Dear Shareholders: Working our plan 2010 financial highlights A shared vision and supporting strategic plan are critical elements to ERIE’s success. It’s  superior execution, however, that leads to the creation of shareholder value. This is where  we excel today, and it’s an attribute we’re building on to ensure the high performance of  both the Exchange and Indemnity. The success of Erie Indemnity Company depends on the success of the Erie Insurance  Exchange, the reciprocal insurer we manage. They have a symbiotic relationship. One  cannot stand strong without the other. Therefore, it’s important to discuss the health of the  Exchange to lend greater transparency to the business operations and  fi nancial results of  Erie Indemnity. Last year, I shared our enterprise strategy with you and outlined the  fi ve goals we’re striving  toward: I’m pleased to tell you that we’ve made good progress toward each. I credit this to four things— clear direction, strong leadership, a high-level of Employee competency and solid execution. 1. Grow market share 2. Outperform the industry’s combined ratio 3. Improve our service delivery in a cost-effective manner 4. Improve Employee and Agent competencies 5. Maintain strong balance sheets across the enterprise Erie Indemnity Company Erie Insurance Exchange 2010 A.M. Best Ratings: Property & Casualty Group A+ (Superior) Erie Family Life A (Excellent) Book Value/Share $15.74 $16.24 $13.79 Total Shareholder Return 8% 73% (24)% 2010 2009 2008 2010 2009 2008 Return on Equity 17.9% 12.8% 7.5% Direct Written Premium (Dollarsinbillions) $4.0 2010 2009 2008 $3.8 $3.9 2010 2009 2008 Statutory Combined Ratio 99.0 93.3 96.9 Operating Income/Share $2.88 $1.91 $2.46 2010 2009 2008 2