In 2012, ERIE was once again listed among the Customer Service Champions recognized by J.D. Power  and Associates. The study places ERIE among the top 50 service brands across all industries – alongside  companies like Apple, Southwest Airlines and Amazon. Our service philosophy extends into the communities where we do business. ERIE Employees and Agents  consistently lend their time, talent and financial support to numerous charitable organizations and causes.  These community outreach efforts inspire our people and further strengthen ERIE’s brand reputation. Our service excellence and community engagement doesn’t exist without the people who deliver it day after  day. That’s why we strive to be an employer of choice. We work to attract, recruit and retain top talent, who  share our dedication to great service. This strategy is producing high-performing teams who are intellectually engaged and accountable for results.  It’s also shaping an environment in which people are encouraged to try new things, build new capabilities and  broaden their perspectives. This creates greater diversity in thinking and experience, and an improved ability to  collaborate across the organization – all critical to ERIE’s short- and long-term success. At ERIE, we have a deep respect for our past. It’s the foundation from which we operate  today and build for tomorrow. The pillars of our success – Protection, Agents, Service,  and our People – continue to frame our approach to shaping our business. This allows  us – as it did H.O. Hirt – to adapt to a changing marketplace, forge strong relationships,  and take a long-term view of ERIE’s success. Every day, we are working to preserve the trust and confidence and inspire the loyalty  of our Agents, Employees, and our Customers. We have a solid business model. We offer great value for  Customers. And we’re investing in, and leveraging, the intellectual capability and commitment of the ERIE team. Our efforts and results – over a single year and the span of nearly nine decades – are making a difference by  building long-term value for our Customers, Agents, Employees, Communities and for you, our Shareholder. Thank you for your continued confidence and support. Terrence W. Cavanaugh President and Chief Executive Officer 5 PEOPLE BUILDING OUR FUTURE