Erie Indemnity : December 2023 Erie Insurance Exchange

ANNUAL STATEMENT FOR THE YEAR 2023 OF THE ERIE INSURANCE EXCHANGE

ASSETS

						Current Year		Prior Year
					1	2	3	4
							Net Admitted Assets	Net Admitted
					Assets	Nonadmitted Assets	(Cols. 1 - 2)	Assets
1.	Bonds (Schedule D)		10,552,097,883	...................................	10,552,097,883	10,868,527,721
2.	Stocks (Schedule D):
	2.1 Preferred stocks		33,329,756	...................................	33,329,756	22,804,223
	2.2 Common stocks		4,434,646,425	...................................	4,434,646,425	4,417,296,101
3.	Mortgage loans on real estate (Schedule B):
	3.1 First liens	..................................................................................................		...................................	...................................	...................................	...................................
	3.2 Other than first liens		...................................	...................................	...................................	...................................
4.	Real estate (Schedule A):
	4.1 Properties occupied by the company (less $
	encumbrances)		27,335,248	...................................	27,335,248	28,924,021
	4.2 Properties held for the production of income (less
	$	encumbrances)	...................6,104,244	...................6,104,244	...................................	...................................
	4.3 Properties held for sale (less $
	.......................................................................................encumbrances)		.......................607,076	.......................607,076	...................................	...................................
5.	Cash ($ ..............(195,839,676) , Schedule E - Part 1), cash equivalents
	($	660,757,041	, Schedule E - Part 2) and short-term
	investments ($	312,579 , Schedule DA)	465,229,944	...................................	465,229,944	353,184,201
6.	Contract loans (including $	................................... premium notes)	...................................	...................................	...................................	...................................
7.	Derivatives (Schedule DB)		3,699,000	...................................	3,699,000	7,835,000
8.	Other invested assets (Schedule BA)	2,857,631,531	39,630,161	2,818,001,370	2,381,023,358
9.	Receivable for securities		24,279,745	...................................	24,279,745	14,932,802
10.	Securities lending reinvested collateral assets (Schedule DL)	815,258,452	6,016	815,252,436	1,009,408,871
11.	Aggregate write-ins for invested assets	...................................	...................................	...................................	...................................
12.	Subtotals, cash and invested assets (Lines 1 to 11)	19,220,219,305	46,347,497	19,173,871,808	19,103,936,299
13.	Title plants less $ ................................... charged off (for Title insurers
	only)			...................................	...................................	...................................	...................................
14.	.............................................................Investment income due and accrued	................115,053,823	........................ 30,073	................115,023,750	............... 105,981,645
15.	Premiums and considerations:
	15.1 Uncollected premiums and agents' balances in the course of collection	205,040,442	21,584,993	183,455,449	168,912,806
	15.2 Deferred premiums, agents' balances and installments booked but
	...................................deferred and not yet due (including $
	............................................................earned but unbilled premiums)	............ 2,324,941,546	...................................	............ 2,324,941,546	............1,948,880,529
	...................................15.3 Accrued retrospective premiums ($	) and
	contracts subject to redetermination ($	)	................................... ................................... ................................... ...................................

16. Reinsurance:

	16.1	Amounts recoverable from reinsurers	................... 2,738,468	...................................	................... 2,738,468	...................2,166,681
	16.2	Funds held by or deposited with reinsured companies	................... 9,114,877	...................................	................... 9,114,877	................. 10,722,463
	16.3	Other amounts receivable under reinsurance contracts	.......................193,745	...................................	.......................193,745	.......................399,474
17.	Amounts receivable relating to uninsured plans	...................................	...................................	...................................	...................................
18.1	Current federal and foreign income tax recoverable and interest thereon ....	................417,151,661	...................................	................417,151,661	................278,517,611
18.2	...................................................................................Net deferred tax asset	...................................	...................................	...................................	...................................
19.	......................................................Guaranty funds receivable or on deposit	...................................	...................................	...................................	...................................
20.	Electronic data processing equipment and software	10,841,356	10,311,847	529,509	1,453,087

21. Furniture and equipment, including health care delivery assets

	($	)	1,748,788	1,748,788	...................................	...................................
22.	.........Net adjustment in assets and liabilities due to foreign exchange rates	...................................	...................................	...................................	...................................
23.	.....................................Receivables from parent, subsidiaries and affiliates	.......................817,703	...................................	.......................817,703	................... 4,973,276
24.	Health care ($	) and other amounts receivable	...................................	...................................	...................................	...................................
25.	Aggregate write-ins for other than invested assets	56,417,970	11,449,069	44,968,901	34,577,126

26. Total assets excluding Separate Accounts, Segregated Accounts and

	Protected Cell Accounts (Lines 12 to 25)	22,364,279,684	91,472,267	22,272,807,417	21,660,520,997
27.	From Separate Accounts, Segregated Accounts and Protected Cell
	Accounts	...................................	...................................	...................................	...................................
28.	Total (Lines 26 and 27)	22,364,279,684	91,472,267	22,272,807,417	21,660,520,997
	DETAILS OF WRITE-INS

1101	....................................	....................................	....................................	....................................
1102	....................................	....................................	....................................	....................................
1103	....................................	....................................	....................................	....................................
1198.	Summary of remaining write-ins for Line 11 from overflow page	...................................	...................................	...................................	...................................
1199.	Totals (Lines 1101 thru 1103 plus 1198)(Line 11 above)
2501.	Premium Tax Credits & Other	51,245,478	6,743,207	44,502,271	33,546,086
2502.	Equities & Deposits in Pools and Associations	466,630	...................................	...................... 466,630	...................1,031,040
2503.	Prepaid Disbursements	4,705,862	...................4,705,862	...................................	...................................
2598.	Summary of remaining write-ins for Line 25 from overflow page	...................................	...................................	...................................	...................................
2599.	Totals (Lines 2501 thru 2503 plus 2598)(Line 25 above)	56,417,970	11,449,069	44,968,901	34,577,126

2

ANNUAL STATEMENT FOR THE YEAR 2023 OF THE ERIE INSURANCE EXCHANGE

LIABILITIES, SURPLUS AND OTHER FUNDS

				1	2
				Current Year	Prior Year
1.	Losses (Part 2A, Line 35, Column 8)	........................................................................................................................................	............ 5,888,111,074	............ 5,186,008,233
2.	.....................................Reinsurance payable on paid losses and loss adjustment expenses (Schedule F, Part 1, Column 6)	...................................	...................................
3.	.........................................................................................................Loss adjustment expenses (Part 2A, Line 35, Column 9)	................863,802,970	................822,582,233
4.	.............................................................................Commissions payable, contingent commissions and other similar charges	...................................	...................................
5.	...............................................................................................................Other expenses (excluding taxes, licenses and fees)	................. 10,411,169	................. 11,229,124
6.	...................................................................................Taxes, licenses and fees (excluding federal and foreign income taxes)	................. 73,920,325	................. 59,907,597
7.1	...................................Current federal and foreign income taxes (including $	on realized capital gains (losses))	...................................	...................................
7.2	Net deferred tax liability		............... 169,551,644	................129,178,799
8.	Borrowed money $	and interest thereon $	..........................................	...................................	...................1,507,990

9. Unearned premiums (Part 1A, Line 38, Column 5) (after deducting unearned premiums for ceded reinsurance of

	$	254,934,304	and including warranty reserves of $	and accrued accident and
	health experience rating refunds including $	for	medical loss ratio rebate per the Public Health
	.............................................................................................................................................................................Service Act)					............4,168,161,124	............ 3,500,605,632
10.	.....................................................................................................................................................................Advance premium				................. 80,459,749	................. 73,260,541
11.	Dividends declared and unpaid:
	......................................................................................................................................................................11.1 Stockholders				...................................	...................................
	.....................................................................................................................................................................11.2 Policyholders				...................6,491,845	...................8,050,884
12.	........................................................................................Ceded reinsurance premiums payable (net of ceding commissions)		............... 140,161,089	................119,401,725
13.	Funds held by company under reinsurance treaties (Schedule F, Part 3, Column 20)	.............................................................	...................... 501,318	.......................589,736
14.	Amounts withheld or retained by company for account of others	..............................................................................................		................. 90,419,094	................. 69,853,409
15.	Remittances and items not allocated			.......................319,749	...................... 570,021
16.	...................................Provision for reinsurance (including $	.........................certified) (Schedule F, Part 3, Column 78)	........................ 48,000	........................ 48,000
17.	...................................................................................Net adjustments in assets and liabilities due to foreign exchange rates		...................................	...................................
18.	.....................................................................................................................................................................Drafts outstanding				...................................	...................................
19.	............................................................................................................................Payable to parent, subsidiaries and affiliates			................... 1,342,497	...................3,422,591
20.	Derivatives					...................................	...................................
21.	................................................................................................................................................................Payable for securities				................. 36,348,616	................. 58,477,005
22.	....................................................................................................................................................Payable for securities lending			................815,258,435	............ 1,009,408,871
23.	......................................................................................................................Liability for amounts held under uninsured plans			...................................	...................................
24.	Capital notes $	...................................and interest thereon $	.................................................	...................................	...................................
25.	Aggregate write-ins for liabilities			595,178,308	498,348,602
26.	Total liabilities excluding protected cell liabilities (Lines 1 through 25)		.......... 12,940,487,006	.......... 11,552,450,992
27.	Protected cell liabilities
28.	Total liabilities (Lines 26 and 27)			.......... 12,940,487,006	.......... 11,552,450,992
29.	............................................................................................................................Aggregate write-ins for special surplus funds			...................................	...................................
30.	...............................................................................................................................................................Common capital stock				...................................	...................................
31.	...............................................................................................................................................................Preferred capital stock				...................................	...................................
32.	...........................................................................................................Aggregate write-ins for other than special surplus funds			...................................	...................................
33.	.............................................................................................................................................................................Surplus notes					...................................	...................................
34.	.......................................................................................................................................Gross paid in and contributed surplus			...................................	...................................
35.	.......................................................................................................................................................Unassigned funds (surplus)				............ 9,332,320,411	.......... 10,108,070,005
36.	Less treasury stock, at cost:
	36.1	shares common (value included in Line 30	$	)	...................................	...................................
	36.2	shares preferred (value included in Line 31	$	)	...................................	...................................
37.	Surplus as regards policyholders (Lines 29 to 35, less 36) (Page 4, Line 39)	9,332,320,411	10,108,070,005
38.	TOTALS (Page 2, Line 28, Col. 3)				22,272,807,417	21,660,520,997
	DETAILS OF WRITE-INS
2501.	.........................................................................................................................................Compensation Due Attorney-In-Fact			................595,178,308	................498,348,602
2502		....................................
2503		....................................
2598.	Summary of remaining write-ins for Line 25 from overflow page	..............................................................................................		...................................	...................................
2599.	Totals (Lines 2501 thru 2503 plus 2598)(Line 25 above)				595,178,308	498,348,602
2901		....................................
2902		....................................
2903		....................................
2998.	Summary of remaining write-ins for Line 29 from overflow page	..............................................................................................		...................................	...................................
2999.	Totals (Lines 2901 thru 2903 plus 2998)(Line 29 above)
3201.	......................................................................................................................................................................................................................................		....................................

3202. ........................................................................................................................................................................................................................................ ....................................

3203. ........................................................................................................................................................................................................................................ ....................................

3298. Summary of remaining write-ins for Line 32 from overflow page .............................................................................................. ................................... ...................................

3299. Totals (Lines 3201 thru 3203 plus 3298)(Line 32 above)

3

ANNUAL STATEMENT FOR THE YEAR 2023 OF THE ERIE INSURANCE EXCHANGE

STATEMENT OF INCOME

			1	2
			Current Year	Prior Year
	UNDERWRITING INCOME
1.	Premiums earned (Part 1, Line 35, Column 4)	8,951,777,653	7,919,401,627
	DEDUCTIONS:
2.	Losses incurred (Part 2, Line 35, Column 7)	............ 7,396,241,145	............ 6,212,552,475
3.	Loss adjustment expenses incurred (Part 3, Line 25, Column 1)	................831,075,442	................817,829,059
4.	Other underwriting expenses incurred (Part 3, Line 25, Column 2)
2,608,765,549	2,244,665,709
5.	Aggregate write-ins for underwriting deductions	................... 3,365,323	...................2,211,411
6.	Total underwriting deductions (Lines 2 through 5)	10,839,447,458	9,277,258,654
7.	Net income of protected cells	...................................	...................................
8.	Net underwriting gain (loss) (Line 1 minus Line 6 plus Line 7)
.......... (1,887,669,805)	...........(1,357,857,027)
	INVESTMENT INCOME
9.	............................................................................Net investment income earned (Exhibit of Net Investment Income, Line 17)	................693,772,145	................617,590,874
10.	Net realized capital gains (losses) less capital gains tax of $	22,415,195 (Exhibit of Capital
	Gains (Losses) )	86,481,868	(203,619,765)
11.	Net investment gain (loss) (Lines 9 + 10)	780,254,013	413,971,109
	OTHER INCOME

12. Net gain (loss) from agents' or premium balances charged off (amount recovered

	$	18,111,639 amount charged off $	62,074,405	)	................(43,962,766)	................(47,642,997)
13.	...........................................................................................................Finance and service charges not included in premiums		...................................	...................................
14.	Aggregate write-ins for miscellaneous income		437,248	(104,977)
15.	..................................................................................................................................Total other income (Lines 12 through 14)		(43,525,518)	(47,747,974)
16.	Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes
	(Lines 8 + 11 + 15)		(1,150,941,310)	(991,633,892)
17.	Dividends to policyholders		5,181,174	7,501,300
18.	Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes
	(Line 16 minus Line 17)		(1,156,122,484)	(999,135,192)
19.	Federal and foreign income taxes incurred		(264,160,000)	(199,443,164)
20.	.......................................................................................................................Net income (Line 18 minus Line 19)(to Line 22)		(891,962,484)	(799,692,029)
		CAPITAL AND SURPLUS ACCOUNT
21.	Surplus as regards policyholders, December 31 prior year (Page 4, Line 39, Column 2)	.......... 10,108,070,005	...........11,745,075,703
22.	Net income (from Line 20)		(891,962,484)	(799,692,029)
23.	........................................................................................................................Net transfers (to) from Protected Cell accounts		...................................	...................................
24.	Change in net unrealized capital gains or (losses) less capital gains tax of $	61,743,971	................. 81,337,439	..............(821,304,930)
25.	.................................................................................................Change in net unrealized foreign exchange capital gain (loss)		................. 43,101,731	................(49,486,750)
26.	...........................................................................................................................................Change in net deferred income tax		................. 21,371,126	................. 33,505,784
27.	Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 28, Col. 3)
.....................................................................	(29,597,406)	(2,155,773)
28.	................................................................Change in provision for reinsurance (Page 3, Line 16, Column 2 minus Column 1)	...................................	...................2,128,000
29.	............................................................................................................................................................Change in surplus notes		...................................	...................................
30.	............................................................................................................Surplus (contributed to) withdrawn from protected cells		...................................	...................................
31.	..............................................................................................................Cumulative effect of changes in accounting principles		...................................	...................................
32.	Capital changes:
	................................................................................................................................................................................32.1 Paid in			...................................	...................................
	........................................................................................................................32.2 Transferred from surplus (Stock Dividend)		...................................	...................................
	.......................................................................................................................................................32.3 Transferred to surplus		...................................	...................................
33.	Surplus adjustments:
	................................................................................................................................................................................33.1 Paid in			...................................	...................................
	.............................................................................................................................33.2 Transferred to capital (Stock Dividend)		...................................	...................................
	....................................................................................................................................................33.3 Transferred from capital		...................................	...................................
34.	.................................................................................................................................Net remittances from or (to) Home Office		...................................	...................................
35.	.........................................................................................................................................................Dividends to stockholders		...................................	...................................
36.	..............................................................Change in treasury stock (Page 3, Lines 36.1 and 36.2, Column 2 minus Column 1)	...................................	...................................
37.	..................................................................................................................Aggregate write-ins for gains and losses in surplus
38.	.......................................................................Change in surplus as regards policyholders for the year (Lines 22 through 37)	(775,749,594)	(1,637,005,698)
39.	Surplus as regards policyholders, December 31 current year (Line 21 plus Line 38) (Page 3, Line 37)	9,332,320,411	10,108,070,005
	DETAILS OF WRITE-INS
0501.	.................................................................................................................................................................LAD Program Expense		................... 3,365,323	...................2,211,411
0502		....................................
0503		....................................
0598.	................................................................................................Summary of remaining write-ins for Line 5 from overflow page		...................................	...................................
0599.	Totals (Lines 0501 thru 0503 plus 0598)(Line 5 above)			3,365,323	2,211,411
1401.	Miscellaneous Income (Loss) - Reinsurance		447,172	(107,535)
1402.	........................................................................................................................................................................................Miscellaneous Income		19,939	........................ 21,804
1403.	..........................................................................................................................................................State Fines & Penalties		.......................(29,863)	...................... (19,246)
1498.	..............................................................................................Summary of remaining write-ins for Line 14 from overflow page		...................................	...................................
1499.	Totals (Lines 1401 thru 1403 plus 1498)(Line 14 above)			437,248	(104,977)
3701		....................................

3702. ........................................................................................................................................................................................................................................ ....................................

3703. ........................................................................................................................................................................................................................................ ....................................

3798. Summary of remaining write-ins for Line 37 from overflow page .............................................................................................. ................................... ...................................

3799. Totals (Lines 3701 thru 3703 plus 3798)(Line 37 above)

4

ANNUAL STATEMENT FOR THE YEAR 2023 OF THE ERIE INSURANCE EXCHANGE

CASH FLOW

Cash from Operations

1

Current Year

2

Prior Year

1.	Premiums collected net of reinsurance	............ 9,253,354,878	............ 8,061,052,472
2.	Net investment income	................703,290,950	................639,585,375
3.	Miscellaneous income	(36,718,561)	(35,885,481)
4.	Total (Lines 1 through 3)	9,919,927,267	8,664,752,366
5.	Benefit and loss related payments	............ 6,694,710,091	............ 5,380,829,918
6.	.......................................................Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts	...................................	...................................
7.	Commissions, expenses paid and aggregate write-ins for deductions	............ 3,291,961,098	............2,920,590,569
8.	Dividends paid to policyholders	................... 6,740,213	................... 7,572,104
9.	Federal and foreign income taxes paid (recovered) net of $	tax on capital gains (losses)	(140,129,462)	25,731,624
10.	Total (Lines 5 through 9)	9,853,281,940	8,334,724,216
11.	Net cash from operations (Line 4 minus Line 10)	66,645,328	330,028,150

Cash from Investments

12. Proceeds from investments sold, matured or repaid:

	12.1	Bonds	3,909,196,991	4,479,305,094
	12.2	Stocks	2,119,877,594	2,138,120,131
	12.3	Mortgage loans	...................................		...................................
	12.4	Real estate	...................................		...................................
	12.5	Other invested assets	99,593,255	211,623,813
	12.6	Net gains or (losses) on cash, cash equivalents and short-term investments	5,626	........................ (1,056)
	12.7	Miscellaneous proceeds	200,999,421		126,193,903
	12.8 Total investment proceeds (Lines 12.1 to 12.7)	............ 6,329,672,887		............6,955,241,885
13.	Cost of investments acquired (long-term only):
	13.1	Bonds	............ 3,790,595,935		............ 4,719,574,625
	13.2	Stocks	............ 1,618,130,053		............ 1,924,203,453
	13.3	Mortgage loans	...................................		...................................
	13.4	Real estate	...................... (12,581)		.......................647,937
	13.5	Other invested assets	................620,812,907		................708,878,952
	13.6	Miscellaneous applications	40,602,431		5,740,536
	13.7	Total investments acquired (Lines 13.1 to 13.6)	6,070,128,744		7,359,045,503
14.	.................................................................................................Net increase/(decrease) in contract loans and premium notes
15.	Net cash from investments (Line 12.8 minus Line 13.7 minus Line 14)	259,544,142		(403,803,618)
		Cash from Financing and Miscellaneous Sources
16.	Cash provided (applied):
	16.1	Surplus notes, capital notes	...................................		...................................
	16.2 Capital and paid in surplus, less treasury stock	...................................		...................................
	.................................................................................................................................................................16.3 Borrowed funds	................. (1,507,990)		..............(250,038,658)
	..............................................................................16.4 Net deposits on deposit-type contracts and other insurance liabilities	...................................		...................................
	.................................................................................................................................................16.5 Dividends to stockholders	...................................		...................................
	...........................................................................................................................................16.6 Other cash provided (applied)	(212,635,737)		(80,310,187)
17.	Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6)	(214,143,727)		(330,348,845)
		RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
........................................18. Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17)	112,045,743		(404,124,312)
19.	Cash, cash equivalents and short-term investments:
	...............................................................................................................................................................19.1 Beginning of year	................353,184,201		................757,308,513
	19.2 End of period (Line 18 plus Line 19.1)	465,229,944		353,184,201
Note: Supplemental disclosures of cash flow information for non-cash transactions:
20.0001. Dividends received as common stock	................... 3,053,337	...................................
20.0002. Transfer of investments from bonds to common stock	...................... 283,848	...................................
..........................................................................................20.0003. Transfer of investments from other invested assets to bonds	...................................	...................2,131,954

5