Organizational structure Erie Indemnity Company (Indemnity) is a publicly held Pennsylvania business corporation  that since 1925 has been the managing attorney-in-fact for the subscribers (policyholders)  at the Erie Insurance Exchange (Exchange). The Exchange is a subscriber–owned  Pennsylvania-domiciled reciprocal insurer that writes property and casualty insurance. Indemnity’s primary function is to perform certain services for the Exchange relating to  the sales, underwriting and issuance of policies on behalf of the Exchange. This is done  in accordance with a subscriber’s agreement (a limited power of attorney) executed by  each subscriber (policyholder), appointing Indemnity as their common attorney-in-fact to  transact business on their behalf and to manage the affairs of the Exchange. Indemnity also operated as a property and casualty insurer through its three wholly  owned subsidiaries, Erie Insurance Company (EIC), Erie Insurance Company of New York  (ENY) and Erie Insurance Property and Casualty Company (EPC). EIC, ENY and EPC,  together with the Exchange and its wholly owned subsidiary, Flagship City Insurance  Company (Flagship), are collectively referred to as the “Property and Casualty Group.” On December 31, 2010, Indemnity sold all of the outstanding capital stock of its three  wholly owned subsidiaries to the Exchange. Under this new structure, all property and  casualty insurance operations are now owned by the Exchange, and Indemnity continues  to function as the management company. Erie Family Life Insurance Company (EFL) is an affiliated life insurance company that  underwrites and sells nonparticipating individual and group life insurance policies and  fixed annuities. Indemnity and the Exchange own 21.6 percent and 78.4 percent of EFL,  respectively. On November 4, 2010, Indemnity entered into a definitive agreement for the sale  of its 21.6 percent minority ownership interest in EFL to the Exchange, which is scheduled to  close by March 31, 2011. Upon the closing date, the Exchange will own 100 percent of the  life insurance operations. Indemnity, the Exchange, and its subsidiaries and affiliates, operate collectively as the  “Erie Insurance Group” (The ERIE ® ). Erie Insurance Group Organizational Chart (Effective December 31, 2010) Denotes ownership (wholly owned unless otherwise noted) Denotes attorney-in-fact relationship to reciprocal exchange 1 Management Operation Property/Casualty Insurance Life Insurance 21.6% Ownership 78.4%  Ownership Erie Indemnity Company Erie Insurance Company Erie Insurance Exchange (A Reciprocal Exchange) Erie Family Life Insurance Company Erie Insurance Company of New York Erie Insurance Property & Casualty Company Flagship City Insurance Company