2012 FINANCIAL HIGHLIGHTS ERIE INSURANCE EXCHANGE ERIE INDEMNITY COMPANY * For a defi nition of the non-GAAP fi nancial measure, operating income, and a reconciliation to the most directly comparable GAAP fi nancial  measure, net income, please see Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form  10-K or our quarterly earnings news release, both of which are available on the Investors page of our website at  www.erieinsurance.com . In December 2012, our Board of Directors approved a 7.2 percent increase for the regular quarterly cash dividends – from $0.5525 to $0.5925 on each Class A share and from $82.875 to $88.875 on each  Class B share. The health of the Exchange is essential to Indemnity’s success. Once again, the Exchange maintained a  strong balance sheet, with 9 percent growth in Policyholder surplus – this, despite a year with higher than  normal catastrophes that resulted in a 103.8 statutory combined ratio for the Exchange. In recognition of our continued strong financial performance and management effectiveness, we were  again named one of the Ward Group’s Top 50 Performing Insurance Companies out of 3,000 property/ casualty insurers – for the fifth consecutive year. Additionally, Erie Insurance Exchange and its property  and casualty subsidiaries retained A.M. Best’s A+ Superior rating in 2012. This rating is earned by only  9 percent of all insurance groups rated by A.M. Best. Similarly, Erie Family Life retained its A.M. Best  rating of A Excellent. 3 Return on Equity Statutory Combined Ratio Operating income per Class A share - diluted* (dollars in billions) $ 4.6 2012 2011 2010 $ 4.0 $ 4.3 Direct Written Premium 2012 2011 2010 22.5% 20.0% 17.9% 2012 2011 2010 103.8 99.0 108.0 $ 2.92 $ 3.04 $ 2.88 2012 2011 2010 2012 A.M. Best Ratings: Property & Casualty Group A+ (Superior) Erie Family Life A (Excellent) 2012 2011 2010 Total Shareholder Return 73% Book Value/Share $ 16.24 23% $ 14.48 -5% $ 12.11