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Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2016	Feb. 17, 2017	Jun. 30, 2016
Entity Registrant Name	ERIE INDEMNITY CO
Entity Central Index Key	0000922621
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2.4
Class A
Entity Common Stock, Shares Outstanding		46,189,068
Class B
Entity Common Stock, Shares Outstanding		2,542

STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating revenue
Management fee revenue, net	$ 1,567,431	$ 1,475,511	$ 1,376,190
Service agreement revenue	29,200	29,997	30,929
Total operating revenue	1,596,631	1,505,508	1,407,119
Operating expenses
Commissions	893,800	847,880	783,017
Salaries and employee benefits	213,356	226,713	206,690
All other operating expenses	197,111	198,374	194,565
Total operating expenses	1,304,267	1,272,967	1,184,272
Net revenue from operations	292,364	232,541	222,847
Investment income
Net investment income	20,547	17,791	16,536
Net realized investment gains	672	492	1,057
Net impairment losses recognized in earnings	(416)	(1,558)	(105)
Equity in earnings of limited partnerships	7,025	16,983	10,929
Total investment income	27,828	33,708	28,417
Interest expense, net	101
Income before income taxes	320,091	266,249	251,264
Income tax expense	109,725	91,571	83,759
Net income	$ 210,366	$ 174,678	$ 167,505
Class A
Net income per share
Common stock - basic (in dollars per share)	$ 4.52	$ 3.75	$ 3.59
Common stock - diluted (in dollars per share)	$ 4.01	$ 3.33	$ 3.18
Weighted average shares outstanding – Basic
Common stock - basic (in shares)	46,188,952	46,186,671	46,247,876
Weighted average shares outstanding – Diluted
Common stock - diluted (in shares)	52,435,303	52,498,811	52,616,234
Class B
Net income per share
Common stock - basic (in dollars per share)	$ 678	$ 563	$ 539
Common stock - diluted (in dollars per share)	$ 677	$ 562	$ 538
Weighted average shares outstanding – Basic
Common stock - basic (in shares)	2,542	2,542	2,542
Weighted average shares outstanding – Diluted
Common stock - diluted (in shares)	2,542	2,542	2,542

STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 210,366	$ 174,678	$ 167,505
Other comprehensive (loss) income, net of tax
Change in unrealized holding gains (losses) on available-for-sale securities	43	(4,280)	823
Pension and other postretirement plans	(24,560)	25,117	(59,425)
Total other comprehensive (loss) income, net of tax	(24,517)	20,837	(58,602)
Comprehensive income	$ 185,849	$ 195,515	$ 108,903

STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 189,072	$ 182,889
Available-for-sale securities	56,138	62,067
Receivables from Erie Insurance Exchange and affiliates	378,540	348,055
Prepaid expenses and other current assets	30,169	24,697
Federal income taxes recoverable	5,260	11,947
Accrued investment income	6,337	5,491
Total current assets	665,516	635,146
Available-for-sale securities	657,153	537,874
Limited partnership investments	58,159	88,535
Fixed assets, net	69,142	59,087
Deferred income taxes, net	53,889	40,686
Note receivable from Erie Family Life Insurance Company	25,000	25,000
Other assets	20,096	20,968
Total assets	1,548,955	1,407,296
Current liabilities:
Commissions payable	210,559	195,542
Agent bonuses	114,772	106,752
Accounts payable and accrued liabilities	88,153	88,532
Dividends payable	36,441	33,996
Deferred executive compensation	19,675	20,877
Total current liabilities	469,600	445,699
Defined benefit pension plans	221,827	172,700
Employee benefit obligations	756	1,234
Deferred executive compensation	13,233	16,580
Long-term borrowings	24,766
Other long-term liabilities	1,863	1,580
Total liabilities	732,045	637,793
Shareholders’ equity
Additional paid-in-capital	16,300	16,311
Accumulated other comprehensive loss	(121,381)	(96,864)
Retained earnings	2,065,911	1,993,976
Total contributed capital and retained earnings	1,963,000	1,915,593
Treasury stock, at cost; 22,110,132 shares held	(1,155,846)	(1,155,108)
Deferred compensation	9,756	9,018
Total shareholders’ equity	816,910	769,503
Total liabilities and shareholders’ equity	1,548,955	1,407,296
Class A
Shareholders’ equity
Common stock	1,992	1,992
Class B
Shareholders’ equity
Common stock	$ 178	$ 178

STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Treasury stock (in shares)	22,110,132	22,110,132
Class A
Common stock, stated value per share (in dollars per share)	$ 0.0292	$ 0.0292
Common stock, authorized (in shares)	74,996,930	74,996,930
Common stock, issued (in shares)	68,299,200	68,299,200
Common stock, outstanding (in shares)	46,189,068	46,189,068
Class B
Common stock, stated value per share (in dollars per share)	$ 70	$ 70
Common stock, authorized (in shares)	3,070	3,070
Common stock, issued (in shares)	2,542	2,542
Common stock, outstanding (in shares)	2,542	2,542
Ratio for converting shares of Class B common stock into shares of Class A common stock (as a percent)	2400.00%	2400.00%

STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Class A	Class B	Common stock Class A	Common stock Class B	Additional paid-in-capital	Accumulated other comprehensive income (loss)	Retained earnings	Retained earnings Class A	Retained earnings Class B	Treasury stock	Deferred compensation
Balance, end of year at Dec. 31, 2013	$ 733,981			$ 1,992	$ 178	$ 16,365	$ (59,099)	$ 1,901,428			$ (1,126,883)
Increase (decrease) in shareholders' equity
Net income	167,505							167,505
Other comprehensive (loss) income	(58,602)						(58,602)
Dividends declared		$ (119,509)	$ (986)						$ (119,509)	$ (986)
Net purchase of treasury stock	(19,255)					(48)					(19,207)
Balance, end of year at Dec. 31, 2014	703,134			1,992	178	16,317	(117,701)	1,948,438			(1,146,090)
Increase (decrease) in shareholders' equity
Net income	174,678							174,678
Other comprehensive (loss) income	20,837						20,837
Dividends declared		(128,082)	(1,058)						(128,082)	(1,058)
Net purchase of treasury stock	(6)					(6)					0
Deferred compensation	0										(9,018)	$ 9,018
Balance, end of year at Dec. 31, 2015	769,503			1,992	178	16,311	(96,864)	1,993,976			(1,155,108)	9,018
Increase (decrease) in shareholders' equity
Net income	210,366							210,366
Other comprehensive (loss) income	(24,517)						(24,517)
Dividends declared		$ (137,297)	$ (1,134)						$ (137,297)	$ (1,134)
Net purchase of treasury stock	(11)					(11)					0
Deferred compensation	0										(738)	738
Balance, end of year at Dec. 31, 2016	$ 816,910			$ 1,992	$ 178	$ 16,300	$ (121,381)	$ 2,065,911			$ (1,155,846)	$ 9,756

STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Class A
Dividends declared (in dollars per share)	$ 2.9725	$ 2.773	$ 2.586
Class B
Dividends declared (in dollars per share)	$ 445.875	$ 415.95	$ 387.90

STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities
Management fee received	$ 1,536,699	$ 1,454,902	$ 1,348,885
Service agreement fee received	29,200	29,997	30,929
Net investment income received	26,796	25,999	22,846
Limited partnership distributions	17,837	14,112	15,327
Increase (decrease) in reimbursements collected from affiliates	247	7,775	(7,472)
Commissions paid to agents	(756,713)	(725,714)	(665,154)
Agents bonuses paid	(113,859)	(96,749)	(83,436)
Salaries and wages paid	(160,985)	(155,303)	(153,459)
Pension contribution and employee benefits paid	(44,250)	(40,993)	(48,516)
General operating expenses paid	(176,029)	(190,301)	(178,452)
Income taxes paid	(104,607)	(106,347)	(95,485)
Net cash provided by operating activities	254,336	217,378	186,013
Purchase of investments:
Available-for-sale securities	(369,811)	(228,308)	(250,789)
Limited partnerships	(578)	(928)	(1,123)
Proceeds from investments:
Available-for-sale securities sales	89,498	102,286	116,401
Available-for-sale securities maturities/calls	146,285	112,705	119,679
Trading securities	5,171	0	0
Limited partnerships	16,113	26,735	28,613
Net purchase of fixed assets	(25,208)	(12,556)	(19,473)
Net collections on agent loans	1,586	688	1,595
Net cash (used in) provided by investing activities	(136,944)	622	(5,097)
Cash flows from financing activities
Purchase of treasury stock	0	0	(19,692)
Dividends paid to shareholders	(135,985)	(126,858)	(118,526)
Net proceeds from long-term borrowings	24,776
Net cash used in financing activities	(111,209)	(126,858)	(138,218)
Net increase in cash and cash equivalents	6,183	91,142	42,698
Cash and cash equivalents, beginning of year	182,889	91,747	49,049
Cash and cash equivalents, end of year	189,072	$ 182,889	$ 91,747
Supplemental disclosure of noncash transactions
Transfer of investments from limited partnerships to trading securities	$ 4,464

Nature of Operations	12 Months Ended
Nature of Operations	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	Note 1. Nature of Operations Erie Indemnity Company ("Indemnity", "we", "us", "our") is a publicly held Pennsylvania business corporation that has since its incorporation in 1925 served as the attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange ("Exchange"). The Exchange, which also commenced business in 1925, is a Pennsylvania-domiciled reciprocal insurer that writes property and casualty insurance. We function solely as the management company and all insurance operations are performed by the Exchange. Our primary function, as attorney-in-fact, 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 individually by each subscriber (policyholder), which appoints us as their common attorney-in-fact to transact certain business on their behalf and to manage the affairs of the Exchange. Pursuant to the subscriber’s agreement and for its services as attorney-in-fact, we earn a management fee calculated as a percentage of the direct and assumed premiums written by the Exchange. The services we provide to the Exchange are related to the sales, underwriting and issuance of policies. The sales related services we provide include agent compensation and certain sales and advertising support services. Agent compensation includes scheduled commissions to agents based upon premiums written as well as additional commissions and bonuses to agents, which are earned by achieving targeted measures. Agent compensation comprised approximately 69% of our 2016 expenses. The underwriting services we provide include underwriting and policy processing and comprised approximately 10% of our 2016 expenses. The remaining services we provide include customer service and administrative support. We also provide information technology services that support all the functions listed above that comprised approximately 9% of our 2016 expenses. By virtue of its legal structure as a reciprocal insurer, the Exchange does not have the ability to enter into contractual relationships and therefore Indemnity serves as the attorney-in-fact on behalf of the Exchange for all claims handling services, investment management services, and certain other common overhead and service department functions in accordance with the subscriber’s agreement. The amounts Indemnity incurs on behalf of the Exchange in this capacity are reimbursed to Indemnity from the Exchange at cost. See Note 13, "Related Party" contained within this report. Our results of operations are tied to the growth and financial condition of the Exchange. If any events occurred that impaired the Exchange’s ability to grow or sustain its financial condition, including but not limited to reduced financial strength ratings, disruption in the independent agency relationships, significant catastrophe losses, or products not meeting customer demands, the Exchange could find it more difficult to retain its existing business and attract new business. A decline in the business of the Exchange almost certainly would have as a consequence a decline in the total premiums paid and a correspondingly adverse effect on the amount of the management fees we receive. We also have an exposure to a concentration of credit risk related to the unsecured receivables due from the Exchange for its management fee. See Note 14, "Concentrations of Credit Risk" contained within this report.

Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Significant Accounting Policies

Note 2. Significant Accounting Policies

Basis of presentation

The accompanying financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP").

Use of estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recently adopted accounting standards

In February 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-02, "Consolidation", which changed the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance changed the conditions to be met in determining if a reporting entity has a variable interest in a legal entity. In accordance with the new accounting guidance, Indemnity is not deemed to have a variable interest in the Exchange as the fees paid for services provided to the Exchange no longer represent a variable interest. The compensation received from the attorney-in-fact fee arrangement with the subscribers is for services provided by Indemnity acting in its role as attorney-in-fact and is commensurate with the level of effort required to perform those services. Under the previously issued accounting guidance, Indemnity was deemed to be the primary beneficiary of the Exchange and its financial position and operating results were consolidated with Indemnity. Following adoption of the new accounting guidance, the Exchange’s results are no longer required to be consolidated with Indemnity.

Indemnity adopted the new accounting standard on a retrospective basis effective with the annual reporting period ending December 31, 2015. The 2014 financial information within this report has been conformed to the presentation in accordance with the amended guidance. The effects on the financial statements of no longer consolidating the Exchange include:


•	Indemnity's management fee revenues are included on the face of the Statements of Operations. The Noncontrolling Interest - Exchange revenues and expenses are no longer included in the Statements of Operations, Statements of Comprehensive Income or Statements of Cash Flows.


•	The assets and liabilities of the Noncontrolling Interest - Exchange are not included on the Statements of Financial Position. The assets and liabilities of Indemnity are presented on a classified basis, which distinguishes between current and noncurrent on the Statements of Financial Position.


•	There is no cumulative effect to Indemnity's shareholders’ equity. The noncontrolling interest in total equity that represented the amount of the Exchange’s subscribers’ equity was presented separately from Indemnity's shareholders’ equity.

In May 2015, the FASB issued ASU 2015-07, "Fair Value Measurement", which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient and limits the disclosure requirements. ASU 2015-07 is effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted. Our disclosure was prepared in accordance with this amended guidance.

In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes". ASU 2015-17 simplifies the presentation of deferred income taxes by requiring deferred tax assets and liabilities to be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for annual periods beginning after December 15, 2016 with early adoption permitted. We adopted the guidance on a retrospective basis effective December 31, 2015. Prior to December 31, 2015, we were not required to present a classified balance sheet that distinguished between current and noncurrent deferred taxes.

In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements-Going Concern", which requires management, each annual and interim reporting period, to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. This standard was effective beginning with the annual period ending after December 15, 2016. We adopted the guidance effective December 31, 2016. There was no impact to our financial statements as a result of adoption.

Recently issued accounting standards

In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows", which provides guidance on how certain cash receipts and cash payments are presented and classified to reduce diversity in practice. ASU 2016-15 is effective for interim and annual reporting periods beginning after December 31, 2017. Early adoption is permitted, including adoption in an interim period. We do not expect the adoption of this guidance to have a material impact on our financial statements.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses", which requires financial assets measured at amortized cost to be presented at the net amount expected to be collected through the use of a new forward-looking expected loss model and credit losses relating to available-for-sale debt securities to be recognized through an allowance for credit losses. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption for interim and annual periods beginning after December 15, 2018 is permitted. We are currently evaluating the potential impact of this guidance on our financial statements.

In February 2016, the FASB issued ASU 2016-02, "Leases", which requires lessees to recognize assets and liabilities arising from operating leases on the statement of financial position and to disclose key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted. We are currently evaluating the potential impact of this guidance on our financial statements.

In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall". ASU 2016-01 revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. We are currently evaluating the potential impact of this guidance on our financial statements.

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers". ASU 2014-09 requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period with early application permitted beginning in the first interim period in 2017. We expect to adopt the ASU 2014-09 as of January 1, 2018 under the modified retrospective method where the cumulative effect is recognized at the date of initial application. Our evaluation of ASU 2014-09 is ongoing and not complete. The FASB has issued, and may issue in the future, interpretative guidance which may cause our evaluation to change. Based on the current guidance, we performed an analysis in accordance with the steps identified in the guidance around the recognition, measurement, and presentation of our two operating revenue streams; management fee revenue and service fee revenue. As a result of this analysis, we concluded that adoption of this guidance will not have a material impact on our revenue recognition patterns or our financial statements.

Cash and cash equivalents – Cash, money market accounts and other short-term, highly liquid investments with a maturity of three months or less at the date of purchase, are considered cash and cash equivalents.

Investments

Available-for-sale securities – Fixed maturity, preferred stock, and common stock securities classified as available-for-sale are reported at fair value. Available-for-sale securities with a remaining maturity of 12 months or less are reported as current assets on the Statements of Financial Position. Unrealized holding gains and losses, net of related tax effects, on available-for-sale securities are recorded directly to shareholders’ equity as accumulated other comprehensive income (loss).

Common stock securities classified as available-for-sale represent certain exchange traded funds with underlying holdings of fixed maturity securities.

Realized gains and losses on sales of available-for-sale securities are recognized in income based upon the specific identification method. Interest and dividend income are recognized as earned.

Available-for-sale securities are evaluated monthly for other-than-temporary impairment loss.

For fixed income and redeemable preferred stock (debt securities) that have experienced a decline in fair value and that we intend to sell, or for which it is more likely than not we will be required to sell the security before recovery of its amortized cost, an other-than-temporary impairment is deemed to have occurred, and is recognized in earnings.

Debt securities that have experienced a decline in fair value and that we do not intend to sell, and that we will not be required to sell before recovery, are evaluated to determine if the decline in fair value is other-than-temporary.

Some factors considered in this evaluation include:


•	the extent and duration to which fair value is less than cost;


•	historical operating performance and financial condition of the issuer;


•	short and long-term prospects of the issuer and its industry based upon analysts’ recommendations;


•	specific events that occurred affecting the issuer, including a ratings downgrade;


•	near term liquidity position of the issuer; and


•	compliance with financial covenants.

If a decline is deemed to be other-than-temporary, an assessment is made to determine the amount of the total impairment related to a credit loss and that related to all other factors. Consideration is given to all available information relevant to the collectability of the security in this determination. If the entire amortized cost basis of the security will not be recovered, a credit loss exists. Currently, we have the intent to sell all of our securities that have been determined to have a credit-related impairment. As a result, the entire amount of any impairment would be recognized in earnings. If we had securities with credit impairments that we did not intend to sell, the non-credit portion of the impairment would be recorded in other comprehensive income.

For equity securities in an unrealized loss position where fair value is not expected to recover to our cost basis in a reasonable time period, or where we do not expect to hold the security for a period of time sufficient to allow for a recovery to our cost basis, an other-than-temporary impairment is deemed to have occurred, and is recognized in earnings.

Trading securities – Common stock securities classified as trading securities are reported at fair value. Unrealized holding gains and losses on trading securities are included in net realized gains (losses) in the Statements of Operations. Realized gains and losses on sales of trading securities are recognized in income based upon the specific identification method. Dividend income is recognized as of the ex-dividend date.

Limited partnerships – Limited partnerships include U.S. and foreign private equity, mezzanine debt, and real estate investments. The majority of our limited partnership holdings are considered investment companies and are recorded using the equity method of accounting. For these limited partnerships the general partners record assets at fair value, including any other-than-temporary impairments of these individual investments. Our ownership interest in partnerships accounted for under the equity method is generally less than 10%, and does not provide us the ability to significantly influence the operations of the partnerships. However, we believe the equity method most appropriately reflects the value of our economic interest in these investments. We also own certain real estate limited partnerships that do not meet the criteria of an investment company. These partnerships prepare audited financial statements on a cost basis. We have elected to report these limited partnerships under the fair value option, which is based on the net asset value (NAV) from our partner’s capital statement reflecting the general partner’s estimate of fair value for the fund’s underlying assets. Limited partnerships reported under the fair value option are disclosed in Note 4, "Fair Value" as other investments. Fair value provides consistency in the evaluation and financial reporting for these limited partnerships and limited partnerships accounted for under the equity method.

Because of the timing of the preparation and delivery of financial statements for limited partnership investments, the use of the most recently available financial statements provided by the general partners results in a quarter delay in the inclusion of the limited partnership results in our Statements of Operations. Due to this delay, these financial statements do not yet reflect the market conditions experienced in the fourth quarter of 2016 for all partnerships other than the real estate limited partnerships that are reported under the fair value option.

Nearly all of the underlying investments in our limited partnerships are valued using a source other than quoted prices in active markets. The fair value amounts for our private equity and mezzanine debt partnerships are based upon the financial statements of the general partners, who use multiple methods to estimate fair value including the market approach, income approach or the cost approach. The market approach uses prices and other pertinent information from market-generated transactions involving identical or comparable assets or liabilities. Such valuation techniques often use market multiples derived from a set of comparables. The income approach uses valuation techniques to convert future cash flows or earnings to a single discounted present value amount. The measurement is based upon the value indicated by current market expectations on those future amounts. The cost approach is derived from the amount that is currently required to replace the service capacity of an asset. If information becomes available that would impair the cost of investments owned by the partnerships, then the general partner would adjust to the net realizable value. For real estate limited partnerships, the general partners record these at fair value based upon an independent appraisal or internal estimates of fair value.

While we perform various procedures in review of the general partners’ valuations, we rely on the general partners’ financial statements as the best available information to record our share of the partnership unrealized gains and losses resulting from valuation changes. Due to the limited market for these investments, there is a greater potential for market price variability.

Unrealized gains and losses for these investments are reflected in equity in earnings (losses) of limited partnerships in our Statements of Operations in accordance with the equity method of accounting or the fair value option, as applicable. Cash contributions made to and distributions received from the partnerships are recorded in the period in which the transaction occurs.

Deferred taxes

Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and the reported amounts in the financial statements, using the statutory tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date under the law. The need for valuation allowances on deferred tax assets are estimated based upon our assessment of the realizability of such amounts.

Fixed assets

Fixed assets are stated at cost less accumulated depreciation and amortization. Fixed assets are primarily comprised of software, which includes internally used capitalized software and development costs, as well as equipment, buildings and building improvements, and leasehold improvements. Assets in use are depreciated using the straight-line method over the estimated useful life except for leasehold improvements, which are depreciated over the shorter of their economic useful life or the lease term. Software is depreciated over periods ranging from 3-7 years, equipment is depreciated over 3-10 years, and buildings and building improvements are depreciated over 20-45 years. We review long-lived assets for impairment whenever events or changes indicate that the carrying value may not be recoverable. Under these circumstances, if the fair value were less than the carrying amount of the asset, we would recognize a loss for the difference. We will capitalize applicable interest charges incurred during the construction period of long-term building projects as part of the historical cost of the asset.

Agent bonus estimates

Agent bonuses are based upon an individual agency’s property and casualty underwriting profitability and also include a component for growth in agency property and casualty premiums if the agency’s underwriting profitability targets for the book of business are met. The estimate for agent bonuses, which are based upon the performance over 36 months, is modeled on a monthly basis using actual underwriting results for the two prior years and current year-to-date actual results and forecasted results for the remainder of the year.

At December 31 of each year, we use actual data available and record an accrual based upon the expected payment amount. These costs are included in commissions expense in the Statements of Operations.

Recognition of management fee revenue

We earn management fees from the Exchange for providing certain sales, underwriting, and policy issuance services. Pursuant to the subscriber’s agreements with the policyholders at the Exchange, we may retain up to 25% of all direct and assumed premiums written by the Exchange. Management fee revenue is calculated by multiplying the management fee rate by the direct and assumed premiums written by the Exchange. The Exchange issues policies with annual terms only. Management fees are recorded as revenue upon policy issuance or renewal, as substantially all of the services required to be performed by us have been satisfied at that time. Certain activities are performed and related costs are incurred by us subsequent to policy issuance in connection with the services provided to the Exchange; however, these activities are inconsequential and perfunctory.

Recognition of service agreement revenue

Service agreement revenue consists of service charges we collect from policyholders for providing multiple payment plans on policies written by the Exchange. Service charges, which are flat dollar charges for each installment billed beyond the first installment, are recognized as revenue when bills are rendered to the policyholder. Service agreement revenue also includes late payment and policy reinstatement fees.

Earnings Per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Note 3. Earnings Per Share

Class A and Class B basic earnings per share and Class B diluted earnings per share are calculated under the two-class method. The two-class method allocates earnings to each class of stock based upon its dividend rights. Class B shares are convertible into Class A shares at a conversion ratio of 2,400 to 1. See Note 11, "Capital Stock".

Class A diluted earnings per share are calculated under the if-converted method, which reflects the conversion of Class B shares to Class A shares. Diluted earnings per share calculations include the dilutive effect of assumed issuance of stock-based awards under compensation plans that have the option to be paid in stock using the treasury stock method. See Note 9, "Incentive and Deferred Compensation Plans".

A reconciliation of the numerators and denominators used in the basic and diluted per-share computations is presented as follows for each class of common stock:



(dollars in thousands, except per share data)						For the years ended December 31,
	2016					2015					2014
	Allocated net income (numerator)		Weighted shares (denominator)	Per- share amount		Allocated net income (numerator)		Weighted shares (denominator)	Per- share amount		Allocated net income (numerator)		Weighted shares (denominator)	Per- share amount
Class A – Basic EPS:
Income available to Class A stockholders	$	208,644	46,188,952	$	4.52	$	173,248	46,186,671	$	3.75	$	166,134	46,247,876	$	3.59
Dilutive effect of stock-based awards	0		145,551	—		0		211,340	—		0		267,558	—
Assumed conversion of Class B shares	1,722		6,100,800	—		1,430		6,100,800	—		1,371		6,100,800	—
Class A – Diluted EPS:
Income available to Class A stockholders on Class A equivalent shares	$	210,366	52,435,303	$	4.01	$	174,678	52,498,811	$	3.33	$	167,505	52,616,234	$	3.18
Class B – Basic EPS:
Income available to Class B stockholders	$	1,722	2,542	$	678	$	1,430	2,542	$	563	$	1,371	2,542	$	539
Class B – Diluted EPS:
Income available to Class B stockholders	$	1,721	2,542	$	677	$	1,429	2,542	$	562	$	1,369	2,542	$	538

Fair Value

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value

Note 4. Fair Value

Our available-for-sale and trading securities are recorded at fair value, which is the price that would be received to sell the asset in an orderly transaction between willing market participants as of the measurement date.

Valuation techniques used to derive the fair value of our available-for-sale and trading securities are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources. Unobservable inputs reflect our own assumptions regarding fair market value for these securities. Although the majority of our prices are obtained from third-party sources, we also perform an internal pricing review for securities with low trading volumes under current market conditions. Financial instruments are categorized based upon the following characteristics or inputs to the valuation techniques:


•	Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.


•	Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.


•	Level 3 – Unobservable inputs for the asset or liability.

Estimates of fair values for our investment portfolio are obtained primarily from a nationally recognized pricing service. Our Level 1 category includes those securities valued using an exchange traded price provided by the pricing service. The methodologies used by the pricing service that support a Level 2 classification of a financial instrument include multiple verifiable, observable inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. Pricing service valuations for Level 3 securities are based upon proprietary models and are used when observable inputs are not available or in illiquid markets.

In limited circumstances we adjust the price received from the pricing service when, in our judgment, a better reflection of fair value is available based upon corroborating information and our knowledge and monitoring of market conditions such as a disparity in price of comparable securities and/or non-binding broker quotes. In other circumstances, certain securities are internally priced because prices are not provided by the pricing service.

We perform continuous reviews of the prices obtained from the pricing service. This includes evaluating the methodology and inputs used by the pricing service to ensure that we determine the proper classification level of the financial instrument. Price variances, including large periodic changes, are investigated and corroborated by market data. We have reviewed the pricing methodologies of our pricing service as well as other observable inputs, such as data, and transaction volumes and believe that the prices adequately consider market activity in determining fair value. Our review process continues to evolve based upon accounting guidance and requirements.

When a price from the pricing service is not available, values are determined by obtaining broker/dealer quotes and/or market comparables. When available, we obtain multiple quotes for the same security. The ultimate value for these securities is determined based upon our best estimate of fair value using corroborating market information. Our evaluation includes the consideration of benchmark yields, reported trades, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data.

For certain securities in an illiquid market, there may be no prices available from a pricing service and no comparable market quotes available. In these situations, we value the security using an internally-developed, risk-adjusted, discounted cash flow model.

The following tables present our fair value measurements on a recurring basis by asset class and level of input:



	At December 31, 2016
	Fair value measurements using:
(in thousands)	Total		Quoted prices in active markets for identical assets Level 1		Observable inputs Level 2		Unobservable inputs Level 3
Available-for-sale securities:
U.S. treasury	$	5,031	$	0	$	5,031	$	0
Government sponsored entities	2,026		0		2,026		0
States & political subdivisions	253,132		0		253,132		0
Corporate debt securities	322,948		0		313,596		9,352
Residential mortgage-backed securities	16,102		0		16,102		0
Commercial mortgage-backed securities	36,849		0		36,849		0
Collateralized debt obligations	69,253		0		69,253		0
Other debt securities	2,000		0		2,000		0
Total fixed maturities	707,341		0		697,989		9,352
Common stock	5,950		5,950		0		0
Total available-for-sale securities	713,291		5,950		697,989		9,352
Other investments ⁽¹⁾	4,412		—		—		—
Total	$	717,703	$	5,950	$	697,989	$	9,352



	At December 31, 2015
	Fair value measurements using:
(in thousands)	Total		Quoted prices in active markets for identical assets Level 1		Observable inputs Level 2		Unobservable inputs Level 3
Available-for-sale securities:
States & political subdivisions	$	231,847	$	0	$	231,847	$	0
Corporate debt securities	250,333		0		250,264		69
Residential mortgage-backed securities	13,513		0		13,513		0
Commercial mortgage-backed securities	37,571		0		37,571		0
Collateralized debt obligations	51,745		0		43,168		8,577
Other debt securities	2,200		0		2,200		0
Total fixed maturities	587,209		0		578,563		8,646
Common stock	12,732		12,732		0		0
Total available-for-sale securities	599,941		12,732		578,563		8,646
Other investments ⁽¹⁾	4,526		—		—		—
Total	$	604,467	$	12,732	$	578,563	$	8,646

(1) Other investments measured at fair value represent real estate funds included on the balance sheet as limited partnership investments that are reported under the fair value option using the net asset value practical expedient. These amounts are not required to be categorized in the fair value hierarchy. The investments can never be redeemed with the funds. Instead, distributions are received when liquidation of the underlying assets of the funds occur. It is estimated that the underlying assets will generally be liquidated between 5 and 10 years from the inception of the funds. The fair value of these investments is based on the net asset value (NAV) information provided by the general partner. Fair value is based on our proportionate share of the NAV based on the most recent partners' capital statements received from the general partners, which is generally one quarter prior to our balance sheet date. These values are then analyzed to determine if the NAV represents fair value at our balance sheet date, with adjustment being made where appropriate. We consider observable market data and perform a review validating the appropriateness of the NAV at each balance sheet date. It is likely that all of the investments will be redeemed at a future date for an amount different than the NAV of our ownership interest in partners' capital as of December 31, 2016 and December 31, 2015. During the year ended December 31, 2016, no contributions were made and distributions totaling $0.9 million were received from these investments. During the year ended December 31, 2015, no contributions were made and distributions totaling $3.5 million were received from these investments. The amount of unfunded commitments related to the investments was $0.3 million as of December 31, 2016 and $0.6 million as of December 31, 2015.

Level 3 Assets – Year-to-Date Change:



(in thousands)	Beginning balance at December 31, 2015		Included in earnings ⁽¹⁾		Included in other comprehensive income			Purchases		Sales			Transfers in and (out) of Level 3			Ending balance at December 31, 2016
Available-for-sale securities:
Corporate debt securities	$	69	$	173	$	107		$	13,935	$	(1,854	)	$	(3,078	)	$	9,352
Commercial mortgage-backed securities	0		0		3			1,000		0			(1,003		)	0
Collateralized debt obligations	8,577		4		(5		)	7,722		(54		)	(16,244		)	0
Total fixed maturities	8,646		177		105			22,657		(1,908		)	(20,325		)	9,352
Total available-for-sale securities	8,646		177		105			22,657		(1,908		)	(20,325		)	9,352
Total Level 3 assets	$	8,646	$	177	$	105		$	22,657	$	(1,908	)	$	(20,325	)	$	9,352

(1) These amounts are reported in the Statements of Operations as net investment income and net realized investment gains (losses) for the year ended December 31, 2016 on Level 3 securities.

We review the fair value hierarchy classifications each reporting period. Transfers between hierarchy levels may occur due to changes in available market observable inputs. Transfers in and out of level classifications are reported as having occurred at the beginning of the quarter in which the transfers occurred.

There were no transfers between Level 1 and Level 2 for the year ended December 31, 2016. Level 2 to Level 3 transfers totaled $9.7 million related to 36 fixed maturity holdings due to the use of unobservable market data to determine the fair value at December 31, 2016. Level 3 to Level 2 transfers totaled $30.0 million related to 60 fixed maturity holdings due to the use of observable market data to determine the fair value at December 31, 2016.

Level 3 Assets – Year-to-Date Change:



(in thousands)	Beginning balance at December 31, 2014		Included in earnings ⁽¹⁾			Included in other comprehensive income			Purchases		Sales		Transfers in and (out) of Level 3			Ending balance at December 31, 2015
Available-for-sale securities:
Corporate debt securities	$	0	$	(1	)	$	(59	)	$	180	$	0	$	(51	)	$	69
Collateralized debt obligations	0		3			(7		)	8,581		0		0			8,577
Total fixed maturities	0		2			(66		)	8,761		0		(51		)	8,646
Total available-for-sale securities	0		2			(66		)	8,761		0		(51		)	8,646
Total Level 3 assets	$	0	$	2		$	(66	)	$	8,761	$	0	$	(51	)	$	8,646

(1) These amounts are reported in the Statements of Operations as net realized investment gains (losses) for the year ended December 31, 2015 on Level 3 securities.

There were no transfers between Level 1 and Level 2 for the year ended December 31, 2015. Level 2 to Level 3 transfers totaled $0.1 million related to one fixed maturity holding due to the use of unobservable market data to determine the fair value at December 31, 2015. Level 3 to Level 2 transfers totaled $0.2 million related to two fixed maturity holdings due to the use of observable market data to determine the fair value at December 31, 2015.

Quantitative and Qualitative Disclosures about Unobservable Inputs

When a non-binding broker quote was the only input available, the security was classified within Level 3. Use of non-binding brokers quotes totaled $9.4 million at December 31, 2016. The unobservable inputs are not reasonably available to us.

The following table presents our fair value measurements on a recurring basis by pricing source:



(in thousands)	At December 31, 2016
	Total		Level 1		Level 2		Level 3
Fixed maturities:
Priced via pricing services	$	707,341	$	0	$	697,989	$	9,352
Total fixed maturities	707,341		0		697,989		9,352
Common stock:
Priced via pricing services	5,950		5,950		0		0
Total common stock	5,950		5,950		0		0
Other investments:
Priced via unobservable inputs ⁽¹⁾	4,412		—		—		—
Total other investments	4,412		—		—		—
Total	$	717,703	$	5,950	$	697,989	$	9,352

(1)

Other investments measured at fair value represent real estate funds included on the balance sheet as limited partnership investments that are reported under the fair value option using the net asset value practical expedient. These amounts are not required to be categorized in the fair value hierarchy. The fair value of these investments is based on the net asset value (NAV) information provided by the general partner.

There were no assets measured at fair value on a nonrecurring basis during the year ended December 31, 2016.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Investments

12 Months Ended

Dec. 31, 2016

Investments [Abstract]

Investments

Note 5. Investments

Available-for-sale securities

The following tables summarize the cost and fair value of our available-for-sale securities:



	At December 31, 2016
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale securities:
U.S. treasury	$	5,093	$	0	$	62	$	5,031
Government sponsored entities	2,004		22		0		2,026
States & political subdivisions	249,312		6,113		2,293		253,132
Corporate debt securities	321,041		3,293		1,386		322,948
Residential mortgage-backed securities	16,232		61		191		16,102
Commercial mortgage-backed securities	37,723		59		933		36,849
Collateralized debt obligations	68,998		351		96		69,253
Other debt securities	2,000		0		0		2,000
Total fixed maturities	702,403		9,899		4,961		707,341
Common stock	6,152		0		202		5,950
Total available-for-sale securities	$	708,555	$	9,899	$	5,163	$	713,291



	At December 31, 2015
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale securities:
States & political subdivisions	$	221,093	$	10,761	$	7	$	231,847
Corporate debt securities	254,464		281		4,412		250,333
Residential mortgage-backed securities	13,639		4		130		13,513
Commercial mortgage-backed securities	38,630		30		1,089		37,571
Collateralized debt obligations	51,905		61		221		51,745
Other debt securities	2,241		0		41		2,200
Total fixed maturities	581,972		11,137		5,900		587,209
Common stock	12,865		0		133		12,732
Total available-for-sale securities	$	594,837	$	11,137	$	6,033	$	599,941

The amortized cost and estimated fair value of fixed maturities at December 31, 2016, are shown below by remaining contractual term to maturity. Mortgage-backed securities are allocated based upon stated maturity dates. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



	At December 31, 2016
(in thousands)	Amortized		Estimated
	cost		fair value
Due in one year or less	$	55,304	$	55,394
Due after one year through five years	329,377		331,617
Due after five years through ten years	203,880		207,358
Due after ten years	113,842		112,972
Total fixed maturities	$	702,403	$	707,341

Available-for-sale securities in a gross unrealized loss position are as follows. Data is provided by length of time for securities in a gross unrealized loss position.



	At December 31, 2016
(dollars in thousands)	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized		No. of
	value		losses		value		losses		value		losses		holdings
Available-for-sale securities:
U.S. treasury	$	5,031	$	62	$	0	$	0	$	5,031	$	62	1
States & political subdivisions	84,611		2,293		0		0		84,611		2,293		40
Corporate debt securities	112,453		987		8,692		399		121,145		1,386		155
Residential mortgage-backed securities	7,451		60		4,974		131		12,425		191		13
Commercial mortgage-backed securities	26,509		437		4,319		496		30,828		933		28
Collateralized debt obligations	27,470		75		4,208		21		31,678		96		15
Total fixed maturities	263,525		3,914		22,193		1,047		285,718		4,961		252
Common stock	5,950		202		0		0		5,950		202		1
Total available-for-sale securities	$	269,475	$	4,116	$	22,193	$	1,047	$	291,668	$	5,163	253
Quality breakdown of fixed maturities:
Investment grade	$	239,041	$	3,605	$	16,061	$	399	$	255,102	$	4,004	136
Non-investment grade	24,484		309		6,132		648		30,616		957		116
Total fixed maturities	$	263,525	$	3,914	$	22,193	$	1,047	$	285,718	$	4,961	252



	At December 31, 2015
(dollars in thousands)	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized		No. of
	value		losses		value		losses		value		losses		holdings
Available-for-sale securities:
States & political subdivisions	$	5,867	$	7	$	0	$	0	$	5,867	$	7	3
Corporate debt securities	172,831		2,447		19,086		1,965		191,917		4,412		349
Residential mortgage-backed securities	9,827		84		936		46		10,763		130		9
Commercial mortgage-backed securities	13,081		68		19,081		1,021		32,162		1,089		24
Collateralized debt obligations	27,981		103		9,174		118		37,155		221		19
Other debt securities	1,960		40		241		1		2,201		41		2
Total fixed maturities	231,547		2,749		48,518		3,151		280,065		5,900		406
Common stock	12,732		133		0		0		12,732		133		1
Total available-for-sale securities	$	244,279	$	2,882	$	48,518	$	3,151	$	292,797	$	6,033	407
Quality breakdown of fixed maturities:
Investment grade	$	174,723	$	1,296	$	38,369	$	1,256	$	213,092	$	2,552	105
Non-investment grade	56,824		1,453		10,149		1,895		66,973		3,348		301
Total fixed maturities	$	231,547	$	2,749	$	48,518	$	3,151	$	280,065	$	5,900	406

The above securities have been evaluated and determined to be temporary impairments for which we expect to recover our entire principal plus interest. The primary components of this analysis include a general review of market conditions and financial performance of the issuer along with the extent and duration at which fair value is less than cost. Any securities that we intend to sell or will more likely than not be required to sell before recovery are included in other-than-temporary impairments with the impairment charges recognized in earnings.

Net investment income

Interest and dividend income are recognized as earned and recorded to net investment income. Investment income, net of expenses, was generated from the following portfolios for the years ended December 31:



(in thousands)	2016		2015		2014
Fixed maturities	$	20,175	$	16,457	$	14,173
Equity securities	171		1,045		1,550
Cash equivalents and other	1,391		1,174		1,207
Total investment income	21,737		18,676		16,930
Less: investment expenses	1,190		885		394
Investment income, net of expenses	$	20,547	$	17,791	$	16,536

Realized investment gains (losses)

Realized gains and losses on sales of securities are recognized in income based upon the specific identification method. Realized gains (losses) on investments were as follows for the years ended December 31:



(in thousands)	2016			2015			2014
Available-for-sale securities:
Fixed maturities:
Gross realized gains	$	2,111		$	1,571		$	453
Gross realized losses	(2,113		)	(1,764		)	(333		)
Net realized (losses) gains	(2		)	(193		)	120
Equity securities:
Gross realized gains	1			759			1,132
Gross realized losses	(34		)	(74		)	(195		)
Net realized (losses) gains	(33		)	685			937
Trading securities:
Common stock:
Gross realized gains	$	707		$	0		$	0
Net realized gains	707			0			0
Net realized investment gains	$	672		$	492		$	1,057

The components of other-than-temporary impairments on investments are included below for the years ended December 31:



(in thousands)	2016			2015			2014
Fixed maturities	$	(416	)	$	(1,558	)	$	(105	)
Total other-than-temporary impairments	(416		)	(1,558		)	(105		)
Portion recognized in other comprehensive income	0			0			0
Net impairment losses recognized in earnings	$	(416	)	$	(1,558	)	$	(105	)

In considering if fixed maturity securities were credit-impaired, some of the factors considered include: potential for the default of interest and/or principal, level of subordination, collateral of the issue, compliance with financial covenants, credit ratings, and industry conditions. We have the intent to sell all credit-impaired fixed maturity securities; therefore, the entire amount of the impairment charges were included in earnings and no non-credit impairments were recognized in other comprehensive income. See also Note 2, "Significant Accounting Policies".

Limited partnerships

Limited partnership investments, excluding certain real estate limited partnerships recorded at fair value, are generally reported on a one-quarter lag; therefore, our year-to-date limited partnership results through December 31, 2016 are comprised of partnership financial results for the fourth quarter of 2015 and the first, second and third quarters of 2016. Given the lag in reporting, our limited partnership results do not reflect the market conditions of the fourth quarter of 2016. Cash contributions made to and distributions received from the partnerships are recorded in the period in which the transaction occurs.

Amounts included in equity in earnings of limited partnerships by method of accounting are included below for the years ended December 31:



(in thousands)	2016		2015		2014
Equity in earnings of limited partnerships accounted for under the equity method	$	6,273	$	16,545	$	8,517
Change in fair value of limited partnerships accounted for under the fair value option	752		438		2,412
Equity in earnings of limited partnerships	$	7,025	$	16,983	$	10,929

The following table summarizes limited partnership investments by sector at December 31:



(in thousands)	2016		2015
Private equity	$	35,228	$	48,397
Mezzanine debt	6,010		12,701
Real estate	12,509		22,911
Real estate - fair value option	4,412		4,526
Total limited partnerships	$	58,159	$	88,535

See also Note 15, "Commitments and Contingencies", for investment commitments related to limited partnerships.

Fixed Assets

12 Months Ended

Dec. 31, 2016

Property Plant And Equipment and Finite-Lived Intangible Assets, Net By Type [Abstract]

Fixed Assets

Note 6. Fixed Assets

The following table summarizes our fixed assets by category at December 31:



(in thousands)	2016			2015
Software	$	124,093		$	110,405
Equipment	11,771			10,679
Land, buildings, and building improvements	7,627			7,627
Leasehold improvements	1,375			1,171
Projects in progress	17,812			17,719
Construction in progress	9,622			—
Total fixed assets, gross	172,300			147,601
Less: Accumulated depreciation	(103,158		)	(88,514		)
Fixed assets, net	$	69,142		$	59,087

The increase in software is primarily related to new electronic signature capabilities for our agents as well as new functionalities to integrate various systems to create a more streamlined process for our customers.

Projects in progress include certain computer software and software developments costs for internal use that are not yet subject to amortization.

On November 11, 2016, we announced the construction of a new office building that will serve as part of our principal headquarters. The costs associated with this project are included in construction in progress. The project is expected to span approximately three years and is financed using a senior secured draw term loan credit facility. See Note 7, "Borrowing Arrangements".

For the years ended December 31, 2016, 2015 and 2014, depreciation and amortization of fixed assets totaled $15.1 million, $15.9 million and $15.7 million, respectively, and is included in all other operating expenses in the Statements of Operations.

Borrowing Arrangements	12 Months Ended
Borrowing Arrangements	Dec. 31, 2016
Debt Disclosure [Abstract]
Borrowing Arrangements	Note 7. Borrowing Arrangements Bank Line of Credit As of December 31, 2016, we have access to a $100 million bank revolving line of credit with a $25 million letter of credit sublimit that expires on November 3, 2020. As of December 31, 2016, a total of $99.0 million remains available under the facility due to $1.0 million outstanding letters of credit, which reduces the availability for letters of credit to $24.0 million. We had no borrowings outstanding on our line of credit as of December 31, 2016. Bonds with a fair value of $110.3 million were pledged as collateral on the line at December 31, 2016. The securities pledged as collateral have no trading restrictions and are reported as available-for-sale securities in the Statements of Financial Position as of December 31, 2016. The banks require compliance with certain covenants, which include leverage ratios and debt restrictions, for our line of credit. We are in compliance with all covenants at December 31, 2016. Term Loan Credit Facility On November 7, 2016, we entered into a credit agreement for a $100 million senior secured draw term loan credit facility ("Credit Facility") for the acquisition of real property and construction of an office building that will serve as part of our principal headquarters. Under the agreement, $25 million will be drawn on December 1, 2016, June 1, 2017, December 1, 2017, and June 1, 2018 ("Draw Period"). During the Draw Period, we will make monthly interest only payments under the Credit Facility and thereafter the Credit Facility converts to a fully-amortized term loan with monthly payments of principal and interest over a period of 28 years. Borrowings under the Credit Facility will bear interest at a fixed rate of 4.35%. In addition, we are required to pay a quarterly commitment fee of 0.08% on the unused portion of the Credit Facility during the Draw Period. As of December 31, 2016, we have drawn $25 million against the facility. Bonds with a fair value of $108.2 million were pledged as collateral for the facility and are reported as available-for-sale securities in the Statements of Financial Position as of December 31, 2016. The bank requires compliance with certain covenants, which include leverage ratios, debt restrictions and minimum net worth, for our Credit Facility. We are in compliance with all covenants at December 31, 2016. Amounts drawn from the Credit Facility are reported at carrying value on our Statements of Financial Position, net of unamortized loan origination and commitment fees. The estimated fair value of this borrowing at December 31, 2016 was $23.2 million. The estimated fair value was determined using estimates based upon interest rates and credit spreads and are classified as Level 3 in the fair value hierarchy as of December 31, 2016. The scheduled maturity of the $100 million Credit Facility begins on January 1, 2019 with annual principal payments of $1.9 million in 2019, $2.0 million in 2020, $2.0 million in 2021 and $94.1 million thereafter.

Postretirement Benefits

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Postretirement Benefits

Note 8. Postretirement Benefits

Pension plans

Our pension plans consist of a noncontributory defined benefit pension plan covering substantially all employees and an unfunded supplemental employee retirement plan ("SERP") for certain members of executive and senior management. The pension plans provide benefits to covered individuals satisfying certain age and service requirements. The defined benefit pension plan and SERP each provide benefits through a final average earnings formula.

Although we are the sponsor of these postretirement plans and record the funded status of these plans, the Exchange reimburses us for approximately 59% of the annual benefit expense of these plans, which represents pension benefits for our employees performing claims and life insurance functions and their share of service department costs. For our funded pension plan, amounts are settled in cash for the portion of pension costs allocated to the Exchange. For our unfunded plans, we pay the obligations when due and amounts are settled in cash between entities when there is a payout.

Prior to 2003, the employee pension plan purchased annuities from Erie Family Life Insurance Company ("EFL"), a wholly owned subsidiary of the Exchange, for certain plan participants that were receiving benefit payments under the pension plan. These are nonparticipating annuity contracts under which EFL has unconditionally contracted to provide specified benefits to beneficiaries; however, the pension plan remains the primary obligor to the beneficiaries. A contingent liability of $21.0 million at December 31, 2016, exists in the event EFL does not honor the annuity contracts.

Cost of pension plans

Pension plan cost includes the following components:



(in thousands)
	2016			2015			2014
Service cost for benefits earned	$	28,201		$	30,433		$	22,510
Interest cost on benefit obligation	33,125			30,755			28,112
Expected return on plan assets	(39,520		)	(35,921		)	(31,419		)
Prior service cost amortization	696			670			712
Net actuarial loss amortization	8,111			14,031			6,344
Pension plan cost ⁽¹⁾	$	30,613		$	39,968		$	26,259


(1)	Pension plan costs represent the total cost before reimbursements to Indemnity from the Exchange and EFL.

Actuarial assumptions

The following table describes the assumptions at December 31 used to measure the year-end obligations and the net periodic benefit costs for the subsequent year:



	2016		2015		2014		2013
Employee pension plan:
Discount rate	4.24	%	4.57	%	4.17	%	5.11	%
Expected return on assets ⁽¹⁾	7.00		7.00		7.00		7.50
Compensation increases ⁽²⁾	3.32		3.32		3.32		4.15
SERP:
Discount rate – pre-retirement/post-retirement	4.24/3.74		4.57/4.07		4.17/3.67		5.11/4.61
Rate of compensation increase	5.00		5.00		5.00		6.00


(1)	The expected return on assets used to measure the net periodic benefit cost for 2017 is 6.75%.


(2)	The rate of compensation increase for the employee plan is age-graded. An equivalent single compensation increase rate of 3.32% in 2016, 2015 and 2014 would produce similar results.

The economic assumptions that have the most impact on the postretirement benefits expense are the discount rate and the long-term rate of return on plan assets. The discount rate assumption used to determine the benefit obligation for 2016 was based upon a yield curve developed from corporate bond yield information. The same methodology was employed to develop the discount rates used to determine the benefit obligation for 2015 and 2014.

The pension plan's expected long-term rate of return represents the average rate of return to be earned on plan assets over the period the benefits included in the benefit obligation are to be paid. To determine the expected long-term rate of return assumption, we utilized models based upon rigorous historical analysis and forward-looking views of the financial markets based upon key factors such as historical returns for the asset class' applicable indices, the correlations of the asset classes under various market conditions and consensus views on future real economic growth and inflation. The expected future return for each asset class is then combined by considering correlations between asset classes and the volatilities of each asset class to produce a reasonable range of asset return results within which our expected long-term rate of return assumption falls.

Projected benefit obligations increased $92.1 million at December 31, 2016 compared to December 31, 2015. In addition to the normal increases in benefit accruals, the lower discount rate, partially offset by mortality tables being updated with two additional years of mortality data, contributed to this increase.

Funding policy/funded status

Our funding policy is generally to contribute an amount equal to the greater of the target normal cost for the plan year or the amount necessary to fund the plan to 100% plus interest to the date the contribution is made. Employer contributions of

$19.0 million were made to the defined benefit pension plan in January 2017. The following table sets forth the funded status of the pension plans and the amounts recognized in the Statements of Financial Position at December 31:



(in thousands)
	2016			2015
Funded status at end of year	$	(224,115	)	$	(173,089	)

Pension liabilities – due within one year ⁽¹⁾	$	(2,288	)	$	(389	)
Pension liabilities – due after one year	(221,827		)	(172,700		)
Net amount recognized	$	(224,115	)	$	(173,089	)

(1) The current portion of pension liabilities is included in accrued expenses and other current liabilities in the Statements of Financial Position.

Benefit obligations

Benefit obligations are described in the following tables. Accumulated and projected benefit obligations represent the obligations of a pension plan for past service as of the measurement date. The accumulated benefit obligation is the present value of pension benefits earned as of the measurement date based on employee service and compensation prior to that date. It differs from the projected benefit obligation in that the accumulated benefit obligation includes no assumptions to reflect expected future compensation. The following table sets forth a reconciliation of beginning and ending balances of the projected benefit obligation, as well as the accumulated benefit obligation at December 31:



(in thousands)
	2016			2015
Projected benefit obligation, beginning of year	$	724,580		$	736,705
Service cost for benefits earned	28,201			30,433
Interest cost on benefit obligation	33,125			30,755
Plan amendments	2,114			0
Actuarial loss (gain)	43,032			(60,774		)
Benefits paid	(14,393		)	(12,539		)
Projected benefit obligation, end of year	$	816,659		$	724,580

Accumulated benefit obligation, end of year	$	657,969		$	583,432

The following table describes plans with assets less than accumulated benefit obligation at December 31:



(in thousands)
	2016		2015
Projected benefit obligation	$	816,659	$	724,580
Accumulated benefit obligation	657,969		583,432
Plan assets	592,544		551,491

Both the defined benefit pension plan and the SERP had accumulated benefit obligations in excess of plan assets at December 31, 2016 and 2015.

Pension assets

The following table sets forth a reconciliation of beginning and ending balances of the fair value of plan assets at December 31:



(in thousands)
	2016			2015
Fair value of plan assets, beginning of year	$	551,491		$	547,788
Actual gain (loss) on plan assets	38,028			(1,042		)
Employer contributions	17,418			17,284
Benefits paid	(14,393		)	(12,539		)
Fair value of plan assets, end of year	$	592,544		$	551,491

Accumulated other comprehensive income

Net actuarial loss and prior service cost included in accumulated other comprehensive income that were not yet recognized as components of net benefit costs were as follows:



(in thousands)
	2016		2015
Net actuarial loss	$	185,278	$	148,865
Prior service cost	6,023		4,605
Net amount not yet recognized	$	191,301	$	153,470

The estimated net actuarial loss and prior service cost for the pension plans that will be amortized from accumulated other comprehensive income into pension cost during 2017 is $9.3 million and $0.8 million, respectively.

Other comprehensive income

Amounts recognized in other comprehensive income for pension plans:



(in thousands)
	2016			2015
Net actuarial loss (gain) arising during the year	$	44,524		$	(23,810	)
Amortization of net actuarial loss	(8,111		)	(14,031		)
Amortization of prior service cost	(696		)	(670		)
Amendments ⁽¹⁾	2,114			0
Total recognized in other comprehensive income	$	37,831		$	(38,511	)


(1)	Effective September 12, 2016, a plan amendment was adopted to allow part time employees to participate in the pension plan, which added prior service cost of $1.7 million. Additionally, there was one new SERP participant in 2016, which contributed $0.4 million.

Asset allocation

The employee pension plan utilizes a return seeking and a liability asset matching allocation strategy. It is based upon the understanding that 1) equity investments are expected to outperform debt investments over the long-term, 2) the potential volatility of short-term returns from equities is acceptable in exchange for the larger expected long-term returns, and 3) a portfolio structured across investment styles and markets (both domestic and foreign) reduces volatility. As a result, the employee pension plan’s investment portfolio utilizes a broadly diversified asset allocation across domestic and foreign equity and debt markets. The investment portfolio is composed of commingled pools that are dedicated exclusively to the management of employee benefit plan assets.

The target and actual asset allocations for the portfolio are as follows for the years ended December 31:




	Target asset allocation			Target asset allocation		Actual asset allocation		Actual asset allocation
Asset allocation:	2016			2015		2016		2015
Equity securities:
U.S. equity securities	35	%	⁽¹⁾	35	%	38	%	36	%
Non-U.S. equity securities	20		⁽²⁾	20		18		20
Total equity securities	55			55		56		56
Debt securities	44		⁽³⁾	44		43		43
Other	1		⁽⁴⁾	1		1		1
Total	100	%		100	%	100	%	100	%


(1)	U.S. equity securities – 22% seek to achieve excess returns relative to the Russell 2000 Index, while 30% seek to achieve excess returns relative to the S&P 500. The remaining 48% of the allocation to U.S. equity securities are comprised of equity index funds that track the S&P 500.


(2)	Non-U.S. equity securities – 11% are allocated to international small cap investments, while another 11% are allocated to international emerging market investments. The remaining 78% of the Non-U.S. equity securities are allocated to investments seeking to achieve excess returns relative to an international market index.


(3)	Debt securities – 44% are allocated to long U.S. Treasury Strips, 44% are allocated to U.S. corporate bonds with an emphasis on long duration bonds rated A or better, while the remaining 12% are allocated to floating rate high income leverage loans.


(4)	Institutional money market fund.

The following tables represent the fair value measurements for the pension plan assets by major category and level of input:




	At December 31, 2016
	Fair value measurements of plan assets using:
(in thousands)	Total		Quoted prices in active markets for identical assets Level 1		Significant observable inputs Level 2		Significant unobservable inputs Level 3
Equity securities:
U.S. equity securities	$	225,446	$	0	$	225,446	$	0
Non-U.S. equity securities	107,953		0		107,953		0
Total equity securities	333,399		0		333,399		0
Debt securities	253,197		0		253,197		0
Other	5,948		5,948		0		0
Total	$	592,544	$	5,948	$	586,596	$	0




	At December 31, 2015
	Fair value measurements of plan assets using:
(in thousands)	Total		Quoted prices in active markets for identical assets Level 1		Significant observable inputs Level 2		Significant unobservable inputs Level 3
Equity securities:
U.S. equity securities	$	201,021	$	0	$	201,021	$	0
Non-U.S. equity securities	107,945		0		107,945		0
Total equity securities	308,966		0		308,966		0
Debt securities	236,619		0		236,619		0
Other	5,906		5,906		0		0
Total	$	551,491	$	5,906	$	545,585	$	0

Estimates of fair values of the pension plan assets are obtained primarily from our trustee and custodian of our pension plan. Our Level 1 category includes a money market fund that is a mutual fund for which the fair value is determined using an exchange traded price provided by the trustee and custodian. Our Level 2 category includes commingled pools. Estimates of fair values for securities held by our commingled pools are obtained primarily from the trustee and custodian. The methodologies used by the trustee and custodian that support a financial instrument Level 2 classification include multiple verifiable, observable inputs including benchmark yields, reported trades, broker/dealer quotes, issuers spreads, two-sided markets, benchmark securities, bids, offers, and reference data.

Estimated future benefit payments

The following table sets forth amounts of benefits expected to be paid over the next 10 years from our pension plans as of December 31:



(in thousands)
Year ending December 31,		Expected future benefit payments
2017	$	18,943
2018		18,672
2019		20,778
2020		23,369
2021		26,246
2022 - 2026		181,837

Retiree health benefit plan

The retiree health benefit plan was terminated in 2006. We continue to provide retiree health benefits only to employees who met certain age and service requirements on or before July 1, 2010. The accumulated benefit obligation and net periodic benefit cost of this plan were not material to our financial statements.

Employee savings plan

All full-time and regular part-time employees are eligible to participate in a traditional qualified 401(k) or a Roth

401(k) savings plan. We match 100% of the participant contributions up to 3% of compensation and 50% of participant contributions over 3% and up to 5% of compensation. Matching contributions paid to the plan were $12.1 million in 2016, $11.6 million in 2015, and $10.7 million in 2014. Employees are permitted to invest the employer-matching contributions in our Class A common stock. Employees, other than executive and senior officers, may sell the shares at any time without restriction, provided they are in compliance with applicable insider trading laws; sales by executive and senior officers are subject to additional pre-clearance restrictions imposed by our insider trading policies. The plan acquires shares in the open market necessary to meet the obligations of the plan. Plan participants held 0.2 million shares of our Class A common stock at December 31, 2016 and 2015.

Incentive and Deferred Compensation Plans

12 Months Ended

Dec. 31, 2016

Incentive and Deferred Compensation Plans

Note 9. Incentive and Deferred Compensation Plans

Annual incentive plan

Our annual incentive plan ("AIP") is a bonus plan that pays cash to our executive and senior vice presidents annually. The cash awards are based on attainment of corporate and individual performance measures, which can include various financial measures. The plan includes a funding qualifier which considers our financial results, based on operating income, before a payout can be made to plan participants. If the funding qualifier is met, plan participants are eligible to receive the incentive based upon specific performance measures. The measures are established at the beginning of each year by the Executive Compensation and Development Committee of our Board of Directors ("ECDC"), with ultimate approval by the full Board of Directors. For 2016 and 2015, the performance measures primarily included the growth in direct written premium and statutory combined ratio of the Exchange and its property and casualty subsidiaries.

Long-term incentive plan

Our long-term incentive plan ("LTIP") is a performance based incentive plan designed to reward executive and senior vice presidents who can have a significant impact on our long-term performance and to further align the interests of such employees with those of our shareholders. The LTIP permits grants of performance shares or units, or phantom shares to be satisfied with shares of our Class A common stock or cash payment as determined by the ECDC. The ECDC determines the form of the award to be granted at the beginning of each performance period, which is generally a three-year period. The number of shares of the Company’s common stock authorized for grant under the LTIP is 1.5 million shares, with no one person able to receive more than 250,000 shares or the equivalent of $5 million during any one performance period. We repurchase our Class A common stock on the open market to settle stock awards under the plan. We do not issue new shares of common stock to settle stock awards. LTIP awards are considered vested at the end of each applicable performance period.

The LTIP provides the recipient the right to earn performance shares or units, or phantom stock based on the level of achievement of performance goals as defined by us. Performance measures and a peer group of property and casualty companies to be used for comparison are determined by the ECDC. The performance measures for the 2016, 2015 and 2014 awards were the reported growth in direct written premium and statutory combined ratio of the Exchange and its property and casualty subsidiaries and return on invested assets over a three-year performance period as compared to the results of the peer group over the same period. Because the award is based upon a comparison to results of a peer group over a three-year period, the award accrual is based upon estimates of probable results for the remaining performance period. This estimate is subject to variability if our results or the results of the peer group are substantially different than the results we project.

The fair value of LTIP awards is measured at each reporting date at the current share price of our Class A common stock. A liability is recorded and compensation expense is recognized ratably over the performance period.

At December 31, 2016, the plan awards for the 2014-2016 performance period were fully vested. Distributions will be made in 2017 once peer group financial information becomes available at which time participants will elect the form of payment, either cash or stock. The estimated plan award based upon the peer group information as of September 30, 2016 is $12.5 million. At December 31, 2015, the awards for the 2013-2015 performance period were fully vested. Participants had the option of receiving either cash or stock for the 2013-2015 award. The cash award of $12.6 million was paid in June 2016 and the stock award of 7,661 shares with an average share price of $96.64 and a market value of $0.7 million was delivered to plan participants in June 2016. At December 31, 2014, the awards, granted as stock, for the 2012-2014 performance period were fully vested. The cash award of $8.2 million was paid in June 2015 and the stock award of 1,567 shares with an average share price of $81.04 and a market value of $0.1 million was delivered to plan participants in June 2015.

Earned compensation costs are allocated to related entities and reimbursed to us in cash once the payout is made. The total compensation cost charged to operations related to these LTIP awards was $8.2 million in 2016, $13.4 million in 2015, and $12.5 million in 2014. The related tax benefits recognized in income were $2.9 million in 2016, $4.7 million in 2015, and $4.4 million in 2014. The Exchange reimburses us for approximately 44% of the annual compensation cost of these plans, which represents the amount of compensation expense for our employees performing claims and life insurance functions.

At December 31, 2016, there was $7.3 million of total unrecognized compensation cost for non-vested LTIP awards related to open performance periods. Unrecognized compensation is expected to be recognized over a period of two years.

Equity compensation plan

Our equity compensation plan ("ECP") is designed to reward key employees, as determined by the ECDC or the chief executive officer, who can have a significant impact on our long-term performance and to further align the interests of such employees with those of our shareholders. The ECP permits grants of restricted shares, restricted share units and other share based awards, to be satisfied with shares of our Class A common stock or cash. The ECDC determines the form of the award to be granted at the beginning of each performance period. The number of shares of the Company's Class A common stock authorized for grant under the ECP is 100,000 shares, with no one person able to receive more than 5,000 shares in a calendar year. Share awards are settled through the repurchase of our Class A common stock on the open market. We do not issue new shares of common stock to satisfy plan awards.

Restricted share awards may be entitled to receive dividends payable during the performance period, or, if subject to performance goals, to receive dividend equivalents payable upon vesting. Dividend equivalents may provide for the crediting of interest or hypothetical reinvestment experience payable after expiration of the performance period.

Vesting conditions are determined at the time the award is granted and may include continuation of employment for a specific period, satisfaction of performance goals and the defined performance period, and the satisfaction of any other terms and conditions as determined to be appropriate. The plan is to remain in effect until December 31, 2022, unless earlier amended or terminated by our Board of Directors. The total number of restricted stock units granted under the plan was 4,500 in 2016, 5,500 in 2015, and 8,750 in 2014, respectively. The total compensation charged to operations related to these ECP awards was $0.8 million in 2016, $0.4 million in 2015, and $0.3 million in 2014, respectively. The Exchange reimburses us for approximately 30% of the annual compensation cost of these plans, which represents the amount compensation expense for our employees performing claims functions. Unrecognized compensation expense of $0.7 million is expected to be recognized over a period of three years.

Deferred compensation plans

Our deferred compensation plans are arrangements for our executive and senior vice presidents and outside directors that allows participants to elect to defer receipt of a portion of their compensation until a later date. Employer 401(k) matching contributions that are in excess of the annual contribution or compensation limits are also credited to the participant accounts for those who elected to defer receipt of some portion of their base salary. The deferred compensation plan for our outside directors allows participants to defer receipt of a portion of their director and meeting fees until a later date. Employees or outside directors participating in the respective plans select hypothetical investment funds for their deferrals which are credited with the hypothetical returns generated.

Effective January 1, 2017, our Board of Directors approved an unfunded, non-qualified incentive compensation deferral plan for participants of the AIP and LTIP. Participants can elect to defer up to 100% of their annual AIP award and/or up to 100% of their LTIP award for each performance period. Deferred awards will be credited to a deferred stock account as credits denominated in Class A shares of the Company stock until retirement or other separation from service from the Company. Participants are 100% vested at date of deferral. Vested share credits will be paid to participants upon separation from service in approximate equal annual installments for a period of three years.

Stock compensation plan for outside directors

We have a stock compensation plan for our outside directors to further align the interests of directors with those of our shareholders that provides for a portion of the directors’ annual compensation in shares of our Class A common stock. Each director vests in the grant 25% every three months over the course of a year. Dividends paid by us are credited to each director’s account which vest immediately. We do not issue new shares of common stock to directors. Our practice is to repurchase shares of our Class A common stock in the open market to satisfy these awards.

Prior to October 2015, these shares were accounted for as a liability which was equal to the total number of share credits earned at the current fair market value. Directors were paid shares of our Class A common stock equal to the number of share credits in their deferred stock account upon ending board service.

In October 2015 we established a rabbi trust to hold the shares earned by outside directors. The rabbi trust purchased 7,432 shares of our common stock on the open market at an average price of $99.23 for $0.7 million in 2016, and 94,938 shares at an average price of $94.99 for $9.0 million in 2015. These shares were purchased to satisfy the liability of the deferred compensation plan. The rabbi trust is classified and accounted for as equity in a manner consistent with the accounting for treasury stock. Dividends received on the shares in the rabbi trust will be used to purchase additional shares. The shares will be distributed to the outside director from the rabbi trust upon ending board service.

The annual charge related to these awards totaled $0.5 million, $1.9 million and $2.2 million in 2016, 2015 and 2014, respectively.

The following summarizes the incentive and deferred compensation plans for the years ended December 31:



(in thousands)
	2016			2015			2014
Awards, employer match, and hypothetical earnings by plan:
Annual incentive plan awards	$	6,460		$	7,057		$	6,222
Long-term incentive plan awards	11,321			14,228			12,523
Deferred compensation plans, employer match, and hypothetical earnings	882			2,042			2,789
Total plan awards and earnings	18,663			23,327			21,534
Total plan awards paid	(20,418		)	(14,317		)	(14,839		)
Compensation deferred under the plans	1,496			996			527
Distributions from the deferred compensation plans	(435		)	(1,688		)	(1,072		)
Forfeitures ⁽¹⁾	(3,117		)	(821		)	—
Funding of rabbi trust for outside directors	(738		)	(9,018		)	—
Gross incentive plan and deferred compensation liabilities at end of period	$	32,908		$	37,457		$	38,978

(1) Forfeitures are the result of plan participants who separated from service with the Company in 2016 and 2015.

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Note 10. Income Taxes

The provision for income taxes consists of the following for the years ended December 31:



(in thousands)
	2016			2015			2014
Current income tax expense	$	109,727		$	106,155		$	87,064
Deferred income tax benefit	(2		)	(14,584		)	(3,305		)
Income tax expense	$	109,725		$	91,571		$	83,759

A reconciliation of the provision for income taxes, with amounts determined by applying the statutory federal income tax rate to pre-tax income, is as follows for the years ended December 31:



(in thousands)
	2016			2015			2014
Income tax at statutory rate	$	112,032		$	93,187		$	87,943
Tax-exempt interest	(2,270		)	(2,285		)	(2,589		)
Other, net	(37		)	669			(1,595		)
Income tax expense	$	109,725		$	91,571		$	83,759

Temporary differences and carry-forwards, which give rise to deferred tax assets and liabilities, are as follows for the years ended December 31:



(in thousands)
	2016		2015
Deferred tax assets:
Other employee benefits	$	19,106	$	19,945
Pension and other postretirement benefits	65,241		48,897
Allowance for management fee returned on cancelled policies	4,795		4,375
Other	81		546
Total deferred tax assets	89,223		73,763
Deferred tax liabilities:
Depreciation	18,493		17,843
Prepaid expenses	8,120		6,929
Limited partnerships	5,597		5,822
Unrealized gains on investments	1,657		1,360
Other	1,467		1,123
Total deferred tax liabilities	35,334		33,077
Net deferred tax asset	$	53,889	$	40,686

We had no valuation allowance recorded at December 31, 2016 or December 31, 2015. The IRS has examined our tax filings through tax year ended 2012.

We are the attorney-in-fact for the subscribers (policyholders) at the Exchange, a reciprocal insurance exchange. In that capacity, we provide all services and facilities necessary to conduct the Exchange’s insurance business. Indemnity and the Exchange together constitute a single insurance business. Consequently, we are not subject to state corporate income or franchise taxes in states where the Exchange conducts its business and the states collect premium tax in lieu of corporate income or franchise tax, as a result of the Exchange’s remittance of premium taxes in those states.

Capital Stock	12 Months Ended
Capital Stock	Dec. 31, 2016
Class of Stock Disclosures [Abstract]
Capital Stock	Note 11. Capital Stock Class A and B common stock We have two classes of common stock: Class A which has a dividend preference and Class B which has voting power and a conversion right. Each share of Class A common stock outstanding at the time of the declaration of any dividend upon shares of Class B common stock shall be entitled to a dividend payable at the same time, at the same record date, and in an amount at least equal to 2/3 of 1.0% of any dividend declared on each share of Class B common stock. We may declare and pay a dividend in respect to Class A common stock without any requirement that any dividend be declared and paid in respect to Class B common stock. Sole shareholder voting power is vested in Class B common stock except insofar as any applicable law shall permit Class A common shareholders to vote as a class in regards to any changes in the rights, preferences, and privileges attaching to Class A common stock. Holders of Class B shares may, at their option, convert their shares into Class A shares at the rate of 2,400 Class A shares per Class B share. There were no shares of Class B common stock converted into Class A common stock in 2016, 2015 or 2014. Stock repurchases Our Board of Directors authorized a stock repurchase program effective January 1, 1999 allowing the repurchase of our outstanding Class A nonvoting common stock. Treasury shares are recorded in the Statements of Financial Position at total cost based upon trade date. There were no shares repurchased under this program during 2016 or 2015. In October 2011, our Board of Directors approved a continuation of the current stock repurchase program for a total of $150 million, with no time limitation. We had approximately $17.8 million of repurchase authority remaining under this program at December 31, 2016, based upon trade date. In 2016, we purchased 15,093 shares of our outstanding Class A nonvoting common stock outside of our publicly announced share repurchase program at a total cost of $1.5 million. Of this amount, we purchased 7,661 shares of our outstanding Class A nonvoting common stock at a total cost of $0.8 million or $98.20 per share, for the vesting of stock-based awards in conjunction with our long-term incentive plan. These shares were delivered to plan participants in June 2016. The remaining 7,432 shares of our outstanding Class A nonvoting common stock were purchased at a total cost of $0.7 million, or $99.23 per share, to fund the rabbi trust for the outside director deferred compensation plan. In 2015, we purchased 111,535 shares of our outstanding Class A nonvoting common stock outside of our publicly announced share repurchase program at a total cost of $10.4 million. Of this amount, we purchased 1,567 shares of our outstanding Class A nonvoting common stock at a total cost of $0.1 million or $81.91 per share, for the vesting of stock-based awards in conjunction with our long-term incentive plan. These shares were delivered to plan participants in June 2015. We purchased 2,800 shares of our outstanding Class A nonvoting common stock at a total cost of $0.2 million, or $86.24 per share, for the vesting of stock-based awards for executive management. These shares were delivered to executive management in August 2015. In November 2015, we purchased 12,230 shares of our outstanding Class A nonvoting common stock at a total cost of $1.1 million or $87.03 per share, for the vesting of stock-based awards for a former outside director. These shares were delivered in November 2015. In November and December 2015, we purchased 94,938 shares of our outstanding Class A nonvoting common stock at a total cost of $9.0 million or $94.99 per share, to fund the newly established rabbi trust for the outside director deferred compensation plan. See Note 9, "Incentive and Deferred Compensation Plans".

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2016

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 12. Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income ("AOCI") (loss) by component, including amounts reclassified to other comprehensive income ("OCI") (loss) and the related line item in the Statements of Operations where net income is presented, are as follows for the year ended December 31:



(in thousands)	2016									2015									2014
	Before Tax			Income Tax			Net			Before Tax			Income Tax			Net			Before Tax			Income Tax			Net
Investment securities:
AOCI, beginning of year	$	3,888		$	1,361		$	2,527		$	10,473		$	3,666		$	6,807		$	9,206		$	3,222		$	5,984
OCI (loss) before reclassifications	(385		)	(135		)	(250		)	(7,651		)	(2,678		)	(4,973		)	1,808			633			1,175
Realized investment losses (gains)	35			12			23			(492		)	(172		)	(320		)	(646		)	(226		)	(420		)
Impairment losses	416			146			270			1,558			545			1,013			105			37			68
OCI (loss)	66			23			43			(6,585		)	(2,305		)	(4,280		)	1,267			444			823
AOCI, end of year	$	3,954		$	1,384		$	2,570		$	3,888		$	1,361		$	2,527		$	10,473		$	3,666		$	6,807

Pension and other postretirement plans:
AOCI (loss), beginning of year	$	(152,910	)	$	(53,519	)	$	(99,391	)	$	(191,552	)	$	(67,044	)	$	(124,508	)	$	(100,128	)	$	(35,045	)	$	(65,083	)
OCI (loss) before reclassifications	(46,244		)	(16,185		)	(30,059		)	24,094			$	8,433		15,661			(98,223		)	(34,378		)	(63,845		)
Amortization of prior service costs ⁽¹⁾	695			243			452			668			234			434			709			248			461
Amortization of net actuarial loss ⁽¹⁾	7,764			2,717			5,047			13,880			4,858			9,022			6,090			2,131			3,959
OCI (loss)	(37,785		)	(13,225		)	(24,560		)	38,642			13,525			25,117			(91,424		)	(31,999		)	(59,425		)
AOCI (loss), end of year	$	(190,695	)	$	(66,744	)	$	(123,951	)	$	(152,910	)	$	(53,519	)	$	(99,391	)	$	(191,552	)	$	(67,044	)	$	(124,508	)

Total
AOCI (loss), beginning of year	$	(149,022	)	$	(52,158	)	$	(96,864	)	$	(181,079	)	$	(63,378	)	$	(117,701	)	$	(90,922	)	$	(31,823	)	$	(59,099	)
Investment securities	66			23			43			(6,585		)	(2,305		)	(4,280		)	1,267			444			823
Pension and other postretirement plans	(37,785		)	(13,225		)	(24,560		)	38,642			13,525			25,117			(91,424		)	(31,999		)	(59,425		)
OCI (loss)	(37,719		)	(13,202		)	(24,517		)	32,057			11,220			20,837			(90,157		)	(31,555		)	(58,602		)
AOCI (loss), end of year	$	(186,741	)	$	(65,360	)	$	(121,381	)	$	(149,022	)	$	(52,158	)	$	(96,864	)	$	(181,079	)	$	(63,378	)	$	(117,701	)


(1)	These components of accumulated other comprehensive income (loss) are included in the computation of net periodic pension cost. See Note 8, "Postretirement Benefits", for additional information.

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=66004124&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e640-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e716-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e709-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e637-108580

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e681-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

+ Details

Related Party

12 Months Ended

Dec. 31, 2016

Related Party

Note 13. Related Party

Management fee

A management fee is charged to the Exchange for services we provide under subscriber’s agreements with policyholders at the Exchange. The fee is a percentage of direct and assumed premiums written by the Exchange. This percentage rate is adjusted periodically by our Board of Directors but cannot exceed 25%. The effective management fee rate charged the Exchange was 25% in 2016, 2015 and 2014. The Board of Directors elected to maintain the fee at 25% beginning January 1, 2017.

There is no provision in the subscriber's agreement for termination of our appointment as attorney-in-fact by the subscribers of the Exchange and the appointment is not affected by a policyholder’s disability or incapacity.

Insurance holding company system

Most states have enacted legislation that regulates insurance holding company systems, defined as two or more affiliated persons, one or more of which is an insurer. The Exchange has the following wholly owned property and casualty subsidiaries: Erie Insurance Company, Erie Insurance Company of New York, Erie Insurance Property and Casualty Company and Flagship City Insurance Company, and a wholly owned life insurance company, Erie Family Life Insurance Company ("EFL"). Indemnity and the Exchange, and its wholly owned subsidiaries, meet the definition of an insurance holding company system.

Expense allocations

All claims handling services for the Exchange are performed by our employees who are entirely dedicated to claims related activities. All costs associated with these employees, including postretirement benefits, are reimbursed to us from the Exchange’s revenues in accordance with the subscriber’s agreement. We are reimbursed by EFL from its revenues for all costs, including postretirement benefits, associated with employees who perform life insurance related operating activities for EFL in accordance with its service agreement with us. See also Note 8, "Postretirement Benefits" for a discussion of intercompany expense allocations under the postretirement benefit plans. Investment management services are also provided by Indemnity to the Exchange and EFL in accordance with the subscriber’s and services agreements, respectively. These services include Indemnity engaging third party investment management services for several assets classes on behalf of the Exchange. In addition, common overhead expenses and certain service department costs incurred by us on behalf of the Exchange and its wholly owed subsidiaries are reimbursed by the proper entity based upon appropriate utilization statistics (employee count, square footage, vehicle count, project hours, etc.) specifically measured to accomplish proportional allocations, which we believe are reasonable.

All reimbursements are made on an actual cost basis and do not include a profit component. We record these reimbursements as receivables from the Exchange and EFL with a corresponding reduction to our expenses. Reimbursements are settled on a monthly basis. The amounts incurred on behalf of the Exchange and EFL were as follows for the years ended December 31:



(in thousands)	2016		2015
Erie Insurance Exchange
Operating expenses	$	429,985	$	406,246
Investment expenses	27,240		24,620
	457,225		430,866
Erie Family Life Insurance
Operating expenses	$	36,818	$	33,988
Investment expenses	2,070		1,773
	38,888		35,761
Total cash settlements	$	496,113	$	466,627

Office leases

We lease certain office space from the Exchange including the home office and three field office facilities. Rents are determined considering returns on invested capital and building operating and overhead costs. Rent expenses under these leases, which include all operating expenses, totaled $14.3 million, $12.2 million and $15.7 million in 2016, 2015 and 2014, respectively. Reimbursements from the Exchange and EFL related to the use of this space totaled $4.9 million, $3.6 million and $5.6 million in 2016, 2015 and 2014, respectively. We also have a lease commitment with EFL for a branch office until 2018. Annual rentals paid to EFL under this lease totaled $0.4 million in 2016, 2015 and 2014.

Notes receivable from EFL

We are due $25 million from EFL in the form of a surplus note that was issued in 2003. The note may be repaid only out of unassigned surplus of EFL. Both principal and interest payments are subject to prior approval by the Pennsylvania Insurance Commissioner. The note bears an annual interest rate of 6.7% and will be payable on demand on or after December 31, 2018, with interest scheduled to be paid semi-annually. EFL paid annual interest to us of $1.7 million in 2016, 2015 and 2014.

Concentrations of Credit Risk	12 Months Ended
Concentrations of Credit Risk	Dec. 31, 2016
Risks and Uncertainties [Abstract]
Concentrations of Credit Risk	Note 14. Concentrations of Credit Risk Financial instruments could potentially expose us to concentrations of credit risk, including unsecured receivables from the Exchange. A large majority of our revenue and receivables are from the Exchange and affiliates. See also Note 1, "Nature of Operations". Management fee amounts and other reimbursements due from the Exchange and affiliates were $378.5 million and $348.1 million at December 31, 2016 and 2015, respectively.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 15. Commitments and Contingencies We have contractual commitments to invest up to $16.9 million related to our limited partnership investments at December 31, 2016. These commitments are split between private equity securities of $6.8 million, mezzanine debt securities of $8.2 million, and real estate activities of $1.9 million. These commitments will be funded as required by the limited partnership agreements. In addition, we have commitments related to the remaining draws of the senior secured draw term loan credit facility. See Note 7, "Borrowing Arrangements". We are involved in litigation arising in the ordinary course of conducting business. In accordance with current accounting standards for loss contingencies and based upon information currently known to us, we establish reserves for litigation when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss or range of loss can be reasonably estimated. When no amount within the range of loss is a better estimate than any other amount, we accrue the minimum amount of the estimable loss. To the extent that such litigation against us may have an exposure to a loss in excess of the amount we have accrued, we believe that such excess would not be material to our financial condition, results of operations, or cash flows. Legal fees are expensed as incurred. We believe that our accruals for legal proceedings are appropriate and, individually and in the aggregate, are not expected to be material to our financial condition, operations, or cash flows. We review all litigation on an ongoing basis when making accrual and disclosure decisions. For certain legal proceedings, we cannot reasonably estimate losses or a range of loss, if any, particularly for proceedings that are in their early stages of development or where the plaintiffs seek indeterminate damages. Various factors, including, but not limited to, the outcome of potentially lengthy discovery and the resolution of important factual questions, may need to be determined before probability can be established or before a loss or range of loss can be reasonably estimated. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. In the event that a legal proceeding results in a substantial judgment against, or settlement by, us, there can be no assurance that any resulting liability or financial commitment would not have a material adverse effect on our financial condition, results of operations, or cash flows.

Supplementary Data on Cash Flows

12 Months Ended

Dec. 31, 2016

Supplemental Cash Flow Information [Abstract]

Supplementary Data on Cash Flows

Note 16. Supplementary Data on Cash Flows

A reconciliation of net income to net cash provided by operating activities as presented in the Statements of Cash Flows is as follows for the years ended December 31:



(in thousands)
	2016			2015			2014
Cash flows from operating activities:
Net income	$	210,366		$	174,678		$	167,505
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,154			16,461			15,656
Deferred income tax benefit	(2		)	(14,584		)	(3,305		)
Realized (gains) losses and impairments on investments	(256		)	1,066			(952		)
Equity in earnings of limited partnerships	(7,025		)	(16,983		)	(10,929		)
Net amortization of bond premium	7,436			8,160			7,225
(Decrease) increase in deferred compensation	(4,561		)	(1,526		)	6,149
Limited partnership distributions	17,837			14,112			15,327
Increase in receivables from affiliates	(30,485		)	(12,835		)	(34,778		)
(Increase) decrease in accrued investment income	(846		)	47			(915		)
Decrease (increase) in federal income taxes recoverable	6,687			(499		)	(8,421		)
Decrease in prepaid pension	10,524			20,307			557
(Increase) decrease in prepaid expenses and other assets	(4,674		)	1,193			(1,747		)
Increase in accounts payable and accrued expenses	11,144			3,633			1,753
Increase in commissions payable	15,017			5,624			20,596
Increase in accrued agent bonuses	8,020			18,524			12,292
Net cash provided by operating activities	$	254,336		$	217,378		$	186,013

Quarterly Results of Operations (unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (unaudited)

Note 17. Quarterly Results of Operations (unaudited)



	Year ended December 31, 2016
(in thousands, except per share data)	First quarter		Second quarter		Third quarter		Fourth quarter		Year
Operating revenue	$	374,728	$	423,884	$	418,406	$	379,613	$	1,596,631
Operating expenses	307,063		338,125		336,151		322,928		1,304,267
Investment income, net of interest expense	2,559		7,404		4,326		13,438		27,727
Income before income taxes	70,224		93,163		86,581		70,123		$	320,091
Net income	$	45,895	$	61,309	$	57,376	$	45,786	$	210,366

Earnings per share ⁽¹⁾
Net income per share
Class A common stock – basic	$	0.99	$	1.32	$	1.23	$	0.98	$	4.52
Class A common stock – diluted	$	0.87	$	1.17	$	1.09	$	0.87	$	4.01
Class B common stock – basic	$	148	$	197	$	185	$	147	$	678
Class B common stock – diluted	$	148	$	197	$	185	$	147	$	677


(1)	The cumulative sum of quarterly basic and diluted net income per share amounts may not equal total basic and diluted net income per share for the year due to differences in weighted average shares and equivalent shares outstanding for each of the periods presented.



	Year ended December 31, 2015
(in thousands, except per share data)	First quarter		Second quarter		Third quarter		Fourth quarter		Year
Operating revenue	$	350,831	$	401,660	$	396,637	$	356,380	$	1,505,508
Operating expenses	298,401		331,677		328,348		314,541		1,272,967
Investment income	6,539		15,705		7,220		4,244		33,708
Income before income taxes	58,969		85,688		75,509		46,083		$	266,249
Net income	$	38,833	$	56,150	$	49,562	$	30,133	$	174,678

Earnings per share ⁽¹⁾
Net income per share
Class A common stock – basic	$	0.83	$	1.21	$	1.06	$	0.65	$	3.75
Class A common stock – diluted	$	0.74	$	1.07	$	0.94	$	0.57	$	3.33
Class B common stock – basic	$	125	$	181	$	160	$	97	$	563
Class B common stock – diluted	$	125	$	180	$	159	$	97	$	562


(1)	The cumulative sum of quarterly basic and diluted net income per share amounts may not equal total basic and diluted net income per share for the year due to differences in weighted average shares and equivalent shares outstanding for each of the periods presented.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Note 18. Subsequent Events No items were identified in the period subsequent to the financial statement date that required adjustment or disclosure.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Basis of presentation

The accompanying financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP").

Use of estimates

Recent accounting standards

Recently adopted accounting standards


•	Indemnity's management fee revenues are included on the face of the Statements of Operations. The Noncontrolling Interest - Exchange revenues and expenses are no longer included in the Statements of Operations, Statements of Comprehensive Income or Statements of Cash Flows.


•	The assets and liabilities of the Noncontrolling Interest - Exchange are not included on the Statements of Financial Position. The assets and liabilities of Indemnity are presented on a classified basis, which distinguishes between current and noncurrent on the Statements of Financial Position.


•	There is no cumulative effect to Indemnity's shareholders’ equity. The noncontrolling interest in total equity that represented the amount of the Exchange’s subscribers’ equity was presented separately from Indemnity's shareholders’ equity.

Recently issued accounting standards

Cash and cash equivalents

Investments - Available-for-sale securities

Common stock securities classified as available-for-sale represent certain exchange traded funds with underlying holdings of fixed maturity securities.

Realized gains and losses on sales of available-for-sale securities are recognized in income based upon the specific identification method. Interest and dividend income are recognized as earned.

Available-for-sale securities are evaluated monthly for other-than-temporary impairment loss.

Some factors considered in this evaluation include:


•	the extent and duration to which fair value is less than cost;


•	historical operating performance and financial condition of the issuer;


•	short and long-term prospects of the issuer and its industry based upon analysts’ recommendations;


•	specific events that occurred affecting the issuer, including a ratings downgrade;


•	near term liquidity position of the issuer; and


•	compliance with financial covenants.

Investments - Trading securities

Investments - Limited partnerships

Deferred taxes

Fixed assets

Agent bonus estimates

Recognition of management fee revenue

Recognition of service agreement revenue

Earnings per share

Fair value of financial instruments


•	Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.


•	Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.


•	Level 3 – Unobservable inputs for the asset or liability.

Fair value of financial instruments, transfers between levels

Commitments and contingencies

We are involved in litigation arising in the ordinary course of conducting business. In accordance with current accounting standards for loss contingencies and based upon information currently known to us, we establish reserves for litigation when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss or range of loss can be reasonably estimated. When no amount within the range of loss is a better estimate than any other amount, we accrue the minimum amount of the estimable loss. To the extent that such litigation against us may have an exposure to a loss in excess of the amount we have accrued, we believe that such excess would not be material to our financial condition, results of operations, or cash flows. Legal fees are expensed as incurred. We believe that our accruals for legal proceedings are appropriate and, individually and in the aggregate, are not expected to be material to our financial condition, operations, or cash flows.

We review all litigation on an ongoing basis when making accrual and disclosure decisions. For certain legal proceedings, we cannot reasonably estimate losses or a range of loss, if any, particularly for proceedings that are in their early stages of development or where the plaintiffs seek indeterminate damages. Various factors, including, but not limited to, the outcome of potentially lengthy discovery and the resolution of important factual questions, may need to be determined before probability can be established or before a loss or range of loss can be reasonably estimated. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. In the event that a legal proceeding results in a substantial judgment against, or settlement by, us, there can be no assurance that any resulting liability or financial commitment would not have a material adverse effect on our financial condition, results of operations, or cash flows.

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Schedule of reconciliation of the numerators and denominators used in the basic and diluted per-share computations

A reconciliation of the numerators and denominators used in the basic and diluted per-share computations is presented as follows for each class of common stock:



(dollars in thousands, except per share data)						For the years ended December 31,
	2016					2015					2014
	Allocated net income (numerator)		Weighted shares (denominator)	Per- share amount		Allocated net income (numerator)		Weighted shares (denominator)	Per- share amount		Allocated net income (numerator)		Weighted shares (denominator)	Per- share amount
Class A – Basic EPS:
Income available to Class A stockholders	$	208,644	46,188,952	$	4.52	$	173,248	46,186,671	$	3.75	$	166,134	46,247,876	$	3.59
Dilutive effect of stock-based awards	0		145,551	—		0		211,340	—		0		267,558	—
Assumed conversion of Class B shares	1,722		6,100,800	—		1,430		6,100,800	—		1,371		6,100,800	—
Class A – Diluted EPS:
Income available to Class A stockholders on Class A equivalent shares	$	210,366	52,435,303	$	4.01	$	174,678	52,498,811	$	3.33	$	167,505	52,616,234	$	3.18
Class B – Basic EPS:
Income available to Class B stockholders	$	1,722	2,542	$	678	$	1,430	2,542	$	563	$	1,371	2,542	$	539
Class B – Diluted EPS:
Income available to Class B stockholders	$	1,721	2,542	$	677	$	1,429	2,542	$	562	$	1,369	2,542	$	538

Fair Value (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of fair value measurements on a recurring basis by asset class and level of input

The following tables present our fair value measurements on a recurring basis by asset class and level of input:



	At December 31, 2016
	Fair value measurements using:
(in thousands)	Total		Quoted prices in active markets for identical assets Level 1		Observable inputs Level 2		Unobservable inputs Level 3
Available-for-sale securities:
U.S. treasury	$	5,031	$	0	$	5,031	$	0
Government sponsored entities	2,026		0		2,026		0
States & political subdivisions	253,132		0		253,132		0
Corporate debt securities	322,948		0		313,596		9,352
Residential mortgage-backed securities	16,102		0		16,102		0
Commercial mortgage-backed securities	36,849		0		36,849		0
Collateralized debt obligations	69,253		0		69,253		0
Other debt securities	2,000		0		2,000		0
Total fixed maturities	707,341		0		697,989		9,352
Common stock	5,950		5,950		0		0
Total available-for-sale securities	713,291		5,950		697,989		9,352
Other investments ⁽¹⁾	4,412		—		—		—
Total	$	717,703	$	5,950	$	697,989	$	9,352



	At December 31, 2015
	Fair value measurements using:
(in thousands)	Total		Quoted prices in active markets for identical assets Level 1		Observable inputs Level 2		Unobservable inputs Level 3
Available-for-sale securities:
States & political subdivisions	$	231,847	$	0	$	231,847	$	0
Corporate debt securities	250,333		0		250,264		69
Residential mortgage-backed securities	13,513		0		13,513		0
Commercial mortgage-backed securities	37,571		0		37,571		0
Collateralized debt obligations	51,745		0		43,168		8,577
Other debt securities	2,200		0		2,200		0
Total fixed maturities	587,209		0		578,563		8,646
Common stock	12,732		12,732		0		0
Total available-for-sale securities	599,941		12,732		578,563		8,646
Other investments ⁽¹⁾	4,526		—		—		—
Total	$	604,467	$	12,732	$	578,563	$	8,646

Schedule of roll forward of Level 3 fair value measurements on a recurring basis

Level 3 Assets – Year-to-Date Change:



(in thousands)	Beginning balance at December 31, 2014		Included in earnings ⁽¹⁾			Included in other comprehensive income			Purchases		Sales		Transfers in and (out) of Level 3			Ending balance at December 31, 2015
Available-for-sale securities:
Corporate debt securities	$	0	$	(1	)	$	(59	)	$	180	$	0	$	(51	)	$	69
Collateralized debt obligations	0		3			(7		)	8,581		0		0			8,577
Total fixed maturities	0		2			(66		)	8,761		0		(51		)	8,646
Total available-for-sale securities	0		2			(66		)	8,761		0		(51		)	8,646
Total Level 3 assets	$	0	$	2		$	(66	)	$	8,761	$	0	$	(51	)	$	8,646

(1) These amounts are reported in the Statements of Operations as net realized investment gains (losses) for the year ended December 31, 2015 on Level 3 securities.

Level 3 Assets – Year-to-Date Change:



(in thousands)	Beginning balance at December 31, 2015		Included in earnings ⁽¹⁾		Included in other comprehensive income			Purchases		Sales			Transfers in and (out) of Level 3			Ending balance at December 31, 2016
Available-for-sale securities:
Corporate debt securities	$	69	$	173	$	107		$	13,935	$	(1,854	)	$	(3,078	)	$	9,352
Commercial mortgage-backed securities	0		0		3			1,000		0			(1,003		)	0
Collateralized debt obligations	8,577		4		(5		)	7,722		(54		)	(16,244		)	0
Total fixed maturities	8,646		177		105			22,657		(1,908		)	(20,325		)	9,352
Total available-for-sale securities	8,646		177		105			22,657		(1,908		)	(20,325		)	9,352
Total Level 3 assets	$	8,646	$	177	$	105		$	22,657	$	(1,908	)	$	(20,325	)	$	9,352

(1) These amounts are reported in the Statements of Operations as net investment income and net realized investment gains (losses) for the year ended December 31, 2016 on Level 3 securities.

Schedule of fair value measurements on a recurring basis by pricing source

The following table presents our fair value measurements on a recurring basis by pricing source:



(in thousands)	At December 31, 2016
	Total		Level 1		Level 2		Level 3
Fixed maturities:
Priced via pricing services	$	707,341	$	0	$	697,989	$	9,352
Total fixed maturities	707,341		0		697,989		9,352
Common stock:
Priced via pricing services	5,950		5,950		0		0
Total common stock	5,950		5,950		0		0
Other investments:
Priced via unobservable inputs ⁽¹⁾	4,412		—		—		—
Total other investments	4,412		—		—		—
Total	$	717,703	$	5,950	$	697,989	$	9,352

(1)

Investments (Tables)

12 Months Ended

Dec. 31, 2016

Investments [Abstract]

Schedule of reconciliation of cost to fair value of available-for-sale securities

Available-for-sale securities

The following tables summarize the cost and fair value of our available-for-sale securities:



	At December 31, 2016
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale securities:
U.S. treasury	$	5,093	$	0	$	62	$	5,031
Government sponsored entities	2,004		22		0		2,026
States & political subdivisions	249,312		6,113		2,293		253,132
Corporate debt securities	321,041		3,293		1,386		322,948
Residential mortgage-backed securities	16,232		61		191		16,102
Commercial mortgage-backed securities	37,723		59		933		36,849
Collateralized debt obligations	68,998		351		96		69,253
Other debt securities	2,000		0		0		2,000
Total fixed maturities	702,403		9,899		4,961		707,341
Common stock	6,152		0		202		5,950
Total available-for-sale securities	$	708,555	$	9,899	$	5,163	$	713,291



	At December 31, 2015
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale securities:
States & political subdivisions	$	221,093	$	10,761	$	7	$	231,847
Corporate debt securities	254,464		281		4,412		250,333
Residential mortgage-backed securities	13,639		4		130		13,513
Commercial mortgage-backed securities	38,630		30		1,089		37,571
Collateralized debt obligations	51,905		61		221		51,745
Other debt securities	2,241		0		41		2,200
Total fixed maturities	581,972		11,137		5,900		587,209
Common stock	12,865		0		133		12,732
Total available-for-sale securities	$	594,837	$	11,137	$	6,033	$	599,941

Schedule of amortized cost and estimated fair value of fixed maturities by remaining contractual term to maturity



	At December 31, 2016
(in thousands)	Amortized		Estimated
	cost		fair value
Due in one year or less	$	55,304	$	55,394
Due after one year through five years	329,377		331,617
Due after five years through ten years	203,880		207,358
Due after ten years	113,842		112,972
Total fixed maturities	$	702,403	$	707,341

Schedule of available-for-sale securities in a gross unrealized loss position by length of time

Available-for-sale securities in a gross unrealized loss position are as follows. Data is provided by length of time for securities in a gross unrealized loss position.



	At December 31, 2016
(dollars in thousands)	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized		No. of
	value		losses		value		losses		value		losses		holdings
Available-for-sale securities:
U.S. treasury	$	5,031	$	62	$	0	$	0	$	5,031	$	62	1
States & political subdivisions	84,611		2,293		0		0		84,611		2,293		40
Corporate debt securities	112,453		987		8,692		399		121,145		1,386		155
Residential mortgage-backed securities	7,451		60		4,974		131		12,425		191		13
Commercial mortgage-backed securities	26,509		437		4,319		496		30,828		933		28
Collateralized debt obligations	27,470		75		4,208		21		31,678		96		15
Total fixed maturities	263,525		3,914		22,193		1,047		285,718		4,961		252
Common stock	5,950		202		0		0		5,950		202		1
Total available-for-sale securities	$	269,475	$	4,116	$	22,193	$	1,047	$	291,668	$	5,163	253
Quality breakdown of fixed maturities:
Investment grade	$	239,041	$	3,605	$	16,061	$	399	$	255,102	$	4,004	136
Non-investment grade	24,484		309		6,132		648		30,616		957		116
Total fixed maturities	$	263,525	$	3,914	$	22,193	$	1,047	$	285,718	$	4,961	252



	At December 31, 2015
(dollars in thousands)	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized		No. of
	value		losses		value		losses		value		losses		holdings
Available-for-sale securities:
States & political subdivisions	$	5,867	$	7	$	0	$	0	$	5,867	$	7	3
Corporate debt securities	172,831		2,447		19,086		1,965		191,917		4,412		349
Residential mortgage-backed securities	9,827		84		936		46		10,763		130		9
Commercial mortgage-backed securities	13,081		68		19,081		1,021		32,162		1,089		24
Collateralized debt obligations	27,981		103		9,174		118		37,155		221		19
Other debt securities	1,960		40		241		1		2,201		41		2
Total fixed maturities	231,547		2,749		48,518		3,151		280,065		5,900		406
Common stock	12,732		133		0		0		12,732		133		1
Total available-for-sale securities	$	244,279	$	2,882	$	48,518	$	3,151	$	292,797	$	6,033	407
Quality breakdown of fixed maturities:
Investment grade	$	174,723	$	1,296	$	38,369	$	1,256	$	213,092	$	2,552	105
Non-investment grade	56,824		1,453		10,149		1,895		66,973		3,348		301
Total fixed maturities	$	231,547	$	2,749	$	48,518	$	3,151	$	280,065	$	5,900	406

Schedule of investment income, net of expenses, from portfolios

Net investment income



(in thousands)	2016		2015		2014
Fixed maturities	$	20,175	$	16,457	$	14,173
Equity securities	171		1,045		1,550
Cash equivalents and other	1,391		1,174		1,207
Total investment income	21,737		18,676		16,930
Less: investment expenses	1,190		885		394
Investment income, net of expenses	$	20,547	$	17,791	$	16,536

Schedule of realized gains and losses on sales of securities recognized in income based upon the specific identification method

Realized investment gains (losses)



(in thousands)	2016			2015			2014
Available-for-sale securities:
Fixed maturities:
Gross realized gains	$	2,111		$	1,571		$	453
Gross realized losses	(2,113		)	(1,764		)	(333		)
Net realized (losses) gains	(2		)	(193		)	120
Equity securities:
Gross realized gains	1			759			1,132
Gross realized losses	(34		)	(74		)	(195		)
Net realized (losses) gains	(33		)	685			937
Trading securities:
Common stock:
Gross realized gains	$	707		$	0		$	0
Net realized gains	707			0			0
Net realized investment gains	$	672		$	492		$	1,057

Schedule of components of other-than-temporary impairments on investments

The components of other-than-temporary impairments on investments are included below for the years ended December 31:



(in thousands)	2016			2015			2014
Fixed maturities	$	(416	)	$	(1,558	)	$	(105	)
Total other-than-temporary impairments	(416		)	(1,558		)	(105		)
Portion recognized in other comprehensive income	0			0			0
Net impairment losses recognized in earnings	$	(416	)	$	(1,558	)	$	(105	)

Schedule of limited partnership results, generally reported on a one quarter lag

The following table summarizes limited partnership investments by sector at December 31:



(in thousands)	2016		2015
Private equity	$	35,228	$	48,397
Mezzanine debt	6,010		12,701
Real estate	12,509		22,911
Real estate - fair value option	4,412		4,526
Total limited partnerships	$	58,159	$	88,535

Amounts included in equity in earnings of limited partnerships by method of accounting are included below for the years ended December 31:



(in thousands)	2016		2015		2014
Equity in earnings of limited partnerships accounted for under the equity method	$	6,273	$	16,545	$	8,517
Change in fair value of limited partnerships accounted for under the fair value option	752		438		2,412
Equity in earnings of limited partnerships	$	7,025	$	16,983	$	10,929

Fixed Assets (Tables)

12 Months Ended

Dec. 31, 2016

Property Plant And Equipment and Finite-Lived Intangible Assets, Net By Type [Abstract]

Schedule of fixed assets by category

The following table summarizes our fixed assets by category at December 31:



(in thousands)	2016			2015
Software	$	124,093		$	110,405
Equipment	11,771			10,679
Land, buildings, and building improvements	7,627			7,627
Leasehold improvements	1,375			1,171
Projects in progress	17,812			17,719
Construction in progress	9,622			—
Total fixed assets, gross	172,300			147,601
Less: Accumulated depreciation	(103,158		)	(88,514		)
Fixed assets, net	$	69,142		$	59,087

Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Schedule of cost of pension plans

Cost of pension plans

Pension plan cost includes the following components:



(in thousands)
	2016			2015			2014
Service cost for benefits earned	$	28,201		$	30,433		$	22,510
Interest cost on benefit obligation	33,125			30,755			28,112
Expected return on plan assets	(39,520		)	(35,921		)	(31,419		)
Prior service cost amortization	696			670			712
Net actuarial loss amortization	8,111			14,031			6,344
Pension plan cost ⁽¹⁾	$	30,613		$	39,968		$	26,259


(1)	Pension plan costs represent the total cost before reimbursements to Indemnity from the Exchange and EFL.

Schedule of actuarial assumptions used to measure the year-end obligations and net periodic benefit costs for the subsequent year

Actuarial assumptions

The following table describes the assumptions at December 31 used to measure the year-end obligations and the net periodic benefit costs for the subsequent year:



	2016		2015		2014		2013
Employee pension plan:
Discount rate	4.24	%	4.57	%	4.17	%	5.11	%
Expected return on assets ⁽¹⁾	7.00		7.00		7.00		7.50
Compensation increases ⁽²⁾	3.32		3.32		3.32		4.15
SERP:
Discount rate – pre-retirement/post-retirement	4.24/3.74		4.57/4.07		4.17/3.67		5.11/4.61
Rate of compensation increase	5.00		5.00		5.00		6.00


(1)	The expected return on assets used to measure the net periodic benefit cost for 2017 is 6.75%.


(2)	The rate of compensation increase for the employee plan is age-graded. An equivalent single compensation increase rate of 3.32% in 2016, 2015 and 2014 would produce similar results.

Schedule of funded status of pension plans and amounts recognized in the Statements of Financial Position

The following table sets forth the funded status of the pension plans and the amounts recognized in the Statements of Financial Position at December 31:



(in thousands)
	2016			2015
Funded status at end of year	$	(224,115	)	$	(173,089	)

Pension liabilities – due within one year ⁽¹⁾	$	(2,288	)	$	(389	)
Pension liabilities – due after one year	(221,827		)	(172,700		)
Net amount recognized	$	(224,115	)	$	(173,089	)

(1) The current portion of pension liabilities is included in accrued expenses and other current liabilities in the Statements of Financial Position.

Schedule of reconciliation of beginning and ending balances of the projected benefit obligation, as well as the accumulated benefit obligation

The following table sets forth a reconciliation of beginning and ending balances of the projected benefit obligation, as well as the accumulated benefit obligation at December 31:



(in thousands)
	2016			2015
Projected benefit obligation, beginning of year	$	724,580		$	736,705
Service cost for benefits earned	28,201			30,433
Interest cost on benefit obligation	33,125			30,755
Plan amendments	2,114			0
Actuarial loss (gain)	43,032			(60,774		)
Benefits paid	(14,393		)	(12,539		)
Projected benefit obligation, end of year	$	816,659		$	724,580

Accumulated benefit obligation, end of year	$	657,969		$	583,432

Schedule of defined benefit pension plans with assets less than accumulated benefit obligation

The following table describes plans with assets less than accumulated benefit obligation at December 31:



(in thousands)
	2016		2015
Projected benefit obligation	$	816,659	$	724,580
Accumulated benefit obligation	657,969		583,432
Plan assets	592,544		551,491

Schedule of reconciliation of beginning and ending balances of the fair value of plan assets

Pension assets

The following table sets forth a reconciliation of beginning and ending balances of the fair value of plan assets at December 31:



(in thousands)
	2016			2015
Fair value of plan assets, beginning of year	$	551,491		$	547,788
Actual gain (loss) on plan assets	38,028			(1,042		)
Employer contributions	17,418			17,284
Benefits paid	(14,393		)	(12,539		)
Fair value of plan assets, end of year	$	592,544		$	551,491

Schedule of amounts included in accumulated other comprehensive income that were not yet recognized as components of net benefit costs

Accumulated other comprehensive income

Net actuarial loss and prior service cost included in accumulated other comprehensive income that were not yet recognized as components of net benefit costs were as follows:



(in thousands)
	2016		2015
Net actuarial loss	$	185,278	$	148,865
Prior service cost	6,023		4,605
Net amount not yet recognized	$	191,301	$	153,470

Schedule of amounts recognized in other comprehensive income for pension plans

Other comprehensive income

Amounts recognized in other comprehensive income for pension plans:



(in thousands)
	2016			2015
Net actuarial loss (gain) arising during the year	$	44,524		$	(23,810	)
Amortization of net actuarial loss	(8,111		)	(14,031		)
Amortization of prior service cost	(696		)	(670		)
Amendments ⁽¹⁾	2,114			0
Total recognized in other comprehensive income	$	37,831		$	(38,511	)


(1)	Effective September 12, 2016, a plan amendment was adopted to allow part time employees to participate in the pension plan, which added prior service cost of $1.7 million. Additionally, there was one new SERP participant in 2016, which contributed $0.4 million.

Schedule of target and actual asset allocations for the portfolio

The target and actual asset allocations for the portfolio are as follows for the years ended December 31:




	Target asset allocation			Target asset allocation		Actual asset allocation		Actual asset allocation
Asset allocation:	2016			2015		2016		2015
Equity securities:
U.S. equity securities	35	%	⁽¹⁾	35	%	38	%	36	%
Non-U.S. equity securities	20		⁽²⁾	20		18		20
Total equity securities	55			55		56		56
Debt securities	44		⁽³⁾	44		43		43
Other	1		⁽⁴⁾	1		1		1
Total	100	%		100	%	100	%	100	%


(1)	U.S. equity securities – 22% seek to achieve excess returns relative to the Russell 2000 Index, while 30% seek to achieve excess returns relative to the S&P 500. The remaining 48% of the allocation to U.S. equity securities are comprised of equity index funds that track the S&P 500.


(2)	Non-U.S. equity securities – 11% are allocated to international small cap investments, while another 11% are allocated to international emerging market investments. The remaining 78% of the Non-U.S. equity securities are allocated to investments seeking to achieve excess returns relative to an international market index.


(3)	Debt securities – 44% are allocated to long U.S. Treasury Strips, 44% are allocated to U.S. corporate bonds with an emphasis on long duration bonds rated A or better, while the remaining 12% are allocated to floating rate high income leverage loans.


(4)	Institutional money market fund.

Schedule of fair value measurements of pension plan assets by major category and level of input

The following tables represent the fair value measurements for the pension plan assets by major category and level of input:




	At December 31, 2016
	Fair value measurements of plan assets using:
(in thousands)	Total		Quoted prices in active markets for identical assets Level 1		Significant observable inputs Level 2		Significant unobservable inputs Level 3
Equity securities:
U.S. equity securities	$	225,446	$	0	$	225,446	$	0
Non-U.S. equity securities	107,953		0		107,953		0
Total equity securities	333,399		0		333,399		0
Debt securities	253,197		0		253,197		0
Other	5,948		5,948		0		0
Total	$	592,544	$	5,948	$	586,596	$	0




	At December 31, 2015
	Fair value measurements of plan assets using:
(in thousands)	Total		Quoted prices in active markets for identical assets Level 1		Significant observable inputs Level 2		Significant unobservable inputs Level 3
Equity securities:
U.S. equity securities	$	201,021	$	0	$	201,021	$	0
Non-U.S. equity securities	107,945		0		107,945		0
Total equity securities	308,966		0		308,966		0
Debt securities	236,619		0		236,619		0
Other	5,906		5,906		0		0
Total	$	551,491	$	5,906	$	545,585	$	0

Schedule of benefits expected to be paid over the next 10 years from pension plans

Estimated future benefit payments

The following table sets forth amounts of benefits expected to be paid over the next 10 years from our pension plans as of December 31:



(in thousands)
Year ending December 31,		Expected future benefit payments
2017	$	18,943
2018		18,672
2019		20,778
2020		23,369
2021		26,246
2022 - 2026		181,837

Incentive and Deferred Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of awards, employer match, and hypothetical earnings by incentive and deferred compensation plans

The following summarizes the incentive and deferred compensation plans for the years ended December 31:



(in thousands)
	2016			2015			2014
Awards, employer match, and hypothetical earnings by plan:
Annual incentive plan awards	$	6,460		$	7,057		$	6,222
Long-term incentive plan awards	11,321			14,228			12,523
Deferred compensation plans, employer match, and hypothetical earnings	882			2,042			2,789
Total plan awards and earnings	18,663			23,327			21,534
Total plan awards paid	(20,418		)	(14,317		)	(14,839		)
Compensation deferred under the plans	1,496			996			527
Distributions from the deferred compensation plans	(435		)	(1,688		)	(1,072		)
Forfeitures ⁽¹⁾	(3,117		)	(821		)	—
Funding of rabbi trust for outside directors	(738		)	(9,018		)	—
Gross incentive plan and deferred compensation liabilities at end of period	$	32,908		$	37,457		$	38,978

(1) Forfeitures are the result of plan participants who separated from service with the Company in 2016 and 2015.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes

The provision for income taxes consists of the following for the years ended December 31:



(in thousands)
	2016			2015			2014
Current income tax expense	$	109,727		$	106,155		$	87,064
Deferred income tax benefit	(2		)	(14,584		)	(3,305		)
Income tax expense	$	109,725		$	91,571		$	83,759

Schedule of reconciliation of the provision for income taxes, with amounts determined by applying the statutory federal income tax rate to pre-tax income

A reconciliation of the provision for income taxes, with amounts determined by applying the statutory federal income tax rate to pre-tax income, is as follows for the years ended December 31:



(in thousands)
	2016			2015			2014
Income tax at statutory rate	$	112,032		$	93,187		$	87,943
Tax-exempt interest	(2,270		)	(2,285		)	(2,589		)
Other, net	(37		)	669			(1,595		)
Income tax expense	$	109,725		$	91,571		$	83,759

Schedule of temporary differences and carry-forwards, which give rise to deferred tax assets and liabilities

Temporary differences and carry-forwards, which give rise to deferred tax assets and liabilities, are as follows for the years ended December 31:



(in thousands)
	2016		2015
Deferred tax assets:
Other employee benefits	$	19,106	$	19,945
Pension and other postretirement benefits	65,241		48,897
Allowance for management fee returned on cancelled policies	4,795		4,375
Other	81		546
Total deferred tax assets	89,223		73,763
Deferred tax liabilities:
Depreciation	18,493		17,843
Prepaid expenses	8,120		6,929
Limited partnerships	5,597		5,822
Unrealized gains on investments	1,657		1,360
Other	1,467		1,123
Total deferred tax liabilities	35,334		33,077
Net deferred tax asset	$	53,889	$	40,686

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2016

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of changes in accumulated other comprehensive income (loss) by component, including amounts reclassified to other comprehensive income (loss) and the related line item in the Statements of Operations where net income is presented



(in thousands)	2016									2015									2014
	Before Tax			Income Tax			Net			Before Tax			Income Tax			Net			Before Tax			Income Tax			Net
Investment securities:
AOCI, beginning of year	$	3,888		$	1,361		$	2,527		$	10,473		$	3,666		$	6,807		$	9,206		$	3,222		$	5,984
OCI (loss) before reclassifications	(385		)	(135		)	(250		)	(7,651		)	(2,678		)	(4,973		)	1,808			633			1,175
Realized investment losses (gains)	35			12			23			(492		)	(172		)	(320		)	(646		)	(226		)	(420		)
Impairment losses	416			146			270			1,558			545			1,013			105			37			68
OCI (loss)	66			23			43			(6,585		)	(2,305		)	(4,280		)	1,267			444			823
AOCI, end of year	$	3,954		$	1,384		$	2,570		$	3,888		$	1,361		$	2,527		$	10,473		$	3,666		$	6,807

Pension and other postretirement plans:
AOCI (loss), beginning of year	$	(152,910	)	$	(53,519	)	$	(99,391	)	$	(191,552	)	$	(67,044	)	$	(124,508	)	$	(100,128	)	$	(35,045	)	$	(65,083	)
OCI (loss) before reclassifications	(46,244		)	(16,185		)	(30,059		)	24,094			$	8,433		15,661			(98,223		)	(34,378		)	(63,845		)
Amortization of prior service costs ⁽¹⁾	695			243			452			668			234			434			709			248			461
Amortization of net actuarial loss ⁽¹⁾	7,764			2,717			5,047			13,880			4,858			9,022			6,090			2,131			3,959
OCI (loss)	(37,785		)	(13,225		)	(24,560		)	38,642			13,525			25,117			(91,424		)	(31,999		)	(59,425		)
AOCI (loss), end of year	$	(190,695	)	$	(66,744	)	$	(123,951	)	$	(152,910	)	$	(53,519	)	$	(99,391	)	$	(191,552	)	$	(67,044	)	$	(124,508	)

Total
AOCI (loss), beginning of year	$	(149,022	)	$	(52,158	)	$	(96,864	)	$	(181,079	)	$	(63,378	)	$	(117,701	)	$	(90,922	)	$	(31,823	)	$	(59,099	)
Investment securities	66			23			43			(6,585		)	(2,305		)	(4,280		)	1,267			444			823
Pension and other postretirement plans	(37,785		)	(13,225		)	(24,560		)	38,642			13,525			25,117			(91,424		)	(31,999		)	(59,425		)
OCI (loss)	(37,719		)	(13,202		)	(24,517		)	32,057			11,220			20,837			(90,157		)	(31,555		)	(58,602		)
AOCI (loss), end of year	$	(186,741	)	$	(65,360	)	$	(121,381	)	$	(149,022	)	$	(52,158	)	$	(96,864	)	$	(181,079	)	$	(63,378	)	$	(117,701	)


(1)	These components of accumulated other comprehensive income (loss) are included in the computation of net periodic pension cost. See Note 8, "Postretirement Benefits", for additional information.

Related Party (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of payments on behalf of related entities

The amounts incurred on behalf of the Exchange and EFL were as follows for the years ended December 31:



(in thousands)	2016		2015
Erie Insurance Exchange
Operating expenses	$	429,985	$	406,246
Investment expenses	27,240		24,620
	457,225		430,866
Erie Family Life Insurance
Operating expenses	$	36,818	$	33,988
Investment expenses	2,070		1,773
	38,888		35,761
Total cash settlements	$	496,113	$	466,627

Supplementary Data on Cash Flows (Tables)

12 Months Ended

Dec. 31, 2016

Supplemental Cash Flow Information [Abstract]

Schedule of reconciliation of net income to net cash provided by operating activities as presented in the Statements of Cash Flows

A reconciliation of net income to net cash provided by operating activities as presented in the Statements of Cash Flows is as follows for the years ended December 31:



(in thousands)
	2016			2015			2014
Cash flows from operating activities:
Net income	$	210,366		$	174,678		$	167,505
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,154			16,461			15,656
Deferred income tax benefit	(2		)	(14,584		)	(3,305		)
Realized (gains) losses and impairments on investments	(256		)	1,066			(952		)
Equity in earnings of limited partnerships	(7,025		)	(16,983		)	(10,929		)
Net amortization of bond premium	7,436			8,160			7,225
(Decrease) increase in deferred compensation	(4,561		)	(1,526		)	6,149
Limited partnership distributions	17,837			14,112			15,327
Increase in receivables from affiliates	(30,485		)	(12,835		)	(34,778		)
(Increase) decrease in accrued investment income	(846		)	47			(915		)
Decrease (increase) in federal income taxes recoverable	6,687			(499		)	(8,421		)
Decrease in prepaid pension	10,524			20,307			557
(Increase) decrease in prepaid expenses and other assets	(4,674		)	1,193			(1,747		)
Increase in accounts payable and accrued expenses	11,144			3,633			1,753
Increase in commissions payable	15,017			5,624			20,596
Increase in accrued agent bonuses	8,020			18,524			12,292
Net cash provided by operating activities	$	254,336		$	217,378		$	186,013

Quarterly Results of Operations (unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Schedule of quarterly results of operations (unaudited)



	Year ended December 31, 2016
(in thousands, except per share data)	First quarter		Second quarter		Third quarter		Fourth quarter		Year
Operating revenue	$	374,728	$	423,884	$	418,406	$	379,613	$	1,596,631
Operating expenses	307,063		338,125		336,151		322,928		1,304,267
Investment income, net of interest expense	2,559		7,404		4,326		13,438		27,727
Income before income taxes	70,224		93,163		86,581		70,123		$	320,091
Net income	$	45,895	$	61,309	$	57,376	$	45,786	$	210,366

Earnings per share ⁽¹⁾
Net income per share
Class A common stock – basic	$	0.99	$	1.32	$	1.23	$	0.98	$	4.52
Class A common stock – diluted	$	0.87	$	1.17	$	1.09	$	0.87	$	4.01
Class B common stock – basic	$	148	$	197	$	185	$	147	$	678
Class B common stock – diluted	$	148	$	197	$	185	$	147	$	677


(1)	The cumulative sum of quarterly basic and diluted net income per share amounts may not equal total basic and diluted net income per share for the year due to differences in weighted average shares and equivalent shares outstanding for each of the periods presented.



	Year ended December 31, 2015
(in thousands, except per share data)	First quarter		Second quarter		Third quarter		Fourth quarter		Year
Operating revenue	$	350,831	$	401,660	$	396,637	$	356,380	$	1,505,508
Operating expenses	298,401		331,677		328,348		314,541		1,272,967
Investment income	6,539		15,705		7,220		4,244		33,708
Income before income taxes	58,969		85,688		75,509		46,083		$	266,249
Net income	$	38,833	$	56,150	$	49,562	$	30,133	$	174,678

Earnings per share ⁽¹⁾
Net income per share
Class A common stock – basic	$	0.83	$	1.21	$	1.06	$	0.65	$	3.75
Class A common stock – diluted	$	0.74	$	1.07	$	0.94	$	0.57	$	3.33
Class B common stock – basic	$	125	$	181	$	160	$	97	$	563
Class B common stock – diluted	$	125	$	180	$	159	$	97	$	562


(1)	The cumulative sum of quarterly basic and diluted net income per share amounts may not equal total basic and diluted net income per share for the year due to differences in weighted average shares and equivalent shares outstanding for each of the periods presented.

Nature of Operations (Details)	12 Months Ended
Nature of Operations (Details)	Dec. 31, 2016
Agent compensation expense
Nature of expense as a percentage of total expenses
Nature of expense as a percentage of total expenses (as a percent)	69.00%
Underwriting and policy processing expense
Nature of expense as a percentage of total expenses
Nature of expense as a percentage of total expenses (as a percent)	10.00%
Information technology expense
Nature of expense as a percentage of total expenses
Nature of expense as a percentage of total expenses (as a percent)	9.00%

Significant Accounting Policies (Details) $ in Millions	Dec. 31, 2015 USD ($)
Cumulative-Effect Adjustment, Deconsolidation of Variable Interest Entity
ASU 2015-02 cumulative-effect adjustment, deconsolidation of variable interest entity
Cumulative effect to Indemnity's shareholders' equity due to adoption of ASU 2015-02	$ 0

- Definition

Amount of cumulative effect of the change in accounting principle or new accounting pronouncement on retained earnings or other components of equity or net assets in the statement of financial position as of the beginning of the earliest period presented.

+ References + Details

Significant Accounting Policies (Details 2)	12 Months Ended
Significant Accounting Policies (Details 2)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue recognition
Number of operating revenue streams	2
Cash and cash equivalents
Cash and cash equivalents, maximum maturity at the date of purchase (in months)	3 months
Available-for-sale securities
Available-for-sale securities, maximum maturity to be classified as current assets (in months)	12 months
Agent bonus estimates
Performance period for agent bonuses (in months)	36 months
Period of prior year actual underwriting data used to estimate agent bonuses (in years)	2 years
Erie Insurance Exchange (EIE)
Recognition of management fee revenue
Indemnity's maximum management fee rate as a percent of premiums written and assumed by the Exchange (as a percent)	25.00%	25.00%	25.00%
Maximum \| Erie Insurance Exchange (EIE)
Recognition of management fee revenue
Indemnity's maximum management fee rate as a percent of premiums written and assumed by the Exchange (as a percent)	25.00%
Software \| Minimum
Fixed assets
Estimated useful life (in years)	3 years
Software \| Maximum
Fixed assets
Estimated useful life (in years)	7 years
Equipment \| Minimum
Fixed assets
Estimated useful life (in years)	3 years
Equipment \| Maximum
Fixed assets
Estimated useful life (in years)	10 years
Buildings and building improvements \| Minimum
Fixed assets
Estimated useful life (in years)	20 years
Buildings and building improvements \| Maximum
Fixed assets
Estimated useful life (in years)	45 years
Less than 10%
Limited partnerships
Limited partnerships, general ownership percentage (as a percent)	10.00%

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Class A
Income available to stockholders (Basic EPS:)
Allocated net income (numerator) (in dollars)									$ 208,644	$ 173,248	$ 166,134
Weighted shares (denominator) (in shares)									46,188,952	46,186,671	46,247,876
Per-share amount (in dollars per share)	$ 0.98	$ 1.23	$ 1.32	$ 0.99	$ 0.65	$ 1.06	$ 1.21	$ 0.83	$ 4.52	$ 3.75	$ 3.59
Dilutive effect of stock-based awards
Allocated net income (numerator) (in dollars)									$ 0	$ 0	$ 0
Weighted shares (denominator) (in shares)									145,551	211,340	267,558
Assumed conversion of Class B shares
Allocated net income (numerator) (in dollars)									$ 1,722	$ 1,430	$ 1,371
Weighted shares (denominator) (in shares)									6,100,800	6,100,800	6,100,800
Income available to stockholders on equivalent shares (Diluted EPS:)
Allocated net income (numerator) (in dollars)									$ 210,366	$ 174,678	$ 167,505
Weighted shares (denominator) (in shares)									52,435,303	52,498,811	52,616,234
Per-share amount (in dollars per share)	$ 0.87	1.09	1.17	0.87	$ 0.57	0.94	1.07	0.74	$ 4.01	$ 3.33	$ 3.18
Class B
Reconciliation of the numerators and denominators used in the basic and diluted per-share computations
Ratio for converting shares of Class B common stock into shares of Class A common stock (as a percent)	2400.00%				2400.00%				2400.00%	2400.00%
Income available to stockholders (Basic EPS:)
Allocated net income (numerator) (in dollars)									$ 1,722	$ 1,430	$ 1,371
Weighted shares (denominator) (in shares)									2,542	2,542	2,542
Per-share amount (in dollars per share)	$ 147	185	197	148	$ 97	160	181	125	$ 678	$ 563	$ 539
Income available to stockholders on equivalent shares (Diluted EPS:)
Allocated net income (numerator) (in dollars)									$ 1,721	$ 1,429	$ 1,369
Weighted shares (denominator) (in shares)									2,542	2,542	2,542
Per-share amount (in dollars per share)	$ 147	$ 185	$ 197	$ 148	$ 97	$ 159	$ 180	$ 125	$ 677	$ 562	$ 538

Fair Value (Details) - USD ($) $ in Thousands	12 Months Ended
Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	$ 713,291	$ 599,941
Other investments:
Contributions made to the funds	578	928	$ 1,123
Distributions received from the funds	16,113	26,735	$ 28,613
Fair value measurements on a recurring basis
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	713,291	599,941
Total	717,703	604,467
Fair value measurements on a recurring basis \| Fixed maturities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	707,341	587,209
Fair value measurements on a recurring basis \| U.S. treasury
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	5,031
Fair value measurements on a recurring basis \| Government sponsored entities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	2,026
Fair value measurements on a recurring basis \| States & political subdivisions
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	253,132	231,847
Fair value measurements on a recurring basis \| Corporate debt securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	322,948	250,333
Fair value measurements on a recurring basis \| Residential mortgage-backed securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	16,102	13,513
Fair value measurements on a recurring basis \| Commercial mortgage-backed securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	36,849	37,571
Fair value measurements on a recurring basis \| Collateralized debt obligations
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	69,253	51,745
Fair value measurements on a recurring basis \| Other debt securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	2,000	2,200
Fair value measurements on a recurring basis \| Common stock
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	5,950	12,732
Fair value measurements on a recurring basis \| Real estate
Consolidated fair value measurements on a recurring basis by asset class and level of input
Other investments	4,412	4,526
Fair value measurements on a recurring basis \| Level 1
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	5,950	12,732
Total	5,950	12,732
Fair value measurements on a recurring basis \| Level 1 \| Fixed maturities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 1 \| U.S. treasury
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0
Fair value measurements on a recurring basis \| Level 1 \| Government sponsored entities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0
Fair value measurements on a recurring basis \| Level 1 \| States & political subdivisions
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 1 \| Corporate debt securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 1 \| Residential mortgage-backed securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 1 \| Commercial mortgage-backed securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 1 \| Collateralized debt obligations
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 1 \| Other debt securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 1 \| Common stock
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	5,950	12,732
Fair value measurements on a recurring basis \| Level 2
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	697,989	578,563
Total	697,989	578,563
Fair value measurements on a recurring basis \| Level 2 \| Fixed maturities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	697,989	578,563
Fair value measurements on a recurring basis \| Level 2 \| U.S. treasury
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	5,031
Fair value measurements on a recurring basis \| Level 2 \| Government sponsored entities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	2,026
Fair value measurements on a recurring basis \| Level 2 \| States & political subdivisions
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	253,132	231,847
Fair value measurements on a recurring basis \| Level 2 \| Corporate debt securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	313,596	250,264
Fair value measurements on a recurring basis \| Level 2 \| Residential mortgage-backed securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	16,102	13,513
Fair value measurements on a recurring basis \| Level 2 \| Commercial mortgage-backed securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	36,849	37,571
Fair value measurements on a recurring basis \| Level 2 \| Collateralized debt obligations
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	69,253	43,168
Fair value measurements on a recurring basis \| Level 2 \| Other debt securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	2,000	2,200
Fair value measurements on a recurring basis \| Level 2 \| Common stock
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 3
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	9,352	8,646
Total	9,352	8,646
Fair value measurements on a recurring basis \| Level 3 \| Fixed maturities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	9,352	8,646
Fair value measurements on a recurring basis \| Level 3 \| U.S. treasury
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0
Fair value measurements on a recurring basis \| Level 3 \| Government sponsored entities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0
Fair value measurements on a recurring basis \| Level 3 \| States & political subdivisions
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 3 \| Corporate debt securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	9,352	69
Fair value measurements on a recurring basis \| Level 3 \| Residential mortgage-backed securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 3 \| Commercial mortgage-backed securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 3 \| Collateralized debt obligations
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0	8,577
Fair value measurements on a recurring basis \| Level 3 \| Other debt securities
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 3 \| Common stock
Consolidated fair value measurements on a recurring basis by asset class and level of input
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 3 \| Real estate
Other investments:
Contributions made to the funds	0	0
Distributions received from the funds	900	3,500
Unfunded commitments	$ 300	$ 600
Fair value measurements on a recurring basis \| Level 3 \| Real estate \| Minimum
Other investments:
Underlying assets, liquidation period from inception of fund (in years)	5 years	5 years
Fair value measurements on a recurring basis \| Level 3 \| Real estate \| Maximum
Other investments:
Underlying assets, liquidation period from inception of fund (in years)	10 years	10 years

Fair Value (Details 2) $ in Thousands	12 Months Ended
Fair Value (Details 2) $ in Thousands	Dec. 31, 2016 USD ($) Holdings	Dec. 31, 2015 USD ($) Holdings
Fair value transfers due to changes in available market observable inputs
Transfers from level 1 to level 2	$ 0	$ 0
Transfers from level 2 to level 1	0	0
Transfers from level 2 to level 3	9,700	100
Transfers from level 3 to level 2	$ 30,000	$ 200
Fixed maturities
Fair value transfers due to changes in available market observable inputs
No. of securities transferred between Level 2 and Level 3 \| Holdings	36	1
No. of securities transferred between Level 3 and Level 2 \| Holdings	60	2
Level 3
Roll forward of Level 3 consolidated fair value measurements on a recurring basis
Beginning balance	$ 8,646	$ 0
Included in earnings	177	2
Included in other comprehensive income	105	(66)
Purchases	22,657	8,761
Sales	(1,908)	0
Transfers in and (out) of Level 3	(20,325)	(51)
Ending balance	9,352	8,646
Level 3 \| Available-for-sale securities
Roll forward of Level 3 consolidated fair value measurements on a recurring basis
Beginning balance	8,646	0
Included in earnings	177	2
Included in other comprehensive income	105	(66)
Purchases	22,657	8,761
Sales	(1,908)	0
Transfers in and (out) of Level 3	(20,325)	(51)
Ending balance	9,352	8,646
Level 3 \| Fixed maturities \| Available-for-sale securities
Roll forward of Level 3 consolidated fair value measurements on a recurring basis
Beginning balance	8,646	0
Included in earnings	177	2
Included in other comprehensive income	105	(66)
Purchases	22,657	8,761
Sales	(1,908)	0
Transfers in and (out) of Level 3	(20,325)	(51)
Ending balance	9,352	8,646
Level 3 \| Corporate debt securities \| Available-for-sale securities
Roll forward of Level 3 consolidated fair value measurements on a recurring basis
Beginning balance	69	0
Included in earnings	173	(1)
Included in other comprehensive income	107	(59)
Purchases	13,935	180
Sales	(1,854)	0
Transfers in and (out) of Level 3	(3,078)	(51)
Ending balance	9,352	69
Level 3 \| Commercial mortgage-backed securities \| Available-for-sale securities
Roll forward of Level 3 consolidated fair value measurements on a recurring basis
Beginning balance	0
Included in earnings	0
Included in other comprehensive income	3
Purchases	1,000
Sales	0
Transfers in and (out) of Level 3	(1,003)
Ending balance	0	0
Level 3 \| Collateralized debt obligations \| Available-for-sale securities
Roll forward of Level 3 consolidated fair value measurements on a recurring basis
Beginning balance	8,577	0
Included in earnings	4	3
Included in other comprehensive income	(5)	(7)
Purchases	7,722	8,581
Sales	(54)	0
Transfers in and (out) of Level 3	(16,244)	0
Ending balance	$ 0	$ 8,577

Fair Value (Details 3) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair value by pricing source
Available-for-sale securities	$ 713,291	$ 599,941
Fair value measurements on a recurring basis
Fair value by pricing source
Available-for-sale securities	713,291	599,941
Total	717,703	604,467
Fair value measurements on a recurring basis \| Fixed maturities
Fair value by pricing source
Available-for-sale securities	707,341	587,209
Fair value measurements on a recurring basis \| Fixed maturities \| Priced via pricing services
Fair value by pricing source
Available-for-sale securities	707,341
Fair value measurements on a recurring basis \| Common stock
Fair value by pricing source
Available-for-sale securities	5,950	12,732
Fair value measurements on a recurring basis \| Common stock \| Priced via pricing services
Fair value by pricing source
Available-for-sale securities	5,950
Fair value measurements on a recurring basis \| Real estate
Fair value by pricing source
Other investments	4,412	4,526
Fair value measurements on a recurring basis \| Real estate \| Priced via unobservable inputs
Fair value by pricing source
Other investments	4,412
Fair value measurements on a recurring basis \| Level 1
Fair value by pricing source
Available-for-sale securities	5,950	12,732
Total	5,950	12,732
Fair value measurements on a recurring basis \| Level 1 \| Fixed maturities
Fair value by pricing source
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 1 \| Fixed maturities \| Priced via pricing services
Fair value by pricing source
Available-for-sale securities	0
Fair value measurements on a recurring basis \| Level 1 \| Common stock
Fair value by pricing source
Available-for-sale securities	5,950	12,732
Fair value measurements on a recurring basis \| Level 1 \| Common stock \| Priced via pricing services
Fair value by pricing source
Available-for-sale securities	5,950
Fair value measurements on a recurring basis \| Level 2
Fair value by pricing source
Available-for-sale securities	697,989	578,563
Total	697,989	578,563
Fair value measurements on a recurring basis \| Level 2 \| Fixed maturities
Fair value by pricing source
Available-for-sale securities	697,989	578,563
Fair value measurements on a recurring basis \| Level 2 \| Fixed maturities \| Priced via pricing services
Fair value by pricing source
Available-for-sale securities	697,989
Fair value measurements on a recurring basis \| Level 2 \| Common stock
Fair value by pricing source
Available-for-sale securities	0	0
Fair value measurements on a recurring basis \| Level 2 \| Common stock \| Priced via pricing services
Fair value by pricing source
Available-for-sale securities	0
Fair value measurements on a recurring basis \| Level 3
Fair value by pricing source
Available-for-sale securities	9,352	8,646
Total	9,352	8,646
Fair value measurements on a recurring basis \| Level 3 \| Priced via broker quotes
Fair value by pricing source
Available-for-sale securities	9,400
Fair value measurements on a recurring basis \| Level 3 \| Fixed maturities
Fair value by pricing source
Available-for-sale securities	9,352	8,646
Fair value measurements on a recurring basis \| Level 3 \| Fixed maturities \| Priced via pricing services
Fair value by pricing source
Available-for-sale securities	9,352
Fair value measurements on a recurring basis \| Level 3 \| Common stock
Fair value by pricing source
Available-for-sale securities	0	$ 0
Fair value measurements on a recurring basis \| Level 3 \| Common stock \| Priced via pricing services
Fair value by pricing source
Available-for-sale securities	0
Fair value measurements on a nonrecurring basis
Fair value by pricing source
Total	$ 0

Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Available-for-sale securities
Amortized cost, fixed maturities	$ 702,403
Amortized cost	708,555	$ 594,837
Gross unrealized gains	9,899	11,137
Gross unrealized losses	5,163	6,033
Estimated fair value, fixed maturities	707,341
Estimated fair value	713,291	599,941
Fixed maturities
Available-for-sale securities
Amortized cost, fixed maturities	702,403	581,972
Gross unrealized gains, fixed maturities	9,899	11,137
Gross unrealized losses, fixed maturities	4,961	5,900
Estimated fair value, fixed maturities	707,341	587,209
U.S. treasury
Available-for-sale securities
Amortized cost, fixed maturities	5,093
Gross unrealized gains, fixed maturities	0
Gross unrealized losses, fixed maturities	62
Estimated fair value, fixed maturities	5,031
Government sponsored entities
Available-for-sale securities
Amortized cost, fixed maturities	2,004
Gross unrealized gains, fixed maturities	22
Gross unrealized losses, fixed maturities	0
Estimated fair value, fixed maturities	2,026
States & political subdivisions
Available-for-sale securities
Amortized cost, fixed maturities	249,312	221,093
Gross unrealized gains, fixed maturities	6,113	10,761
Gross unrealized losses, fixed maturities	2,293	7
Estimated fair value, fixed maturities	253,132	231,847
Corporate debt securities
Available-for-sale securities
Amortized cost, fixed maturities	321,041	254,464
Gross unrealized gains, fixed maturities	3,293	281
Gross unrealized losses, fixed maturities	1,386	4,412
Estimated fair value, fixed maturities	322,948	250,333
Residential mortgage-backed securities
Available-for-sale securities
Amortized cost, fixed maturities	16,232	13,639
Gross unrealized gains, fixed maturities	61	4
Gross unrealized losses, fixed maturities	191	130
Estimated fair value, fixed maturities	16,102	13,513
Commercial mortgage-backed securities
Available-for-sale securities
Amortized cost, fixed maturities	37,723	38,630
Gross unrealized gains, fixed maturities	59	30
Gross unrealized losses, fixed maturities	933	1,089
Estimated fair value, fixed maturities	36,849	37,571
Collateralized debt obligations
Available-for-sale securities
Amortized cost, fixed maturities	68,998	51,905
Gross unrealized gains, fixed maturities	351	61
Gross unrealized losses, fixed maturities	96	221
Estimated fair value, fixed maturities	69,253	51,745
Other debt securities
Available-for-sale securities
Amortized cost, fixed maturities	2,000	2,241
Gross unrealized gains, fixed maturities	0	0
Gross unrealized losses, fixed maturities	0	41
Estimated fair value, fixed maturities	2,000	2,200
Common stock
Available-for-sale securities
Amortized cost, equity securities	6,152	12,865
Gross unrealized gains, equity securities	0	0
Gross unrealized losses, equity securities	202	133
Estimated fair value, equity securities	$ 5,950	$ 12,732

Investments (Details 2) $ in Thousands	Dec. 31, 2016 USD ($)
Amortized cost
Due in one year or less	$ 55,304
Due after one year through five years	329,377
Due after five years through ten years	203,880
Due after ten years	113,842
Amortized cost, fixed maturities	702,403
Estimated fair value
Due in one year or less	55,394
Due after one year through five years	331,617
Due after five years through ten years	207,358
Due after ten years	112,972
Estimated fair value, fixed maturities	$ 707,341

Investments (Details 3) $ in Thousands	Dec. 31, 2016 USD ($) Holdings	Dec. 31, 2015 USD ($) Holdings
Fair value
Less than 12 months	$ 269,475	$ 244,279
12 months or longer	22,193	48,518
Total	291,668	292,797
Unrealized losses
Less than 12 months	4,116	2,882
12 months or longer	1,047	3,151
Total	$ 5,163	$ 6,033
No. of holdings \| Holdings	253	407
Investment grade
Fair value
Less than 12 months	$ 239,041	$ 174,723
12 months or longer	16,061	38,369
Total	255,102	213,092
Unrealized losses
Less than 12 months	3,605	1,296
12 months or longer	399	1,256
Total	$ 4,004	$ 2,552
No. of holdings \| Holdings	136	105
Non-investment grade
Fair value
Less than 12 months	$ 24,484	$ 56,824
12 months or longer	6,132	10,149
Total	30,616	66,973
Unrealized losses
Less than 12 months	309	1,453
12 months or longer	648	1,895
Total	$ 957	$ 3,348
No. of holdings \| Holdings	116	301
Fixed maturities
Fair value
Less than 12 months	$ 263,525	$ 231,547
12 months or longer	22,193	48,518
Total	285,718	280,065
Unrealized losses
Less than 12 months	3,914	2,749
12 months or longer	1,047	3,151
Total	$ 4,961	$ 5,900
No. of holdings \| Holdings	252	406
U.S. treasury
Fair value
Less than 12 months	$ 5,031
12 months or longer	0
Total	5,031
Unrealized losses
Less than 12 months	62
12 months or longer	0
Total	$ 62
No. of holdings \| Holdings	1
States & political subdivisions
Fair value
Less than 12 months	$ 84,611	$ 5,867
12 months or longer	0	0
Total	84,611	5,867
Unrealized losses
Less than 12 months	2,293	7
12 months or longer	0	0
Total	$ 2,293	$ 7
No. of holdings \| Holdings	40	3
Corporate debt securities
Fair value
Less than 12 months	$ 112,453	$ 172,831
12 months or longer	8,692	19,086
Total	121,145	191,917
Unrealized losses
Less than 12 months	987	2,447
12 months or longer	399	1,965
Total	$ 1,386	$ 4,412
No. of holdings \| Holdings	155	349
Residential mortgage-backed securities
Fair value
Less than 12 months	$ 7,451	$ 9,827
12 months or longer	4,974	936
Total	12,425	10,763
Unrealized losses
Less than 12 months	60	84
12 months or longer	131	46
Total	$ 191	$ 130
No. of holdings \| Holdings	13	9
Commercial mortgage-backed securities
Fair value
Less than 12 months	$ 26,509	$ 13,081
12 months or longer	4,319	19,081
Total	30,828	32,162
Unrealized losses
Less than 12 months	437	68
12 months or longer	496	1,021
Total	$ 933	$ 1,089
No. of holdings \| Holdings	28	24
Collateralized debt obligations
Fair value
Less than 12 months	$ 27,470	$ 27,981
12 months or longer	4,208	9,174
Total	31,678	37,155
Unrealized losses
Less than 12 months	75	103
12 months or longer	21	118
Total	$ 96	$ 221
No. of holdings \| Holdings	15	19
Other debt securities
Fair value
Less than 12 months		$ 1,960
12 months or longer		241
Total		2,201
Unrealized losses
Less than 12 months		40
12 months or longer		1
Total		$ 41
No. of holdings \| Holdings		2
Common stock
Fair value
Less than 12 months	$ 5,950	$ 12,732
12 months or longer	0	0
Total	5,950	12,732
Unrealized losses
Less than 12 months	202	133
12 months or longer	0	0
Total	$ 202	$ 133
No. of holdings \| Holdings	1	1

Investments (Details 4) - USD ($) $ in Thousands	12 Months Ended
Investments (Details 4) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Investment income from portfolios
Total investment income	$ 21,737	$ 18,676	$ 16,930
Less: investment expenses	1,190	885	394
Investment income, net of expenses	20,547	17,791	16,536
Fixed maturities
Investment income from portfolios
Total investment income	20,175	16,457	14,173
Equity securities
Investment income from portfolios
Total investment income	171	1,045	1,550
Cash equivalents and other
Investment income from portfolios
Total investment income	$ 1,391	$ 1,174	$ 1,207

Investments (Details 5) - USD ($) $ in Thousands	12 Months Ended
Investments (Details 5) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Realized investment gains (losses)
Net realized investment gains	$ 672	$ 492	$ 1,057
Other-than-temporary impairments on investments
Other -than-temporary impairments on investments	(416)	(1,558)	(105)
Portion recognized in other comprehensive income	0	0	0
Net impairment losses recognized in earnings	(416)	(1,558)	(105)
Fixed maturities
Available-for-sale securities:
Gross realized gains	2,111	1,571	453
Gross realized losses	(2,113)	(1,764)	(333)
Net realized (losses) gains	(2)	(193)	120
Other-than-temporary impairments on investments
Other -than-temporary impairments on investments	(416)	(1,558)	(105)
Equity securities
Available-for-sale securities:
Gross realized gains	1	759	1,132
Gross realized losses	(34)	(74)	(195)
Net realized (losses) gains	(33)	685	937
Common stock
Trading securities:
Gross realized gains	707	0	0
Net realized gains	$ 707	$ 0	$ 0

Investments (Details 6) - USD ($) $ in Thousands	12 Months Ended
Investments (Details 6) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Investment in limited partnerships
Equity in earnings of limited partnerships	$ 7,025	$ 16,983	$ 10,929
Equity method of accounting
Investment in limited partnerships
Equity in earnings of limited partnerships	6,273	16,545	8,517
Fair value option
Investment in limited partnerships
Equity in earnings of limited partnerships	$ 752	$ 438	$ 2,412

Investments (Details 7) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Investment in limited partnerships
Asset recorded	$ 58,159	$ 88,535
Private equity
Investment in limited partnerships
Asset recorded	35,228	48,397
Mezzanine debt
Investment in limited partnerships
Asset recorded	6,010	12,701
Real estate
Investment in limited partnerships
Asset recorded	12,509	22,911
Fair value option \| Real estate
Investment in limited partnerships
Asset recorded	$ 4,412	$ 4,526

Fixed Assets (Details) - USD ($) $ in Thousands	12 Months Ended
Fixed Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fixed assets
Total fixed assets, gross	$ 172,300	$ 147,601
Less: Accumulated depreciation	(103,158)	(88,514)
Fixed assets, net	69,142	59,087
Depreciation and amortization expense	15,100	15,900	$ 15,700
Software
Fixed assets
Total fixed assets, gross	124,093	110,405
Equipment
Fixed assets
Total fixed assets, gross	11,771	10,679
Land, buildings, and building improvements
Fixed assets
Total fixed assets, gross	7,627	7,627
Leasehold improvements
Fixed assets
Total fixed assets, gross	1,375	1,171
Projects in progress
Fixed assets
Total fixed assets, gross	17,812	$ 17,719
Construction in progress
Fixed assets
Total fixed assets, gross	$ 9,622
Estimated time to completion of new office building (in years)	3 years

Borrowing Arrangements (Details) - Revolving line of credit $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($)
Bank line of credit
Maximum borrowing capacity under the bank revolving line of credit	$ 100.0
Maximum letter of credit sublimit under the bank revolving line of credit	$ 25.0
Expiration date of the bank revolving line of credit	Nov. 03, 2020
Available borrowing capacity under the bank revolving line of credit, due to outstanding letters of credit	$ 99.0
Outstanding amount of letters of credit sublimit under the bank revolving line of credit	1.0
Available amount of letters of credit sublimit under the bank revolving line of credit	24.0
Borrowings outstanding under the bank revolving line of credit	0.0
Fair value of bonds pledged as collateral on the bank revolving line of credit	$ 110.3

Borrowing Arrangements (Details 2) - Secured debt - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Jun. 01, 2018	Dec. 01, 2017	Jun. 01, 2017
Term loan credit facility
Amount of senior secured draw term loan credit facility	$ 100.0
Amount drawn on the credit facility	$ 25.0
Repayment period of credit facility (in years)	28 years
Fixed interest rate of credit facility (as a percent)	4.35%
Quarterly commitment fee on the unused portion of the credit facility (as a percent)	0.08%
Fair value of bonds pledged as collateral on the credit facility	$ 108.2
Estimated fair value of the credit facility	23.2
Principal payments due in 2019	1.9
Principal payments due in 2020	2.0
Principal payments due in 2021	2.0
Principal payments due in 2022 and thereafter	$ 94.1
Future draw commitments
Term loan credit facility
Unused portion of the credit facility to be drawn at future dates		$ 25.0	$ 25.0	$ 25.0

Postretirement Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
Postretirement Benefits (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cost of pension plans:
Service cost for benefits earned	$ 28,201	$ 30,433	$ 22,510
Interest cost on benefit obligation	33,125	30,755	28,112
Expected return on plan assets	(39,520)	(35,921)	(31,419)
Prior service cost amortization	696	670	712
Net actuarial loss amortization	8,111	14,031	6,344
Pension plan cost	$ 30,613	$ 39,968	$ 26,259
Erie Insurance Exchange (EIE)
Postretirement benefits
Postretirement annual benefit expense reimbursed to Indemnity from the Exchange (as a percent)	59.00%
Erie Family Life Insurance Company (EFL) \| Employee pension plan
Postretirement benefits
Contingent liability for amount of nonparticipating annuity contracts the employee pension plan purchased from EFL	$ 21,000

Postretirement Benefits (Details 2)	12 Months Ended
Postretirement Benefits (Details 2)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee pension plan
Actuarial assumptions used to determine benefit obligations:
Discount rate (as a percent)		4.24%	4.57%	4.17%	5.11%
Compensation increases (as a percent)		3.32%	3.32%	3.32%	4.15%
Actuarial assumptions used to determine net periodic benefit cost:
Discount rate (as a percent)		4.57%	4.17%	5.11%
Expected return on assets (as a percent)		7.00%	7.00%	7.00%	7.50%
Rate of compensation increase (as a percent)		3.32%	3.32%	4.15%
Employee pension plan \| Expected return on assets for 2017
Actuarial assumptions used to determine net periodic benefit cost:
Expected return on assets (as a percent)	6.75%
Supplemental employee retirement plan (SERP)
Actuarial assumptions used to determine benefit obligations:
Pre-retirement discount rate (as a percent)		4.24%	4.57%	4.17%	5.11%
Post-retirement discount rate (as a percent)		3.74%	4.07%	3.67%	4.61%
Compensation increases (as a percent)		5.00%	5.00%	5.00%	6.00%
Actuarial assumptions used to determine net periodic benefit cost:
Pre-retirement discount rate (as a percent)		4.57%	4.17%	5.11%
Post-retirement discount rate (as a percent)		4.07%	3.67%	4.61%
Rate of compensation increase (as a percent)		5.00%	5.00%	6.00%

Postretirement Benefits (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Postretirement benefits
Increase in projected benefit obligations	$ 92,100
Number of additional years of updated mortality data that contributed to the increase in projected benefit obligations (in years)	2 years
Funded status at end of year	$ (224,115)	$ (173,089)
Net amount recognized in the Statements of Financial Position:
Pension liabilities - due within one year	(2,288)	(389)
Pension liabilities - due after one year	(221,827)	(172,700)
Net amount recognized	$ (224,115)	$ (173,089)
Employee pension plan
Postretirement benefits
Funding target (as a percentage of the funding target liability)	100.00%
Expected employer contribution during next fiscal year	$ 19,000

Postretirement Benefits (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Projected benefit obligation:
Projected benefit obligation, beginning of year	$ 724,580	$ 736,705
Service cost for benefits earned	28,201	30,433	$ 22,510
Interest cost on benefit obligation	33,125	30,755	28,112
Plan amendments	2,114	0
Actuarial loss (gain)	43,032	(60,774)
Benefits paid	(14,393)	(12,539)
Projected benefit obligation, end of year	816,659	724,580	$ 736,705
Accumulated benefit obligation, end of year	$ 657,969	$ 583,432

Postretirement Benefits (Details 5) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Information for the defined benefit pension plans with assets less than accumulated benefit obligation:
Projected benefit obligation	$ 816,659	$ 724,580
Accumulated benefit obligation	657,969	583,432
Plan assets	$ 592,544	$ 551,491

Postretirement Benefits (Details 6) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair value of plan assets:
Fair value of plan assets, beginning of year	$ 551,491	$ 547,788
Actual gain (loss) on plan assets	38,028	(1,042)
Employer contributions	17,418	17,284
Benefits paid	(14,393)	(12,539)
Fair value of plan assets, end of year	$ 592,544	$ 551,491

Postretirement Benefits (Details 7) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Amounts included in accumulated other comprehensive income
Net actuarial loss	$ 185,278	$ 148,865
Prior service cost	6,023	4,605
Net amount not yet recognized	191,301	$ 153,470
Amounts that will be amortized from accumulated other comprehensive income into pension cost during next fiscal year
Estimated net actuarial loss that will be amortized from accumulated other comprehensive income into pension cost during next fiscal year, before tax	9,300
Estimated net prior service cost that will be amortized from accumulated other comprehensive income into pension cost during next fiscal year, before tax	$ 800

Postretirement Benefits (Details 8) $ in Thousands	12 Months Ended
Postretirement Benefits (Details 8) $ in Thousands	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Amounts recognized in other comprehensive income for pension plans:
Net actuarial loss (gain) arising during the year	$ 44,524	$ (23,810)
Amortization of net actuarial loss	(8,111)	(14,031)
Amortization of prior service cost	(696)	(670)
Amendments	2,114	0
Total recognized in other comprehensive income	$ 37,831	$ (38,511)
Number of new plan participants resulting in charges recognized as amendments	1
Employee pension plan
Amounts recognized in other comprehensive income for pension plans:
Amendments	$ 1,700
Supplemental employee retirement plan (SERP)
Amounts recognized in other comprehensive income for pension plans:
Amendments	$ 400

Postretirement Benefits (Details 9) - Employee pension plan	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Target asset allocation for the portfolio:
Total plan assets (as a percent)	100.00%	100.00%
Actual asset allocation for the portfolio:
Total plan assets (as a percent)	100.00%	100.00%
Total equity securities
Target asset allocation for the portfolio:
Total plan assets (as a percent)	55.00%	55.00%
Actual asset allocation for the portfolio:
Total plan assets (as a percent)	56.00%	56.00%
U.S. equity securities
Target asset allocation for the portfolio:
Total plan assets (as a percent)	35.00%	35.00%
Actual asset allocation for the portfolio:
Total plan assets (as a percent)	38.00%	36.00%
U.S. small capitalization core equity
Target asset allocation for the portfolio:
Total plan assets (as a percent)	22.00%
U.S. large capitalization core equity
Target asset allocation for the portfolio:
Total plan assets (as a percent)	30.00%
U.S. equity index
Target asset allocation for the portfolio:
Total plan assets (as a percent)	48.00%
Non-U.S. equity securities
Target asset allocation for the portfolio:
Total plan assets (as a percent)	20.00%	20.00%
Actual asset allocation for the portfolio:
Total plan assets (as a percent)	18.00%	20.00%
International small capitalization risk controlled equity
Target asset allocation for the portfolio:
Total plan assets (as a percent)	11.00%
International emerging markets equity
Target asset allocation for the portfolio:
Total plan assets (as a percent)	11.00%
International risk controlled equity
Target asset allocation for the portfolio:
Total plan assets (as a percent)	78.00%
Debt securities
Target asset allocation for the portfolio:
Total plan assets (as a percent)	44.00%	44.00%
Actual asset allocation for the portfolio:
Total plan assets (as a percent)	43.00%	43.00%
U.S. Treasury Strips
Target asset allocation for the portfolio:
Total plan assets (as a percent)	44.00%
U.S. corporate bonds with an emphasis on long duration bonds rated A or better
Target asset allocation for the portfolio:
Total plan assets (as a percent)	44.00%
Floating rate high income leverage loans
Target asset allocation for the portfolio:
Total plan assets (as a percent)	12.00%
Other
Target asset allocation for the portfolio:
Total plan assets (as a percent)	1.00%	1.00%
Actual asset allocation for the portfolio:
Total plan assets (as a percent)	1.00%	1.00%

Postretirement Benefits (Details 10) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair value measurements of pension plan assets:
Total	$ 592,544	$ 551,491	$ 547,788
Employee pension plan
Fair value measurements of pension plan assets:
Total	592,544	551,491
Employee pension plan \| Level 1
Fair value measurements of pension plan assets:
Total	5,948	5,906
Employee pension plan \| Level 2
Fair value measurements of pension plan assets:
Total	586,596	545,585
Employee pension plan \| Level 3
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Total equity securities
Fair value measurements of pension plan assets:
Total	333,399	308,966
Employee pension plan \| Total equity securities \| Level 1
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Total equity securities \| Level 2
Fair value measurements of pension plan assets:
Total	333,399	308,966
Employee pension plan \| Total equity securities \| Level 3
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| U.S. equity securities
Fair value measurements of pension plan assets:
Total	225,446	201,021
Employee pension plan \| U.S. equity securities \| Level 1
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| U.S. equity securities \| Level 2
Fair value measurements of pension plan assets:
Total	225,446	201,021
Employee pension plan \| U.S. equity securities \| Level 3
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Non-U.S. equity securities
Fair value measurements of pension plan assets:
Total	107,953	107,945
Employee pension plan \| Non-U.S. equity securities \| Level 1
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Non-U.S. equity securities \| Level 2
Fair value measurements of pension plan assets:
Total	107,953	107,945
Employee pension plan \| Non-U.S. equity securities \| Level 3
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Debt securities
Fair value measurements of pension plan assets:
Total	253,197	236,619
Employee pension plan \| Debt securities \| Level 1
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Debt securities \| Level 2
Fair value measurements of pension plan assets:
Total	253,197	236,619
Employee pension plan \| Debt securities \| Level 3
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Other
Fair value measurements of pension plan assets:
Total	5,948	5,906
Employee pension plan \| Other \| Level 1
Fair value measurements of pension plan assets:
Total	5,948	5,906
Employee pension plan \| Other \| Level 2
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Other \| Level 3
Fair value measurements of pension plan assets:
Total	$ 0	$ 0

Postretirement Benefits (Details 11) $ in Thousands	Dec. 31, 2016 USD ($)
Benefits expected to be paid over the next 10 years from pension plans:
2017	$ 18,943
2018	18,672
2019	20,778
2020	23,369
2021	26,246
2022-2026	$ 181,837

Postretirement Benefits (Details 12) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee savings plan
Employer matching contribution paid to the plan	$ 12.1	$ 11.6	$ 10.7
Class A common stock held by plan participants (in shares)	0.2	0.2
100% employer matching contribution
Employee savings plan
Percentage of employer matching contribution of employee contributions (as a percent)	100.00%
100% employer matching contribution \| Maximum
Employee savings plan
Percentage of eligible employee compensation, matched by employer (as a percent)	3.00%
50% employer matching contribution
Employee savings plan
Percentage of employer matching contribution of employee contributions (as a percent)	50.00%
50% employer matching contribution \| Maximum
Employee savings plan
Percentage of eligible employee compensation, matched by employer (as a percent)	5.00%
50% employer matching contribution \| Minimum
Employee savings plan
Percentage of eligible employee compensation, matched by employer (as a percent)	3.00%

Incentive and Deferred Compensation Plans (Details) - USD ($)	1 Months Ended			2 Months Ended	12 Months Ended
	Jun. 30, 2016	Nov. 30, 2015	Jun. 30, 2015	Dec. 17, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Class A
Incentive and deferred compensation plans
Total cost of shares purchased outside of publicly announced stock repurchase program					$ 1,500,000	$ 10,400,000
Class A \| Performance shares
Incentive and deferred compensation plans
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares)					15,093	111,535
Long-term incentive plan
Incentive and deferred compensation plans
Vesting period of performance and/or service condition(s) (in years and/or months)					3 years
Maximum dollar amount which may be received by any single participant during any specified period					$ 5,000,000
Compensation cost related to share-based compensation plan awards					8,200,000	$ 13,400,000	$ 12,500,000
Tax benefits recognized in income related to award expense					2,900,000	4,700,000	4,400,000
Total unrecognized compensation cost related to share-based compensation plan awards pertaining to open performance periods					$ 7,300,000
Expected period of recognition related to unrecognized compensation cost (in years)					2 years
Long-term incentive plan \| Class A
Incentive and deferred compensation plans
Maximum number of shares authorized for grant (in shares)					1,500,000
Maximum number of shares which may be received by any single participant during any specified period (in shares)					250,000
Average price per share for shares purchased (in dollars per share)	$ 98.20		$ 81.91
Total cost of shares purchased outside of publicly announced stock repurchase program	$ 800,000		$ 100,000
Long-term incentive plan \| Class A \| Performance shares
Incentive and deferred compensation plans
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares)	7,661		1,567
Long-term incentive plan \| 2014-2016 performance period
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards					$ 12,500,000
Long-term incentive plan \| 2013-2015 performance period
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards	$ 12,600,000
Long-term incentive plan \| 2013-2015 performance period \| Class A
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards	$ 700,000
Average price per share for shares delivered (in dollars per share)	$ 96.64
Long-term incentive plan \| 2013-2015 performance period \| Class A \| Performance shares
Incentive and deferred compensation plans
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares)	7,661
Long-term incentive plan \| 2012-2014 performance period
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards			$ 8,200,000
Long-term incentive plan \| 2012-2014 performance period \| Class A
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards			$ 100,000
Average price per share for shares delivered (in dollars per share)			$ 81.04
Long-term incentive plan \| 2012-2014 performance period \| Class A \| Performance shares
Incentive and deferred compensation plans
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares)			1,567
Equity compensation plan
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards					800,000	$ 400,000	$ 300,000
Total unrecognized compensation cost related to share-based compensation plan awards pertaining to open performance periods					$ 700,000
Expected period of recognition related to unrecognized compensation cost (in years)					3 years
Equity compensation plan \| Class A
Incentive and deferred compensation plans
Maximum number of shares authorized for grant (in shares)					100,000
Maximum number of shares which may be received by any single participant during any specified period (in shares)					5,000
Restricted stock units granted					4,500	5,500	8,750
Incentive compensation deferral plan
Incentive and deferred compensation plans
Maximum annual incentive plan and/or long-term incentive plan award that can be deferred (as a percent)					100.00%
Vesting percent of the grant in Class A common stock (as a percent)					100.00%
Payment period for vested share credits (in years)					3 years
Stock compensation plan for outside directors
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards					$ 500,000	$ 1,900,000	$ 2,200,000
Stock compensation plan for outside directors \| Class A
Incentive and deferred compensation plans
Average price per share for shares purchased (in dollars per share)		$ 87.03		$ 94.99	$ 99.23
Total cost of shares purchased outside of publicly announced stock repurchase program		$ 1,100,000		$ 9,000,000	$ 700,000
Stock compensation plan for outside directors \| Class A \| Performance shares
Incentive and deferred compensation plans
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares)		12,230		94,938	7,432
Stock compensation plan for outside directors \| Three month vesting period \| Class A
Incentive and deferred compensation plans
Vesting period of performance and/or service condition(s) (in years and/or months)					3 months
Vesting percent of the grant in Class A common stock (as a percent)					25.00%
Erie Insurance Exchange (EIE) \| Long-term incentive plan
Incentive and deferred compensation plans
Incentive plan compensation cost reimbursed to Indemnity from the Exchange (as a percent)					44.00%
Erie Insurance Exchange (EIE) \| Equity compensation plan
Incentive and deferred compensation plans
Incentive plan compensation cost reimbursed to Indemnity from the Exchange (as a percent)					30.00%

Incentive and Deferred Compensation Plans (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Awards, employer match, and hypothetical earnings by plan:
Total plan awards and earnings	$ 18,663	$ 23,327	$ 21,534
Total plan awards paid	(20,418)	(14,317)	(14,839)
Gross incentive plan and deferred compensation liabilities at end of period	32,908	37,457	38,978
Annual incentive plan
Awards, employer match, and hypothetical earnings by plan:
Annual incentive plan awards	6,460	7,057	6,222
Long-term incentive plan
Awards, employer match, and hypothetical earnings by plan:
Long-term incentive plan awards	11,321	14,228	12,523
Forfeitures	(3,117)	(821)
Deferred compensation plans and stock compensation plan for outside directors
Awards, employer match, and hypothetical earnings by plan:
Deferred compensation plans, employer match, and hypothetical earnings	882	2,042	2,789
Compensation deferred under the plans	1,496	996	527
Distributions from the deferred compensation plans	(435)	(1,688)	$ (1,072)
Funding of rabbi trust for outside directors	$ (738)	$ (9,018)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of provision for income taxes
Current income tax expense	$ 109,727	$ 106,155	$ 87,064
Deferred income tax benefit	(2)	(14,584)	(3,305)
Income tax expense	109,725	91,571	83,759
Reconciliation of the provision for income taxes, with amounts determined by applying the statutory federal income tax rates to pre-tax income
Income tax at statutory rate	112,032	93,187	87,943
Tax-exempt interest	(2,270)	(2,285)	(2,589)
Other, net	(37)	669	(1,595)
Income tax expense	$ 109,725	$ 91,571	$ 83,759

Income Taxes (Details 2) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Other employee benefits	$ 19,106	$ 19,945
Pension and other postretirement benefits	65,241	48,897
Allowance for management fee returned on cancelled policies	4,795	4,375
Other	81	546
Total deferred tax assets	89,223	73,763
Deferred tax liabilities:
Depreciation	18,493	17,843
Prepaid expenses	8,120	6,929
Limited partnerships	5,597	5,822
Unrealized gains on investments	1,657	1,360
Other	1,467	1,123
Total deferred tax liabilities	35,334	33,077
Net deferred tax asset	$ 53,889	$ 40,686

Income Taxes (Details 3) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Deferred tax asset valuation allowance
Deferred tax asset valuation allowance	$ 0	$ 0

Capital Stock (Details) - shares	12 Months Ended
Capital Stock (Details) - shares	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Class A
Common stock
Minimum multiplier for dividend payable on Class A common stock per dividend declared on Class B common stock (as a percent)	67.00%
Class B
Common stock
Percentage of dividend declared on Class B common stock used to determine dividend payable on Class A common stock (as a percent)	67.00%
Ratio for converting shares of Class B common stock into shares of Class A common stock (as a percent)	2400.00%	2400.00%
Class B common stock shares converted into Class A common stock shares (in shares)	0	0	0

Capital Stock (Details 2) - Class A - USD ($) $ / shares in Units, $ in Millions	1 Months Ended				2 Months Ended	12 Months Ended
	Jun. 30, 2016	Nov. 30, 2015	Aug. 31, 2015	Jun. 30, 2015	Dec. 17, 2015	Dec. 31, 2016	Dec. 31, 2015	Oct. 31, 2011
Shares purchased outside of stock repurchase program
Total cost of shares purchased outside of publicly announced stock repurchase program						$ 1.5	$ 10.4
Performance shares
Shares purchased outside of stock repurchase program
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares)						15,093	111,535
Long-term incentive plan
Shares purchased outside of stock repurchase program
Total cost of shares purchased outside of publicly announced stock repurchase program	$ 0.8			$ 0.1
Average price per share for shares purchased (in dollars per share)	$ 98.20			$ 81.91
Long-term incentive plan \| Performance shares
Shares purchased outside of stock repurchase program
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares)	7,661			1,567
Other stock based awards
Shares purchased outside of stock repurchase program
Total cost of shares purchased outside of publicly announced stock repurchase program			$ 0.2
Average price per share for shares purchased (in dollars per share)			$ 86.24
Other stock based awards \| Performance shares
Shares purchased outside of stock repurchase program
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares)			2,800
Stock compensation plan for outside directors
Shares purchased outside of stock repurchase program
Total cost of shares purchased outside of publicly announced stock repurchase program		$ 1.1			$ 9.0	$ 0.7
Average price per share for shares purchased (in dollars per share)		$ 87.03			$ 94.99	$ 99.23
Stock compensation plan for outside directors \| Performance shares
Shares purchased outside of stock repurchase program
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares)		12,230			94,938	7,432
Stock repurchase program
Stock repurchases
Shares repurchased under stock repurchase program (in shares)						0	0
Amount of authorized stock repurchases approved for continuation under the current program								$ 150.0
Approximate amount of repurchase authority remaining under the current stock repurchase program						$ 17.8

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accumulated other comprehensive income (loss), before tax
Amortization of prior service cost	$ (696)	$ (670)
Amortization of net actuarial loss	(8,111)	(14,031)
Accumulated other comprehensive income (loss), net of tax
AOCI (loss), beginning of year	(96,864)
OCI (loss)	43	(4,280)	$ 823
OCI (loss)	24,560	(25,117)	59,425
OCI (loss)	(24,517)	20,837	(58,602)
AOCI (loss), end of year	(121,381)	(96,864)
Investment securities:
Accumulated other comprehensive income (loss), before tax
AOCI (loss), beginning of year	3,888	10,473	9,206
OCI (loss) before reclassifications	(385)	(7,651)	1,808
Realized investment losses (gains)	35	(492)	(646)
Impairment losses	416	1,558	105
OCI (loss)	66	(6,585)	1,267
AOCI (loss), end of year	3,954	3,888	10,473
Accumulated other comprehensive income (loss), tax
AOCI (loss), beginning of year	1,361	3,666	3,222
OCI (loss) before reclassifications	(135)	(2,678)	633
Realized investment losses (gains)	12	(172)	(226)
Impairment losses	146	545	37
OCI (loss)	23	(2,305)	444
AOCI (loss), end of year	1,384	1,361	3,666
Accumulated other comprehensive income (loss), net of tax
AOCI (loss), beginning of year	2,527	6,807	5,984
OCI (loss) before reclassifications	(250)	(4,973)	1,175
Realized investment losses (gains)	23	(320)	(420)
Impairment losses	(270)	(1,013)	(68)
OCI (loss)	43	(4,280)	823
AOCI (loss), end of year	2,570	2,527	6,807
Pension and other postretirement plans:
Accumulated other comprehensive income (loss), before tax
AOCI (loss), beginning of year	(152,910)	(191,552)	(100,128)
OCI (loss) before reclassifications	(46,244)	24,094	(98,223)
Amortization of prior service cost	695	668	709
Amortization of net actuarial loss	7,764	13,880	6,090
OCI (loss)	(37,785)	38,642	(91,424)
AOCI (loss), end of year	(190,695)	(152,910)	(191,552)
Accumulated other comprehensive income (loss), tax
AOCI (loss), beginning of year	(53,519)	(67,044)	(35,045)
OCI (loss) before reclassifications	(16,185)	8,433	(34,378)
Amortization of prior service cost	243	234	248
Amortization of net actuarial loss	2,717	4,858	2,131
OCI (loss)	(13,225)	13,525	(31,999)
AOCI (loss), end of year	(66,744)	(53,519)	(67,044)
Accumulated other comprehensive income (loss), net of tax
AOCI (loss), beginning of year	(99,391)	(124,508)	(65,083)
OCI (loss) before reclassifications	(30,059)	15,661	(63,845)
Amortization of prior service cost	452	434	461
Amortization of net actuarial loss	5,047	9,022	3,959
OCI (loss)	(24,560)	25,117	(59,425)
AOCI (loss), end of year	(123,951)	(99,391)	(124,508)
Total
Accumulated other comprehensive income (loss), before tax
AOCI (loss), beginning of year	(149,022)	(181,079)	(90,922)
OCI (loss)	66	(6,585)	1,267
OCI (loss)	(37,785)	38,642	(91,424)
OCI (loss)	(37,719)	32,057	(90,157)
AOCI (loss), end of year	(186,741)	(149,022)	(181,079)
Accumulated other comprehensive income (loss), tax
AOCI (loss), beginning of year	(52,158)	(63,378)	(31,823)
OCI (loss)	23	(2,305)	444
OCI (loss)	(13,225)	13,525	(31,999)
OCI (loss)	(13,202)	11,220	(31,555)
AOCI (loss), end of year	(65,360)	(52,158)	(63,378)
Accumulated other comprehensive income (loss), net of tax
AOCI (loss), beginning of year	(96,864)	(117,701)	(59,099)
OCI (loss)	43	(4,280)	823
OCI (loss)	(24,560)	25,117	(59,425)
OCI (loss)	(24,517)	20,837	(58,602)
AOCI (loss), end of year	$ (121,381)	$ (96,864)	$ (117,701)

Related Party (Details) - USD ($) $ in Thousands	12 Months Ended
Related Party (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions
Minimum number of affiliates to be classified as an insurance holding company system	2
Minimum number of insurer affiliates to be classified as an insurance holding company system	1
Cash settlements for payments made by Indemnity on the account of related parties	$ 496,113	$ 466,627
Rent expense on office space leased from Exchange	14,300	12,200	$ 15,700
Reimbursements from the Exchange related to rent expense	4,900	3,600	$ 5,600
Note receivable from EFL	$ 25,000	$ 25,000
Erie Insurance Exchange (EIE)
Related Party Transactions
Indemnity's management fee rate as a percent of premiums written and assumed by the Exchange (as a percent)	25.00%	25.00%	25.00%
Indemnity's management fee rate effective January 1, 2017 as a percent of premiums written and assumed by the Exchange (as a percent)	25.00%
Cash settlements for payments made by Indemnity on the account of related parties	$ 457,225	$ 430,866
Number of field office facilities leased from the Exchange	3
Erie Insurance Exchange (EIE) \| Maximum
Related Party Transactions
Indemnity's management fee rate as a percent of premiums written and assumed by the Exchange (as a percent)	25.00%
Erie Insurance Exchange (EIE) \| Operating expenses
Related Party Transactions
Cash settlements for payments made by Indemnity on the account of related parties	$ 429,985	406,246
Erie Insurance Exchange (EIE) \| Investment expenses
Related Party Transactions
Cash settlements for payments made by Indemnity on the account of related parties	27,240	24,620
Erie Family Life Insurance Company (EFL)
Related Party Transactions
Cash settlements for payments made by Indemnity on the account of related parties	38,888	35,761
Annual rentals paid to EFL	400	400	$ 400
Note receivable from EFL	$ 25,000
Note receivable from EFL, annual interest rate (as a percent)	6.70%
Note receivable from EFL, interest income recognized by Indemnity	$ 1,700	1,700	$ 1,700
Erie Family Life Insurance Company (EFL) \| Operating expenses
Related Party Transactions
Cash settlements for payments made by Indemnity on the account of related parties	36,818	33,988
Erie Family Life Insurance Company (EFL) \| Investment expenses
Related Party Transactions
Cash settlements for payments made by Indemnity on the account of related parties	$ 2,070	$ 1,773

Concentrations of Credit Risk (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Concentrations of credit risk from unsecured receivables
Receivables from Erie Insurance Exchange and affiliates	$ 378,540	$ 348,055

Commitments and Contingencies (Details) $ in Millions	12 Months Ended
Commitments and Contingencies (Details) $ in Millions	Dec. 31, 2016 USD ($)
Contractual commitments to invest in limited partnership investments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	$ 16.9
Description of commitment: contractual commitment to invest in limited partnership investments	Contractual commitments to invest in limited partnership investments, consisting of private equity securities, mezzanine debt securities, and real estate activities.
Private equity
Contractual commitments to invest in limited partnership investments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	$ 6.8
Mezzanine debt
Contractual commitments to invest in limited partnership investments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	8.2
Real estate
Contractual commitments to invest in limited partnership investments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	$ 1.9

Supplementary Data on Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 45,786	$ 57,376	$ 61,309	$ 45,895	$ 30,133	$ 49,562	$ 56,150	$ 38,833	$ 210,366	$ 174,678	$ 167,505
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization									15,154	16,461	15,656
Deferred income tax benefit									(2)	(14,584)	(3,305)
Realized (gains) losses and impairments on investments									(256)	1,066	(952)
Equity in earnings of limited partnerships									(7,025)	(16,983)	(10,929)
Net amortization of bond premium									7,436	8,160	7,225
(Decrease) increase in deferred compensation									(4,561)	(1,526)	6,149
Limited partnership distributions									17,837	14,112	15,327
Increase in receivables from affiliates									(30,485)	(12,835)	(34,778)
(Increase) decrease in accrued investment income									(846)	47	(915)
Decrease (increase) in federal income taxes recoverable									6,687	(499)	(8,421)
Decrease in prepaid pension									10,524	20,307	557
(Increase) decrease in prepaid expenses and other assets									(4,674)	1,193	(1,747)
Increase in accounts payable and accrued expenses									11,144	3,633	1,753
Increase in commissions payable									15,017	5,624	20,596
Increase in accrued agent bonuses									8,020	18,524	12,292
Net cash provided by operating activities									$ 254,336	$ 217,378	$ 186,013

Quarterly Results of Operations (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Results of Operations (unaudited)
Operating revenue	$ 379,613	$ 418,406	$ 423,884	$ 374,728	$ 356,380	$ 396,637	$ 401,660	$ 350,831	$ 1,596,631	$ 1,505,508	$ 1,407,119
Operating expenses	322,928	336,151	338,125	307,063	314,541	328,348	331,677	298,401	1,304,267	1,272,967	1,184,272
Investment income, net of interest expense	13,438	4,326	7,404	2,559	4,244	7,220	15,705	6,539	27,727	33,708
Income before income taxes	70,123	86,581	93,163	70,224	46,083	75,509	85,688	58,969	320,091	266,249	251,264
Net income	$ 45,786	$ 57,376	$ 61,309	$ 45,895	$ 30,133	$ 49,562	$ 56,150	$ 38,833	$ 210,366	$ 174,678	$ 167,505
Class A
Net income per share
Common stock - basic (in dollars per share)	$ 0.98	$ 1.23	$ 1.32	$ 0.99	$ 0.65	$ 1.06	$ 1.21	$ 0.83	$ 4.52	$ 3.75	$ 3.59
Common stock - diluted (in dollars per share)	0.87	1.09	1.17	0.87	0.57	0.94	1.07	0.74	4.01	3.33	3.18
Class B
Net income per share
Common stock - basic (in dollars per share)	147	185	197	148	97	160	181	125	678	563	539
Common stock - diluted (in dollars per share)	$ 147	$ 185	$ 197	$ 148	$ 97	$ 159	$ 180	$ 125	$ 677	$ 562	$ 538