Erie Indemnity 8K Reports Third Quarter 2008 Results | ERIE 5 Nov 08

Exhibit 99.2

ERIE INDEMNITY COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands, except per share data)


	Three			Three		Nine			Nine
	months			months		months			months
	ended			ended		ended			ended
	September 30,			September 30,		September 30,			September 30,
	2008			2007		2008			2007
	(Unaudited)					(Unaudited)
Operating revenue
Management fee revenue, net	$	234,120		$	232,089	$	692,737		$	690,432
Premiums earned		52,057			51,892		155,719			155,988
Service agreement revenue		8,340			7,470		23,480			22,186

Total operating revenue		294,517			291,451		871,936			868,606

Operating expenses
Cost of management operations		195,297			200,913		577,754			576,768
Losses and loss adjustment expenses incurred		37,185			30,766		104,768			92,789
Policy acquisition and other underwriting expenses		12,311			13,090		36,592			36,779

Total operating expenses		244,793			244,769		719,114			706,336

Investment (loss) income – unaffiliated
Investment income, net of expenses		10,218			12,233		33,357			40,350
Net realized (losses) gains on investments		(41,356	)		3,438		(80,202	)		7,550
Equity in earnings of limited partnerships		1,057			14,169		20,310			46,867

Total investment (loss) income – unaffiliated		(30,081	)		29,840		(26,535	)		94,767

Income before income taxes and equity in (losses) earnings of Erie Family Life Insurance		19,643			76,522		126,287			257,037
Provision for income taxes		6,011			23,669		40,550			79,767
Equity in (losses) earnings of Erie Family Life Insurance, net of tax		(9,384	)		643		(10,197	)		3,074

Net income	$	4,248		$	53,496	$	75,540		$	180,344

Net income per share:
Class A common stock – basic	$	0.08		$	0.97	$	1.45		$	3.17

Class A common stock – diluted		0.07			0.87		1.30			2.87

Class B common stock – basic and diluted		15.92			145.92		216.59			482.27

Weighted average shares outstanding:
Class A common stock – basic		51,376,513			55,183,547		51,984,203			56,727,315

Class A common stock – diluted		57,533,591			61,370,219		58,141,281			62,935,587

Class B common stock – basic and diluted		2,551			2,559		2,551			2,568

Dividends declared per share:
Class A common stock	$	0.44		$	0.40	$	1.32		$	1.20

Class B common stock		66.00			60.00		198.00			180.00

ERIE INDEMNITY COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS — SEGMENT BASIS

(amounts in thousands, except per share data)


	Three			Three		Nine			Nine
	months ended			months ended		months ended			months ended
	September 30,			September 30,		September 30,			September 30,
	2008			2007		2008			2007
	(Unaudited)					(Unaudited)
Management operations
Management fee revenue	$	247,723		$	245,585	$	733,131		$	730,691
Service agreement revenue		8,340			7,470		23,480			22,186

Total revenue from management operations		256,063			253,055		756,611			752,877
Cost of management operations		206,652			212,601		611,426			610,377

Income from management operations		49,411			40,454		145,185			142,500

Insurance underwriting operations
Premiums earned		52,057			51,892		155,719			155,988

Losses and loss adjustment expenses incurred		37,185			30,766		104,768			92,789
Policy acquisition and other underwriting expenses		14,559			14,898		43,313			43,429

Total losses and expenses		51,744			45,664		148,081			136,218

Underwriting income		313			6,228		7,638			19,770

Investment operations
Investment income, net of expenses		10,218			12,233		33,357			40,350
Net realized (losses) gains on investments		(41,356	)		3,438		(80,202	)		7,550
Equity in earnings of limited partnerships		1,057			14,169		20,310			46,867
Equity in (losses) earnings of Erie Family Life Insurance		(10,090	)		692		(10,965	)		3,304

Net (loss) revenue from investment operations		(40,171	)		30,532		(37,500	)		98,071

Income before income taxes		9,553			77,214		115,323			260,341
Provision for income taxes		5,305			23,718		39,783			79,997

Net income	$	4,248		$	53,496	$	75,540		$	180,344

Net income per share – Class A basic	$	0.08		$	0.97	$	1.45		$	3.17

Net income per share – Class A diluted		0.07			0.87		1.30			2.87

Net income per share – Class B basic and diluted		15.92			145.92		216.59			482.27

Weighted average shares outstanding - Class A diluted		57,534			61,370		58,141			62,936

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

ERIE INDEMNITY COMPANY

RECONCILIATION OF OPERATING INCOME TO NET INCOME

Definition of 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. We elected the fair value measurement option for our common stock portfolio effective January 1, 2008. As such, changes in value related to common stocks are reported in earnings. These unrealized gains or losses are included in the net realized losses/gains on investments on the Consolidated Statements of Operations that is used to calculate operating income. 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. Equity in earnings or losses of limited partnerships includes the respective investment’s realized capital gains and losses, as well as unrealized gains and losses.

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 September 30, 2008 and 2007:


	Three			Three			Nine			Nine
	months ended			months ended			months ended			months ended
	September 30,			September 30,			September 30,			September 30,
	2008			2007			2008			2007
(in thousands, except per share data)
	(Unaudited)						(Unaudited)
Operating income	$	31,129		$	51,261		$	127,671		$	175,436
Net realized (losses) gains on investments		(41,356	)		3,438			(80,202	)		7,550
Income tax benefit (expense) on realized (losses) gains		14,475			(1,203	)		28,071			(2,642	)

Realized (losses) gains, net of income taxes		(26,881	)		2,235			(52,131	)		4,908

Net income	$	4,248		$	53,496		$	75,540		$	180,344

	Three			Three			Nine			Nine
	months ended			months ended			months ended			months ended
	September 30,			September 30,			September 30,			September 30,
		2008			2007			2008			2007

	(Unaudited)						(Unaudited)
Per Class A share – diluted:
Operating income	$	0.54		$	0.84		$	2.20		$	2.79
Net realized (losses) gains on investments		(0.72	)		0.05			(1.38	)		0.12
Income tax benefit (expense) on realized (losses) gains		0.25			(0.02	)		0.48			(0.04	)

Realized (losses) gains, net of income taxes		(0.47	)		0.03			(0.90	)		0.08

Net income	$	0.07		$	0.87		$	1.30		$	2.87

ERIE INDEMNITY COMPANY

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(amounts in thousands, except per share data)


	September 30,		December 31,
	2008		2007
	(Unaudited)
Assets
Investments
Available-for-sale securities, at fair value:
Fixed maturities	$	596,728	$	703,406
Equity securities		68,868		218,270
Trading securities, at fair value		74,506		0
Other invested assets		313,206		297,059

Total investments		1,053,308		1,218,735
Cash and cash equivalents		18,158		31,070
Equity in Erie Family Life Insurance		42,264		59,046
Premiums receivable from policyholders		261,020		243,612
Receivables from affiliates		1,185,975		1,177,830
Other assets		174,201		148,330

Total assets	$	2,734,926	$	2,878,623

Liabilities and shareholders’ equity
Liabilities
Unpaid losses and loss adjustment expenses	$	995,603	$	1,026,531
Unearned premiums		445,831		421,263
Other liabilities		359,709		379,550

Total liabilities		1,801,143		1,827,344
Total shareholders’ equity		933,783		1,051,279

Total liabilities and shareholders’ equity	$	2,734,926	$	2,878,623

Book value per share	$	16.24	$	17.68

Shares outstanding		57,499		59,461

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


	Three			Three			Nine			Nine
	months ended			months ended			months ended			months ended
	September 30,			September 30,			September 30,			September 30,
	2008			2007			2008			2007
(dollars in thousands)
Property and Casualty Group insurance underwriting operations (SAP basis)
	(Unaudited)						(Unaudited)
Direct underwriting results
Direct written premium	$	989,291		$	981,539		$	2,937,724		$	2,927,965

Premiums earned		956,771			953,878			2,857,056			2,859,727

Loss and loss adjustment expenses incurred		695,208			547,077			1,900,836			1,662,200
Policy acquisition and other underwriting expenses		271,140			272,741			810,256			811,512

Total losses and expenses		966,348			819,818			2,711,092			2,473,712

Direct underwriting (loss) income		(9,577	)		134,060			145,964			386,015

Nonaffiliated reinsurance underwriting results
Assumed voluntary-less ceded retrocessions		831			(3,342	)		486			(6,892	)
Assumed involuntary		15,497			(5,802	)		13,092			16,477
Less: Ceded		(3,313	)		5,824			14,984			20,482

Nonaffiliated reinsurance underwriting income (loss)		19,641			(14,968	)		(1,406	)		(10,897	)


Net underwriting income (SAP basis)	$	10,064		$	119,092		$	144,558		$	375,118


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 income (SAP basis)	$	554		$	6,550		$	7,951		$	20,631
SAP to GAAP adjustments		(241	)		(322	)		(313	)		(861	)

Indemnity underwriting income before tax (GAAP basis)	$	313		$	6,228		$	7,638		$	19,770

Property & Casualty Group (SAP basis)
Net basis:
Loss and LAE ratio		70.7	%		58.6	%		66.7	%		58.8	%
Underwriting ratio		27.0			27.3			27.2			27.0
Policyholder dividends ratio		—			0.2			0.1			0.2

Statutory combined ratio		97.7			86.1			94.0			86.0

Adjusted combined ratio, excluding profit component		93.6			82.3			89.8			81.8

Direct business:
Loss ratio points from prior accident year reserve development – redundancy		(0.4	)		(7.8	)		(3.2	)		(7.5	)
Loss ratio points from prior accident years from salvage and subrogation recoveries collected		(1.0	)		(1.0	)		(2.0	)		(2.0	)

Total loss ratio points from prior accident years		(1.4	)		(8.8	)		(5.2	)		(9.5	)

Loss ratio points from catastrophes		5.6			3.4			3.4			2.0
Erie Indemnity Company
GAAP combined ratio		99.4			88.0			95.1			87.3
GAAP loss ratio points from catastrophes		5.7			3.4			3.4			2.0

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 our opinion, 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		Nine			Nine
	months ended			months ended		months ended			months ended
	September 30,			September 30,		September 30,			September 30,
	2008			2007		2008			2007
(dollars in thousands)
Statutory accounting basis	(Unaudited)					(Unaudited)
Premiums earned	$	902,260		$	899,455	$	2,694,802		$	2,702,322
Losses, loss adjustment expenses and
underwriting expenses		892,731			786,908		2,558,171			2,347,799

Net underwriting income		9,529			112,547		136,631			354,523

Total investment (loss) income		(269,878	)		109,933		(294,141	)		459,514

(Loss) income before income taxes		(260,349	)		222,480		(157,510	)		814,037
Federal income tax expense		15,800			101,778		129,164			284,297

Net (loss) income		($276,149	)	$	120,702		($286,674	)	$	529,740


	As of		As of
	September 30,		December 31,
	2008		2007
(dollars in thousands)
Statutory accounting basis	(Unaudited)
Cash and invested assets	$	8,298,134	$	8,927,997
Other assets		1,469,154		1,033,852

Total assets	$	9,767,288	$	9,961,849

Loss, loss adjustments expense and
unearned premium reserves	$	4,941,535	$	4,848,549
Other liabilities		405,337		345,776

Total liabilities		5,346,872		5,194,325

Policyholders’ surplus		4,420,416		4,767,524

Total liabilities and policyholders’ surplus	$	9,767,288	$	9,961,849

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


	Three months			Three months						Nine months			Nine months
	ended			ended						ended			ended
	September 30,			September 30,			%			September 30,			September 30,			%
	2008			2007			Change			2008			2007			Change
(dollars in thousands)
Private passenger auto	$	122,011		$	120,242			1.5	%	$	352,065		$	347,611			1.3	%
Homeowners		52,266			51,589			1.3			141,806			140,248			1.1
Commercial multi-peril		25,877			25,491			1.5			84,570			84,371			0.2
Commercial auto		18,351			18,546			-1.1			60,707			61,463			-1.2
Workers compensation		15,831			17,462			-9.3			56,535			61,758			-8.5
All other lines of business		12,987			12,055			7.7			38,748			36,540			6.0

		247,323			245,385			0.8			734,431			731,991			0.3
Change in allowance for management fee returned on cancelled policies		400			200						(1,300	)		(1,300	)

Management fee revenue, net of allowance	$	247,723		$	245,585			0.9	%	$	733,131		$	730,691			0.3	%

Management fee rate		25.00	%		25.00	%					25.00	%		25.00	%

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
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
09/30/2007		1,649,801		0.8			1,408,114		2.5			316,786		6.2			3,374,701		2.0
12/31/2007		1,651,234		1.1			1,413,712		2.6			321,431		6.6			3,386,377		2.2
03/31/2008		1,655,869		1.2			1,420,250		2.6			325,926		6.7			3,402,045		2.3
06/30/2008		1,667,446		1.4			1,433,504		2.5			332,922		6.8			3,433,872		2.4
09/30/2008		1,677,151		1.7			1,446,779		2.7			340,566		7.5			3,464,496		2.7


			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
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
09/30/2007		122,154		2.2			226,302		3.9			54,341		(0.1	)		96,167		3.8			498,964		3.0
12/31/2007		122,558		2.3			228,214		4.4			54,720		1.5			96,464		4.1			501,956		3.5
03/31/2008		122,882		2.5			229,577		4.7			54,927		2.7			96,511		3.9			503,897		3.8
06/30/2008		123,955		1.9			234,393		4.8			55,801		3.4			97,745		3.3			511,894		3.7
09/30/2008		124,418		1.9			236,994		4.7			56,381		3.8			98,786		2.7			516,579		3.5


			12-mth.
	Total All		growth
Date	Lines		rate
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
09/30/2007		3,873,665		2.1
12/31/2007		3,888,333		2.4
03/31/2008		3,905,942		2.5
06/30/2008		3,945,766		2.5
09/30/2008		3,981,075		2.8

CML* = Commercial

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
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
09/30/2007		91.3			88.2			90.1			86.1			86.8			87.5			90.0
12/31/2007		91.5			88.2			90.3			86.0			86.8			87.8			90.2
03/31/2008		91.6			88.4			90.5			86.5			87.6			87.9			90.4
06/30/2008		91.6			87.9			90.7			86.2			87.5			88.1			90.4
09/30/2008		91.7			87.8			91.0			86.0			87.2			88.2			90.5

CML* = Commercial

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
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	)
09/30/2007		1,093		(2.6	)		519		(2.1	)		352		1.1			783		(2.9	)
12/31/2007		1,092		(1.6	)		518		(1.5	)		353		1.1			782		(1.9	)
03/31/2008		1,091		(0.8	)		518		(1.1	)		354		1.4			781		(1.3	)
06/30/2008		1,088		(0.5	)		514		(1.2	)		353		0.6			777		(1.1	)
09/30/2008		1,086		(0.6	)		511		(1.5	)		354		0.6			774		(1.1	)


			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
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	)
09/30/2007		2,600		(3.9	)		5,780		(4.4	)		1,592		(4.6	)		2,295		(5.0	)
12/31/2007		2,577		(4.1	)		5,602		(6.4	)		1,581		(4.6	)		2,262		(5.5	)
03/31/2008		2,568		(3.6	)		5,453		(7.8	)		1,576		(4.0	)		2,240		(5.3	)
06/30/2008		2,530		(3.7	)		5,236		(11.3	)		1,546		(4.3	)		2,187		(6.3	)
09/30/2008		2,514		(3.3	)		5,067		(12.3	)		1,536		(3.5	)		2,157		(6.0	)


			12-mth.
	Total All		percent
Date	Lines		change
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	)
09/30/2007		978		(3.3	)
12/31/2007		973		(2.8	)
03/31/2008		969		(2.2	)
06/30/2008		960		(2.4	)
09/30/2008		953		(2.6	)

CML* = Commercial

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


	Three Months ended												Three Months ended
	September 30, 2008												September 30, 2007
				Prior Year**						Current						Prior Year**						Current
				Reserve						Accident						Reserve						Accident
	Calendar*			Development						Year						Development						Year
				Deficiency			Catastrophe			Excluding			Calendar*			Deficiency			Catastrophe			Excluding
	Year			(Redundancy)			Losses			Catastrophes			Year			(Redundancy)			Losses			Catastrophes

Private passenger auto		82.9	%		-3.5	%		0.6	%		85.8	%		79.0	%		-10.4	%		0.7	%		88.7	%
Homeowners		116.6	%		0.8	%		4.0	%		111.8	%		87.0	%		-1.6	%		2.2	%		86.4	%
Other personal lines		68.2	%		-11.4	%		0.2	%		79.4	%		78.3	%		-0.4	%		0.2	%		78.5	%
Total personal lines		91.6	%		-2.6	%		4.8	%		89.4	%		81.3	%		-7.5	%		3.0	%		85.8	%
Commercial multi-peril		119.2	%		4.2	%		0.8	%		114.2	%		94.0	%		-9.6	%		0.2	%		103.4	%
Commercial auto		81.0	%		0.0	%		0.0	%		81.0	%		70.3	%		-17.7	%		0.1	%		87.9	%
Workers compensation		115.8	%		6.6	%		0.0	%		109.2	%		84.9	%		-1.7	%		0.0	%		86.6	%
Other commercial lines		144.3	%		22.7	%		0.0	%		121.6	%		73.3	%		10.7	%		0.0	%		62.6	%
Total commercial lines		109.4	%		4.9	%		0.8	%		103.7	%		83.6	%		-8.4	%		0.4	%		91.6	%
Grand total – direct business only		96.6	%		-0.4	%		5.6	%		91.4	%		81.7	%		-7.8	%		3.4	%		86.1	%


	Nine Months Ended												Nine Months Ended
	September 30, 2008												September 30, 2007
				Prior Year**						Current						Prior Year**						Current
				Reserve						Accident						Reserve						Accident
	Calendar*			Development						Year						Development						Year
				Deficiency			Catastrophe			Excluding			Calendar*			Deficiency			Catastrophe			Excluding
	Year			(Redundancy)			Losses			Catastrophes			Year			(Redundancy)			Losses			Catastrophes

Private passenger auto		83.8	%		-5.7	%		0.4	%		89.1	%		79.6	%		-11.4	%		0.3	%		90.7	%
Homeowners		98.3	%		-3.3	%		2.4	%		99.2	%		84.9	%		-2.4	%		1.4	%		85.9	%
Other personal lines		75.5	%		-6.4	%		0.1	%		81.8	%		85.6	%		4.2	%		0.1	%		81.3	%
Total personal lines		87.5	%		-5.1	%		2.9	%		89.7	%		81.3	%		-8.3	%		1.8	%		87.8	%
Commercial multi-peril		100.8	%		0.0	%		0.4	%		100.4	%		90.4	%		-4.6	%		0.1	%		94.9	%
Commercial auto		79.3	%		-6.6	%		0.1	%		85.8	%		73.5	%		-13.6	%		0.1	%		87.0	%
Workers compensation		107.0	%		5.9	%		0.0	%		101.1	%		88.3	%		1.1	%		0.0	%		87.2	%
Other commercial lines		108.5	%		23.0	%		0.0	%		85.5	%		55.9	%		-4.7	%		0.0	%		60.6	%
Total commercial lines		97.0	%		1.3	%		0.5	%		95.2	%		82.8	%		-5.6	%		0.2	%		88.2	%
Grand total – direct business only		90.3	%		-3.2	%		3.4	%		90.1	%		81.8	%		-7.5	%		2.0	%		87.3	%
*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.

Erie Indemnity (ERIE) 8-KErie Indemnity Reports Third Quarter 2008 Results