PILLARS OF OUR SUCCESS ERIE’s success in 2012 reflects the same principles H.O. Hirt and co-founder O.G. Crawford used to shape ERIE’s business model in 1925. They saw the long-term  potential of their entrepreneurial mission: “To provide our Policyholders with as near  perfect protection, as near perfect service as is humanly possible, and to do so at the  lowest possible cost.” They also saw the value of the personal service delivered by trusted  independent agents with the backing of ERIE’s dedicated work force. The pillars of our longstanding success are reflected in their vision: Protection, Agents, Service, and our  People. In 2012, we focused our strategic initiatives around each of those areas with a keen eye on three  critical characteristics – ease of doing business, service excellence, and innovation. Likewise, in our processes and systems, we’re working to continuously improve in ways that resonate with  Agents and Customers. In 2012, for example, we launched a web-based personal lines platform and new  quoting system, an e-application capability for our life portfolio, and a new marketing platform for Agents. As ERIE’s representatives, our Agents are integral to our success. Our Agents are real people in real  places – insurance advisors who provide value-added expertise and insights to help people make the right  insurance decisions. We now have 2,165 agencies throughout our geographic footprint, with more than 10,000 licensed  Agents. Through sales and marketing, business planning and training initiatives, we continue to support  the growth, development and success of our ERIE agencies. Last year, our efforts led to ERIE receiving the Best Practices in Excellence award from the Independent  Insurance Agents and Brokers of America. This recognition reflects the strong relationship we have with  our Agents and the values we share. ERIE’s keystone value is our commitment to be Above all in SERVICE. SM  It’s embodied by our Agents  and our Employees at every level of the organization. Importantly, it’s also a key differentiator in the  marketplace. We don’t believe insurance is a commodity. Rather, we strive to exceed service standards  in all aspects of our business – from our customer call centers, to our claims response, to the day-to-day  interactions with our Agents and Customers. SERVICE AGENTS PROTECTION Insurance needs today are far different than they were just 10 years ago. Our world is more complex, and  consumers are expecting more from insurers. We have to be both agile and innovative to remain relevant  and continue to grow market share. In each of our lines of business – personal, commercial and life – we  have a constant obligation to create products and services that are viable and valuable in the marketplace.  Our commitment to this is evidenced by the way we market, sell and price our products – from the  ongoing distribution of our innovative ERIE Rate Lock SM  auto insurance product to the rollout of our new  homeowners product, ErieSecure Home. SM 4