ERIE INDEMNITY CO

General Erie Indemnity Company is a publicly held Pennsylvania business corporation that serves as the attorney-in-fact for policyholders at the Erie Insurance Exchange. The Exchange, which began operations in 1925, is a Pennsylvania-based reciprocal insurer offering property and casualty insurance. The Exchange owns several property and casualty insurance subsidiaries, including Erie Insurance Company, Erie Insurance Company of New York, Erie Insurance Property & Casualty Company, and Flagship City Insurance Company, as well as a life insurance company, Erie Family Life Insurance Company. General Erie Indemnity Company's main role is to issue and renew policies for Exchange policyholders. It also handles all claims and investment management services for the Exchange and provides these services for the Exchange's insurance subsidiaries. These combined activities are referred to as "administrative services." For acting as attorney-in-fact, General Erie Indemnity Company receives a management fee, calculated as a percentage, not exceeding 25%, of the direct and affiliated assumed premiums written by the Exchange. This fee rate is determined at least annually by the Board of Directors, considering factors such as operating results, financial strength, capital position, projected revenue, expenses, earnings, future capital needs, and competitive position for both General Erie Indemnity Company and the Exchange. The company operates under a single reportable segment: management operations.