UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 7, 2003
ERIE INDEMNITY COMPANY
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 0-24000 25-0466020
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation) File Number) Identification No.)
100 Erie Insurance Place, Erie, Pennsylvania 16530
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (814) 870-2000
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Item 5. OTHER EVENTS.
On January 7, 2003, Erie Indemnity Company issued a press release which is
filed as Exhibit 99.1 hereto and is incorporated herein by reference.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
Exhibit Number Description
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99.1 Press release dated January 7, 2003
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ERIE INDEMNITY COMPANY
Erie Indemnity Company
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(Registrant)
Date: January 7, 2003 /s/ Philip A. Garcia
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(Philip A. Garcia, Executive Vice President & CFO)
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EXHIBIT 99.1
Erie Indemnity Company Reports Realized Investment Losses
Erie, Pa. - January 7, 2003 - Erie Indemnity Company (NASDAQ: ERIE) announced it
recognized realized capital losses during the fourth quarter of 2002 of
approximately $8.4 million. These losses resulted from the sale of certain
securities and charges for impairments of equity, debt and limited partnership
investments held by the Company in accordance with the Company's impairment
policy. Of the $8.4 million charge, $2.9 million is reflected in net realized
losses on investments, while $5.5 million is reflected in losses from limited
partnerships. Investment losses were realized in numerous industry segments
including energy, airline, pharmaceutical and commercial real estate. The
investment losses will reduce fourth quarter net income by approximately $5.5
million or $.08 per share. Erie Indemnity Company's share of realized gains and
losses from its 21.6 percent equity ownership of affiliate Erie Family Life
Insurance Company had no material effect on fourth quarter earnings.
Erie Indemnity Company's total assets grew to nearly $2.2 billion, including
invested assets of $923 million, at September 30, 2002, from $1.9 billion at
September 30, 2001. Erie Indemnity Company's total shareholder equity was $958
million, or $13.50 per share at September 30, 2002, compared to $856 million, or
$12.01 per share, a year earlier.
Erie Indemnity Company is the attorney-in-fact for the Erie Insurance Exchange
and the principal management company for the member companies of the Erie
Insurance Group, which includes Flagship City Insurance Company, Erie Insurance
Company, Erie Insurance Property and Casualty Company, Erie Insurance Company of
New York and Erie Family Life Insurance Company.
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According to A.M. Best Company, Erie Insurance Group, based in Erie,
Pennsylvania, is the 17th largest automobile insurer in the United States based
on direct premiums written and the 25th largest property/casualty insurer in the
United States based on total lines net premium written. The Group, rated A++
(superior) by A.M. Best Company, has more than 3.5 million policies in force and
operates in 11 states and the District of Columbia.
News releases and more information about Erie Insurance Group are available at
http://www.erieinsurance.com
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of
1995: Certain forward-looking statements contained herein involve risks and
uncertainties. These statements include certain discussions relating to
management fee revenue, cost of management operations, underwriting, premium and
investment income volume, business strategies, profitability and business
relationships and the Company's other business activities during 2002 and
beyond. In some cases, you can identify forward-looking statements by terms such
as "may," will," "should," "could," "would," "expect," "plan," "intend,"
"anticipate," "believe," "estimate," "project," "predict," "potential" and
similar expressions. These forward-looking statements reflect the Company's
current views about future events, are based on assumptions and are subject to
known and unknown risks and uncertainties that may cause results to differ
materially from those anticipated in those statements. Many of the factors that
will determine future events or achievements are beyond our ability to control
or predict.
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