Erie Indemnity (ERIE) 8-K Results of Operations and Financial Condition

Exhibit 99.2

ERIE INDEMNITY COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands, except per share data)

	Three		Three			Six		Six
	months		months			months		months
	ended		ended			ended		ended
	June 30,		June 30,			June 30,		June 30,
	2007		2006			2007		2006
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)
Operating revenue
Management fee revenue, net	$	242,324	$	237,233		$	458,343	$	457,334
Premiums earned		52,122		53,825			104,096		107,852
Service agreement revenue		7,299		6,506			14,717		14,098
Total operating revenue		301,745		297,564			577,156		579,284
Operating expenses
Cost of management operations		195,969		189,939			375,855		373,093
Losses and loss adjustment expenses incurred		29,789		38,635			62,023		68,688
Policy acquisition and other underwriting expenses		11,695		12,079			23,689		26,580
Total operating expenses		237,453		240,653			461,567		468,361
Investment income – unaffiliated
Investment income, net of expenses		14,138		14,603			28,116		29,603
Net realized gains (losses) on investments		2,222		(632	)		4,112		152
Equity in earnings of limited partnerships		20,180		14,058			32,698		18,200
Total investment income – unaffiliated		36,540		28,029			64,926		47,955
Income before income taxes and equity in earnings of Erie Family Life Insurance Company		100,832		84,940			180,515		158,878
Provision for income taxes		31,505		30,015			56,098		55,092
Equity in earnings of Erie Family Life Insurance Company, net of tax		1,159		1,330			2,430		1,935
Net income	$	70,486	$	56,255		$	126,847	$	105,721
Net income per share:
Class A common stock – basic	$	1.22	$	0.95		$	2.19	$	1.76
Class A common stock – diluted		1.11		0.86			1.99		1.59
Class B common stock – basic and diluted		187.31		144.90			336.32		265.30
Weighted average shares outstanding:
Class A common stock – basic		57,337,436		59,063,615			57,513,372		59,842,796
Class A common stock – diluted		63,556,114		65,554,096			63,734,450		66,527,677
Class B common stock – basic and diluted		2,571		2,670			2,572		2,751
Dividends declared per share:
Class A common stock	$	0.40	$	0.36		$	0.80	$	0.72
Class B common stock		60.00		54.00			120.00		108.00

1

ERIE INDEMNITY COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS — SEGMENT BASIS

(amounts in thousands, except per share data)

	Three		Three			Six		Six
	months		months			months		months
	ended		ended			ended		ended
	June 30,		June 30,			June 30,		June 30,
	2007		2006			2007		2006
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)
Management Operations
Management fee revenue	$	256,462	$	251,104		$	485,106	$	484,039
Service agreement revenue		7,299		6,506			14,717		14,098
Total revenue from management operations		263,761		257,610			499,823		498,137
Cost of management operations		207,392		201,028			397,777		394,854
Income from management operations		56,369		56,582			102,046		103,283
Insurance Underwriting Operations
Premiums earned		52,122		53,825			104,096		107,852
Losses and loss adjustment expenses incurred		29,789		38,635			62,023		68,688
Policy acquisition and other underwriting expenses		14,410		14,861			28,530		31,524
Total losses and expenses		44,199		53,496			90,553		100,212
Underwriting gain		7,923		329			13,543		7,640
Investment Operations
Investment income, net of expenses		14,138		14,603			28,116		29,603
Net realized gains (losses) on investments		2,222		(632	)		4,112		152
Equity in earnings of limited partnerships		20,180		14,058			32,698		18,200
Equity in earnings of Erie Family Life Insurance Company		1,247		1,430			2,613		2,081
Net revenue from investment operations		37,787		29,459			67,539		50,036
Income before income taxes		102,079		86,370			183,128		160,959
Provision for income taxes		31,593		30,115			56,281		55,238
Net income	$	70,486	$	56,255		$	126,847	$	105,721
Net income per share – Class A basic	$	1.22	$	0.95		$	2.19	$	1.76
Net income per share – Class A diluted		1.11		0.86			1.99		1.59
Net income per share – Class B basic and diluted		187.31		144.90			336.32		265.30
Weighted average shares outstanding - Class A diluted		63,556		65,554			63,734		66,528

Amounts presented on a segment basis are gross of intercompany/intersegment items.

2

ERIE INDEMNITY COMPANY

RECONCILIATION OF OPERATING INCOME TO NET INCOME

Definition on Non-GAAP and Operating Measures

We believe that investors’ understanding of our performance is enhanced by the disclosure of the following non-GAAP financial measure. Our method of calculating this measure may differ from those used by other companies and therefore comparability may be limited.

Operating incomeis net income excluding realized capital gains and losses and related federal income taxes. Equity in earnings or losses of Erie Family Life Insurance Company and equity in earnings or losses of limited partnerships are not excluded from the calculation of operating income. Both of these categories include the respective investment’s realized capital gains and losses, as well as unrealized gains and losses, as these investments are accounted for under the equity method.

Net income is the GAAP measure that is most directly comparable to operating income.

We use operating income to evaluate the results of operations. It reveals trends in our management services, insurance underwriting and investment operations that may be obscured by the net effects of realized capital gains and losses. Realized capital gains and losses may vary significantly between periods and are generally driven by business decisions and economic developments such as capital market condition, the timing of which is unrelated to management services and the insurance underwriting processes. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our performance. We are aware that the price to earnings multiple commonly used by investors as a forward-looking valuation technique uses operating income as the denominator. Operating income should not be considered as a substitute for net income and does not reflect our overall profitability.

The following table reconciles operating income and net income for the periods ended June 30, 2007 and 2006:

	Three			Three			Six			Six
	months ended			months ended			months ended			months ended
	June 30,			June 30,			June 30,			June 30,
	2007			2006			2007			2006
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
(in thousands, except per share data)
Operating income	$	69,042		$	56,666		$	124,174		$	105,622
Net realized gains (losses) on investments		2,222			(632	)		4,112			152
Income tax (expense) benefit on realized gains (losses)		(778	)		221			(1,439	)		(53	)
Realized gains (losses), net of income taxes		1,444			(411	)		2,673			99
Net income	$	70,486		$	56,255		$	126,847		$	105,721
	Three			Three			Six			Six
	months ended			months ended			months ended			months ended
	June 30,			June 30,			June 30,			June 30,
		2007			2006			2007			2006
Per Class A Share – Diluted	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Operating income	$	1.09		$	0.87		$	1.95		$	1.59
Net realized gains (losses) on investments		0.03			(0.01	)		0.06			0.00
Income tax (expense) benefit on realized gains (losses)		(0.01	)		0.00			(0.02	)		0.00
Realized gains (losses), net of income taxes		0.02			(0.01	)		0.04			0.00
Net income	$	1.11		$	0.86		$	1.99		$	1.59

3

ERIE INDEMNITY COMPANY

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(amounts in thousands, except per share data)

	June 30,		December 31,
	2007		2006
	(Unaudited)
ASSETS
Investments
Fixed maturities	$	827,777	$	836,738
Equity securities
Preferred stock		139,800		133,401
Common stock		122,899		117,246
Other invested assets		266,454		235,672
Total investments		1,356,930		1,323,057
Cash and cash equivalents		27,292		60,241
Equity in Erie Family Life Insurance Company		57,784		57,162
Premiums receivable from policyholders		257,632		247,187
Receivables from affiliates		1,187,993		1,220,058
Other assets		134,179		131,656
Total assets	$	3,021,810	$	3,039,361
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Unpaid losses and loss adjustment expenses	$	1,036,362	$	1,073,570
Unearned premiums		436,996		424,282
Other liabilities		344,460		379,661
Total liabilities		1,817,818		1,877,513
Total shareholders’ equity		1,203,992		1,161,848
Total liabilities and shareholders’ equity	$	3,021,810	$	3,039,361
Book value per share	$	19.00	$	18.17
Shares outstanding		63,356		63,952

4

ERIE INDEMNITY COMPANY
RECONCILIATION OF PROPERTY AND CASUALTY GROUP TO INDEMNITY RESULTS

	Three			Three			Six			Six
	months ended			months ended			months ended			months ended
	June 30,			June 30,			June 30,			June 30,
	2007			2006			2007			2006
(dollars in thousands)
Property and Casualty Group Insurance Underwriting Operations (SAP Basis)	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Direct underwriting results
Direct written premium	$	1,028,247		$	1,019,005		$	1,946,425		$	1,961,773
Premiums earned		963,691			988,196			1,905,849			1,972,025
Loss and loss adjustment expenses incurred		542,795			703,672			1,115,123			1,226,162
Policy acquisition and other underwriting expenses		281,669			283,868			538,771			585,342
Total losses and expenses		824,464			987,540			1,653,894			1,811,504
Direct underwriting income		139,227			656			251,955			160,521
Nonaffiliated reinsurance underwriting results
Assumed voluntary-less ceded retrocessions		(652	)		4,455			(3,550	)		5,144
Assumed involuntary		23,643			17,366			22,279			7,071
Less: Ceded		6,843			2,412			14,659			9,610
Nonaffiliated reinsurance underwriting gain		16,148			19,409			4,070			2,605
Net Underwriting Gain (SAP Basis)	$	155,375		$	20,065		$	256,025		$	163,126
Erie Indemnity Insurance Underwriting Operations (SAP to GAAP Basis)
Percent of pool assumed by the Indemnity Company		5.50	%		5.50	%		5.50	%		5.50	%
Indemnity preliminary underwriting gain (SAP Basis)	$	8,546		$	1,104		$	14,081		$	8,972
Excess-of-loss changes to recoveries under the agreement		0			(392	)		0			(538	)
SAP to GAAP adjustments		(623	)		(383	)		(538	)		(794	)
Indemnity Underwriting Gain before tax (GAAP Basis)	$	7,923		$	329		$	13,543		$	7,640
Property & Casualty Group (SAP Basis)
Net basis:
Loss and LAE ratio		55.6	%		69.9	%		58.9	%		62.5	%
Underwriting ratio		26.7			27.0			26.9			29.2
Policyholder dividends ratio		0.1			0.3			0.2			0.1
Statutory combined ratio		82.4			97.2			86.0			91.8
Adjusted combined ratio, excluding profit component		77.7			92.3			81.5			87.2
Direct business:
Loss ratio points from prior accident year reserve development – (redundancy) deficiency		(4.3	)		0.3			(7.4	)		(3.9	)
Loss ratio points from prior accident years from salvage and subrogation recoveries collected		(1.8	)		(1.6	)		(2.4	)		(2.3	)
Total loss ratio points from prior accident years		(6.1	)		(1.3	)		(9.8	)		(6.2	)
Loss ratio points from catastrophes		2.1			9.1			1.3			4.9
Erie Indemnity Company
GAAP combined ratio		84.8			99.4			87.0			92.9
GAAP loss ratio points from catastrophes		2.2			9.2			1.3			4.9

SAP Basis represents statutory accounting principles as codified by the National Association of Insurance Commissioners (NAIC).

5Selected financial data of Erie Insurance Exchange:

The selected financial data below is derived from the Erie Insurance Exchange’s financial statements prepared in accordance with Statutory Accounting Principles. In the opinion of management, all adjustments consisting only of normal recurring accruals, considered necessary for a fair presentation have been included. The financial data set forth below is only a summary.

	Three		Three		Six		Six
	months ended		months ended		months ended		months ended
	June 30,		June 30,		June 30,		June 30,
	2007		2006		2007		2006
(in thousands)
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Statutory Accounting Basis
Premiums earned	$	913,316	$	940,026	$	1,802,867	$	1,868,434
Losses, LAE and underwriting expenses		766,464		920,659		1,560,891		1,713,806
Net underwriting gain		146,852		19,367		241,976		154,628
Total investment income		212,935		77,160		349,581		203,169
Income before income taxes		359,787		96,527		591,557		357,797
Federal income tax expense		110,527		31,602		182,519		120,625
Net income	$	249,260	$	64,925	$	409,038	$	237,172

	As of		As of
	June 30,		December 31,
	2007		2006
(in thousands)
Statutory Accounting Basis	(Unaudited)
Cash and invested assets	$	8,946,203	$	8,494,655
Other assets		1,085,925		1,021,489
Total assets	$	10,032,128	$	9,516,144
Claims and unearned premium reserves	$	4,945,518	$	4,993,365
Other liabilities		498,448		435,683
Total liabilities		5,443,966		5,429,048
Policyholders’ surplus		4,588,162		4,087,096
Total liabilities and policyholders’ surplus	$	10,032,128	$	9,516,144

6

Management fee revenue by major lines of business – Segment basis:

	Three months			Three months						Six months			Six months
	ended			ended						ended			ended
	June 30,			June 30,			%			June 30,			June 30,			%
	2007			2006			Change			2007			2006			Change
(in thousands)
Private passenger auto		$118,693		$	117,381			1.1	%	$	227,369		$	228,436			-0.5	%
Homeowners		51,566			50,558			2.0			88,659			87,213			1.7
Commercial multi-peril		30,116			29,561			1.9			58,880			58,998			-0.2
Workers’ compensation		21,321			20,620			3.4			44,297			44,935			-1.4
Commercial auto		22,125			21,910			1.0			42,916			43,108			-0.4
All other lines of business		13,241			12,174			8.8			24,485			22,849			7.2
		257,062			252,204			1.9	%		486,606			485,539			0.2	%
Change in allowance for management fee returned on cancelled policies		(600	)		(1,100	)					(1,500	)		(1,500	)
Management fee revenue, net of allowance		$256,462		$	251,104			2.1	%	$	485,106		$	484,039			0.2	%
Management fee rate		25.00	%		24.75	%					25.00	%		24.75	%

7

Growth rates of policies in force for Property and Casualty Group insurance operations by major lines of business:

	Private		12-mth.					12-mth.					12-mth.			Total		12-mth.
	Passenger		growth					growth			All Other		growth			Personal		growth
Date	Auto		rate			Homeowners		rate			Personal Lines		rate			Lines		rate
06/30/2005		1,658,278		(1.7	)%		1,350,491		0.2	%		282,670		1.5	%		3,291,439		(0.6	)%
09/30/2005		1,651,629		(1.8	)		1,354,487		0.3			285,134		2.3			3,291,250		(0.6	)
12/31/2005		1,640,563		(1.8	)		1,353,912		0.5			286,604		2.7			3,281,079		(0.5	)
03/31/2006		1,636,048		(1.6	)		1,356,885		1.0			289,964		3.6			3,282,897		(0.1	)
06/30/2006		1,637,472		(1.3	)		1,366,633		1.2			294,409		4.2			3,298,514		0.2
09/30/2006		1,636,947		(0.9	)		1,373,763		1.4			298,361		4.6			3,309,071		0.5
12/31/2006		1,633,882		(0.4	)		1,377,965		1.8			301,497		5.2			3,313,344		1.0
03/31/2007		1,635,714		0.0			1,384,856		2.1			305,591		5.4			3,326,161		1.3
06/30/2007		1,644,561		0.4			1,398,034		2.3			311,761		5.9			3,354,356		1.7

			12-mth.			CML*		12-mth.					12-mth.					12-mth.			Total		12-mth.
	CML*		growth			Multi-		growth			Workers’		growth			All Other		growth			CML*		growth
Date	Auto		rate			Peril		rate			Comp.		rate			CML* Lines		rate			Lines		rate
06/30/2005		118,445		1.2	%		212,100		1.1	%		57,398		(5.5	)%		88,981		2.1	%		476,924		0.5	%
09/30/2005		118,555		1.3			212,939		1.4			56,877		(5.0	)		90,074		2.4			478,445		0.7
12/31/2005		118,728		1.2			213,347		1.8			56,218		(4.6	)		90,227		2.7			478,520		1.0
03/31/2006		118,587		1.0			214,461		2.3			55,254		(4.7	)		90,301		2.8			478,603		1.2
06/30/2006		119,471		0.9			217,134		2.4			54,871		(4.4	)		91,568		2.9			483,044		1.3
09/30/2006		119,555		0.8			217,763		2.3			54,379		(4.4	)		92,687		2.9			484,384		1.2
12/31/2006		119,801		0.9			218,542		2.4			53,923		(4.1	)		92,687		2.7			484,953		1.3
03/31/2007		119,907		1.1			219,300		2.3			53,498		(3.2	)		92,857		2.8			485,562		1.5
06/30/2007		121,587		1.8			223,670		3.0			53,955		(1.7	)		94,612		3.3			493,824		2.2

			12-mth.
	Total All		growth
Date	Lines		rate
06/30/2005		3,768,363		(0.5	)%
09/30/2005		3,769,695		(0.5	)
12/31/2005		3,759,599		(0.3	)
03/31/2006		3,761,500		0.1
06/30/2006		3,781,558		0.4
09/30/2006		3,793,455		0.6
12/31/2006		3,798,297		1.0
03/31/2007		3,811,723		1.3
06/30/2007		3,848,180		1.8

CML* = Commercial

8

Policy retention trends for Property and Casualty Group insurance operations by major lines of business:

	Private									CML*
	Passenger			CML*						Multi-			Workers’			All Other
Date	Auto			Auto			Homeowners			Peril			Comp.			Lines			Total All Lines
06/30/2005		89.8	%		87.8	%		87.8	%		85.0	%		85.8	%		85.5	%		88.3	%
09/30/2005		89.9			88.0			88.0			85.1			86.0			85.6			88.4
12/31/2005		90.0			87.9			88.2			85.4			86.2			86.0			88.6
03/31/2006		90.1			88.0			88.6			85.9			86.0			86.2			88.8
06/30/2006		90.3			87.7			88.9			85.9			85.9			86.5			89.0
09/30/2006		90.5			87.8			89.2			86.0			85.8			86.7			89.2
12/31/2006		90.8			87.7			89.4			86.0			85.7			87.1			89.5
03/31/2007		91.0			88.0			89.7			86.1			86.2			87.2			89.7
06/30/2007		91.1			88.1			89.9			86.0			86.3			87.6			89.9

CML* = Commercial

9

Average premium per policy trends for Property and Casualty Group insurance operations by major lines of business:

	Private		12-mth.					12-mth.			All Other		12-mth.					12-mth.
	Passenger		percent					percent			Personal		percent			Total Personal		percent
Date	Auto		change			Homeowners		change			Lines		change			Lines		change
06/30/2005	$	1,186		2.4	%	$	549		7.6	%	$	346		5.5	%	$	851		3.3	%
09/30/2005		1,179		0.3			546		2.8			347		3.3			846		0.6
12/31/2005		1,174		(1.3	)		543		(0.5	)		348		0.3			841		(1.6	)
03/31/2006		1,161		(2.7	)		539		(2.4	)		349		0.6			832		(3.0	)
06/30/2006		1,140		(3.9	)		535		(2.6	)		348		0.6			818		(3.9	)
09/30/2006		1,122		(4.8	)		530		(2.9	)		348		0.3			806		(4.7	)
12/31/2006		1,110		(5.5	)		526		(3.1	)		349		0.3			797		(5.2	)
03/31/2007		1,100		(5.3	)		524		(2.8	)		349		0.0			791		(4.9	)
06/30/2007		1,094		(4.0	)		520		(2.8	)		351		0.9			786		(3.9	)

			12-mth.					12-mth.					12-mth.			Total		12-mth.
			percent					percent			All Other		percent			CML*		percent
Date	CML* Auto		change			Workers’ Comp.		change			CML* Lines		change			Lines		change
06/30/2005	$	2,780		1.2	%	$	6,102		12.2	%	$	1,708		3.8	%	$	2,503		4.2	%
09/30/2005		2,789		0.8			6,104		8.2			1,694		1.2			2,490		1.9
12/31/2005		2,781		(0.3	)		6,212		6.7			1,705		(0.1	)		2,501		0.6
03/31/2006		2,778		(0.8	)		6,270		4.4			1,710		(0.6	)		2,501		(0.5	)
06/30/2006		2,730		(1.8	)		6,143		0.7			1,676		(1.9	)		2,444		(2.4	)
09/30/2006		2,705		(3.0	)		6,047		(0.9	)		1,669		(1.5	)		2,416		(3.0	)
12/31/2006		2,687		(3.4	)		5,985		(3.7	)		1,657		(2.8	)		2,393		(4.3	)
03/31/2007		2,664		(4.1	)		5,914		(5.7	)		1,641		(4.0	)		2,365		(5.4	)
06/30/2007		2,627		(3.8	)		5,901		(3.9	)		1,616		(3.6	)		2,333		(4.5	)

			12-mth.
	Total All		percent
Date	Lines		change
06/30/2005	$	1,061		3.8	%
09/30/2005		1,055		1.2
12/31/2005		1,052		(0.8	)
03/31/2006		1,044		(2.1	)
06/30/2006		1,026		(3.3	)
09/30/2006		1,011		(4.2	)
12/31/2006		1,001		(4.8	)
03/31/2007		991		(5.1	)
06/30/2007		984		(4.1	)

CML* = Commercial

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PROPERTY & CASUALTY GROUP ADJUSTED COMBINED RATIO BY
MAJOR LINES OF BUSINESS (SAP BASIS) – DIRECT BUSINESS

	Three Months Ended												Three Months Ended
	June 30, 2007												June 30, 2006
				Prior Year**						Current						Prior Year**						Current
				Reserve						Accident						Reserve						Accident
				Development						Year						Development						Year
	Calendar*			Deficiency			Catastrophe			Excluding			Calendar*			Deficiency			Catastrophe			Excluding
	Year			(Redundancy)			Losses			Catastrophes			Year			(Redundancy)			Losses			Catastrophes
Private Passenger Auto		76.1	%		-9.6	%		0.2	%		85.5	%		96.0	%		1.7	%		0.7	%		93.6	%
Homeowners		89.9	%		3.4	%		1.6	%		84.9	%		102.0	%		-1.4	%		6.6	%		96.8	%
Other Personal Lines		99.8	%		18.8	%		0.1	%		80.9	%		94.3	%		8.5	%		0.3	%		85.5	%
Total Personal		80.9	%		-4.9	%		2.0	%		83.8	%		97.6	%		1.1	%		7.6	%		88.9	%
Commercial Multi-Peril		83.8	%		-3.3	%		0.1	%		87.0	%		93.1	%		-9.2	%		1.3	%		101.0	%
Commercial Auto		72.6	%		-10.8	%		0.0	%		83.4	%		79.3	%		-5.0	%		0.2	%		84.1	%
Workers’ Compensation		77.2	%		4.5	%		0.0	%		72.7	%		94.0	%		6.8	%		0.0	%		87.2	%
Other Commercial Lines		49.0	%		-0.6	%		0.0	%		49.6	%		90.3	%		18.2	%		0.0	%		72.1	%
Total Commercial		76.6	%		-3.1	%		0.2	%		79.5	%		89.4	%		-1.8	%		1.5	%		89.7	%
Grand Total – Direct Business Only		79.6	%		-4.3	%		2.1	%		81.8	%		95.1	%		0.3	%		9.1	%		85.7	%
				Six Months Ended												Six Months Ended
				June 30, 2007												June 30, 2006
				Prior Year**						Current						Prior Year**						Current
				Reserve						Accident						Reserve						Accident
				Development						Year						Development						Year
	Calendar*			Deficiency			Catastrophe			Excluding			Calendar*			Deficiency			Catastrophe			Excluding
	Year			(Redundancy)			Losses			Catastrophes			Year			(Redundancy)			Losses			Catastrophes
Private Passenger Auto		79.9	%		-12.0	%		0.1	%		91.8	%		91.8	%		-3.4	%		0.4	%		94.8	%
Homeowners		83.8	%		-2.9	%		1.1	%		85.6	%		87.3	%		-5.3	%		3.5	%		89.1	%
Other Personal Lines		89.4	%		6.6	%		0.1	%		82.7	%		84.3	%		4.7	%		0.2	%		79.4	%
Total Personal		81.3	%		-8.7	%		1.3	%		88.7	%		90.3	%***		-3.6	%		4.0	%		89.9	%
Commercial Multi-Peril		88.7	%		-2.2	%		0.1	%		90.8	%		87.3	%		-4.5	%		0.8	%		91.0	%
Commercial Auto		75.2	%		-11.5	%		0.0	%		86.7	%		78.6	%		-3.4	%		0.1	%		81.9	%
Workers’ Compensation		90.2	%		2.5	%		0.0	%		87.7	%		77.8	%		-6.1	%		0.0	%		83.9	%
Other Commercial Lines		47.2	%		-12.6	%		0.0	%		59.8	%		75.1	%		-1.2	%		0.0	%		76.3	%
Total Commercial		82.6	%		-4.2	%		0.1	%		86.7	%		81.4	%***		-4.5	%		0.9	%		85.0	%
Grand Total – Direct Business Only		81.8	%		-7.4	%		1.3	%		87.9	%		87.6	%***		-3.9	%		4.9	%		86.6	%
*The calendar year combined ratio represents the adjusted statutory combined ratio, which removes the profit component of the management fee earned by the Company.
**The prior accident year reserve development does not include the effects of salvage and subrogation recoveries.
*** Year to date calendar year combined ratios for 2006 are shown exclusive of the first quarter write off of eCommerce assets. Including these in underwriting expenses would have contributed 4.0 points to the combined ratio calculations.

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