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Erie Indemnity Reports Second Quarter 2020 Results

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Net Income per Diluted Share was $1.57 for the Quarter and $2.70 for the First Half of 2020

Erie, Pa. - July 30, 2020 - Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and six months ending June 30, 2020. Net income was $82.0 million, or $1.57 per diluted share, in the second quarter of 2020,compared to $87.8 million, or $1.68 per diluted share, in the second quarter of 2019. Net income was $141.3 million, or $2.70 per diluted share, in the first six months of 2020, compared to $163.1 million, or $3.12 per dilutedshare, in the first six months of 2019.

The significant disruption to the economy and financial markets resulting from the COVID-19 pandemic that began in the first quarter of 2020 continues to evolve and the pandemic's ultimate impact and duration remain highly uncertainat this time. The Exchange experienced declines in new business in the second quarter of 2020 due to business disruptions and recessionary conditions which impacted our management fee revenue. The financial markets partiallyrecovered in the second quarter of 2020, improving our investment results compared the first quarter of 2020.

2Q 2020

(in thousands)

2Q'20

2Q'19

Operating income$91,189$96,610
Investment income11,5539,652
Interest expense and other income, net260224
Income before income taxes102,482106,038
Income tax expense20,50518,284
Net income$81,977$87,754

First Half 2020

(in thousands)

1H'20

1H'19

Operating income$176,880$182,732
Investment income2,35819,447
Interest expense and other income, net629626
Income before income taxes178,609201,553
Income tax expense37,30638,488
Net income$141,303$163,065

2Q 2020 Highlights

Operating income before taxes decreased $5.4 million, or 5.6 percent, in the second quarter of 2020 compared to the second quarter of 2019.

Income from investments before taxes totaled $11.6 million in the second quarter of 2020 compared to $9.7 million in the second quarter of 2019. Net realized gains on investments were $6.5 million in the second quarter of 2020compared to $1.3 million in the second quarter of 2019 reflecting a partial financial market recovery. Net investment income was $7.4 million in the second quarter of 2020 compared to $8.0 million in the second quarter of2019. Losses from limited partnerships were $2.3 million in the second quarter of 2020 compared to earnings of $0.4 million in the second quarter of 2019.

First Half 2020 Highlights

Income from investments before taxes totaled $2.4 million in the first six months of 2020 compared to of $19.4 million in the first six months of 2019. Net investment income was $15.7 million in the first six months of 2020compared to $16.5 million in the first six months of 2019. Net realized losses were $4.3 million in the first six months of 2020 compared to net realized gains of $3.8 million in the first six months of 2019 driven by decreases inthe fair value of equity securities due to significant financial market volatility resulting from the COVID-19 pandemic. Net impairment losses of $3.1 million in the first six months of 2020 were also driven by the COVID-19pandemic's impact on the financial markets. Losses from limited partnerships were $6.0 million in the first six months of 2020 compared to losses of $0.7 million in the first six months of 2019.

Webcast Information

Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on July 31, 2020. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.

Erie Insurance Group

According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 11th largest homeowners insurer and 12th largest automobile insurer in the UnitedStates based on direct premiums written and the 16th largest property/casualty insurer in the United States based on total lines net premium written. The Group, rated A+ (Superior) by A.M.Best Company, has nearly 6 million policies in force and operates in 12 states and the District of Columbia. Erie Insurance Group is a FORTUNE 500 company.