements on a recurring basis by pricing source: At September 30, 2018 (in thousands) Total Level 1 Level 2 Level 3 Available-for-sale securities priced via pricing services $ 704,195 $ 0 $ 695,020 $ 9,175 Equity securities priced via pricing services 12,511 1,981 10,530 0 Other limited partnership investments priced via unobservable inputs (1) 3,317 — — — Total $ 720,023 $ 1,981 $ 705,550 $ 9,175 (1) Other limited partnership investments measured at fair value represent real estate funds included on the Statements of Financial Position as limited partnership investments that are reported under the fair value option using the NAV practical expedient. These amounts are not required to be categorized in the fair value hierarchy. The fair value of these investments is based on the NAV information provided by the general partner.

Investments (Tables)

Investments (Tables)	9 Months Ended
Investments (Tables)	Sep. 30, 2018
Investments [Abstract]
Schedule of reconciliation of cost to fair value of available-for-sale securities	The following tables summarize the cost and fair value of our available-for-sale securities. See also Note 5, "Fair Value" for additional fair value disclosures. At September 30, 2018 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: U.S. treasury $ 36,799 $ 0 $ 374 $ 36,425 States & political subdivisions 257,612 2,392 3,139 256,865 Corporate debt securities 279,814 1,031 3,176 277,669 Residential mortgage-backed securities 2,524 0 30 2,494 Commercial mortgage-backed securities 47,491 12 643 46,860 Collateralized debt obligations 65,421 80 207 65,294 Other debt securities 18,621 7 40 18,588 Total available-for-sale securities $ 708,282 $ 3,522 $ 7,609 $ 704,195 At December 31, 2017 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Available-for-sale securities: U.S. treasury $ 11,873 $ 0 $ 139 $ 11,734 States & political subdivisions 254,533 5,351 620 259,264 Foreign government securities 501 2 0 503 Corporate debt securities 346,759 1,688 1,924 346,523 Residential mortgage-backed securities 25,324 371 124 25,571 Commercial mortgage-backed securities 33,475 26 697 32,804 Collateralized debt obligations 57,838 237 41 58,034 Other debt securities 11,496 32 0 11,528 Total fixed maturities 741,799 7,707 3,545 745,961 Nonredeemable preferred stock - financial services sector 11,719 15 75 11,659 Nonredeemable preferred stock - utilities sector 1,118 0 25 1,093 Total available-for-sale securities $ 754,636 $ 7,722 $ 3,645 $ 758,713
Schedule of amortized cost and estimated fair value of available-for-sale securities by remaining contractual term to maturity	The amortized cost and estimated fair value of available-for-sale securities at September 30, 2018 , are shown below by remaining contractual term to maturity. Mortgage-backed securities are allocated based upon stated maturity dates. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At September 30, 2018 Amortized Estimated (in thousands) cost fair value Due in one year or less $ 105,133 $ 105,031 Due after one year through five years 230,247 230,234 Due after five years through ten years 247,101 244,336 Due after ten years 125,801 124,594 Total available-for-sale securities $ 708,282 $ 704,195
Schedule of available-for-sale securities in a gross unrealized loss position by length of time	Available-for-sale securities in a gross unrealized loss position are as follows. Data is provided by length of time for securities in a gross unrealized loss position. At September 30, 2018 Less than 12 months 12 months or longer Total (dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses No. of holdings Available-for-sale securities: U.S. treasury $ 24,910 $ 31 $ 11,515 $ 343 $ 36,425 $ 374 5 States & political subdivisions 104,325 1,995 23,592 1,144 127,917 3,139 67 Corporate debt securities 145,419 2,281 39,278 895 184,697 3,176 425 Residential mortgage-backed securities 790 3 1,703 27 2,493 30 3 Commercial mortgage-backed securities 22,564 216 13,352 427 35,916 643 30 Collateralized debt obligations 43,995 207 0 0 43,995 207 33 Other debt securities 12,580 40 0 0 12,580 40 14 Total available-for-sale securities $ 354,583 $ 4,773 $ 89,440 $ 2,836 $ 444,023 $ 7,609 577 Quality breakdown of available-for-sale securities: Investment grade $ 284,054 $ 3,207 $ 77,869 $ 2,325 $ 361,923 $ 5,532 213 Non-investment grade 70,529 1,566 11,571 511 82,100 2,077 364 Total available-for-sale securities $ 354,583 $ 4,773 $ 89,440 $ 2,836 $ 444,023 $ 7,609 577 At December 31, 2017 Less than 12 months 12 months or longer Total (dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses No. of holdings Available-for-sale securities: U.S. treasury $ 10,237 $ 110 $ 1,497 $ 29 $ 11,734 $ 139 4 States & political subdivisions 52,553 288 14,361 332 66,914 620 33 Corporate debt securities 171,154 1,585 31,113 339 202,267 1,924 331 Residential mortgage-backed securities 4,156 29 7,064 95 11,220 124 11 Commercial mortgage-backed securities 10,836 85 11,984 612 22,820 697 19 Collateralized debt obligations 21,598 41 0 0 21,598 41 12 Other debt securities 1,499 0 0 0 1,499 0 1 Total fixed maturities 272,033 2,138 66,019 1,407 338,052 3,545 411 Nonredeemable preferred stock - financial services sector 9,644 75 0 0 9,644 75 5 Nonredeemable preferred stock - utilities sector 1,093 25 0 0 1,093 25 1 Total available-for-sale securities $ 282,770 $ 2,238 $ 66,019 $ 1,407 $ 348,789 $ 3,645 417 Quality breakdown of fixed maturities: Investment grade $ 214,586 $ 1,064 $ 62,193 $ 985 $ 276,779 $ 2,049 158 Non-investment grade 57,447 1,074 3,826 422 61,273 1,496 253 Total fixed maturities $ 272,033 $ 2,138 $ 66,019 $ 1,407 $ 338,052 $ 3,545 411
Schedule of investment income, net of expenses, from portfolios	Interest and dividend income are recognized as earned and recorded to net investment income. Investment income, net of expenses, was generated from the following portfolios: Three months ended September 30, Nine months ended September 30, (in thousands) 2018 2017 2018 2017 Fixed maturities (1) $ 6,243 $ 4,234 $ 18,616 $ 16,358 Equity securities 203 0 487 49 Cash equivalents and other 1,484 1,936 3,518 2,852 Total investment income 7,930 6,170 22,621 19,259 Less: investment expenses 271 188 1,038 1,057 Investment income, net of expenses $ 7,659 $ 5,982 $ 21,583 $ 18,202 (1) Includes interest earned on note receivable from Erie Family Life Insurance Company ("EFL") of $0.4 million and $1.3 million for the three and nine months ended September 30, 2018 and 2017 , respectively.
Schedule of realized gains and losses on sales of securities recognized in income based upon the specific identification method and net unrealized losses recognized during the reporting period, related to equity securities still held at the reporting date	Realized gains and losses on sales of securities are recognized in income based upon the specific identification method. Realized gains (losses) on investments were as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2018 2017 2018 2017 Available-for-sale securities: Gross realized gains $ 525 $ 1,621 $ 1,100 $ 2,708 Gross realized losses (526 ) (722 ) (1,512 ) (1,261 ) Net realized (losses) gains on available-for-sale securities (1 ) 899 (412 ) 1,447 Equity securities (1 ) — (189 ) — Miscellaneous 2 0 104 92 Net realized investment gains (losses) $ 0 $ 899 $ (497 ) $ 1,539 The portion of net unrealized gains and losses recognized during the reporting period, related to equity securities still held at the reporting date, is calculated as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2018 2017 2018 2017 Equity securities: (1) Total net realized losses $ (1 ) $ — $ (189 ) $ — Less: net losses realized on securities sold (52 ) — (86 ) — Net unrealized gains (losses) recognized during the period on securities held at reporting date $ 51 $ — $ (103 ) $ — (1) With the adoption of ASU 2016-01, effective January 1, 2018, changes in unrealized gains and losses on equity securities are included in net realized investment gains (losses) in the Statement of Operations. The adoption of this guidance resulted in a reclassification of net unrealized losses of $0.1 million from accumulated other comprehensive loss to retained earnings at January 1, 2018.
Schedule of limited partnership results, generally reported on a one-quarter lag	Amounts included in equity in earnings of limited partnerships by method of accounting are included below: Three months ended September 30, Nine months ended September 30, (in thousands) 2018 2017 2018 2017 Equity in earnings of limited partnerships accounted for under the equity method $ 645 $ 1,305 $ 624 $ 1,704 Change in fair value of limited partnerships accounted for under the fair value option 127 232 (263 ) 195 Equity in earnings of limited partnerships $ 772 $ 1,537 $ 361 $ 1,899 The following table summarizes limited partnership investments by sector: (in thousands) At September 30, 2018 At December 31, 2017 Private equity $ 29,632 $ 31,663 Mezzanine debt 1,922 3,516 Real estate 2,217 5,127 Real estate - fair value option 3,317 4,816 Total limited partnership investments $ 37,088 $ 45,122

Postretirement Benefits (Tables

Postretirement Benefits (Tables)	9 Months Ended
Postretirement Benefits (Tables)	Sep. 30, 2018
Retirement Benefits [Abstract]
Schedule of cost of pension plans	The cost of our pension plans are as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2018 2017 2018 2017 Service cost for benefits earned $ 9,513 $ 7,777 $ 28,539 $ 23,330 Interest cost on benefits obligation 8,845 8,569 26,536 25,706 Expected return on plan assets (12,815 ) (10,317 ) (38,444 ) (30,950 ) Prior service cost amortization 339 218 1,015 654 Net actuarial loss amortization 3,202 2,325 9,606 6,975 Pension plan cost (1) $ 9,084 $ 8,572 $ 27,252 $ 25,715 (1) The components of pension plan costs other than the service cost component are included in the line item "Other income (expense)" in the Statements of Operations after reimbursements from the Exchange and its subsidiaries.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
Accumulated Other Comprehensive Income (Loss) (Tables)	Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of changes in accumulated other comprehensive income (loss) by component, including amounts reclassified to other comprehensive income (loss) and the related line item in the Statements of Operations where net income is presented	Changes in accumulated other comprehensive income ("AOCI") (loss) by component, including amounts reclassified to other comprehensive income ("OCI") (loss) and the related line item in the Statements of Operations where net income is presented, are as follows: Three months ended Three months ended September 30, 2018 September 30, 2017 (in thousands) Before Tax Income Tax (1) Net Before Tax Income Tax (1) Net Investment securities: AOCI (loss), beginning of period $ (4,157 ) $ (873 ) $ (3,284 ) $ 7,974 $ 2,791 $ 5,183 OCI (loss) before reclassifications (624 ) (131 ) (493 ) 643 225 418 Realized investment losses (gains) 1 0 1 (899 ) (314 ) (585 ) OCI (loss) (623 ) (131 ) (492 ) (256 ) (89 ) (167 ) AOCI (loss), end of period $ (4,780 ) $ (1,004 ) $ (3,776 ) $ 7,718 $ 2,702 $ 5,016 Pension and other postretirement plans: (2) AOCI (loss), beginning of period $ (200,954 ) $ (42,201 ) $ (158,753 ) $ (190,695 ) $ (66,744 ) $ (123,951 ) AOCI (loss), end of period $ (200,954 ) $ (42,201 ) $ (158,753 ) $ (190,695 ) $ (66,744 ) $ (123,951 ) Total AOCI (loss), beginning of period $ (205,111 ) $ (43,074 ) $ (162,037 ) $ (182,721 ) $ (63,953 ) $ (118,768 ) Investment securities (623 ) (131 ) (492 ) (256 ) (89 ) (167 ) Pension and other postretirement plans 0 0 0 0 0 0 OCI (loss) (623 ) (131 ) (492 ) (256 ) (89 ) (167 ) AOCI (loss), end of period $ (205,734 ) $ (43,205 ) $ (162,529 ) $ (182,977 ) $ (64,042 ) $ (118,935 ) Nine months ended Nine months ended September 30, 2018 September 30, 2017 (in thousands) Before Tax Income Tax (1) Net Before Tax Income Tax (1) Net Investment securities: AOCI, beginning of period $ 3,410 $ 716 $ 2,694 $ 3,954 $ 1,384 $ 2,570 OCI (loss) before reclassifications (9,163 ) (1,924 ) (7,239 ) 5,029 1,760 3,269 Realized investment losses (gains) 412 86 326 (1,447 ) (506 ) (941 ) Impairment losses 646 136 510 182 64 118 Cumulative effect of adopting ASU 2016-01 (3) (85 ) (18 ) (67 ) — — — OCI (loss) (8,190 ) (1,720 ) (6,470 ) 3,764 1,318 2,446 AOCI (loss), end of period $ (4,780 ) $ (1,004 ) $ (3,776 ) $ 7,718 $ 2,702 $ 5,016 Pension and other postretirement plans: (2) AOCI (loss), beginning of period $ (200,954 ) $ (42,201 ) $ (158,753 ) $ (190,695 ) $ (66,744 ) $ (123,951 ) AOCI (loss), end of period $ (200,954 ) $ (42,201 ) $ (158,753 ) $ (190,695 ) $ (66,744 ) $ (123,951 ) Total AOCI (loss), beginning of period $ (197,544 ) $ (41,485 ) $ (156,059 ) $ (186,741 ) $ (65,360 ) $ (121,381 ) Investment securities (8,190 ) (1,720 ) (6,470 ) 3,764 1,318 2,446 Pension and other postretirement plans 0 0 0 0 0 0 OCI (loss) (8,190 ) (1,720 ) (6,470 ) 3,764 1,318 2,446 AOCI (loss), end of period $ (205,734 ) $ (43,205 ) $ (162,529 ) $ (182,977 ) $ (64,042 ) $ (118,935 ) (1) Deferred taxes were recognized at the corporate rate of 21% for the three and nine months ended September 30, 2018 and 35% for the three and nine months ended September 30, 2017 . (2) There are no comprehensive income items or amounts reclassified out of accumulated other comprehensive loss related to postretirement plan items during interim periods. (3) ASU 2016-01 required a reclassification of unrealized losses of equity securities from AOCI to retained earnings at January 1, 2018. See Note 2, "Significant Accounting Policies".

Nature of Operations (Details)

Nature of Operations (Details)	9 Months Ended
Nature of Operations (Details)	Sep. 30, 2018
Revenue, Performance Obligation [Abstract]
Number of performance obligations recognized by Indemnity acting as attorney-in-fact for the subscribers of the Exchange	2

Significant Accounting Polici_4

Significant Accounting Policies (Details)	9 Months Ended
Significant Accounting Policies (Details)	Sep. 30, 2018
Revenue, Performance Obligation [Abstract]
Number of performance obligations recognized by Indemnity acting as attorney-in-fact for the subscribers of the Exchange	2
Indemnity's management fee rate as a percent of premiums written and assumed by the Exchange (as a percent)	25.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Period of time over which management fee revenue allocated to administrative services will be recognized (in years)	4 years

Significant Accounting Polici_5

Significant Accounting Policies (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Impact of adoption on our Statement of Financial Position
Deferred tax asset	$ 37,660		$ 37,660		$ 29,578
Contract liability	51,989		51,989		48,514
Retained earnings	2,211,013		2,211,013		2,102,527	$ 2,140,853
Impact of adoption on our Statement of Operations
Operating revenue	612,126	$ 442,492	1,805,744	$ 1,290,372
Operating expenses	515,431	361,253	1,536,159	1,058,745
Calculated under revenue guidance in effect before ASC 606 [Member]
Impact of adoption on our Statement of Financial Position
Deferred tax asset	26,742		26,742			19,390
Retained earnings	2,252,084		2,252,084			$ 2,140,853
Difference between revenue guidance in effect before and after ASC 606 [Member] \| Accounting Standards Update 2014-09 [Member]
Impact of adoption on our Statement of Financial Position
Deferred tax asset	10,918		10,918		10,188
Contract liability	51,989		51,989		48,514
Retained earnings	(41,071)		(41,071)		$ (38,326)
Management fee revenue, policy issuance and renewal services [Member]
Impact of adoption on our Statement of Operations
Management fee revenue, gross	451,070		1,315,202
Less: change in allowance for management fee returned on cancelled policies	291		(3,291)
Operating revenue	451,361	435,214	1,311,911	1,268,591
Operating expenses	375,259	$ 361,253	1,103,517	$ 1,058,745
Management fee revenue, policy issuance and renewal services [Member] \| Calculated under revenue guidance in effect before ASC 606 [Member]
Impact of adoption on our Statement of Operations
Management fee revenue, gross	465,982		1,358,680
Less: change in allowance for management fee returned on cancelled policies	300		(3,400)
Operating revenue	466,282		1,355,280
Management fee revenue, policy issuance and renewal services [Member] \| Difference between revenue guidance in effect before and after ASC 606 [Member] \| Accounting Standards Update 2014-09 [Member]
Impact of adoption on our Statement of Operations
Management fee revenue, gross	(14,912)		(43,478)
Less: change in allowance for management fee returned on cancelled policies	(9)		109
Operating revenue	(14,921)		(43,369)
Management fee revenue, administrative services [Member]
Impact of adoption on our Statement of Operations
Management fee revenue, gross	13,538		39,939
Less: change in allowance for management fee returned on cancelled policies	(17)		(45)
Operating revenue	13,521		39,894
Management fee revenue, administrative services [Member] \| Difference between revenue guidance in effect before and after ASC 606 [Member] \| Accounting Standards Update 2014-09 [Member]
Impact of adoption on our Statement of Operations
Management fee revenue, gross	13,538		39,939
Less: change in allowance for management fee returned on cancelled policies	(17)		(45)
Operating revenue	13,521		39,894
Administrative services reimbursements [Member]
Impact of adoption on our Statement of Operations
Operating revenue	140,172		432,642
Operating expenses	140,172		432,642
Administrative services reimbursements [Member] \| Difference between revenue guidance in effect before and after ASC 606 [Member] \| Accounting Standards Update 2014-09 [Member]
Impact of adoption on our Statement of Operations
Operating revenue	140,172		432,642
Operating expenses	140,172		432,642
Administrative services [Member]
Impact of adoption on our Statement of Operations
Operating revenue	153,693		472,536
Administrative services [Member] \| Difference between revenue guidance in effect before and after ASC 606 [Member] \| Accounting Standards Update 2014-09 [Member]
Impact of adoption on our Statement of Operations
Operating revenue	$ 153,693		$ 472,536

Significant Accounting Polici_6

Significant Accounting Policies (Details 3) $ in Millions	Jan. 01, 2018USD ($)
Nonredeemable preferred stock \| Accounting Standards Update 2016-01 [Member]
New Accounting Pronouncements
Cumulative effect adjustment due to ASU 2016-01	$ 0.1

Revenue (Details)

Revenue (Details)	9 Months Ended
Revenue (Details)	Sep. 30, 2018
Revenue, Performance Obligation [Abstract]
Indemnity's management fee rate as a percent of premiums written and assumed by the Exchange (as a percent)	25.00%
Number of performance obligations recognized by Indemnity acting as attorney-in-fact for the subscribers of the Exchange	2

Revenue (Details 2)

Revenue (Details 2) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract liability recorded upon adoption of ASC 606	$ 51,989	$ 48,514
Difference between revenue guidance in effect before and after ASC 606 [Member] \| Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract liability recorded upon adoption of ASC 606	$ 51,989	$ 48,514

Revenue (Details 3)

Revenue (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Revenue (Details 3) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of revenue by performance obligation
Operating revenue	$ 612,126	$ 442,492	$ 1,805,744	$ 1,290,372
Management fee revenue, policy issuance and renewal services [Member]
Disaggregation of revenue by performance obligation
Operating revenue	451,361	435,214	1,311,911	1,268,591
Management fee revenue, policy issuance and renewal services [Member] \| Transferred at point in time [Member]
Disaggregation of revenue by performance obligation
Operating revenue	451,361	$ 435,214	1,311,911	$ 1,268,591
Management fee revenue, administrative services [Member]
Disaggregation of revenue by performance obligation
Operating revenue	13,521		39,894
Management fee revenue, administrative services [Member] \| Transferred over time [Member]
Disaggregation of revenue by performance obligation
Operating revenue	13,521		39,894
Administrative services reimbursements [Member]
Disaggregation of revenue by performance obligation
Operating revenue	140,172		432,642
Administrative services reimbursements [Member] \| Transferred over time [Member]
Disaggregation of revenue by performance obligation
Operating revenue	140,172		432,642
Administrative services [Member]
Disaggregation of revenue by performance obligation
Operating revenue	153,693		472,536
Administrative services [Member] \| Transferred over time [Member]
Disaggregation of revenue by performance obligation
Operating revenue	$ 153,693		$ 472,536

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Class A
Income available to stockholders (Basic EPS:)
Allocated net income (numerator) (in dollars)	$ 79,787	$ 58,064	$ 224,060	$ 163,596
Weighted shares (denominator) (in shares)	46,188,941	46,188,949	46,188,522	46,186,109
Per-share amount (in dollars per share)	$ 1.73	$ 1.26	$ 4.85	$ 3.54
Dilutive effect of stock-based awards
Allocated net income (numerator) (in dollars)	$ 0	$ 0	$ 0	$ 0
Weighted shares (denominator) (in shares)	27,697	27,127	24,320	55,541
Assumed conversion of Class B shares
Allocated net income (numerator) (in dollars)	$ 659	$ 479	$ 1,850	$ 1,350
Weighted shares (denominator) (in shares)	6,100,800	6,100,800	6,100,800	6,100,800
Income available to stockholders on equivalent shares (Diluted EPS:)
Allocated net income (numerator) (in dollars)	$ 80,446	$ 58,543	$ 225,910	$ 164,946
Weighted shares (denominator) (in shares)	52,317,438	52,316,876	52,313,642	52,342,450
Per-share amount (in dollars per share)	$ 1.54	$ 1.12	$ 4.32	$ 3.15
Class B
Reconciliation of the numerators and denominators used in the basic and diluted per-share computations
Ratio for converting shares of Class B common stock into shares of Class A common stock (as a percent)	2400.00%		2400.00%		2400.00%
Income available to stockholders (Basic EPS:)
Allocated net income (numerator) (in dollars)	$ 659	$ 479	$ 1,850	$ 1,350
Weighted shares (denominator) (in shares)	2,542	2,542	2,542	2,542
Per-share amount (in dollars per share)	$ 259	$ 189	$ 728	$ 531
Income available to stockholders on equivalent shares (Diluted EPS:)
Allocated net income (numerator) (in dollars)	$ 658	$ 479	$ 1,849	$ 1,350
Weighted shares (denominator) (in shares)	2,542	2,542	2,542	2,542
Per-share amount (in dollars per share)	$ 259	$ 189	$ 727	$ 531

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	$ 704,195
Equity securities	12,511
Total available-for-sale securities	704,195		$ 758,713
Other limited partnership investments:
Contributions made to the funds	217	$ 330
Distributions received from the funds	3,046	$ 7,986
Fixed maturities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities			745,961
U.S. treasury
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	36,425		11,734
States & political subdivisions
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	256,865		259,264
Foreign government securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities			503
Corporate debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	277,669		346,523
Residential mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	2,494		25,571
Commercial mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	46,860		32,804
Collateralized debt obligations
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	65,294		58,034
Other debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	18,588		11,528
Nonredeemable preferred stock \| Financial services sector
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale equity securities			11,659
Nonredeemable preferred stock \| Utilities sector
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale equity securities			1,093
Fair value measurements on a non-recurring basis
Fair value measurements on a non-recurring basis
Assets measured at fair value on a non-recurring basis	0
Fair value measurements on a non-recurring basis
Liabilities measured at fair value on a non-recurring basis	0
Fair value measurements on a recurring basis
Fair value measurements on a recurring basis by asset class and level of input
Total available-for-sale securities			758,713
Total	720,023		763,529
Fair value measurements on a recurring basis \| Fixed maturities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	704,195		745,961
Fair value measurements on a recurring basis \| U.S. treasury
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	36,425		11,734
Fair value measurements on a recurring basis \| States & political subdivisions
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	256,865		259,264
Fair value measurements on a recurring basis \| Foreign government securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities			503
Fair value measurements on a recurring basis \| Corporate debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	277,669		346,523
Fair value measurements on a recurring basis \| Residential mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	2,494		25,571
Fair value measurements on a recurring basis \| Commercial mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	46,860		32,804
Fair value measurements on a recurring basis \| Collateralized debt obligations
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	65,294		58,034
Fair value measurements on a recurring basis \| Other debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	18,588		11,528
Fair value measurements on a recurring basis \| Equity securities
Fair value measurements on a recurring basis by asset class and level of input
Equity securities	12,511
Fair value measurements on a recurring basis \| Nonredeemable preferred stock \| Financial services sector
Fair value measurements on a recurring basis by asset class and level of input
Equity securities	12,511
Available-for-sale equity securities			11,659
Fair value measurements on a recurring basis \| Nonredeemable preferred stock \| Utilities sector
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale equity securities			1,093
Fair value measurements on a recurring basis \| Real estate
Other limited partnership investments:
Contributions made to the funds	0		0
Distributions received from the funds	1,200		500
Unfunded commitments	$ 0		$ 0
Fair value measurements on a recurring basis \| Real estate \| Minimum
Other limited partnership investments:
Underlying assets, liquidation period from inception of fund (in years)	5 years		5 years
Fair value measurements on a recurring basis \| Real estate \| Maximum
Other limited partnership investments:
Underlying assets, liquidation period from inception of fund (in years)	10 years		10 years
Fair value measurements on a recurring basis \| Level 1
Fair value measurements on a recurring basis by asset class and level of input
Total available-for-sale securities			$ 2,015
Total	$ 1,981		2,015
Fair value measurements on a recurring basis \| Level 1 \| Fixed maturities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0		0
Fair value measurements on a recurring basis \| Level 1 \| U.S. treasury
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0		0
Fair value measurements on a recurring basis \| Level 1 \| States & political subdivisions
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0		0
Fair value measurements on a recurring basis \| Level 1 \| Foreign government securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities			0
Fair value measurements on a recurring basis \| Level 1 \| Corporate debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0		0
Fair value measurements on a recurring basis \| Level 1 \| Residential mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0		0
Fair value measurements on a recurring basis \| Level 1 \| Commercial mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0		0
Fair value measurements on a recurring basis \| Level 1 \| Collateralized debt obligations
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0		0
Fair value measurements on a recurring basis \| Level 1 \| Other debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0		0
Fair value measurements on a recurring basis \| Level 1 \| Equity securities
Fair value measurements on a recurring basis by asset class and level of input
Equity securities	1,981
Fair value measurements on a recurring basis \| Level 1 \| Nonredeemable preferred stock \| Financial services sector
Fair value measurements on a recurring basis by asset class and level of input
Equity securities	1,981
Available-for-sale equity securities			2,015
Fair value measurements on a recurring basis \| Level 1 \| Nonredeemable preferred stock \| Utilities sector
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale equity securities			0
Fair value measurements on a recurring basis \| Level 2
Fair value measurements on a recurring basis by asset class and level of input
Total available-for-sale securities			746,619
Total	705,550		746,619
Fair value measurements on a recurring basis \| Level 2 \| Fixed maturities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	695,020		735,882
Fair value measurements on a recurring basis \| Level 2 \| U.S. treasury
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	36,425		11,734
Fair value measurements on a recurring basis \| Level 2 \| States & political subdivisions
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	256,865		259,264
Fair value measurements on a recurring basis \| Level 2 \| Foreign government securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities			503
Fair value measurements on a recurring basis \| Level 2 \| Corporate debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	269,399		338,644
Fair value measurements on a recurring basis \| Level 2 \| Residential mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	2,494		25,571
Fair value measurements on a recurring basis \| Level 2 \| Commercial mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	46,860		32,804
Fair value measurements on a recurring basis \| Level 2 \| Collateralized debt obligations
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	65,294		55,834
Fair value measurements on a recurring basis \| Level 2 \| Other debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	17,683		11,528
Fair value measurements on a recurring basis \| Level 2 \| Equity securities
Fair value measurements on a recurring basis by asset class and level of input
Equity securities	10,530
Fair value measurements on a recurring basis \| Level 2 \| Nonredeemable preferred stock \| Financial services sector
Fair value measurements on a recurring basis by asset class and level of input
Equity securities	10,530
Available-for-sale equity securities			9,644
Fair value measurements on a recurring basis \| Level 2 \| Nonredeemable preferred stock \| Utilities sector
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale equity securities			1,093
Fair value measurements on a recurring basis \| Level 3
Fair value measurements on a recurring basis by asset class and level of input
Total available-for-sale securities			10,079
Total	9,175		10,079
Fair value measurements on a recurring basis \| Level 3 \| Fixed maturities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	9,175		10,079
Fair value measurements on a recurring basis \| Level 3 \| U.S. treasury
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0		0
Fair value measurements on a recurring basis \| Level 3 \| States & political subdivisions
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0		0
Fair value measurements on a recurring basis \| Level 3 \| Foreign government securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities			0
Fair value measurements on a recurring basis \| Level 3 \| Corporate debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	8,270		7,879
Fair value measurements on a recurring basis \| Level 3 \| Residential mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0		0
Fair value measurements on a recurring basis \| Level 3 \| Commercial mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0		0
Fair value measurements on a recurring basis \| Level 3 \| Collateralized debt obligations
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0		2,200
Fair value measurements on a recurring basis \| Level 3 \| Other debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	905		0
Fair value measurements on a recurring basis \| Level 3 \| Equity securities
Fair value measurements on a recurring basis by asset class and level of input
Equity securities	0
Fair value measurements on a recurring basis \| Level 3 \| Nonredeemable preferred stock \| Financial services sector
Fair value measurements on a recurring basis by asset class and level of input
Equity securities	0
Available-for-sale equity securities			0
Fair value measurements on a recurring basis \| Level 3 \| Nonredeemable preferred stock \| Utilities sector
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale equity securities			0
Fair value measurements on a recurring basis \| Net Asset Value (NAV) \| Real estate
Fair value measurements on a recurring basis by asset class and level of input
Other limited partnership investments	$ 3,317		$ 4,816

Fair Value (Details 2)

Fair Value (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Fair Value (Details 2) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Fair value transfers due to changes in available market observable inputs
Transfers from Level 1 to Level 2	$ 0	$ 0	$ 0	$ 0
Transfers from Level 2 to Level 1	0	0	0	0
Level 3 \| Available-for-sale securities
Roll forward of level 3 fair value measurements on a recurring basis
Beginning balance	11,120	9,295	10,079	9,352
Included in earnings	3	24	4	3
Included in other comprehensive income	71	(60)	30	(108)
Purchases	2,444	539	5,491	4,520
Sales	(1,416)	(1,240)	(2,381)	(4,372)
Transfers into Level 3	2,735	2,633	10,517	8,444
Transfers out of Level 3	(5,782)	(3,276)	(14,565)	(9,924)
Ending balance	9,175	7,915	9,175	7,915
Level 3 \| Corporate debt securities \| Available-for-sale securities
Roll forward of level 3 fair value measurements on a recurring basis
Beginning balance	11,120	9,295	7,879	9,352
Included in earnings	3	24	4	3
Included in other comprehensive income	71	(60)	23	(108)
Purchases	1,539	539	4,586	4,520
Sales	(1,416)	(1,240)	(2,381)	(4,372)
Transfers into Level 3	2,735	2,633	10,517	8,444
Transfers out of Level 3	(5,782)	(3,276)	(12,358)	(9,924)
Ending balance	8,270	$ 7,915	8,270	$ 7,915
Level 3 \| Collateralized debt obligations \| Available-for-sale securities
Roll forward of level 3 fair value measurements on a recurring basis
Beginning balance			2,200
Included in earnings			0
Included in other comprehensive income			7
Purchases			0
Sales			0
Transfers into Level 3			0
Transfers out of Level 3			(2,207)
Ending balance	0		0
Level 3 \| Other debt securities \| Available-for-sale securities
Roll forward of level 3 fair value measurements on a recurring basis
Beginning balance	0		0
Included in earnings	0		0
Included in other comprehensive income	0		0
Purchases	905		905
Sales	0		0
Transfers into Level 3	0		0
Transfers out of Level 3	0		0
Ending balance	$ 905		$ 905

Fair Value (Details 3)

Fair Value (Details 3) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair value by pricing source
Available-for-sale debt securities	$ 704,195
Equity securities	12,511
Fixed maturities
Fair value by pricing source
Available-for-sale debt securities		$ 745,961
Fair value measurements on a recurring basis
Fair value by pricing source
Total	720,023	763,529
Fair value measurements on a recurring basis \| Fixed maturities
Fair value by pricing source
Available-for-sale debt securities	704,195	745,961
Fair value measurements on a recurring basis \| Fixed maturities \| Priced via pricing services
Fair value by pricing source
Available-for-sale debt securities	704,195
Fair value measurements on a recurring basis \| Equity securities
Fair value by pricing source
Equity securities	12,511
Fair value measurements on a recurring basis \| Equity securities \| Priced via pricing services
Fair value by pricing source
Equity securities	12,511
Fair value measurements on a recurring basis \| Level 1
Fair value by pricing source
Total	1,981	2,015
Fair value measurements on a recurring basis \| Level 1 \| Fixed maturities
Fair value by pricing source
Available-for-sale debt securities	0	0
Fair value measurements on a recurring basis \| Level 1 \| Fixed maturities \| Priced via pricing services
Fair value by pricing source
Available-for-sale debt securities	0
Fair value measurements on a recurring basis \| Level 1 \| Equity securities
Fair value by pricing source
Equity securities	1,981
Fair value measurements on a recurring basis \| Level 1 \| Equity securities \| Priced via pricing services
Fair value by pricing source
Equity securities	1,981
Fair value measurements on a recurring basis \| Level 2
Fair value by pricing source
Total	705,550	746,619
Fair value measurements on a recurring basis \| Level 2 \| Fixed maturities
Fair value by pricing source
Available-for-sale debt securities	695,020	735,882
Fair value measurements on a recurring basis \| Level 2 \| Fixed maturities \| Priced via pricing services
Fair value by pricing source
Available-for-sale debt securities	695,020
Fair value measurements on a recurring basis \| Level 2 \| Equity securities
Fair value by pricing source
Equity securities	10,530
Fair value measurements on a recurring basis \| Level 2 \| Equity securities \| Priced via pricing services
Fair value by pricing source
Equity securities	10,530
Fair value measurements on a recurring basis \| Level 3
Fair value by pricing source
Total	9,175	10,079
Fair value measurements on a recurring basis \| Level 3 \| Non-binding broker quotes classified within Level 3
Fair value by pricing source
Available-for-sale debt securities	9,200
Fair value measurements on a recurring basis \| Level 3 \| Fixed maturities
Fair value by pricing source
Available-for-sale debt securities	9,175	10,079
Fair value measurements on a recurring basis \| Level 3 \| Fixed maturities \| Priced via pricing services
Fair value by pricing source
Available-for-sale debt securities	9,175
Fair value measurements on a recurring basis \| Level 3 \| Equity securities
Fair value by pricing source
Equity securities	0
Fair value measurements on a recurring basis \| Level 3 \| Equity securities \| Priced via pricing services
Fair value by pricing source
Equity securities	0
Fair value measurements on a recurring basis \| Net Asset Value (NAV) \| Real estate
Fair value by pricing source
Other limited partnership investments	3,317	$ 4,816
Fair value measurements on a recurring basis \| Net Asset Value (NAV) \| Real estate \| Priced via unobservable inputs
Fair value by pricing source
Other limited partnership investments	$ 3,317

Investments (Details)

Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Available-for-sale securities
Amortized cost, fixed maturities	$ 708,282
Amortized cost	708,282	$ 754,636
Gross unrealized gains	3,522	7,722
Gross unrealized losses	7,609	3,645
Estimated fair value, fixed maturities	704,195
Estimated fair value	704,195	758,713
Fixed maturities
Available-for-sale securities
Amortized cost, fixed maturities		741,799
Gross unrealized gains, fixed maturities		7,707
Gross unrealized losses, fixed maturities		3,545
Estimated fair value, fixed maturities		745,961
U.S. treasury
Available-for-sale securities
Amortized cost, fixed maturities	36,799	11,873
Gross unrealized gains, fixed maturities	0	0
Gross unrealized losses, fixed maturities	374	139
Estimated fair value, fixed maturities	36,425	11,734
States & political subdivisions
Available-for-sale securities
Amortized cost, fixed maturities	257,612	254,533
Gross unrealized gains, fixed maturities	2,392	5,351
Gross unrealized losses, fixed maturities	3,139	620
Estimated fair value, fixed maturities	256,865	259,264
Foreign government securities
Available-for-sale securities
Amortized cost, fixed maturities		501
Gross unrealized gains, fixed maturities		2
Gross unrealized losses, fixed maturities		0
Estimated fair value, fixed maturities		503
Corporate debt securities
Available-for-sale securities
Amortized cost, fixed maturities	279,814	346,759
Gross unrealized gains, fixed maturities	1,031	1,688
Gross unrealized losses, fixed maturities	3,176	1,924
Estimated fair value, fixed maturities	277,669	346,523
Residential mortgage-backed securities
Available-for-sale securities
Amortized cost, fixed maturities	2,524	25,324
Gross unrealized gains, fixed maturities	0	371
Gross unrealized losses, fixed maturities	30	124
Estimated fair value, fixed maturities	2,494	25,571
Commercial mortgage-backed securities
Available-for-sale securities
Amortized cost, fixed maturities	47,491	33,475
Gross unrealized gains, fixed maturities	12	26
Gross unrealized losses, fixed maturities	643	697
Estimated fair value, fixed maturities	46,860	32,804
Collateralized debt obligations
Available-for-sale securities
Amortized cost, fixed maturities	65,421	57,838
Gross unrealized gains, fixed maturities	80	237
Gross unrealized losses, fixed maturities	207	41
Estimated fair value, fixed maturities	65,294	58,034
Other debt securities
Available-for-sale securities
Amortized cost, fixed maturities	18,621	11,496
Gross unrealized gains, fixed maturities	7	32
Gross unrealized losses, fixed maturities	40	0
Estimated fair value, fixed maturities	$ 18,588	11,528
Nonredeemable preferred stock \| Financial services sector
Available-for-sale securities
Amortized cost, equity securities		11,719
Gross unrealized gains, equity securities		15
Gross unrealized losses, equity securities		75
Estimated fair value, equity securities		11,659
Nonredeemable preferred stock \| Utilities sector
Available-for-sale securities
Amortized cost, equity securities		1,118
Gross unrealized gains, equity securities		0
Gross unrealized losses, equity securities		25
Estimated fair value, equity securities		$ 1,093

Investments (Details 2)

Investments (Details 2) $ in Thousands	Sep. 30, 2018USD ($)
Amortized cost
Due in one year or less	$ 105,133
Due after one year through five years	230,247
Due after five years through ten years	247,101
Due after ten years	125,801
Amortized cost, fixed maturities	708,282
Estimated fair value
Due in one year or less	105,031
Due after one year through five years	230,234
Due after five years through ten years	244,336
Due after ten years	124,594
Estimated fair value, fixed maturities	$ 704,195

Investments (Details 3)

Investments (Details 3) $ in Thousands	Sep. 30, 2018USD ($)Holdings	Dec. 31, 2017USD ($)Holdings
Fair value
Less than 12 months	$ 354,583
Less than 12 months		$ 282,770
12 months or longer	89,440
12 months or longer		66,019
Total	444,023
Total		348,789
Unrealized losses
Less than 12 months	4,773
Less than 12 months		2,238
12 months or longer	2,836
12 months or longer		1,407
Total	$ 7,609
Total		$ 3,645
No. of holdings \| Holdings	577
No. of holdings \| Holdings		417
Investment grade
Fair value
Less than 12 months	$ 284,054	$ 214,586
12 months or longer	77,869	62,193
Total	361,923	276,779
Unrealized losses
Less than 12 months	3,207	1,064
12 months or longer	2,325	985
Total	$ 5,532	$ 2,049
No. of holdings \| Holdings	213	158
Non-investment grade
Fair value
Less than 12 months	$ 70,529	$ 57,447
12 months or longer	11,571	3,826
Total	82,100	61,273
Unrealized losses
Less than 12 months	1,566	1,074
12 months or longer	511	422
Total	$ 2,077	$ 1,496
No. of holdings \| Holdings	364	253
Fixed maturities
Fair value
Less than 12 months	$ 354,583	$ 272,033
12 months or longer	89,440	66,019
Total	444,023	338,052
Unrealized losses
Less than 12 months	4,773	2,138
12 months or longer	2,836	1,407
Total	$ 7,609	$ 3,545
No. of holdings \| Holdings	577	411
U.S. treasury
Fair value
Less than 12 months	$ 24,910	$ 10,237
12 months or longer	11,515	1,497
Total	36,425	11,734
Unrealized losses
Less than 12 months	31	110
12 months or longer	343	29
Total	$ 374	$ 139
No. of holdings \| Holdings	5	4
States & political subdivisions
Fair value
Less than 12 months	$ 104,325	$ 52,553
12 months or longer	23,592	14,361
Total	127,917	66,914
Unrealized losses
Less than 12 months	1,995	288
12 months or longer	1,144	332
Total	$ 3,139	$ 620
No. of holdings \| Holdings	67	33
Corporate debt securities
Fair value
Less than 12 months	$ 145,419	$ 171,154
12 months or longer	39,278	31,113
Total	184,697	202,267
Unrealized losses
Less than 12 months	2,281	1,585
12 months or longer	895	339
Total	$ 3,176	$ 1,924
No. of holdings \| Holdings	425	331
Residential mortgage-backed securities
Fair value
Less than 12 months	$ 790	$ 4,156
12 months or longer	1,703	7,064
Total	2,493	11,220
Unrealized losses
Less than 12 months	3	29
12 months or longer	27	95
Total	$ 30	$ 124
No. of holdings \| Holdings	3	11
Commercial mortgage-backed securities
Fair value
Less than 12 months	$ 22,564	$ 10,836
12 months or longer	13,352	11,984
Total	35,916	22,820
Unrealized losses
Less than 12 months	216	85
12 months or longer	427	612
Total	$ 643	$ 697
No. of holdings \| Holdings	30	19
Collateralized debt obligations
Fair value
Less than 12 months	$ 43,995	$ 21,598
12 months or longer	0	0
Total	43,995	21,598
Unrealized losses
Less than 12 months	207	41
12 months or longer	0	0
Total	$ 207	$ 41
No. of holdings \| Holdings	33	12
Other debt securities
Fair value
Less than 12 months	$ 12,580	$ 1,499
12 months or longer	0	0
Total	12,580	1,499
Unrealized losses
Less than 12 months	40	0
12 months or longer	0	0
Total	$ 40	$ 0
No. of holdings \| Holdings	14	1
Nonredeemable preferred stock \| Financial services sector
Fair value
Less than 12 months		$ 9,644
12 months or longer		0
Total		9,644
Unrealized losses
Less than 12 months		75
12 months or longer		0
Total		$ 75
No. of holdings \| Holdings		5
Nonredeemable preferred stock \| Utilities sector
Fair value
Less than 12 months		$ 1,093
12 months or longer		0
Total		1,093
Unrealized losses
Less than 12 months		25
12 months or longer		0
Total		$ 25
No. of holdings \| Holdings		1

Investments (Details 4)

Investments (Details 4) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Investments (Details 4) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Investment income from portfolios
Total investment income	$ 7,930	$ 6,170	$ 22,621	$ 19,259
Less: investment expenses	271	188	1,038	1,057
Investment income, net of expenses	7,659	5,982	21,583	18,202
Fixed maturities
Investment income from portfolios
Total investment income	6,243	4,234	18,616	16,358
Equity securities
Investment income from portfolios
Total investment income	203	0	487	49
Cash equivalents and other
Investment income from portfolios
Total investment income	1,484	1,936	3,518	2,852
Erie Family Life Insurance Company (EFL)
Investment income from portfolios
Note receivable from EFL, interest income recognized by Indemnity	$ 400	$ 400	$ 1,300	$ 1,300

Investments (Details 5)

Investments (Details 5) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Investments (Details 5) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net realized investment gains (losses)
Net realized investment gains (losses)	$ 0	$ 899	$ (497)	$ 1,539
Available-for-sale securities
Available-for-sale securities:
Gross realized gains	525	1,621	1,100	2,708
Gross realized losses	(526)	(722)	(1,512)	(1,261)
Net realized (losses) gains on available-for-sale securities	(1)	899	(412)	1,447
Equity securities
Equity securities
Equity securities	(1)		(189)
Other investments
Miscellaneous
Miscellaneous	$ 2	$ 0	$ 104	$ 92

Investments (Details 6)

Investments (Details 6) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Investments (Details 6) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018
Other-than-temporary impairments on available-for-sale securities
Other-than-temporary impairments on available-for-sale securities recognized in earnings	$ 0	$ 0	$ (646)	$ (182)
Other-than-temporary impairments on available-for-sale securities recognized in other comprehensive income	0	$ 0	0	$ 0
Equity securities
Equity securities:
Total net realized losses	(1)		(189)
Less: net losses realized on securities sold	(52)		(86)
Net unrealized gains (losses) recognized during the period on securities held at reporting date	$ 51		$ (103)
Nonredeemable preferred stock \| Accounting Standards Update 2016-01 [Member]
Equity securities:
Cumulative effect adjustment due to ASU 2016-01					$ 100

Investments (Details 7)

Investments (Details 7) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Investments (Details 7) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Investments in limited partnerships
Equity in earnings of limited partnerships	$ 772	$ 1,537	$ 361	$ 1,899
Equity method of accounting
Investments in limited partnerships
Equity in earnings of limited partnerships	645	1,305	624	1,704
Fair value option
Investments in limited partnerships
Equity in earnings of limited partnerships	$ 127	$ 232	$ (263)	$ 195

Investments (Details 8)

Investments (Details 8) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Investments in limited partnerships
Asset recorded	$ 37,088	$ 45,122
Private equity
Investments in limited partnerships
Asset recorded	29,632	31,663
Mezzanine debt
Investments in limited partnerships
Asset recorded	1,922	3,516
Real estate
Investments in limited partnerships
Asset recorded	2,217	5,127
Fair value option \| Real estate
Investments in limited partnerships
Asset recorded	$ 3,317	$ 4,816

Investments (Details 9)

Investments (Details 9) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Agent loans
Loans issued to independent agents and carried at unpaid principal balance in the Statements of Financial Position
Carrying value of agent loans included in other assets	$ 59.1	$ 21.8

Borrowing Arrangements (Details

Borrowing Arrangements (Details) - Revolving line of credit $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)
Bank Line of Credit
Maximum borrowing capacity under the bank revolving line of credit	$ 100
Maximum letter of credit sublimit under the bank revolving line of credit	$ 25
Expiration date of the bank revolving line of credit	Nov. 3, 2020
Available borrowing capacity under the bank revolving line of credit, due to outstanding letters of credit	$ 99.1
Outstanding amount of letters of credit under the bank revolving line of credit	0.9
Available amount of letters of credit under the bank revolving line of credit	24.1
Borrowings outstanding under the bank revolving line of credit	0
Fair value of bonds pledged as collateral on the bank revolving line of credit	$ 107.5

Borrowing Arrangements (Detai_2

Borrowing Arrangements (Details 2) - Secured debt - USD ($) $ in Millions	Jun. 01, 2018	Dec. 01, 2017	Jun. 01, 2017	Dec. 01, 2016	Sep. 30, 2018
Term loan credit facility
Amount of senior secured draw term loan credit facility					$ 100
Scheduled draws on the credit facility	$ 25	$ 25	$ 25	$ 25
Total amount drawn on the credit facility					$ 100
Repayment period of credit facility (in years)					28 years
Fixed interest rate of credit facility (as a percent)					4.35%
Quarterly commitment fee on the unused portion of the credit facility (as a percent)					0.08%
Fair value of bonds pledged as collateral on the credit facility					$ 107.5
Estimated fair value of the credit facility					90.5
Principal payments due in 2019					1.9
Principal payments due in 2020					2
Principal payments due in 2021					2
Principal payments due in 2022					2.1
Principal payments due in 2023					2.2
Principal payments due in 2024 and thereafter					$ 89.8

Postretirement Benefits (Detail

Postretirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
Postretirement Benefits (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018	Sep. 30, 2018	Sep. 30, 2017
Cost of pension plans:
Service cost for benefits earned	$ 9,513	$ 7,777		$ 28,539	$ 23,330
Interest cost on benefits obligation	8,845	8,569		26,536	25,706
Expected return on plan assets	(12,815)	(10,317)		(38,444)	(30,950)
Prior service cost amortization	339	218		1,015	654
Net actuarial loss amortization	3,202	2,325		9,606	6,975
Pension plan cost	9,084	$ 8,572		$ 27,252	$ 25,715
Erie Insurance Exchange (EIE)
Postretirement Benefits
Postretirement annual benefit expense reimbursed to Indemnity from the Exchange and its subsidiaries (as a percent)				59.00%
Employee pension plan \| Qualified plan \| Funded plan
Postretirement Benefits
Employer contribution			$ 80,000
Employee pension plan \| Qualified plan \| Funded plan \| Erie Family Life Insurance Company (EFL)
Postretirement Benefits
Contingent liability for amount of nonparticipating annuity contracts the employee pension plan purchased from EFL	$ 18,100			$ 18,100

Capital Stock (Details)

Capital Stock (Details) - Class B - shares	9 Months Ended	12 Months Ended
Capital Stock (Details) - Class B - shares	Sep. 30, 2018	Dec. 31, 2017
Common Stock
Ratio for converting shares of Class B common stock into shares of Class A common stock (as a percent)	2400.00%	2400.00%
Class B common stock shares converted into Class A common stock shares (in shares)	0	0

Capital Stock (Details 2)

Capital Stock (Details 2) - Class A - USD ($) $ / shares in Units, $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	Oct. 31, 2011
Shares purchased outside of stock repurchase program
Total cost of shares purchased outside of publicly announced stock repurchase program	$ 2.9	$ 7.3
Performance shares
Shares purchased outside of stock repurchase program
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares)	24,692	60,332
Equity compensation plan
Shares purchased outside of stock repurchase program
Total cost of shares purchased outside of publicly announced stock repurchase program	$ 0.7	$ 0.4
Average price per share for shares purchased (in dollars per share)	$ 117.39	$ 111.55
Equity compensation plan \| Performance shares
Shares purchased outside of stock repurchase program
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares)	5,830	3,785
Stock compensation plan for outside directors
Shares purchased outside of stock repurchase program
Total cost of shares purchased outside of publicly announced stock repurchase program	$ 0.8	$ 1.2
Average price per share for shares purchased (in dollars per share)	$ 119.52	$ 121.85
Stock compensation plan for outside directors \| Performance shares
Shares purchased outside of stock repurchase program
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares)	6,938	9,663
Incentive compensation deferral plan
Shares purchased outside of stock repurchase program
Total cost of shares purchased outside of publicly announced stock repurchase program	$ 1.4
Average price per share for shares purchased (in dollars per share)	$ 119.20
Incentive compensation deferral plan \| Performance shares
Shares purchased outside of stock repurchase program
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares)	11,924
Long-term incentive plan
Shares purchased outside of stock repurchase program
Total cost of shares purchased outside of publicly announced stock repurchase program		$ 5.7
Average price per share for shares purchased (in dollars per share)		$ 122.40
Long-term incentive plan \| Performance shares
Shares purchased outside of stock repurchase program
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares)		46,884
Stock repurchase program
Stock repurchases
Amount of authorized stock repurchases approved for continuation under the current program			$ 150
Shares repurchased under stock repurchase program (in shares)	0	0
Approximate amount of repurchase authority remaining under the current stock repurchase program	$ 17.8

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accumulated other comprehensive income (loss), net of tax
AOCI (loss), beginning of period			$ (156,059)
OCI (loss)	$ (492)	$ (167)	(6,470)	$ 2,446
AOCI (loss), end of period	$ (162,529)		$ (162,529)
Federal statutory income tax rate
Corporate tax rate	21.00%	35.00%	21.00%	35.00%
Investment securities:
Accumulated other comprehensive income (loss), before tax
AOCI (loss), beginning of period	$ (4,157)	$ 7,974	$ 3,410	$ 3,954
OCI (loss) before reclassifications	(624)	643	(9,163)	5,029
Realized investment losses (gains)	1	(899)	412	(1,447)
Impairment losses			646	182
Cumulative effect of adopting ASU 2016-01			(85)
OCI (loss)	(623)	(256)	(8,190)	3,764
AOCI (loss), end of period	(4,780)	7,718	(4,780)	7,718
Accumulated other comprehensive income (loss), tax
AOCI (loss), beginning of period	(873)	2,791	716	1,384
OCI (loss) before reclassifications	(131)	225	(1,924)	1,760
Realized investment losses (gains)	0	(314)	86	(506)
Impairment losses			136	64
Cumulative effect of adopting ASU 2016-01			(18)
OCI (loss)	(131)	(89)	(1,720)	1,318
AOCI (loss), end of period	(1,004)	2,702	(1,004)	2,702
Accumulated other comprehensive income (loss), net of tax
AOCI (loss), beginning of period	(3,284)	5,183	2,694	2,570
OCI (loss) before reclassifications	(493)	418	(7,239)	3,269
Realized investment losses (gains)	1	(585)	326	(941)
Impairment losses			510	118
Cumulative effect of adopting ASU 2016-01			(67)
OCI (loss)	(492)	(167)	(6,470)	2,446
AOCI (loss), end of period	(3,776)	5,016	(3,776)	5,016
Pension and other postretirement plans:
Accumulated other comprehensive income (loss), before tax
AOCI (loss), beginning of period	(200,954)	(190,695)	(200,954)	(190,695)
AOCI (loss), end of period	(200,954)	(190,695)	(200,954)	(190,695)
Accumulated other comprehensive income (loss), tax
AOCI (loss), beginning of period	(42,201)	(66,744)	(42,201)	(66,744)
AOCI (loss), end of period	(42,201)	(66,744)	(42,201)	(66,744)
Accumulated other comprehensive income (loss), net of tax
AOCI (loss), beginning of period	(158,753)	(123,951)	(158,753)	(123,951)
AOCI (loss), end of period	(158,753)	(123,951)	(158,753)	(123,951)
Amount reclassified out of accumulated other comprehensive loss related to postretirement plan items	0	0	0	0
Total
Accumulated other comprehensive income (loss), before tax
AOCI (loss), beginning of period	(205,111)	(182,721)	(197,544)	(186,741)
OCI (loss)	(623)	(256)	(8,190)	3,764
OCI (loss)	0	0	0	0
OCI (loss)	(623)	(256)	(8,190)	3,764
AOCI (loss), end of period	(205,734)	(182,977)	(205,734)	(182,977)
Accumulated other comprehensive income (loss), tax
AOCI (loss), beginning of period	(43,074)	(63,953)	(41,485)	(65,360)
OCI (loss)	(131)	(89)	(1,720)	1,318
OCI (loss)	0	0	0	0
OCI (loss)	(131)	(89)	(1,720)	1,318
AOCI (loss), end of period	(43,205)	(64,042)	(43,205)	(64,042)
Accumulated other comprehensive income (loss), net of tax
AOCI (loss), beginning of period	(162,037)	(118,768)	(156,059)	(121,381)
OCI (loss)	(492)	(167)	(6,470)	2,446
OCI (loss)	0	0	0	0
OCI (loss)	(492)	(167)	(6,470)	2,446
AOCI (loss), end of period	$ (162,529)	$ (118,935)	$ (162,529)	$ (118,935)

Concentrations of Credit Risk (

Concentrations of Credit Risk (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Concentrations of credit risk from unsecured receivables
Receivables from Erie Insurance Exchange and its subsidiaries	$ 463,620	$ 418,328

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	9 Months Ended
Commitments and Contingencies (Details) $ in Millions	Sep. 30, 2018USD ($)
Contractual commitments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	$ 13.9
Description of commitment: contractual commitment to invest in limited partnership investments	Contractual commitments to invest in limited partnership investments, consisting of private equity securities, mezzanine debt securities, and real estate activities.
Private equity
Contractual commitments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	$ 5.5
Mezzanine debt
Contractual commitments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	8.1
Real estate
Contractual commitments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	$ 0.3