Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2018	Feb. 15, 2019	Jun. 30, 2018
Entry Registrant Name	ERIE INDEMNITY CO
Entity Central Index Key	0000922621
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Public Float			$ 2.9
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Class A Common Stock
Entity Common Stock, Shares Outstanding		46,189,068
Class B Common Stock
Entity Common Stock, Shares Outstanding		2,542

STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating revenue
Operating revenue	$ 2,382,212	$ 1,691,774	$ 1,596,631
Operating expenses
Operating expenses	2,037,869	1,401,522	1,303,114
Operating income	344,343	290,252	293,517
Investment income
Net investment income	30,209	24,639	20,558
Net realized investment (losses) gains	(2,010)	1,334	672
Net impairment losses recognized in earnings	(1,581)	(182)	(416)
Equity in (losses) earnings of limited partnerships	(822)	2,801	7,025
Total investment income	25,796	28,592	27,839
Interest expense, net	2,460	1,238	101
Other income (expense)	3,641	(1,911)	(1,164)
Income before income taxes	371,320	315,695	320,091
Income tax expense	83,096	118,696	109,725
Net income	$ 288,224	$ 196,999	$ 210,366
Class A Common Stock
Net income per share
Common stock - basic (in dollars per share)	$ 6.19	$ 4.23	$ 4.52
Common stock - diluted (in dollars per share)	$ 5.51	$ 3.76	$ 4.01
Weighted average shares outstanding – Basic
Common stock - basic (in shares)	46,188,637	46,186,831	46,188,952
Weighted average shares outstanding – Diluted
Common stock - diluted (in shares)	52,315,213	52,337,463	52,435,303
Class B Common Stock
Net income per share
Common stock - basic (in dollars per share)	$ 928	$ 635	$ 678
Common stock - diluted (in dollars per share)	$ 928	$ 634	$ 677
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
Management fee revenue, policy issuance and renewal services
Operating revenue
Operating revenue	$ 1,719,567	$ 1,662,625	$ 1,567,431
Operating expenses
Operating expenses	1,457,533	1,401,522	1,303,114
Management fee revenue, administrative services
Operating revenue
Operating revenue	53,632
Administrative services reimbursements
Operating revenue
Operating revenue	580,336
Operating expenses
Operating expenses	580,336
Service agreement revenue
Operating revenue
Operating revenue	$ 28,677	$ 29,149	$ 29,200

STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 288,224	$ 196,999	$ 210,366
Other comprehensive income (loss), net of tax
Change in unrealized holding (losses) gains on available-for-sale securities	(9,937)	(190)	43
Pension and other postretirement plans	35,712	(8,105)	(24,560)
OCI (loss)	25,775	(8,295)	(24,517)
Comprehensive income	$ 313,999	$ 188,704	$ 185,849

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 266,417	$ 215,721
Available-for-sale securities	402,339
Available-for-sale securities		71,190
Receivables from Erie Insurance Exchange and affiliates	449,873	418,328
Prepaid expenses and other current assets	36,892	34,890
Federal income taxes recoverable	8,162	29,900
Note receivable from Erie Family Life Insurance Company	0	25,000
Accrued investment income	5,263	6,853
Total current assets	1,168,946	801,882
Available-for-sale securities	346,184
Available-for-sale securities		687,523
Equity securities	11,853
Limited partnership investments	34,821	45,122
Fixed assets, net	130,832	83,149
Deferred income taxes, net	24,101	19,390
Other assets	61,590	28,793
Total assets	1,778,327	1,665,859
Current liabilities:
Commissions payable	241,573	228,124
Agent bonuses	103,462	122,528
Accounts payable and accrued liabilities	111,291	104,533
Dividends payable	41,910	39,116
Contract liability	33,854
Deferred executive compensation	13,107	15,605
Current portion of long-term borrowings	1,870
Total current liabilities	547,067	509,906
Defined benefit pension plans	116,866	207,530
Contract liability	17,873
Deferred executive compensation	13,075	14,452
Long-term borrowings	97,860	74,728
Other long-term liabilities	11,914	1,899
Total liabilities	804,655	808,515
Shareholders' equity
Additional paid-in-capital	16,459	16,470
Accumulated other comprehensive loss	(130,284)	(156,059)
Retained earnings	2,231,417	2,140,853
Total contributed capital and retained earnings	2,119,762	2,003,434
Treasury stock, at cost; 22,110,132 shares held	(1,157,625)	(1,155,668)
Deferred compensation	11,535	9,578
Total shareholders' equity	973,672	857,344
Total liabilities and shareholders' equity	1,778,327	1,665,859
Class A Common Stock
Shareholders' equity
Common stock	1,992	1,992
Class B Common Stock
Shareholders' equity
Common stock	$ 178	$ 178

STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Treasury stock (in shares)	22,110,132	22,110,132
Class A Common Stock
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
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 Common Stock

Class B Common Stock

Common stock

Class A Common Stock

Common stock

Class B Common Stock

Additional paid-in-capital

Accumulated other comprehensive income (loss)

Retained earnings

Class A Common Stock

Retained earnings

Class B Common Stock

Treasury stock

Deferred compensation

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

Other comprehensive (loss) income

(24,517)

Dividends declared:

$ (137,297)

$ (1,134)

$ (137,297)

$ (1,134)

Net purchase of treasury stock

^[1]

(11)

Deferred compensation

(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

Increase (decrease) in shareholders' equity

Net income

196,999

Other comprehensive (loss) income

(8,295)

Dividends declared:

(147,225)

(1,215)

(147,225)

(1,215)

Net purchase of treasury stock

^[1]

170

Deferred compensation

(1,177)

1,177

Rabbi trust distribution

^[2]

1,355

(1,355)

AOCI reclassification

^[3]

(26,383)

26,383

Balance, end of year at Dec. 31, 2017

857,344

1,992

178

16,470

(156,059)

2,140,853

(1,155,668)

9,578

Increase (decrease) in shareholders' equity

Net income

288,224

Other comprehensive (loss) income

25,775

Dividends declared:

$ (157,964)

$ (1,304)

$ (157,964)

$ (1,304)

Net purchase of treasury stock

^[1]

(11)

Deferred compensation

(2,566)

2,566

Rabbi trust distribution

^[2]

609

(609)

Balance, end of year at Dec. 31, 2018

973,672

$ 1,992

$ 178

$ 16,459

$ (130,284)

2,231,417

$ (1,157,625)

$ 11,535

Increase (decrease) in shareholders' equity

Cumulative effect adjustments

^[4]

$ (38,392)

[1]	Net purchases of treasury stock in 2016, 2017 and 2018 includes the repurchase of our Class A common stock in the open market that were subsequently distributed to satisfy stock based compensation awards. See Note 12, "Capital Stock", for additional information on treasury stock transactions.
[2]	Distributions of our Class A shares were made from the rabbi trust to a retired director and an incentive compensation deferral plan participant in 2018 and to a retired director in 2017. See Note 10, "Incentive and Deferred Compensation Plans".
[3]	A one-time adjustment was made in the fourth quarter of 2017 to reclassify stranded tax effects of the components of accumulated other comprehensive income ("AOCI") resulting from enactment of Tax Cuts and Jobs Act ("TCJA") from AOCI to retained earnings. See Note 2, "Significant Accounting Policies".
[4]	Cumulative effect adjustments are primarily related to the implementation of new revenue recognition guidance effective January 1, 2018. See Note 2, "Significant Accounting Policies".

STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities
Management fee received	$ 1,751,247	$ 1,627,558	$ 1,536,699
Administrative services reimbursements received	574,698
Service agreement fee received	28,677	29,149	29,200
Net investment income received	37,489	31,281	26,796
Limited partnership distributions	7,173	5,128	17,837
(Decrease) increase in reimbursements collected from affiliates		(4,720)	247
Commissions paid to agents	(853,758)	(800,627)	(756,713)
Agents bonuses paid	(134,314)	(122,743)	(113,859)
Salaries and wages paid	(182,537)	(171,547)	(160,985)
Pension contributions and employee benefits paid	(115,525)	(89,981)	(44,250)
General operating expenses paid	(208,036)	(199,084)	(176,029)
Administrative services expenses paid	(580,338)
Income taxes paid	(58,814)	(106,250)	(104,607)
Interest paid	(2,377)	(1,038)	0
Net cash provided by operating activities	263,585	197,126	254,336
Purchase of investments:
Available-for-sale securities	(392,895)
Available-for-sale securities		(391,181)	(369,811)
Equity securities	(4,087)
Limited partnerships	(243)	(410)	(578)
Proceeds from investments:
Available-for-sale securities sales	235,323
Available-for-sale securities sales		144,317	89,498
Available-for-sale securities maturities/calls	134,396	194,980	146,285
Equity securities	4,162
Trading securities			5,171
Limited partnerships	3,387	10,768	16,113
Purchase of fixed assets	(56,297)	(28,927)	(25,208)
Proceeds from disposal of fixed assets	6,014	0	0
Distributions on agent loans	(42,594)	(9,153)	(5,215)
Collections on agent loans	6,436	4,943	6,801
Repayment of note receivable from Erie Family Life Insurance	25,000	0	0
Net cash used in investing activities	(81,398)	(74,663)	(136,944)
Cash flows from financing activities
Dividends paid to shareholders	(156,474)	(145,765)	(135,985)
Net proceeds from long-term borrowings	24,983	49,951	24,776
Net cash used in financing activities	(131,491)	(95,814)	(111,209)
Net increase in cash and cash equivalents	50,696	26,649	6,183
Cash and cash equivalents, beginning of year	215,721	189,072	182,889
Cash and cash equivalents, end of year	266,417	215,721	189,072
Supplemental disclosure of noncash transactions
Transfer of investments from limited partnerships to trading securities	0	0	4,464
Liability incurred to purchase fixed assets	$ 8,453	$ 0	$ 0

Nature of Operations	12 Months Ended
Nature of Operations	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	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. Our primary function as attorney-in-fact is to perform policy issuance and renewal services on behalf of the subscribers at the Exchange. We also act as attorney-in-fact on behalf of the Exchange with respect to all claims handling and investment management services, as well as the service provider for all claims handling, life insurance, and investment management services for its insurance subsidiaries, collectively referred to as "administrative services". Acting as attorney-in-fact in these two capacities 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. Pursuant to the subscriber's agreement for acting as attorney-in-fact in these two capacities, we earn a management fee calculated as a percentage of the direct and assumed premiums written by the Exchange. The policy issuance and renewal 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 67% of our 2018 policy issuance and renewal expenses. The underwriting services we provide include underwriting and policy processing and comprised approximately 10% of our 2018 policy issuance and renewal 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 10% of our 2018 policy issuance and renewal expenses. Included in these expenses are allocations of costs for departments that support these policy issuance and renewal functions. By virtue of its legal structure as a reciprocal insurer, the Exchange does not have any employees or officers. Therefore, it enters into contractual relationships by and through an attorney-in-fact. Indemnity serves as the attorney-in-fact on behalf of the Exchange with respect to its administrative services. The Exchange's insurance subsidiaries also utilize Indemnity for these services in accordance with the service agreements between each of the subsidiaries and Indemnity. Claims handling services include costs incurred in the claims process, including the adjustment, investigation, defense, recording and payment functions. Life insurance management services include costs incurred in the management and processing of life insurance business. Investment management services are related to investment trading activity, accounting and all other functions attributable to the investment of funds. Included in these expenses are allocations of costs for departments that support these administrative functions. The amounts incurred for these services are reimbursed to Indemnity at cost in accordance with the subscriber's agreement and the service agreements. State insurance regulations require that intercompany service agreements and any material amendments be approved in advance by the state insurance department. 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 and cost reimbursements. See Note 15, "Concentrations of Credit Risk".

Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

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

We adopted Accounting Standards Codification 606, "Revenue from Contracts with Customers" ("ASC 606") on January 1, 2018, using the modified retrospective method applied to all contracts. We recognized the cumulative effect of initially adopting ASC 606 as an adjustment to the opening balance of retained earnings at January 1, 2018. The comparative information for periods preceding January 1, 2018 has not been restated and continues to be reported under the accounting standards in effect for those periods.

Under ASC 606, we determined that we have two performance obligations under the subscriber’s agreement. The first performance obligation is providing policy issuance and renewal services. The second performance obligation is acting as the attorney-in-fact on behalf of the Exchange, as well as the service provider for its insurance subsidiaries, with respect to all administrative services. Therefore, upon adoption of ASC 606 beginning January 1, 2018, the management fee earned per the subscriber’s agreement, currently 25% of all direct and assumed premiums written by the Exchange, is allocated between the two performance obligations. Prior to the adoption of ASC 606, the entire management fee was allocated to the policy issuance and renewal services. Additionally, the expenses we incur and related reimbursements we receive related to the administrative services are presented gross in our Statement of Operations effective January 1, 2018. There was no significant impact to service agreement revenue upon adoption of ASC 606.

Revenue allocated to the policy issuance and renewal services continues to be recognized at the time of policy issuance or renewal because it is at the time of policy issuance or renewal when the economic benefits of the service Indemnity provides (i.e. the substantially completed policy issuance or renewal service) and the control of the promised asset (i.e. the executed insurance policy) transfers to the customer. A significant portion of the management fee is currently allocated to this performance obligation and therefore, the related revenue recognition pattern for the vast majority of our revenues remains unchanged.

The revenue allocated to the second performance obligation is recognized over several years in correlation with the costs incurred because the economic benefit of the services provided (i.e. management of the administrative services) transfers to the customer over a period of time. The amounts incurred for these services are reimbursed to Indemnity at cost in accordance with the subscriber's agreement and the service agreements. On January 1, 2018, we established a contract liability of $48.5 million representing the portion of revenue not yet earned related to the administrative services to be provided in subsequent years. We recorded a related deferred tax asset of $10.2 million and a cumulative effect adjustment that reduced retained earnings by $38.3 million. The adoption of ASC 606 changed the presentation of our Statement of Cash Flows, but had no net impact to our cash flows.

The cumulative effect of the changes made to our Statement of Financial Position at January 1, 2018 were as follows:



(in thousands)	Balance at December 31, 2017		Adjustments due to ASC 606			Balance at January 1, 2018
Statement of Financial Position:
Assets
Deferred tax asset	$	19,390	$	10,188		$	29,578
Liabilities
Contract liability	—		48,514			48,514
Equity
Retained earnings	2,140,853		(38,326		)	2,102,527

The impact of adoption on our Statement of Financial Position at December 31, 2018 was as follows:



(in thousands)	As Reported		Balances without ASC 606		Impact of Change Higher/(Lower)

Statement of Financial Position:
Assets
Deferred tax asset	$	24,101	$	13,238	$	10,863
Liabilities
Contract liability	51,727		—		51,727
Equity
Retained earnings	2,231,417		2,272,281		(40,864		)

The impact of adoption on our Statement of Operations for the year ended December 31, 2018 was as follows:



(in thousands)	As Reported			Balances without ASC 606			Impact of Change Higher/(Lower)

Statement of Operations:
Management fee revenue allocated to policy issuance and renewal services, gross	$	1,721,309		$	1,778,212		$	(56,903	)
Less: change in allowance for management fee returned on cancelled policies	(1,742		)	(1,800		)	58
Management fee revenue allocated to policy issuance and renewal services, net	$	1,719,567		$	1,776,412		$	(56,845	)


Management fee revenue allocated to administrative services, gross	$	53,694		$	—		$	53,694
Less: change in allowance for management fee returned on cancelled policies	(62		)	—			(62		)
Management fee revenue allocated to administrative services, net	53,632			—			53,632
Administrative services reimbursement revenue	580,336			—			580,336
Total revenue allocated to administrative services	$	633,968		$	—		$	633,968


Administrative services expenses	$	580,336		$	—		$	580,336

In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-02, "Income Statement-Reporting Comprehensive Income-Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", which permits entities to reclassify from accumulated other comprehensive income to retained earnings tax effects stranded in accumulated other comprehensive income as a result of tax reform. ASU 2018-02 is effective for all entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for reporting periods for which financial statements have not yet been issued or made available for issuance. We elected to early adopt this guidance effective December 31, 2017 using a portfolio method, which resulted in a decrease of $26.4 million in accumulated other comprehensive income and a corresponding increase in retained earnings.

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 adopted this guidance on a prospective basis effective January 1, 2018. The adoption of this guidance resulted in reclassifying unrealized losses, net of tax, on equity securities from accumulated other comprehensive loss to retained earnings, which reduced retained earnings by $0.1 million at January 1, 2018. As of January 1, 2018, equity securities are presented separately in our Statement of Financial Position. Our disclosures were prepared in accordance with this guidance.

In March 2017, the FASB issued ASU 2017-07, "Compensation-Retirement Benefits", which requires the service cost component of net benefit costs to be reported with other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit costs are required to be presented separately from the service cost component and outside of income from operations on a retrospective basis. This amendment also allows only the service cost component to be eligible for capitalization, when applicable, prospectively after the effective date. ASU 2017-07 is effective for interim and annual periods beginning after December 15, 2017. We adopted this guidance effective January 1, 2018 and have included the other components of net benefit costs in "Other income (expense)" in the Statements of Operations and conformed the prior-period presentation. The adoption of this guidance did not have a material impact on the presentation of our financial statements or related disclosures.

In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General", which modifies the disclosure requirements for employers that sponsor defined benefit pension or other post retirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. We implemented this guidance as of December 31, 2018, and presented our disclosures in accordance with the new requirements. The adoption of this guidance did not have a material impact on our disclosures.

In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement", which is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. This guidance both modifies and adds new disclosure requirements primarily related to Level 3 fair value measurements. We implemented this guidance as of December 31, 2018, and presented our disclosures in accordance with the new requirements. The adoption of this guidance did not have a material impact on our disclosures.

Recently issued accounting standards

In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other Internal-Use Software", which align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The amendments under ASU 2018-15 may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. We are currently evaluating the impact of ASU 2018-15 on our financial statements and disclosures.

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 have evaluated the impact of this guidance on our invested assets. Our investments are not measured at amortized cost, and therefore do not require the use of a new expected loss model. Our available-for-sale debt securities will continue to be monitored for credit losses which would be reflected as an allowance for credit losses rather than a reduction of the carrying value of the asset. Other financial assets subject to this guidance include our receivables from the Exchange and its subsidiaries and agent loans. Given the financial strength of the Exchange, demonstrated by its strong surplus position and industry ratings, it is unlikely these receivables would have significant, if any, credit loss exposure. Accordingly, we do not expect a material impact on our financial statements or related disclosures as a result of this guidance.

In February 2016, the FASB issued ASU 2016-02, "Leases", which requires lessees to recognize assets and liabilities arising from operating leases on the Statements of Financial Position and to disclose key information about leasing arrangements. Under existing guidance, we recognize our operating lease expense in the Statements of Operations. The new lease guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In July 2018, the FASB issued ASU 2018-11, "Leases-Targeted Improvements", which permits entities to apply the existing lease guidance in comparative periods and recognize any cumulative effect adjustment in the year of adoption. We will apply this optional transition method upon adoption of ASU 2016-02. Leases for which an asset and related liability are recognized include agreements for real estate, computer equipment, vehicles, and copiers. While we will recognize lease assets and liabilities on our Statement of Financial Position at adoption date, there will not be a material cumulative effect adjustment. New disclosures are required with the adoption of this guidance. There will not be a material impact to our results of operations or cash flows in 2019.

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, prior to the adoption of ASU 2016-01 on January 1, 2018, are classified as available-for-sale and reported at fair value. Common stock securities classified as available-for-sale represent certain exchange traded funds with underlying holdings of fixed maturity securities. 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). As discussed in the recently adopted accounting standards, we prospectively adopted ASU 2016-01 as of January 1, 2018. Subsequently, changes in the fair value of equity securities formerly classified as available-for-sale, which include preferred and common stock securities, are recognized in earnings rather than in other comprehensive income (loss). Additionally, equity securities are presented separately in the Statement of Financial Position.

Available-for-sale securities with a remaining maturity of 12 months or less are reported as current assets on the Statements of Financial Position. 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 and recorded to net investment income.

Available-for-sale securities are evaluated monthly for other-than-temporary impairment loss. For fixed maturity 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. Fixed maturity 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 is 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.

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 one real estate limited partnership that does not meet the criteria of an investment company. This partnership prepares audited financial statements on a cost basis. We have elected to report this limited partnership 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. Fair value provides consistency in the evaluation and financial reporting for this limited partnership and limited partnerships accounted for under the equity method. Limited partnerships reported under the fair value option are disclosed in Note 5, "Fair Value" as other limited partnership investments.

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 2018 for all partnerships other than the real estate limited partnership that is 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 (losses) earnings 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 capitalize applicable interest charges incurred during the construction period of significant long-term building projects as part of the historical cost of the asset.

Other assets

Other assets include agent loans and other long-term assets. Agent loans are carried at unpaid principal balance with interest recorded in investment income as earned. It is our policy to charge the loans that are in default directly to expense. We do not record an allowance for credit losses on these loans, as the majority of the loans are senior secured and historically have had insignificant default amounts.

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 "Cost of operations - policy issuance and renewal services" in the Statements of Operations.

Recognition of management fee revenue

We earn management fees from the Exchange under the subscriber’s agreement for services provided. Pursuant to the subscriber’s agreement, we may retain up to 25% of all direct and assumed premiums written by the Exchange. The management fee rate is set at least annually by our Board of Directors. The management fee revenue is calculated by multiplying the management fee rate by the direct and assumed premiums written by the Exchange. Upon adoption of ASC 606 beginning January 1, 2018, we determined we have two performance obligations under the subscriber’s agreement. The first performance obligation is to provide policy issuance and renewal services. The second performance obligation is acting as the attorney-in-fact with respect to the administrative services. Beginning January 1, 2018, our management fee revenue is allocated to these two performance obligations. Prior to the adoption of ASC 606, the entire management fee was allocated to the policy issuance and renewal services.

Management fee revenue allocated to the policy issuance and renewal services is recognized at the time of policy issuance or renewal, because it is at the time of policy issuance or renewal when the economic benefit of the service we provide (the substantially completed policy issuance or renewal service) and the control of the promised asset (the executed insurance policy) transfers to the customer.

Management fee revenue allocated to the second performance obligation relates to us acting as the attorney-in-fact on behalf of the Exchange, as well as the service provider for its insurance subsidiaries, with respect to the administrative services and is recognized over a four-year period representing the time over which the economic benefit of the services provided (i.e. management of the administrative services) transfers to the customer.

Administrative services

By virtue of its legal structure as a reciprocal insurer, the Exchange does not have any employees or officers. Therefore, it enters into contractual relationships by and through an attorney-in-fact. Indemnity serves as the attorney-in-fact on behalf of the Exchange with respect to its administrative services in accordance with the subscriber's agreement. The Exchange's insurance subsidiaries also utilize Indemnity for these services in accordance with the service agreements between each of the subsidiaries and Indemnity. Claims handling services include costs incurred in the claims process, including the adjustment, investigation, defense, recording and payment functions. Life insurance management services include costs incurred in the management and processing of life insurance business. Investment management services are related to investment trading activity, accounting and all other functions attributable to the investment of funds. Included in these expenses are allocations of costs for departments that support these administrative functions. Common overhead expenses and certain service department costs incurred by us on behalf of the Exchange and its insurance 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. Prior to the adoption of ASC 606, we recorded the reimbursements we receive for the administrative services expenses as receivables from the Exchange and its subsidiaries with a corresponding reduction to our expenses. Total cash settlements for the Exchange and its subsidiaries were $522.3 million and $496.1 million in 2017 and 2016, respectively. Upon adoption of ASC 606 on January 1, 2018, the expenses we incur and related reimbursements we receive for administrative services are presented gross in our Statement of Operations. Reimbursements are settled on a monthly basis. The amounts incurred for these services are reimbursed to Indemnity at cost in accordance with the subscriber's agreement and the service agreements. State insurance regulations require that intercompany service agreements and any material amendments be approved in advance by the state insurance department.

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, which are also recognized as revenue when bills are rendered to the policyholder.

Reclassifications

Certain amounts previously reported in the 2017 and 2016 financial statements have been reclassified for comparative purposes to conform to the current period’s presentation. One of the reclassifications resulted from new accounting guidance and only affected the Statements of Operations. Most notably, "Commissions", "Salaries and employee benefits", and "All other operating expenses" have been combined within "Cost of operations - policy issuance and renewal services" in the Statements of Operations (see Note 3, "Revenue"). This reclassification had no effect on previously reported net income.

Revenue

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenue

The majority of our revenue is derived from the subscriber’s agreement between us and the subscribers (policyholders) at the Exchange. Pursuant to the subscriber’s agreement, we earn a management fee calculated as a percentage, not to exceed 25%, of all direct and assumed written premiums of the Exchange. We account for management fee revenue earned under the subscriber’s agreement in accordance with ASC 606, which we adopted on January 1, 2018, using the modified retrospective method. See Note 2, "Significant Accounting Policies" for further discussion of the adoption, including the impact on our financial statements.

We allocate a portion of our management fee revenue, currently 25% of the direct and assumed written premiums of the Exchange, between the two performance obligations we have under the subscriber’s agreement. The first performance obligation is to provide policy issuance and renewal services to the subscribers (policyholders) at the Exchange, and the second is to act as attorney-in-fact on behalf of the Exchange, as well as the service provider for its insurance subsidiaries, with respect to all administrative services. The transaction price, including management fee revenue and administrative service reimbursement revenue, is allocated based on the estimated standalone selling prices developed using industry information and other available information for similar services.

The first performance obligation is to provide policy issuance and renewal services that result in executed insurance policies between the Exchange or one of its insurance subsidiaries and the subscriber (policyholder). Our customer, the subscriber (policyholder), receives economic benefits when substantially all the policy issuance or renewal services are complete and an insurance policy is issued or renewed by the Exchange or one of its insurance subsidiaries. It is at the time of policy issuance or renewal that the allocated portion of revenue is recognized.

The Exchange, by virtue of its legal structure as a reciprocal insurer, does not have any employees or officers. Therefore, it enters into contractual relationships by and through an attorney-in-fact. Indemnity serves as the attorney-in-fact on behalf of the Exchange with respect to its administrative services in accordance with the subscriber's agreement. The Exchange's insurance subsidiaries also utilize Indemnity for these services in accordance with the service agreements between each of the subsidiaries and Indemnity. Collectively, these services represent a second performance obligation under the subscriber’s agreement and the service agreements. The revenue allocated to this performance obligation is recognized over time as these services are provided. The portion of revenue not yet earned is recorded as a contract liability in the Statement of Financial Position. We recorded a contract liability of $48.5 million at January 1, 2018, upon adoption of ASC 606. The gross management fee revenue recognized as earned for these services for the year ended December 31, 2018 was $53.7 million. Beginning with the adoption of ASC 606 on January 1, 2018, the administrative services expenses we incur and the related reimbursements we receive are recorded gross in the Statement of Operations.

Indemnity records a receivable from the Exchange for management fee revenue when the premium is written or assumed by the Exchange. Indemnity collects the management fee from the Exchange when the Exchange collects the premiums from the subscribers (policyholders). As the Exchange issues policies with annual terms only, cash collections generally occur within one year.

A constraining estimate exists around the management fee received as consideration related to the potential for management fee to be returned if a policy were to be cancelled mid-term. Management fees are returned to the Exchange when policyholders cancel their insurance coverage mid-term and unearned premiums are refunded to them. We maintain an estimated allowance to reduce the management fee to its estimated net realizable value to account for the potential of mid-term policy cancellations based on historical cancellation rates. This estimated allowance has been allocated between the two performance obligations consistent with the revenue allocation proportions.

The following table disaggregates revenue by our two performance obligations for the years ended December 31:



(in thousands)	2018		2017		2016
Management fee revenue - policy issuance and renewal services, net	$	1,719,567	$	1,662,625	$	1,567,431

Management fee revenue - administrative services, net	53,632		—		—
Administrative services reimbursement revenue	580,336		—		—
Total administrative services	$	633,968	$	—	$	—

Earnings Per Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

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 12, "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 10, "Incentive and Deferred Compensation Plans".

At December 31, 2017, we recorded a one-time net non-cash tax expense of $10.1 million as a result of the enactment of the Tax Cuts and Jobs Act ("TCJA") on December 22, 2017. See Note 11, "Income Taxes". This resulted in a reduction in Class A basic earnings per share of $0.22 and diluted earnings per share of $0.19, and a reduction in Class B basic earnings per share of $33 and diluted earnings per share of $32.

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,
	2018					2017					2016
	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	$	285,864	46,188,637	$	6.19	$	195,386	46,186,831	$	4.23	$	208,644	46,188,952	$	4.52
Dilutive effect of stock-based awards	0		25,776	—		0		49,832	—		0		145,551	—
Assumed conversion of Class B shares	2,360		6,100,800	—		1,613		6,100,800	—		1,722		6,100,800	—
Class A – Diluted EPS:
Income available to Class A stockholders on Class A equivalent shares	$	288,224	52,315,213	$	5.51	$	196,999	52,337,463	$	3.76	$	210,366	52,435,303	$	4.01
Class B – Basic EPS:
Income available to Class B stockholders	$	2,360	2,542	$	928	$	1,613	2,542	$	635	$	1,722	2,542	$	678
Class B – Diluted EPS:
Income available to Class B stockholders	$	2,359	2,542	$	928	$	1,613	2,542	$	634	$	1,721	2,542	$	677

Fair Value

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value

Our available-for-sale debt securities and equity 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 debt securities and equity 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 virtually all of our prices are obtained from third-party sources, we also perform an internal pricing review on outliers, which include securities with price changes inconsistent with 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 market data, and transaction volumes and believe that the prices adequately consider market activity in determining fair value.

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.

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



	At December 31, 2018
	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 ⁽¹⁾	$	208,412	$	0	$	208,412	$	0
States & political subdivisions ⁽¹⁾	159,023		0		159,023		0
Corporate debt securities	249,947		0		237,370		12,577
Residential mortgage-backed securities	4,609		0		4,609		0
Commercial mortgage-backed securities	46,515		0		46,515		0
Collateralized debt obligations	64,239		0		64,239		0
Other debt securities	15,778		0		15,778		0
Total available-for-sale securities	748,523		0		735,946		12,577
Equity securities
Nonredeemable preferred stock - financial services sector	11,853		1,809		10,044		0
Total equity securities	11,853		1,809		10,044		0
Other limited partnership investments ⁽²⁾	3,206		—		—		—
Total	$	763,582	$	1,809	$	745,990	$	12,577



	At December 31, 2017
	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	$	11,734	$	0	$	11,734	$	0
States & political subdivisions	259,264		0		259,264		0
Foreign government securities	503		0		503		0
Corporate debt securities	346,523		0		338,644		7,879
Residential mortgage-backed securities	25,571		0		25,571		0
Commercial mortgage-backed securities	32,804		0		32,804		0
Collateralized debt obligations	58,034		0		55,834		2,200
Other debt securities	11,528		0		11,528		0
Total fixed maturities	745,961		0		735,882		10,079
Nonredeemable preferred stock - financial services sector	11,659		2,015		9,644		0
Nonredeemable preferred stock - utilities sector	1,093		0		1,093		0
Total available-for-sale securities	758,713		2,015		746,619		10,079
Other limited partnership investments ⁽²⁾	4,816		—		—		—
Total	$	763,529	$	2,015	$	746,619	$	10,079


(1)	In the fourth quarter of 2018, we began selling off our municipal bonds as part of a portfolio rebalancing. We intend to sell the remaining municipal bonds in the first half of 2019. We have currently invested proceeds from these sales in short-term U.S. Treasuries.

(2)

The limited partnership investment measured at fair value represents one real estate fund included on the balance sheet as a limited partnership investment 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 investment can never be redeemed with the fund. Instead, distributions are received when liquidation of the underlying assets of the fund occurs. The fair value of this investment 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 partner, 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. During the years ended December 31, 2018 and 2017, no contributions were made and distributions totaling $1.2 million and $0.5 million, respectively, were received from this investment. There were no unfunded commitments related to the investment as of December 31, 2018 and 2017. In 2018, the one remaining real estate fund was in the process of liquidating the underlying assets. Liquidation of the fund was completed in January 2019.

We review the fair value hierarchy classifications each reporting period. Transfers between hierarchy levels may occur due to changes in available market observable inputs.

Level 3 Assets – Year-to-Date Change:



(in thousands)	Beginning balance at December 31, 2017		Included in earnings⁽¹⁾		Included in other comprehensive income			Purchases		Sales			Transfers into Level 3⁽²⁾		Transfers out of Level 3⁽²⁾			Ending balance at December 31, 2018
Available-for-sale securities:
Corporate debt securities	$	7,879	$	6	$	(312	)	$	5,550	$	(2,854	)	$	18,232	$	(15,924	)	$	12,577
Collateralized debt obligations	2,200		0		10			905		0			0		(3,115		)	0
Total Level 3 available-for-sale securities	$	10,079	$	6	$	(302	)	$	6,455	$	(2,854	)	$	18,232	$	(19,039	)	$	12,577

Level 3 Assets – Year-to-Date Change:



(in thousands)	Beginning balance at December 31, 2016		Included in earnings⁽¹⁾			Included in other comprehensive income			Purchases		Sales			Transfers into Level 3⁽²⁾		Transfers out of Level 3⁽²⁾			Ending balance at December 31, 2017
Available-for-sale securities:
Corporate debt securities	$	9,352	$	(85	)	$	(41	)	$	4,954	$	(5,411	)	$	11,196	$	(12,086	)	$	7,879
Collateralized debt obligations	0		0			0			2,200		0			0		0			2,200
Total Level 3 available-for-sale securities	$	9,352	$	(85	)	$	(41	)	$	7,154	$	(5,411	)	$	11,196	$	(12,086	)	$	10,079


(1)	These amounts are reported in the Statements of Operations as net investment income and net realized investment gains (losses) for each of the periods presented above.


(2)	Transfers into and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.

The change in unrealized gains or losses included in other comprehensive income related to Level 3 securities held at the reporting date is as follows for the years ended December 31:



(in thousands)	2018			2017		2016
Available-for-sale securities:
Corporate debt securities	$	(554	)	$	—	$	—
Net unrealized losses on Level 3 securities held at reporting date	$	(554	)	$	—	$	—

Quantitative and Qualitative Disclosures about Unobservable Inputs

When a non-binding broker quote was the only input available, the security was classified as Level 3. The quantitative detail of the unobservable inputs is neither provided nor reasonably available to us.

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



(in thousands)	At December 31, 2018
	Total		Level 1		Level 2		Level 3 ⁽¹⁾
Available-for-sale securities:
Priced via pricing services	$	748,480	$	0	$	735,946	$	12,534
Priced via market comparables/broker quotes	43		0		0		43
Total available-for-sale securities	748,523		0		735,946		12,577
Equity securities priced via pricing services	11,853		1,809		10,044		0
Other limited partnership investments priced via unobservable inputs ⁽²⁾	3,206		—		—		—
Total	$	763,582	$	1,809	$	745,990	$	12,577


(1)	Securities classified as Level 3 were priced using non-binding broker quotes.


(2)	Represents one real estate fund included on the Statements of Financial Position as limited partnership investments that is reported under the fair value option using the NAV practical expedient. These amounts are not required to be categorized in the fair value hierarchy.

Financial instruments disclosed, but not carried at fair value

The following table presents the carrying values and fair value measurements, which are categorized as Level 3 in the fair value hierarchy, of financial instruments disclosed, but not carried at fair value:



	At December 31, 2018				At December 31, 2017
(in thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Agent loans ⁽¹⁾	$	58,006	$	54,110	$	21,849	$	21,849
Long-term borrowings	99,730		94,057		74,728		72,424


(1)	The fair value of agent loans approximates carrying value at December 31, 2017.

- 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, 2018

Investments [Abstract]

Investments

Available-for-sale securities

The following tables summarize the cost and fair value of our available-for-sale securities. See also Note 5, "Fair Value" for additional fair value disclosures.



	At December 31, 2018
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale securities:
U.S. Treasury ⁽¹⁾	$	208,610	$	18	$	216	$	208,412
States & political subdivisions⁽¹⁾	157,003		2,020		0		159,023
Corporate debt securities	259,362		139		9,554		249,947
Residential mortgage-backed securities	4,603		38		32		4,609
Commercial mortgage-backed securities	47,022		80		587		46,515
Collateralized debt obligations	65,039		30		830		64,239
Other debt securities	15,756		33		11		15,778
Total available-for-sale securities	$	757,395	$	2,358	$	11,230	$	748,523


(1)	In the fourth quarter of 2018, we began selling off our municipal bonds as part of a portfolio rebalancing. We intend to sell the remaining municipal bonds in the first half of 2019. We have currently invested proceeds from these sales in short-term U.S. Treasuries.



	At December 31, 2017
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale securities:
U.S. Treasury	$	11,873	$	0	$	139	$	11,734
States & political subdivisions	254,533		5,351		620		259,264
Foreign government securities	501		2		0		503
Corporate debt securities	346,759		1,688		1,924		346,523
Residential mortgage-backed securities	25,324		371		124		25,571
Commercial mortgage-backed securities	33,475		26		697		32,804
Collateralized debt obligations	57,838		237		41		58,034
Other debt securities	11,496		32		0		11,528
Total fixed maturities	741,799		7,707		3,545		745,961
Nonredeemable preferred stock - financial services sector	11,719		15		75		11,659
Nonredeemable preferred stock - utilities sector	1,118		0		25		1,093
Total available-for-sale securities	$	754,636	$	7,722	$	3,645	$	758,713

The amortized cost and estimated fair value of available-for-sale securities at December 31, 2018, 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, 2018
(in thousands)	Amortized		Estimated
	cost		fair value
Due in one year or less	$	263,957	$	263,837
Due after one year through five years	163,276		160,504
Due after five years through ten years	217,659		212,692
Due after ten years	112,503		111,490
Total available-for-sale securities⁽¹⁾	$	757,395	$	748,523

(1) The contractual maturities of our municipal bond portfolio are included in the table. However, given our intent to sell this portfolio, municipal bond securities are classified as current assets in our Statements of Financial Position at December 31, 2018.

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, 2018
(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	$	129,474	$	19	$	11,656	$	197	$	141,130	$	216	7
Corporate debt securities	157,300		6,866		86,586		2,688		243,886		9,554		635
Residential mortgage-backed securities	777		6		1,618		26		2,395		32		3
Commercial mortgage-backed securities	17,624		175		16,997		412		34,621		587		30
Collateralized debt obligations	55,246		826		1,248		4		56,494		830		39
Other debt securities	8,213		11		0		0		8,213		11		7
Total available-for-sale securities	$	368,634	$	7,903	$	118,105	$	3,327	$	486,739	$	11,230	721
Quality breakdown of available-for-sale securities:
Investment grade	$	242,821	$	1,295	$	98,118	$	1,641	$	340,939	$	2,936	147
Non-investment grade	125,813		6,608		19,987		1,686		145,800		8,294		574
Total available-for-sale securities	$	368,634	$	7,903	$	118,105	$	3,327	$	486,739	$	11,230	721



	At December 31, 2017
(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	$	10,237	$	110	$	1,497	$	29	$	11,734	$	139	4
States & political subdivisions	52,553		288		14,361		332		66,914		620		33
Corporate debt securities	171,154		1,585		31,113		339		202,267		1,924		331
Residential mortgage-backed securities	4,156		29		7,064		95		11,220		124		11
Commercial mortgage-backed securities	10,836		85		11,984		612		22,820		697		19
Collateralized debt obligations	21,598		41		0		0		21,598		41		12
Other debt securities	1,499		0		0		0		1,499		0		1
Total fixed maturities	272,033		2,138		66,019		1,407		338,052		3,545		411
Nonredeemable preferred stock - financial services sector	9,644		75		0		0		9,644		75		5
Nonredeemable preferred stock - utilities sector	1,093		25		0		0		1,093		25		1
Total available-for-sale securities	$	282,770	$	2,238	$	66,019	$	1,407	$	348,789	$	3,645	417
Quality breakdown of fixed maturities:
Investment grade	$	214,586	$	1,064	$	62,193	$	985	$	276,779	$	2,049	158
Non-investment grade	57,447		1,074		3,826		422		61,273		1,496		253
Total fixed maturities	$	272,033	$	2,138	$	66,019	$	1,407	$	338,052	$	3,545	411

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, which are recognized in earnings.

Net investment income

Investment income, net of expenses, was generated from the following portfolios for the years ended December 31:



(in thousands)	2018		2017		2016
Fixed maturities ⁽¹⁾	$	24,978	$	23,587	$	20,175
Equity securities	628		82		171
Cash equivalents and other	5,628		2,486		1,391
Total investment income	31,234		26,155		21,737
Less: investment expenses	1,025		1,516		1,179
Investment income, net of expenses	$	30,209	$	24,639	$	20,558


(1)	Includes interest earned on note receivable from Erie Family Life Insurance Company ("EFL") of $1.6 million in 2018 and $1.7 million in 2017 and 2016.

Realized investment (losses) gains

Realized (losses) gains on investments were as follows for the years ended December 31:



(in thousands)	2018			2017			2016
Available-for-sale securities:
Gross realized gains	$	1,892		$	2,996		$	2,112
Gross realized losses	(3,189		)	(1,756		)	(2,147		)
Net realized (losses) gains on available-for-sale securities	(1,297		)	1,240			(35		)
Equity securities	(819		)	—			—
Common stock trading securities	—			0			707
Other	106			94			0
Net realized investment (losses) gains	$	(2,010	)	$	1,334		$	672

The portion of net unrealized losses recognized during the reporting period related to equity securities held at the reporting date is calculated as follows for the years ended December 31:



(in thousands)	2018			2017		2016
Equity securities: ⁽¹⁾
Net losses recognized during the period	$	(819	)	$	—	$	—
Less: net losses recognized on securities sold	(86		)	—		—
Net unrealized losses recognized on securities held at reporting date	$	(733	)	$	—	$	—


(1)	With the adoption of ASU 2016-01 effective January 1, 2018, changes in unrealized gains and losses on equity securities are included in net realized investment gains (losses) in the Statement of Operations. The adoption of this guidance resulted in a reclassification of net unrealized losses of $0.1 million from accumulated other comprehensive loss to retained earnings at January 1, 2018.

Other-than-temporary impairments on available-for-sale securities recognized in earnings were $1.6 million, $0.2 million and $0.4 million for the years ended December 31, 2018, 2017 and 2016, respectively. We have the intent to sell all credit-impaired available-for-sale debt 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

The majority of our limited partnership holdings are considered investment companies where the general partners record assets at fair value. These limited partnerships are recorded using the equity method of accounting and are generally reported on a one-quarter lag; therefore, our year-to-date limited partnership results through December 31, 2018 are comprised of partnership financial results for the fourth quarter of 2017 and the first, second and third quarters of 2018. Given the lag in reporting, our limited partnership results do not reflect the market conditions of the fourth quarter of 2018. We also own one real estate limited partnership that does not meet the criteria of an investment company. This partnership prepares audited financial statements on a cost basis. We have elected to report this limited partnership under the fair value option, which is based on the NAV from our partner's capital statement reflecting the general partner's estimate of fair value for the fund's underlying assets. Fair value provides consistency in the evaluation and financial reporting for this limited partnership and limited partnerships accounted for under the equity method. Cash contributions made to and distributions received from the partnerships are recorded in the period in which the transaction occurs.

Equity in (losses) earnings of limited partnerships by method of accounting were as follows for the years ended December 31:



(in thousands)	2018			2017		2016
Equity in (losses) earnings of limited partnerships - equity method	$	(448	)	$	1,925	$	6,273
Change in fair value of limited partnerships - fair value option	(374		)	876		752
Equity in (losses) earnings of limited partnerships	$	(822	)	$	2,801	$	7,025

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



(in thousands)	2018		2017
Private equity	$	28,271	$	31,663
Mezzanine debt	1,152		3,516
Real estate	2,192		5,127
Real estate - fair value option	3,206		4,816
Total limited partnership investments	$	34,821	$	45,122

See also Note 16, "Commitments and Contingencies", for investment commitments related to limited partnerships.

Fixed Assets

12 Months Ended

Dec. 31, 2018

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

Fixed Assets

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



(in thousands)	2018			2017
Land, buildings, and building improvements	$	—		$	7,627
Leasehold improvements	617			1,375
Software	163,735			129,553
Equipment	15,075			13,858
Projects in progress	10,392			21,898
Construction in progress	66,088			26,312
Total fixed assets, gross	255,907			200,623
Less: Accumulated depreciation and amortization	(125,075		)	(117,474		)
Fixed assets, net	$	130,832		$	83,149

On December 31, 2018, we sold the field offices we owned to the Exchange at the current independent appraised value in order to align the ownership interest of these facilities with the functions being performed at these locations, which are claims-related activities. We recognized a gain on the sale of $3.4 million, which is included in "Other income (expense)" in the Statements of Operations. See Note 14, "Related Party".

Software increased primarily related to an investment in platform technology, as well as internally developed software projects in progress that were completed and placed in production related to providing new quote and application processing capabilities for commercial lines and new web-based system functionality for personal lines.

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

In 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. Capitalized interest included in construction in progress was $2.1 million at December 31, 2018 and $0.6 million at December 31, 2017, respectively. The building is expected to be completed in 2020 and is financed using a senior secured draw term loan credit facility. See Note 8, "Borrowing Arrangements".

For the years ended December 31, 2018, 2017 and 2016, depreciation and amortization of fixed assets totaled $13.4 million, $14.8 million and $15.1 million, respectively, and is included in "Cost of operations - policy issuance and renewal services" in the Statements of Operations.

Borrowing Arrangements

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Borrowing Arrangements

Bank Line of Credit

As of December 31, 2018, we have access to a $100 million bank revolving line of credit with a $25 million letter of credit sublimit that expires on October 30, 2023. As of December 31, 2018, a total of $99.1 million remains available under the facility due to $0.9 million outstanding letters of credit, which reduces the availability for letters of credit to $24.1 million. We had no borrowings outstanding on our line of credit as of December 31, 2018. Bonds with a fair value of $108.7 million were pledged as collateral on the line at December 31, 2018. 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, 2018. 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, 2018.

Term Loan Credit Facility

In 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 was drawn on December 1, 2016, June 1, 2017, December 1, 2017, and June 1, 2018, for a total drawn amount of $100 million. During the draw period from December 1, 2016 through December 31, 2018, we made monthly interest payments under the Credit Facility. At expiration of the draw period, the Credit Facility converted to a fully-amortized term loan with monthly payments of principal and interest over a period of 28 years, commencing on January 1, 2019. Borrowings under the Credit Facility will bear interest at a fixed rate of 4.35%. In addition, we were required to pay a quarterly commitment fee of 0.08% on the unused portion of the Credit Facility during the draw period. Bonds with a fair value of $114.3 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, 2018. 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, 2018.

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. See Note 5, "Fair Value" for the estimated fair value of these borrowings.

Annual principal payments

The scheduled maturity of the $100 million Credit Facility began on January 1, 2019. The following table sets forth future principal payments:



(in thousands)
Year		Principal payments
2019	$	1,870
2020		1,953
2021		2,040
2022		2,130
2023		2,225
Thereafter		89,782

Postretirement Benefits

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

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 and its subsidiaries reimburse us for approximately 59% of the annual benefit expense of these plans, which represents pension benefits for employees performing administrative services and their allocated share of costs for employees in departments that support the administrative functions. For our funded pension plan, amounts are settled in cash for the portion of pension costs allocated to the Exchange and its subsidiaries. For our unfunded plans, we pay the obligations when due and amounts are settled in cash between entities when there is a payout.

Cost of pension plans

Pension plan cost includes the following components:



(in thousands)
	2018			2017			2016
Service cost for benefits earned	$	38,052		$	31,106		$	28,201
Interest cost on benefit obligation	35,382			34,275			33,125
Expected return on plan assets	(51,260		)	(41,267		)	(39,520		)
Prior service cost amortization	1,353			871			696
Net actuarial loss amortization	12,809			9,301			8,111
Settlement cost ⁽¹⁾	—			302			—
Pension plan cost ⁽²⁾	$	36,336		$	34,588		$	30,613


(1)	The final SERP benefit for two former executives was settled with lump sum payments in 2017.


(2)	Pension plan costs represent the total cost before reimbursements to Indemnity from the Exchange and its subsidiaries.

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:



	2018		2017		2016		2015
Employee pension plan:
Discount rate	4.47	%	3.73	%	4.24	%	4.57	%
Expected return on assets	6.75		6.75		7.00		7.00
Compensation increases ⁽¹⁾	3.32		3.32		3.32		3.32
SERP:
Discount rate – pre-retirement/post-retirement	4.47/3.97		3.73/3.23		4.24/3.74		4.57/4.07
Rate of compensation increase	5.00		5.00		5.00		5.00


(1)	The rate of compensation increase for the employee plan is age-graded. An equivalent single compensation increase rate of 3.32% in 2018, 2017 and 2016 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 all periods presented was based upon a yield curve developed from corporate bond yield information.

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.

Funding policy/funded status

In 2018, we made accelerated pension contributions totaling $80 million. Following our 2018 contributions, we would not expect to make a subsequent contribution until the sum of the target normal costs for plan years beginning on and after December 31, 2017 exceeds $80 million, or earlier if a contribution is necessary to fund the plan to 100%. At that time, our funding policy will again generally be to contribute an amount equal or greater of the target normal cost for the plan year, or the amount necessary to fund the plan to 100%. Additional contributions may be necessary or desirable due to future plan changes, our particular business or investment strategy, or pending law changes. In 2017, in addition to our planned contribution of $19.0 million, we made additional unplanned contributions of $39.9 million. 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)
	2018			2017
Funded status at end of year	$	(118,596	)	$	(207,766	)

Pension liabilities – due within one year ⁽¹⁾	$	(1,730	)	$	(236	)
Pension liabilities – due after one year	(116,866		)	(207,530		)
Net amount recognized	$	(118,596	)	$	(207,766	)

(1) The current portion of pension liabilities is included in accounts payable and accrued 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)
	2018			2017
Projected benefit obligation, beginning of year	$	951,666		$	816,659
Service cost for benefits earned	38,052			31,106
Interest cost on benefit obligation	35,382			34,275
Plan amendments	3,007			5,050
Actuarial (gain) loss	(123,910		)	82,940
Benefits paid	(18,032		)	(16,184		)
Settlement cost	—			(2,180		)
Projected benefit obligation, end of year	$	886,165		$	951,666

Accumulated benefit obligation, end of year	$	727,340		$	767,527

Projected benefit obligations decreased $65.5 million at December 31, 2018 compared to December 31, 2017 due primarily to actuarial gains resulting from the increase in the discount rate used to measure the future benefit obligations. The discount rate increased to 4.47% in 2018 from 3.73% in 2017.

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



(in thousands)	Projected Benefit Obligation in Excess of Plan Assets
	2018		2017
Projected benefit obligation	$	886,165	$	951,666
Plan assets	767,569		743,900

At December 31, 2018 and 2017, both the defined benefit plan and the SERP had projected benefit obligations in excess of plan assets.

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



(in thousands)	Accumulated Benefit Obligation in Excess of Plan Assets
	2018		2017
Accumulated benefit obligation	$	18,908	$	767,527
Plan assets	—		743,900

At December 31, 2018, the SERP had an accumulated benefit obligation in excess of plan assets. At December 31, 2017, both the defined benefit plan and the SERP had accumulated benefit obligations in excess 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)
	2018			2017
Fair value of plan assets, beginning of year	$	743,900		$	592,544
Actual (loss) gain on plan assets	(38,360		)	108,618
Employer contributions	80,061			61,102
Benefits paid	(18,032		)	(16,184		)
Settlements ⁽¹⁾	—			(2,180		)
Fair value of plan assets, end of year	$	767,569		$	743,900


(1)	The final SERP benefit for two former executives was settled with lump sum payments in 2017.

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)
	2018		2017
Net actuarial loss	$	144,165	$	191,264
Prior service cost	11,855		10,201
Net amount not yet recognized	$	156,020	$	201,465

Other comprehensive income

Amounts recognized in other comprehensive income for pension plans were as follows:



(in thousands)
	2018			2017
Net actuarial (gain) loss arising during the year	$	(34,290	)	$	15,588
Amortization of net actuarial loss	(12,809		)	(9,301		)
Amortization of prior service cost	(1,353		)	(871		)
Amendments ⁽¹⁾	3,007			5,050
Impact due to settlement ⁽²⁾	—			(302		)
Total recognized in other comprehensive income	$	(45,445	)	$	10,164


(1)	In 2018, there were five new SERP participants. In 2017, amendments include an enactment to the surviving spouse's death benefits, which increased the pension plan obligation by $3.6 million and the SERP obligation by $0.3 million, additionally there were two new SERP participants in 2017, which contributed $1.2 million.


(2)	The final SERP benefit for two former executives was settled with lump sum payments in 2017.

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 ⁽¹⁾			Target asset allocation		Actual asset allocation		Actual asset allocation
Asset allocation:	2018			2017		2018		2017
Equity securities:
U.S. equity securities	25	%	⁽²⁾	35	%	24	%	39	%
Non-U.S. equity securities	16		⁽³⁾	20		14		19
Total equity securities	41			55		38		58
Debt securities	58		⁽⁴⁾	44		61		41
Other	1		⁽⁵⁾	1		1		1
Total	100	%		100	%	100	%	100	%


(1)	Changes to the target asset allocation in 2018 were made to reduce investment risk by shifting portfolio assets from equity securities to debt securities.


(2)	U.S. equity securities – 21% seek to achieve excess returns relative to the Russell 2000 Index. The remaining 79% of the allocation to U.S. equity securities are comprised of equity index funds that track the S&P 500.


(3)	Non-U.S. equity securities – 11% are allocated to international small cap investments, while another 20% are allocated to international emerging market investments. The remaining 69% of the Non-U.S. equity securities are allocated to investments seeking to achieve excess returns relative to an international market index.


(4)	Debt securities – 32% are allocated to long U.S. Treasury Strips, 62% are allocated to U.S. corporate bonds with an emphasis on long duration bonds rated A or better, while the remaining 6% are allocated to floating rate high income leverage loans.


(5)	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, 2018
	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	$	182,495	$	0	$	182,495	$	0
Non-U.S. equity securities	110,942		0		110,942		0
Total equity securities	293,437		0		293,437		0
Debt securities	464,613		0		464,613		0
Other	9,519		9,519		0		0
Total	$	767,569	$	9,519	$	758,050	$	0




	At December 31, 2017
	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	$	288,861	$	0	$	288,861	$	0
Non-U.S. equity securities	145,238		0		145,238		0
Total equity securities	434,099		0		434,099		0
Debt securities	303,331		0		303,331		0
Other	6,470		6,470		0		0
Total	$	743,900	$	6,470	$	737,430	$	0

Estimates of fair values of the pension plan assets are obtained primarily from the 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
2019	$	22,039
2020		23,244
2021		25,946
2022		29,319
2023		32,631
2024 - 2028		213,490

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 $13.9 million in 2018, $12.8 million in 2017, and $12.1 million in 2016. In 2018, we made an additional discretionary employer contribution of $5.4 million, as a way of sharing the tax savings realized from the lower corporate income tax rate that became effective January 1, 2018 with our employees. The Exchange and its subsidiaries reimbursed us for approximately 61% of the matching and discretionary contributions. 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, 2018 and 2017.

Incentive and Deferred Compensation Plans

12 Months Ended

Dec. 31, 2018

Incentive and Deferred Compensation Plans

We have two incentive plans and two deferred compensation plans for our executives, senior vice presidents and other selected officers, and two deferred compensation plans for our outside directors.

Annual incentive plan

Our annual incentive plan ("AIP") is a bonus plan that pays cash to our executives, senior vice presidents and other selected officers annually. Participants can elect to defer up to 100% of the award under either the deferred compensation plan or the incentive compensation deferral plan, which began in 2017. The 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. The performance measures primarily included the growth in direct written premium and statutory combined ratio of the Exchange and its property and casualty subsidiaries for all periods presented.

Long-term incentive plan

Our long-term incentive plan ("LTIP") is a performance based incentive plan designed to reward executives, senior vice presidents and other selected officers 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. Participants can elect to defer up to 100% of the award under the incentive compensation deferral plan, which began in 2017. 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 all periods presented 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, 2018, the plan awards for the 2016-2018 performance period, which will be granted as a cash award, were fully vested. Distributions will be made in 2019 once peer group financial information becomes available. The estimated plan award based upon the peer group information as of September 30, 2018 is $7.4 million. At December 31, 2017, the awards paid in cash for the 2015-2017 performance period were fully vested and resulted in an $8.3 million payment to participants in June 2018. At December 31, 2016, the awards for the 2014-2016 performance period were fully vested. Participants had the option of receiving either cash or stock for the 2014-2016 awards. The cash award of $4.7 million was paid in June 2017 and the stock award of 46,884 shares with an average share price of $126.21 and a market value of $5.9 million was delivered to plan participants in June 2017. The ECDC has determined that the plan awards for the 2017-2019 and 2018-2020 performance periods will be paid in cash.

The Exchange and its subsidiaries reimburse us for compensation costs of employees performing administrative services. Earned compensation costs are allocated to these 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 $6.3 million in 2018, $10.3 million in 2017, and $8.2 million in 2016. The related tax benefits recognized in income were $1.3 million in 2018, $3.6 million in 2017, and $2.9 million in 2016. The Exchange and its subsidiaries reimburse us for approximately 47% of the annual compensation cost of these plans. At December 31, 2018, there was $5.7 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.

Deferred compensation plan

Our deferred compensation plan allows executives, senior vice presidents and other selected officers to elect to defer receipt of a portion of their compensation and AIP cash awards 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. Participants select hypothetical investment funds for their deferrals which are credited with the hypothetical returns generated.

Incentive compensation deferral plan

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. The shares are held in a rabbi trust, which was established to hold the shares earned under both the incentive compensation deferral plan and the deferred stock compensation plan for outside directors. 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 are used to purchase additional shares. Vested share credits will be paid to participants from the rabbi trust upon separation from service in approximate equal annual installments of Class A shares for a period of three years. In 2018, the rabbi trust purchased 12,005 shares of our common stock in the open market at an average price of $119.28 for $1.4 million to satisfy the liability for the 2017 AIP awards deferred under the incentive compensation deferral plan. The total compensation charged to operations related to these deferred AIP awards was $0.7 million in 2018 and $1.4 million in 2017. The Exchange and its subsidiaries reimbursed us for approximately 42% of the annual compensation cost of this plan.

Deferred compensation plans for outside directors

We have a deferred compensation plan for our outside directors that allows participants to defer receipt of a portion of their annual compensation until a later date. Participants select hypothetical investment funds for their deferrals which are credited with the hypothetical returns generated.

We also have a deferred 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, which are held in the rabbi trust.

The rabbi trust purchased 9,285 shares of our common stock on the open market at an average price of $122.19 for $1.1 million in 2018, 9,663 shares at an average price of $121.85 for $1.2 million in 2017, and 7,432 shares at an average price of $99.23 for $0.7 million in 2016 to satisfy the liability of the stock compensation plan for outside directors. The shares are distributed to the outside director from the rabbi trust upon ending board service. The total compensation charged to operations related to these awards totaled $0.8 million, $0.9 million and $0.5 million in 2018, 2017 and 2016, respectively.

The following summarizes our deferred executive and outside directors' compensation liability for December 31:



(in thousands)
	2018			2017			2016

Annual incentive plan awards	$	4,751		$	6,118		$	6,460
Long-term incentive plan awards	6,331			10,931			11,321
Employer match and hypothetical earnings on deferred compensation	1,484			2,664			1,164
Total plan awards and earnings	12,566			19,713			18,945
Total plan awards paid	(14,482		)	(20,621		)	(20,418		)
Compensation deferred	1,928			680			1,214
Distributions from the deferred compensation plans	(1,321		)	(853		)	(435		)
Forfeitures ⁽¹⁾	0			(593		)	(3,117		)
Funding of rabbi trust for deferred stock compensation plan for outside directors	(1,165		)	(1,177		)	(738		)
Funding of rabbi trust for incentive compensation deferral plan	(1,401		)	—			—
Incentive plan and deferred compensation liabilities at end of period	$	26,182		$	30,057		$	32,908

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

Equity compensation plan

We also have an equity compensation plan ("ECP") which 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. We do not issue new shares of common stock to satisfy plan awards. Share awards are settled through the repurchase of our Class A common stock on the open market.

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. Awards will be satisfied with shares of our Class A common stock. In 2018, 5,830 Class A shares with an average share price of $115.45 and a market value of $0.7 million were delivered to plan participants to satisfy the 2015 plan year and remainder of 2014 plan year awards. In 2017, 3,785 Class A shares with an average share price of $109.41 and a market value of $0.4 million were delivered to plan participants to satisfy a portion of the 2014 plan year award. The total compensation charged to operations related to these ECP awards was $0.4 million in 2018, $0.2 million in 2017, and $0.8 million in 2016. The Exchange and its subsidiaries reimburse us for earned compensation costs of employees performing administrative services, which can fluctuate each year based on the plan participants. The Exchange and its subsidiaries reimbursed us for approximately 68% and 38% of the awards paid in 2018 and 2017, respectively. Unearned compensation expense of $0.3 million is expected to be recognized over a period of three years.

Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

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



(in thousands)
	2018			2017		2016
Current income tax expense	$	84,454		$	81,689	$	109,727
Deferred income tax (benefit) expense	(1,358		)	26,912		(2		)
Other income tax expense	—			10,095		—
Income tax expense	$	83,096		$	118,696	$	109,725

Other income tax expense for 2017 was impacted by the re-measurement of our deferred tax assets and liabilities due to the enactment of the Tax Cuts and Jobs Act ("TCJA") on December 22, 2017, which reduced the corporate tax rate from 35% to 21% effective January 1, 2018. The current and deferred income tax (benefit) expense for 2018 is measured at the statutory rate of 21% and 35% for 2017 and 2016.

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)
	2018			2017			2016
Income tax at statutory rate	$	77,977		$	110,493		$	112,032
Change in tax rate ⁽¹⁾	—			10,095			—
Tax-exempt interest	(1,305		)	(2,278		)	(2,270		)
Unrecognized tax benefits	3,088			—			—
Other, net	3,336			386			(37		)
Income tax expense	$	83,096		$	118,696		$	109,725


(1)	The change in tax rate represents the tax effect of the re-measurement of deferred tax assets and liabilities due to the enactment of the TCJA.

The statutory rate for the year ended December 31, 2018 is 21% and 35% for the years ended December 31, 2017 and 2016.

At December 31, 2017, we recorded provisional amounts for certain enactment-date effects of the TCJA based on information available at that time. The Securities and Exchange Commission issued rules that allowed for a measurement period of one year after the enactment date of the TCJA to finalize the recording of the related tax impact. We completed our analysis for the effects of the TCJA and there were no material changes made in 2018 to the provisional amounts and no material impact on the effective tax rate.

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)
	2018		2017
Deferred tax assets:
Other employee benefits	$	12,237	$	14,092
Pension and other postretirement benefits	20,124		22,758
Allowance for management fee returned on cancelled policies	3,292		3,024
Deferred revenue	3,524		0
Unrealized losses on investments	2,030		0
Other	1,246		812
Total deferred tax assets	42,453		40,686
Deferred tax liabilities:
Depreciation	13,015		10,204
Prepaid expenses	1,376		5,568
Commissions	1,270		0
Limited partnerships	2,534		4,509
Unrealized gains on investments	0		856
Other	157		159
Total deferred tax liabilities	18,352		21,296
Net deferred tax asset	$	24,101	$	19,390

If we determine that any of our deferred tax assets will not result in future tax benefits, a valuation allowance must be established for the portion of the assets that are not expected to be realized. We had no valuation allowance recorded at December 31, 2018 or December 31, 2017.

A reconciliation of unrecognized tax benefits for the years ended December 31 is as follows:



(in thousands)
	2018			2017			2016
Balance at the beginning of the year	$	0		$	—		$	—
Additions for current year tax positions	7,719			—			—
Reductions for current year tax positions	(4,631		)	—			—
Additions for prior year tax positions	—			2,337			—
Reductions for prior year tax positions	—			(2,337		)	—
Balance at the end of the year	$	3,088		$	0		$	—

Included in the balance at December 31, 2018 was $3.1 million of tax expense related to uncertain tax positions for which the ultimate deductibility is certain, but for which there is uncertainty around the timing of deductibility. The amounts recorded in 2018 resulted from the difference in measuring the tax liability at the previous tax rate and the current enacted tax rate. This increased our effective tax rate by 0.8% in 2018. In 2017, we had an uncertain tax position of $2.3 million, for which a current liability was recorded. As a related temporary tax difference was also recognized, there was no impact to our results of operations or financial position. It is not expected that there will be a significant change in the unrecognized tax benefits in the next 12 months. Interest expense related to uncertain tax positions is recognized in income tax expense. Interest expense was $0.8 million and $0.1 million in 2018 and 2017, respectively. There was no interest expense related to uncertain tax positions in 2016.

Tax years ending December 31, 2017, 2016 and 2015 remain open to IRS examination. We are not currently under IRS audit, nor have we been notified of an upcoming IRS audit.

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, 2018
Class of Stock Disclosures [Abstract]
Capital Stock	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 2018, 2017 or 2016. 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 2018, 2017 or 2016. In 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, 2018, based upon trade date. In 2018, we purchased 27,120 shares of our outstanding Class A nonvoting common stock outside of our publicly announced share repurchase program at a total cost of $3.2 million. Of this amount, we purchased 5,830 shares for $0.7 million, or $117.39 per share, for stock-based awards in conjunction with our equity compensation plan. We purchased 9,285 shares for $1.1 million, or $122.19 per share, to fund the rabbi trust for the outside director deferred stock compensation plan. The remaining 12,005 shares were purchased at a total cost of $1.4 million, or $119.28 per share, to fund the rabbi trust for the incentive compensation deferral plan. These shares were delivered in 2018. In 2017, we purchased 60,332 shares of our outstanding Class A nonvoting common stock outside of our publicly announced share repurchase program at a total cost of $7.3 million. Of this amount, we purchased 3,785 shares for $0.4 million, or $111.55 per share, for stock-based awards in conjunction with our equity compensation plan. We purchased 9,663 shares for $1.2 million, or $121.85 per share, to fund the rabbi trust for the outside director deferred stock compensation plan. The remaining 46,884 shares were purchased at a total cost of $5.7 million, or $122.40 per share, for the vesting of stock-based awards in conjunction with our long-term incentive plan. These shares were delivered in 2017. 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 7,432 shares for $0.7 million, or $99.23 per share, to fund the rabbi trust for the outside director deferred stock compensation plan. The remaining 7,661 shares were purchased 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 in 2016.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2018

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

Accumulated Other Comprehensive Income (Loss)

Note 13. 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)	2018									2017									2016
	Before Tax			Income Tax ⁽¹⁾			Net			Before Tax			Income Tax ⁽¹⁾			Net			Before Tax			Income Tax ⁽¹⁾			Net
Investment securities:
AOCI, beginning of year	$	3,410		$	716		$	2,694		$	3,954		$	1,384		$	2,570		$	3,888		$	1,361		$	2,527
OCI (loss) before reclassifications - pre TCJA ⁽¹⁾	—			—			—			(648		)	(227		)	(421		)	(385		)	(135		)	(250		)
OCI before reclassifications - post TCJA ⁽¹⁾	(15,372		)	(3,228		)	(12,144		)	1,162			243			919			—			—			—
Realized investment losses (gains)	1,297			272			1,025			(1,240		)	(434		)	(806		)	35			12			23
Impairment losses	1,581			332			1,249			182			64			118			416			146			270
Cumulative effect of adopting ASU 2016-01 ⁽²⁾	(85		)	(18		)	(67		)	—			—			—			—			—			—
OCI (loss)	(12,579		)	(2,642		)	(9,937		)	(544		)	(354		)	(190		)	66			23			43
Reclassification adjustment ⁽³⁾	—			—			—			—			(314		)	314			—			—			—
AOCI, end of year	$	(9,169	)	$	(1,926	)	$	(7,243	)	$	3,410		$	716		$	2,694		$	3,954		$	1,384		$	2,570

Pension and other postretirement plans:
AOCI (loss), beginning of year	$	(200,954	)	$	(42,201	)	$	(158,753	)	$	(190,695	)	$	(66,744	)	$	(123,951	)	$	(152,910	)	$	(53,519	)	$	(99,391	)
OCI (loss) before reclassifications	31,401			6,594			24,807			(20,314		)	(7,111		)	(13,203		)	(46,244		)	(16,185		)	(30,059		)
Amortization of prior service costs ⁽⁴⁾	1,353			284			1,069			871			306			565			695			243			452
Amortization of net actuarial loss ⁽⁴⁾	12,451			2,615			9,836			8,882			3,109			5,773			7,764			2,717			5,047
Settlement loss ⁽⁴⁾	—			—			—			302			106			196			—			—			—
Impact of change in tax rate ⁽⁵⁾	—			—			—			—			1,436			(1,436		)	—			—			—
OCI (loss)	45,205			9,493			35,712			(10,259		)	(2,154		)	(8,105		)	(37,785		)	(13,225		)	(24,560		)
Reclassification adjustment ⁽³⁾	—			—			—			—			26,697			(26,697		)	—			—			—
AOCI (loss), end of year	$	(155,749	)	$	(32,708	)	$	(123,041	)	$	(200,954	)	$	(42,201	)	$	(158,753	)	$	(190,695	)	$	(66,744	)	$	(123,951	)

Total
AOCI (loss), beginning of year	$	(197,544	)	$	(41,485	)	$	(156,059	)	$	(186,741	)	$	(65,360	)	$	(121,381	)	$	(149,022	)	$	(52,158	)	$	(96,864	)
Investment securities	(12,579		)	(2,642		)	(9,937		)	(544		)	(354		)	(190		)	66			23			43
Pension and other postretirement plans	45,205			9,493			35,712			(10,259		)	(2,154		)	(8,105		)	(37,785		)	(13,225		)	(24,560		)
OCI (loss)	32,626			6,851			25,775			(10,803		)	(2,508		)	(8,295		)	(37,719		)	(13,202		)	(24,517		)
Reclassification adjustment ⁽³⁾	—			—			—			—			26,383			(26,383		)	—			—			—
AOCI (loss), end of year	$	(164,918	)	$	(34,634	)	$	(130,284	)	$	(197,544	)	$	(41,485	)	$	(156,059	)	$	(186,741	)	$	(65,360	)	$	(121,381	)


(1)	Deferred taxes related to unrealized gains and losses for the period from December 23, 2017 through December 31, 2018 were recognized at the 21% corporate rate following enactment of the TCJA. Prior to enactment, they were recognized at the 35% corporate rate.


(2)	A reclassification of unrealized losses of equity securities from AOCI to retained earnings was required at January 1, 2018 due to the implementation of ASU 2016-01. See Note 2, "Significant Accounting Policies".


(3)	A one-time adjustment was made in the fourth quarter of 2017 to reclassify stranded tax effects of the components of AOCI resulting from enactment of TCJA from AOCI to retained earnings, resulting in the ending AOCI balances now reflected at the 21% corporate rate, which represents the rate in which the amounts are expected to be settled. See Note 2, "Significant Accounting Policies".


(4)	These components of accumulated other comprehensive income (loss) are included in the computation of net periodic pension cost. See Note 9, "Postretirement Benefits", for additional information.


(5)	Deferred taxes related to the December 31, 2017 portion of the pension and other postretirement component recognized in AOCI of $10.3 million were recognized at the 21% corporate rate following the enactment of the TCJA.

Related Party	12 Months Ended
Related Party	Dec. 31, 2018
Related Party Transactions [Abstract]
Related Party	Related Party Management fee A management fee is charged to the Exchange for services we provide under the subscriber's agreement with subscribers at the Exchange. The fee is a percentage of direct and assumed premiums written by the Exchange. This percentage rate is determined at least annually by our Board of Directors but cannot exceed 25%. The effective management fee rate charged the Exchange was 25% in 2018, 2017 and 2016. The Board of Directors elected to maintain the fee at 25% beginning January 1, 2019. There is no provision in the subscriber's agreement for termination of our appointment as attorney-in-fact by the subscribers at 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. Indemnity and the Exchange, and its wholly owned subsidiaries, meet the definition of an insurance holding company system. All transactions within a holding company system affecting the member insurers of the holding company system must be fair and reasonable and any charges or fees for services performed must be reasonable. Approval by the applicable insurance commissioner is required prior to the consummation of transactions affecting the members within a holding company system. Office leases We lease certain office space from the Exchange including the home office. On April 28, 2017, after securing approval from the Pennsylvania Insurance Department, a new home office lease was executed between the Exchange and Indemnity, which was retroactive to January 1, 2017, when the prior lease expired. Under the new lease, rent is based on rental rates of like property in Erie, Pennsylvania and all operating expenses including utilities, cleaning, repairs, real estate taxes, property insurance and leasehold improvements are the responsibility of the tenant (Indemnity). This lease agreement expires December 31, 2021. Under the previous lease, rents were determined considering returns on invested capital and included building operating and overhead costs. Rent costs and related operating expenses of shared facilities are allocated between Indemnity, Exchange and its subsidiaries based upon usage or square footage occupied. Rent expenses under the new lease totaled $6.2 million in 2018 and $6.3 million in 2017. Rent expense totaled $14.3 million in 2016, under the prior lease agreement, which included all operating expenses. Operating expenses totaled $14.5 million in 2018 and $13.1 million in 2017. The Exchange and its subsidiaries reimburse us for space used to perform administrative services. Reimbursements related to the use of this space totaled $4.7 million in 2018, $4.6 million in 2017 and $4.9 million in 2016. We also had a lease commitment with EFL for a field office until December 31, 2018. Annual rentals paid to EFL under this lease totaled $0.4 million in 2018, 2017 and 2016. We previously owned three field offices for which rental costs of shared facilities were allocated based upon usage or square footage occupied. On December 31, 2018, we sold the three field offices to the Exchange. See Note 7, "Fixed Assets". Notes receivable from EFL We previously held a $25 million surplus note that was issued to us by EFL in 2003 and was payable on demand on or after December 31, 2018. On December 14, 2018, EFL, with the appropriate approval from the Pennsylvania Insurance Commissioner, satisfied its obligation and repaid the surplus note. The note bore an annual interest rate of 6.7% and EFL paid interest to us of $1.6 million in 2018, and $1.7 million in both 2017 and 2016.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We have contractual commitments to invest up to $12.2 million related to our limited partnership investments at December 31, 2018. These commitments are split between private equity securities of $4.4 million, mezzanine debt securities of $7.5 million, and real estate activities of $0.3 million. These commitments will be funded as required by the limited partnership agreements. 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, 2018

Supplemental Cash Flow Information [Abstract]

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)	2018			2017			2016

Cash flows from operating activities:
Net income	$	288,224		$	196,999		$	210,366
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,368			14,831			15,095
Deferred income tax (benefit) expense	(1,358		)	26,912			(2		)
Other income tax expense ⁽¹⁾	—			10,095			—
Realized losses (gains) and impairments on investments	3,591			(1,152		)	(256		)
Equity in losses (earnings) of limited partnerships	822			(2,801		)	(7,025		)
(Gain) loss on disposal of fixed assets	(3,047		)	98			59
Net amortization of bond premium	5,601			7,038			7,436
Decrease in deferred compensation	(3,886		)	(2,681		)	(4,561		)
Limited partnership distributions	7,173			5,128			17,837
Increase in receivables from affiliates	(30,804		)	(39,788		)	(30,485		)
Decrease (increase) in accrued investment income	1,590			(516		)	(846		)
Decrease (increase) in federal income taxes recoverable	21,738			(24,640		)	6,687
(Increase) decrease in prepaid pension	(47,335		)	(27,265		)	10,524
Increase in prepaid expenses and other assets	(727		)	(7,636		)	(4,674		)
Increase in accounts payable and accrued expenses	11,039			17,183			11,144
Increase in commissions payable	13,449			17,565			15,017
(Decrease) increase in accrued agent bonuses	(19,066		)	7,756			8,020
Increase in contract liability	3,213			—			—
Net cash provided by operating activities	$	263,585		$	197,126		$	254,336


(1)	Other income tax expense for 2017 was impacted by the re-measurement of our deferred tax assets and liabilities due to the enactment of the TCJA on December 22, 2017, which reduced the corporate tax rate from 35% to 21% effective January 1, 2018.

Quarterly Results of Operations (unaudited)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (unaudited)



	Year ended December 31, 2018
(in thousands, except per share data)	First quarter		Second quarter		Third quarter		Fourth quarter			Year
Operating revenue ⁽¹⁾	$	572,160	$	621,458	$	612,126	$	576,468		$	2,382,212
Operating expenses ⁽¹⁾	494,593		526,135		515,431		501,710			2,037,869
Investment income	6,163		6,207		8,431		4,995			25,796
Interest expense and other (income), net ⁽²⁾	509		544		655		(2,889		)	(1,181		)
Income before income taxes	83,221		100,986		104,471		82,642			371,320
Net income	$	65,758	$	79,706	$	80,446	$	62,314		$	288,224

Earnings per share ⁽³⁾
Net income per share
Class A common stock – basic	$	1.41	$	1.71	$	1.73	$	1.34		$	6.19
Class A common stock – diluted	$	1.26	$	1.52	$	1.54	$	1.19		$	5.51
Class B common stock – basic and diluted	$	212	$	257	$	259	$	201		$	928

(1)

In accordance with ASC 606, "Revenue from Contracts with Customers", effective January 1, 2018, we allocate our management fee between the two performance obligations we have in the subscriber's agreement, policy issuance and renewal services and administrative services. We also present expenses we incur and the related reimbursements we receive for administrative services gross in our Statement of Operations. See Note 2, "Significant Accounting Policies".


(2)	The decrease in interest expense and other (income), net in the fourth quarter is driven by the $3.4 million gain recognized on the sale of the field offices we owned to Exchange. See Note 7, "Fixed Assets".


(3)	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, 2017
(in thousands, except per share data)	First quarter		Second quarter		Third quarter		Fourth quarter		Year
Operating revenue	$	399,316	$	448,564	$	442,492	$	401,402	$	1,691,774
Operating expenses ⁽¹⁾	332,376		365,116		361,253		342,777		1,401,522
Investment income ⁽¹⁾	6,589		6,451		8,418		7,134		28,592
Interest expense and other, net ⁽¹⁾	575		664		792		1,118		3,149
Income before income taxes	72,954		89,235		88,865		64,641		315,695
Net income	$	47,876	$	58,527	$	58,543	$	32,053	$	196,999

Earnings per share ⁽²⁾
Net income per share
Class A common stock – basic	$	1.03	$	1.26	$	1.26	$	0.69	$	4.23
Class A common stock – diluted ⁽³⁾	$	0.91	$	1.12	$	1.12	$	0.61	$	3.76
Class B common stock – basic	$	154	$	189	$	189	$	103	$	635
Class B common stock – diluted	$	154	$	188	$	189	$	103	$	634


(1)	Amounts presented have been reclassified from previously reported amounts as a result of the adoption of ASU 2017-07, "Compensation-Retirement Benefits". See Note 2, "Significant Accounting Policies".


(2)	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.


(3)	Class A diluted earnings per share was reduced by $0.19 for the fourth quarter and total year as a result of increased income tax expense from enactment of the TCJA of $10.1 million. See Note 4, "Earnings Per Share" and Note 11, "Income Taxes".

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

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

The cumulative effect of the changes made to our Statement of Financial Position at January 1, 2018 were as follows:



(in thousands)	Balance at December 31, 2017		Adjustments due to ASC 606			Balance at January 1, 2018
Statement of Financial Position:
Assets
Deferred tax asset	$	19,390	$	10,188		$	29,578
Liabilities
Contract liability	—		48,514			48,514
Equity
Retained earnings	2,140,853		(38,326		)	2,102,527

The impact of adoption on our Statement of Financial Position at December 31, 2018 was as follows:



(in thousands)	As Reported		Balances without ASC 606		Impact of Change Higher/(Lower)

Statement of Financial Position:
Assets
Deferred tax asset	$	24,101	$	13,238	$	10,863
Liabilities
Contract liability	51,727		—		51,727
Equity
Retained earnings	2,231,417		2,272,281		(40,864		)

The impact of adoption on our Statement of Operations for the year ended December 31, 2018 was as follows:



(in thousands)	As Reported			Balances without ASC 606			Impact of Change Higher/(Lower)

Statement of Operations:
Management fee revenue allocated to policy issuance and renewal services, gross	$	1,721,309		$	1,778,212		$	(56,903	)
Less: change in allowance for management fee returned on cancelled policies	(1,742		)	(1,800		)	58
Management fee revenue allocated to policy issuance and renewal services, net	$	1,719,567		$	1,776,412		$	(56,845	)


Management fee revenue allocated to administrative services, gross	$	53,694		$	—		$	53,694
Less: change in allowance for management fee returned on cancelled policies	(62		)	—			(62		)
Management fee revenue allocated to administrative services, net	53,632			—			53,632
Administrative services reimbursement revenue	580,336			—			580,336
Total revenue allocated to administrative services	$	633,968		$	—		$	633,968


Administrative services expenses	$	580,336		$	—		$	580,336

Recently issued accounting standards

Cash and cash equivalents

Available-for-sale securities

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.

Agent bonus estimates

Recognition of management fee and service agreement revenue

Recognition of service agreement revenue

Recognition of management fee revenue

Administrative services

Reclassifications

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

We review the fair value hierarchy classifications each reporting period. Transfers between hierarchy levels may occur due to changes in available market observable inputs.

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.

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Schedule of Impacts of Adoption of ASC 606

The cumulative effect of the changes made to our Statement of Financial Position at January 1, 2018 were as follows:



(in thousands)	Balance at December 31, 2017		Adjustments due to ASC 606			Balance at January 1, 2018
Statement of Financial Position:
Assets
Deferred tax asset	$	19,390	$	10,188		$	29,578
Liabilities
Contract liability	—		48,514			48,514
Equity
Retained earnings	2,140,853		(38,326		)	2,102,527

The impact of adoption on our Statement of Financial Position at December 31, 2018 was as follows:



(in thousands)	As Reported		Balances without ASC 606		Impact of Change Higher/(Lower)

Statement of Financial Position:
Assets
Deferred tax asset	$	24,101	$	13,238	$	10,863
Liabilities
Contract liability	51,727		—		51,727
Equity
Retained earnings	2,231,417		2,272,281		(40,864		)

The impact of adoption on our Statement of Operations for the year ended December 31, 2018 was as follows:



(in thousands)	As Reported			Balances without ASC 606			Impact of Change Higher/(Lower)

Statement of Operations:
Management fee revenue allocated to policy issuance and renewal services, gross	$	1,721,309		$	1,778,212		$	(56,903	)
Less: change in allowance for management fee returned on cancelled policies	(1,742		)	(1,800		)	58
Management fee revenue allocated to policy issuance and renewal services, net	$	1,719,567		$	1,776,412		$	(56,845	)


Management fee revenue allocated to administrative services, gross	$	53,694		$	—		$	53,694
Less: change in allowance for management fee returned on cancelled policies	(62		)	—			(62		)
Management fee revenue allocated to administrative services, net	53,632			—			53,632
Administrative services reimbursement revenue	580,336			—			580,336
Total revenue allocated to administrative services	$	633,968		$	—		$	633,968


Administrative services expenses	$	580,336		$	—		$	580,336

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2018

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,
	2018					2017					2016
	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	$	285,864	46,188,637	$	6.19	$	195,386	46,186,831	$	4.23	$	208,644	46,188,952	$	4.52
Dilutive effect of stock-based awards	0		25,776	—		0		49,832	—		0		145,551	—
Assumed conversion of Class B shares	2,360		6,100,800	—		1,613		6,100,800	—		1,722		6,100,800	—
Class A – Diluted EPS:
Income available to Class A stockholders on Class A equivalent shares	$	288,224	52,315,213	$	5.51	$	196,999	52,337,463	$	3.76	$	210,366	52,435,303	$	4.01
Class B – Basic EPS:
Income available to Class B stockholders	$	2,360	2,542	$	928	$	1,613	2,542	$	635	$	1,722	2,542	$	678
Class B – Diluted EPS:
Income available to Class B stockholders	$	2,359	2,542	$	928	$	1,613	2,542	$	634	$	1,721	2,542	$	677

Fair Value (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements on a Recurring Basis by Asset Class and Level of Input



	At December 31, 2017
	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	$	11,734	$	0	$	11,734	$	0
States & political subdivisions	259,264		0		259,264		0
Foreign government securities	503		0		503		0
Corporate debt securities	346,523		0		338,644		7,879
Residential mortgage-backed securities	25,571		0		25,571		0
Commercial mortgage-backed securities	32,804		0		32,804		0
Collateralized debt obligations	58,034		0		55,834		2,200
Other debt securities	11,528		0		11,528		0
Total fixed maturities	745,961		0		735,882		10,079
Nonredeemable preferred stock - financial services sector	11,659		2,015		9,644		0
Nonredeemable preferred stock - utilities sector	1,093		0		1,093		0
Total available-for-sale securities	758,713		2,015		746,619		10,079
Other limited partnership investments ⁽²⁾	4,816		—		—		—
Total	$	763,529	$	2,015	$	746,619	$	10,079


(1)	In the fourth quarter of 2018, we began selling off our municipal bonds as part of a portfolio rebalancing. We intend to sell the remaining municipal bonds in the first half of 2019. We have currently invested proceeds from these sales in short-term U.S. Treasuries.

(2)

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



	At December 31, 2018
	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 ⁽¹⁾	$	208,412	$	0	$	208,412	$	0
States & political subdivisions ⁽¹⁾	159,023		0		159,023		0
Corporate debt securities	249,947		0		237,370		12,577
Residential mortgage-backed securities	4,609		0		4,609		0
Commercial mortgage-backed securities	46,515		0		46,515		0
Collateralized debt obligations	64,239		0		64,239		0
Other debt securities	15,778		0		15,778		0
Total available-for-sale securities	748,523		0		735,946		12,577
Equity securities
Nonredeemable preferred stock - financial services sector	11,853		1,809		10,044		0
Total equity securities	11,853		1,809		10,044		0
Other limited partnership investments ⁽²⁾	3,206		—		—		—
Total	$	763,582	$	1,809	$	745,990	$	12,577

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, 2016		Included in earnings⁽¹⁾			Included in other comprehensive income			Purchases		Sales			Transfers into Level 3⁽²⁾		Transfers out of Level 3⁽²⁾			Ending balance at December 31, 2017
Available-for-sale securities:
Corporate debt securities	$	9,352	$	(85	)	$	(41	)	$	4,954	$	(5,411	)	$	11,196	$	(12,086	)	$	7,879
Collateralized debt obligations	0		0			0			2,200		0			0		0			2,200
Total Level 3 available-for-sale securities	$	9,352	$	(85	)	$	(41	)	$	7,154	$	(5,411	)	$	11,196	$	(12,086	)	$	10,079


(1)	These amounts are reported in the Statements of Operations as net investment income and net realized investment gains (losses) for each of the periods presented above.


(2)	Transfers into and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.

The change in unrealized gains or losses included in other comprehensive income related to Level 3 securities held at the reporting date is as follows for the years ended December 31:



(in thousands)	2018			2017		2016
Available-for-sale securities:
Corporate debt securities	$	(554	)	$	—	$	—
Net unrealized losses on Level 3 securities held at reporting date	$	(554	)	$	—	$	—

Level 3 Assets – Year-to-Date Change:



(in thousands)	Beginning balance at December 31, 2017		Included in earnings⁽¹⁾		Included in other comprehensive income			Purchases		Sales			Transfers into Level 3⁽²⁾		Transfers out of Level 3⁽²⁾			Ending balance at December 31, 2018
Available-for-sale securities:
Corporate debt securities	$	7,879	$	6	$	(312	)	$	5,550	$	(2,854	)	$	18,232	$	(15,924	)	$	12,577
Collateralized debt obligations	2,200		0		10			905		0			0		(3,115		)	0
Total Level 3 available-for-sale securities	$	10,079	$	6	$	(302	)	$	6,455	$	(2,854	)	$	18,232	$	(19,039	)	$	12,577

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, 2018
	Total		Level 1		Level 2		Level 3 ⁽¹⁾
Available-for-sale securities:
Priced via pricing services	$	748,480	$	0	$	735,946	$	12,534
Priced via market comparables/broker quotes	43		0		0		43
Total available-for-sale securities	748,523		0		735,946		12,577
Equity securities priced via pricing services	11,853		1,809		10,044		0
Other limited partnership investments priced via unobservable inputs ⁽²⁾	3,206		—		—		—
Total	$	763,582	$	1,809	$	745,990	$	12,577


(1)	Securities classified as Level 3 were priced using non-binding broker quotes.


(2)	Represents one real estate fund included on the Statements of Financial Position as limited partnership investments that is reported under the fair value option using the NAV practical expedient. These amounts are not required to be categorized in the fair value hierarchy.

Schedule of Carrying Value and Fair Value Estimates of Level 3 Financial Instruments



	At December 31, 2018				At December 31, 2017
(in thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Agent loans ⁽¹⁾	$	58,006	$	54,110	$	21,849	$	21,849
Long-term borrowings	99,730		94,057		74,728		72,424


(1)	The fair value of agent loans approximates carrying value at December 31, 2017.

Investments (Tables)

12 Months Ended

Dec. 31, 2018

Investments [Abstract]

Schedule of Reconciliation of Cost to Fair Value of Available-For-Sale Securities

The following tables summarize the cost and fair value of our available-for-sale securities. See also Note 5, "Fair Value" for additional fair value disclosures.



	At December 31, 2018
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale securities:
U.S. Treasury ⁽¹⁾	$	208,610	$	18	$	216	$	208,412
States & political subdivisions⁽¹⁾	157,003		2,020		0		159,023
Corporate debt securities	259,362		139		9,554		249,947
Residential mortgage-backed securities	4,603		38		32		4,609
Commercial mortgage-backed securities	47,022		80		587		46,515
Collateralized debt obligations	65,039		30		830		64,239
Other debt securities	15,756		33		11		15,778
Total available-for-sale securities	$	757,395	$	2,358	$	11,230	$	748,523


(1)	In the fourth quarter of 2018, we began selling off our municipal bonds as part of a portfolio rebalancing. We intend to sell the remaining municipal bonds in the first half of 2019. We have currently invested proceeds from these sales in short-term U.S. Treasuries.



	At December 31, 2017
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale securities:
U.S. Treasury	$	11,873	$	0	$	139	$	11,734
States & political subdivisions	254,533		5,351		620		259,264
Foreign government securities	501		2		0		503
Corporate debt securities	346,759		1,688		1,924		346,523
Residential mortgage-backed securities	25,324		371		124		25,571
Commercial mortgage-backed securities	33,475		26		697		32,804
Collateralized debt obligations	57,838		237		41		58,034
Other debt securities	11,496		32		0		11,528
Total fixed maturities	741,799		7,707		3,545		745,961
Nonredeemable preferred stock - financial services sector	11,719		15		75		11,659
Nonredeemable preferred stock - utilities sector	1,118		0		25		1,093
Total available-for-sale securities	$	754,636	$	7,722	$	3,645	$	758,713

Schedule of Amortized Cost and Estimated Fair Value of Available-For-Sale Securities by Remaining Contractual Term to Maturity



	At December 31, 2018
(in thousands)	Amortized		Estimated
	cost		fair value
Due in one year or less	$	263,957	$	263,837
Due after one year through five years	163,276		160,504
Due after five years through ten years	217,659		212,692
Due after ten years	112,503		111,490
Total available-for-sale securities⁽¹⁾	$	757,395	$	748,523

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, 2018
(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	$	129,474	$	19	$	11,656	$	197	$	141,130	$	216	7
Corporate debt securities	157,300		6,866		86,586		2,688		243,886		9,554		635
Residential mortgage-backed securities	777		6		1,618		26		2,395		32		3
Commercial mortgage-backed securities	17,624		175		16,997		412		34,621		587		30
Collateralized debt obligations	55,246		826		1,248		4		56,494		830		39
Other debt securities	8,213		11		0		0		8,213		11		7
Total available-for-sale securities	$	368,634	$	7,903	$	118,105	$	3,327	$	486,739	$	11,230	721
Quality breakdown of available-for-sale securities:
Investment grade	$	242,821	$	1,295	$	98,118	$	1,641	$	340,939	$	2,936	147
Non-investment grade	125,813		6,608		19,987		1,686		145,800		8,294		574
Total available-for-sale securities	$	368,634	$	7,903	$	118,105	$	3,327	$	486,739	$	11,230	721



	At December 31, 2017
(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	$	10,237	$	110	$	1,497	$	29	$	11,734	$	139	4
States & political subdivisions	52,553		288		14,361		332		66,914		620		33
Corporate debt securities	171,154		1,585		31,113		339		202,267		1,924		331
Residential mortgage-backed securities	4,156		29		7,064		95		11,220		124		11
Commercial mortgage-backed securities	10,836		85		11,984		612		22,820		697		19
Collateralized debt obligations	21,598		41		0		0		21,598		41		12
Other debt securities	1,499		0		0		0		1,499		0		1
Total fixed maturities	272,033		2,138		66,019		1,407		338,052		3,545		411
Nonredeemable preferred stock - financial services sector	9,644		75		0		0		9,644		75		5
Nonredeemable preferred stock - utilities sector	1,093		25		0		0		1,093		25		1
Total available-for-sale securities	$	282,770	$	2,238	$	66,019	$	1,407	$	348,789	$	3,645	417
Quality breakdown of fixed maturities:
Investment grade	$	214,586	$	1,064	$	62,193	$	985	$	276,779	$	2,049	158
Non-investment grade	57,447		1,074		3,826		422		61,273		1,496		253
Total fixed maturities	$	272,033	$	2,138	$	66,019	$	1,407	$	338,052	$	3,545	411

Schedule of Investment Income, Net of Expenses, from Portfolios

Net investment income

Investment income, net of expenses, was generated from the following portfolios for the years ended December 31:



(in thousands)	2018		2017		2016
Fixed maturities ⁽¹⁾	$	24,978	$	23,587	$	20,175
Equity securities	628		82		171
Cash equivalents and other	5,628		2,486		1,391
Total investment income	31,234		26,155		21,737
Less: investment expenses	1,025		1,516		1,179
Investment income, net of expenses	$	30,209	$	24,639	$	20,558


(1)	Includes interest earned on note receivable from Erie Family Life Insurance Company ("EFL") of $1.6 million in 2018 and $1.7 million in 2017 and 2016.

Schedule of Realized Gains and Losses on Investments and Net Unrealized Losses Recognized during the Reporting Period Related to Equity Securities Held at the Reporting Date

Realized investment (losses) gains

Realized (losses) gains on investments were as follows for the years ended December 31:



(in thousands)	2018			2017			2016
Available-for-sale securities:
Gross realized gains	$	1,892		$	2,996		$	2,112
Gross realized losses	(3,189		)	(1,756		)	(2,147		)
Net realized (losses) gains on available-for-sale securities	(1,297		)	1,240			(35		)
Equity securities	(819		)	—			—
Common stock trading securities	—			0			707
Other	106			94			0
Net realized investment (losses) gains	$	(2,010	)	$	1,334		$	672

The portion of net unrealized losses recognized during the reporting period related to equity securities held at the reporting date is calculated as follows for the years ended December 31:



(in thousands)	2018			2017		2016
Equity securities: ⁽¹⁾
Net losses recognized during the period	$	(819	)	$	—	$	—
Less: net losses recognized on securities sold	(86		)	—		—
Net unrealized losses recognized on securities held at reporting date	$	(733	)	$	—	$	—


(1)	With the adoption of ASU 2016-01 effective January 1, 2018, changes in unrealized gains and losses on equity securities are included in net realized investment gains (losses) in the Statement of Operations. The adoption of this guidance resulted in a reclassification of net unrealized losses of $0.1 million from accumulated other comprehensive loss to retained earnings at January 1, 2018.

Schedule of Limited Partnership Results, Generally Reported on a One Quarter Lag

Equity in (losses) earnings of limited partnerships by method of accounting were as follows for the years ended December 31:



(in thousands)	2018			2017		2016
Equity in (losses) earnings of limited partnerships - equity method	$	(448	)	$	1,925	$	6,273
Change in fair value of limited partnerships - fair value option	(374		)	876		752
Equity in (losses) earnings of limited partnerships	$	(822	)	$	2,801	$	7,025

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



(in thousands)	2018		2017
Private equity	$	28,271	$	31,663
Mezzanine debt	1,152		3,516
Real estate	2,192		5,127
Real estate - fair value option	3,206		4,816
Total limited partnership investments	$	34,821	$	45,122

Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Schedule of Cost of Pension Plans

Cost of pension plans

Pension plan cost includes the following components:



(in thousands)
	2018			2017			2016
Service cost for benefits earned	$	38,052		$	31,106		$	28,201
Interest cost on benefit obligation	35,382			34,275			33,125
Expected return on plan assets	(51,260		)	(41,267		)	(39,520		)
Prior service cost amortization	1,353			871			696
Net actuarial loss amortization	12,809			9,301			8,111
Settlement cost ⁽¹⁾	—			302			—
Pension plan cost ⁽²⁾	$	36,336		$	34,588		$	30,613


(1)	The final SERP benefit for two former executives was settled with lump sum payments in 2017.


(2)	Pension plan costs represent the total cost before reimbursements to Indemnity from the Exchange and its subsidiaries.

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:



	2018		2017		2016		2015
Employee pension plan:
Discount rate	4.47	%	3.73	%	4.24	%	4.57	%
Expected return on assets	6.75		6.75		7.00		7.00
Compensation increases ⁽¹⁾	3.32		3.32		3.32		3.32
SERP:
Discount rate – pre-retirement/post-retirement	4.47/3.97		3.73/3.23		4.24/3.74		4.57/4.07
Rate of compensation increase	5.00		5.00		5.00		5.00


(1)	The rate of compensation increase for the employee plan is age-graded. An equivalent single compensation increase rate of 3.32% in 2018, 2017 and 2016 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)
	2018			2017
Funded status at end of year	$	(118,596	)	$	(207,766	)

Pension liabilities – due within one year ⁽¹⁾	$	(1,730	)	$	(236	)
Pension liabilities – due after one year	(116,866		)	(207,530		)
Net amount recognized	$	(118,596	)	$	(207,766	)

(1) The current portion of pension liabilities is included in accounts payable and accrued 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)
	2018			2017
Projected benefit obligation, beginning of year	$	951,666		$	816,659
Service cost for benefits earned	38,052			31,106
Interest cost on benefit obligation	35,382			34,275
Plan amendments	3,007			5,050
Actuarial (gain) loss	(123,910		)	82,940
Benefits paid	(18,032		)	(16,184		)
Settlement cost	—			(2,180		)
Projected benefit obligation, end of year	$	886,165		$	951,666

Accumulated benefit obligation, end of year	$	727,340		$	767,527

Schedule of Defined Benefit Pension Plans with Assets less than Projected Benefit Obligation

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



(in thousands)	Projected Benefit Obligation in Excess of Plan Assets
	2018		2017
Projected benefit obligation	$	886,165	$	951,666
Plan assets	767,569		743,900

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)	Accumulated Benefit Obligation in Excess of Plan Assets
	2018		2017
Accumulated benefit obligation	$	18,908	$	767,527
Plan assets	—		743,900

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)
	2018			2017
Fair value of plan assets, beginning of year	$	743,900		$	592,544
Actual (loss) gain on plan assets	(38,360		)	108,618
Employer contributions	80,061			61,102
Benefits paid	(18,032		)	(16,184		)
Settlements ⁽¹⁾	—			(2,180		)
Fair value of plan assets, end of year	$	767,569		$	743,900


(1)	The final SERP benefit for two former executives was settled with lump sum payments in 2017.

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)
	2018		2017
Net actuarial loss	$	144,165	$	191,264
Prior service cost	11,855		10,201
Net amount not yet recognized	$	156,020	$	201,465

Schedule of Amounts Recognized in Other Comprehensive Income for Pension Plans

Other comprehensive income

Amounts recognized in other comprehensive income for pension plans were as follows:



(in thousands)
	2018			2017
Net actuarial (gain) loss arising during the year	$	(34,290	)	$	15,588
Amortization of net actuarial loss	(12,809		)	(9,301		)
Amortization of prior service cost	(1,353		)	(871		)
Amendments ⁽¹⁾	3,007			5,050
Impact due to settlement ⁽²⁾	—			(302		)
Total recognized in other comprehensive income	$	(45,445	)	$	10,164


(1)	In 2018, there were five new SERP participants. In 2017, amendments include an enactment to the surviving spouse's death benefits, which increased the pension plan obligation by $3.6 million and the SERP obligation by $0.3 million, additionally there were two new SERP participants in 2017, which contributed $1.2 million.


(2)	The final SERP benefit for two former executives was settled with lump sum payments in 2017.

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 ⁽¹⁾			Target asset allocation		Actual asset allocation		Actual asset allocation
Asset allocation:	2018			2017		2018		2017
Equity securities:
U.S. equity securities	25	%	⁽²⁾	35	%	24	%	39	%
Non-U.S. equity securities	16		⁽³⁾	20		14		19
Total equity securities	41			55		38		58
Debt securities	58		⁽⁴⁾	44		61		41
Other	1		⁽⁵⁾	1		1		1
Total	100	%		100	%	100	%	100	%


(1)	Changes to the target asset allocation in 2018 were made to reduce investment risk by shifting portfolio assets from equity securities to debt securities.


(2)	U.S. equity securities – 21% seek to achieve excess returns relative to the Russell 2000 Index. The remaining 79% of the allocation to U.S. equity securities are comprised of equity index funds that track the S&P 500.


(3)	Non-U.S. equity securities – 11% are allocated to international small cap investments, while another 20% are allocated to international emerging market investments. The remaining 69% of the Non-U.S. equity securities are allocated to investments seeking to achieve excess returns relative to an international market index.


(4)	Debt securities – 32% are allocated to long U.S. Treasury Strips, 62% are allocated to U.S. corporate bonds with an emphasis on long duration bonds rated A or better, while the remaining 6% are allocated to floating rate high income leverage loans.


(5)	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, 2018
	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	$	182,495	$	0	$	182,495	$	0
Non-U.S. equity securities	110,942		0		110,942		0
Total equity securities	293,437		0		293,437		0
Debt securities	464,613		0		464,613		0
Other	9,519		9,519		0		0
Total	$	767,569	$	9,519	$	758,050	$	0




	At December 31, 2017
	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	$	288,861	$	0	$	288,861	$	0
Non-U.S. equity securities	145,238		0		145,238		0
Total equity securities	434,099		0		434,099		0
Debt securities	303,331		0		303,331		0
Other	6,470		6,470		0		0
Total	$	743,900	$	6,470	$	737,430	$	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
2019	$	22,039
2020		23,244
2021		25,946
2022		29,319
2023		32,631
2024 - 2028		213,490

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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)
	2018			2017		2016
Current income tax expense	$	84,454		$	81,689	$	109,727
Deferred income tax (benefit) expense	(1,358		)	26,912		(2		)
Other income tax expense	—			10,095		—
Income tax expense	$	83,096		$	118,696	$	109,725

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)
	2018			2017			2016
Income tax at statutory rate	$	77,977		$	110,493		$	112,032
Change in tax rate ⁽¹⁾	—			10,095			—
Tax-exempt interest	(1,305		)	(2,278		)	(2,270		)
Unrecognized tax benefits	3,088			—			—
Other, net	3,336			386			(37		)
Income tax expense	$	83,096		$	118,696		$	109,725


(1)	The change in tax rate represents the tax effect of the re-measurement of deferred tax assets and liabilities due to the enactment of the TCJA.

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)
	2018		2017
Deferred tax assets:
Other employee benefits	$	12,237	$	14,092
Pension and other postretirement benefits	20,124		22,758
Allowance for management fee returned on cancelled policies	3,292		3,024
Deferred revenue	3,524		0
Unrealized losses on investments	2,030		0
Other	1,246		812
Total deferred tax assets	42,453		40,686
Deferred tax liabilities:
Depreciation	13,015		10,204
Prepaid expenses	1,376		5,568
Commissions	1,270		0
Limited partnerships	2,534		4,509
Unrealized gains on investments	0		856
Other	157		159
Total deferred tax liabilities	18,352		21,296
Net deferred tax asset	$	24,101	$	19,390

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of unrecognized tax benefits for the years ended December 31 is as follows:



(in thousands)
	2018			2017			2016
Balance at the beginning of the year	$	0		$	—		$	—
Additions for current year tax positions	7,719			—			—
Reductions for current year tax positions	(4,631		)	—			—
Additions for prior year tax positions	—			2,337			—
Reductions for prior year tax positions	—			(2,337		)	—
Balance at the end of the year	$	3,088		$	0		$	—

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2018

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)	2018									2017									2016
	Before Tax			Income Tax ⁽¹⁾			Net			Before Tax			Income Tax ⁽¹⁾			Net			Before Tax			Income Tax ⁽¹⁾			Net
Investment securities:
AOCI, beginning of year	$	3,410		$	716		$	2,694		$	3,954		$	1,384		$	2,570		$	3,888		$	1,361		$	2,527
OCI (loss) before reclassifications - pre TCJA ⁽¹⁾	—			—			—			(648		)	(227		)	(421		)	(385		)	(135		)	(250		)
OCI before reclassifications - post TCJA ⁽¹⁾	(15,372		)	(3,228		)	(12,144		)	1,162			243			919			—			—			—
Realized investment losses (gains)	1,297			272			1,025			(1,240		)	(434		)	(806		)	35			12			23
Impairment losses	1,581			332			1,249			182			64			118			416			146			270
Cumulative effect of adopting ASU 2016-01 ⁽²⁾	(85		)	(18		)	(67		)	—			—			—			—			—			—
OCI (loss)	(12,579		)	(2,642		)	(9,937		)	(544		)	(354		)	(190		)	66			23			43
Reclassification adjustment ⁽³⁾	—			—			—			—			(314		)	314			—			—			—
AOCI, end of year	$	(9,169	)	$	(1,926	)	$	(7,243	)	$	3,410		$	716		$	2,694		$	3,954		$	1,384		$	2,570

Pension and other postretirement plans:
AOCI (loss), beginning of year	$	(200,954	)	$	(42,201	)	$	(158,753	)	$	(190,695	)	$	(66,744	)	$	(123,951	)	$	(152,910	)	$	(53,519	)	$	(99,391	)
OCI (loss) before reclassifications	31,401			6,594			24,807			(20,314		)	(7,111		)	(13,203		)	(46,244		)	(16,185		)	(30,059		)
Amortization of prior service costs ⁽⁴⁾	1,353			284			1,069			871			306			565			695			243			452
Amortization of net actuarial loss ⁽⁴⁾	12,451			2,615			9,836			8,882			3,109			5,773			7,764			2,717			5,047
Settlement loss ⁽⁴⁾	—			—			—			302			106			196			—			—			—
Impact of change in tax rate ⁽⁵⁾	—			—			—			—			1,436			(1,436		)	—			—			—
OCI (loss)	45,205			9,493			35,712			(10,259		)	(2,154		)	(8,105		)	(37,785		)	(13,225		)	(24,560		)
Reclassification adjustment ⁽³⁾	—			—			—			—			26,697			(26,697		)	—			—			—
AOCI (loss), end of year	$	(155,749	)	$	(32,708	)	$	(123,041	)	$	(200,954	)	$	(42,201	)	$	(158,753	)	$	(190,695	)	$	(66,744	)	$	(123,951	)

Total
AOCI (loss), beginning of year	$	(197,544	)	$	(41,485	)	$	(156,059	)	$	(186,741	)	$	(65,360	)	$	(121,381	)	$	(149,022	)	$	(52,158	)	$	(96,864	)
Investment securities	(12,579		)	(2,642		)	(9,937		)	(544		)	(354		)	(190		)	66			23			43
Pension and other postretirement plans	45,205			9,493			35,712			(10,259		)	(2,154		)	(8,105		)	(37,785		)	(13,225		)	(24,560		)
OCI (loss)	32,626			6,851			25,775			(10,803		)	(2,508		)	(8,295		)	(37,719		)	(13,202		)	(24,517		)
Reclassification adjustment ⁽³⁾	—			—			—			—			26,383			(26,383		)	—			—			—
AOCI (loss), end of year	$	(164,918	)	$	(34,634	)	$	(130,284	)	$	(197,544	)	$	(41,485	)	$	(156,059	)	$	(186,741	)	$	(65,360	)	$	(121,381	)


(1)	Deferred taxes related to unrealized gains and losses for the period from December 23, 2017 through December 31, 2018 were recognized at the 21% corporate rate following enactment of the TCJA. Prior to enactment, they were recognized at the 35% corporate rate.


(2)	A reclassification of unrealized losses of equity securities from AOCI to retained earnings was required at January 1, 2018 due to the implementation of ASU 2016-01. See Note 2, "Significant Accounting Policies".


(3)	A one-time adjustment was made in the fourth quarter of 2017 to reclassify stranded tax effects of the components of AOCI resulting from enactment of TCJA from AOCI to retained earnings, resulting in the ending AOCI balances now reflected at the 21% corporate rate, which represents the rate in which the amounts are expected to be settled. See Note 2, "Significant Accounting Policies".


(4)	These components of accumulated other comprehensive income (loss) are included in the computation of net periodic pension cost. See Note 9, "Postretirement Benefits", for additional information.


(5)	Deferred taxes related to the December 31, 2017 portion of the pension and other postretirement component recognized in AOCI of $10.3 million were recognized at the 21% corporate rate following the enactment of the TCJA.

Supplementary Data on Cash Flows (Tables)

12 Months Ended

Dec. 31, 2018

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)	2018			2017			2016

Cash flows from operating activities:
Net income	$	288,224		$	196,999		$	210,366
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,368			14,831			15,095
Deferred income tax (benefit) expense	(1,358		)	26,912			(2		)
Other income tax expense ⁽¹⁾	—			10,095			—
Realized losses (gains) and impairments on investments	3,591			(1,152		)	(256		)
Equity in losses (earnings) of limited partnerships	822			(2,801		)	(7,025		)
(Gain) loss on disposal of fixed assets	(3,047		)	98			59
Net amortization of bond premium	5,601			7,038			7,436
Decrease in deferred compensation	(3,886		)	(2,681		)	(4,561		)
Limited partnership distributions	7,173			5,128			17,837
Increase in receivables from affiliates	(30,804		)	(39,788		)	(30,485		)
Decrease (increase) in accrued investment income	1,590			(516		)	(846		)
Decrease (increase) in federal income taxes recoverable	21,738			(24,640		)	6,687
(Increase) decrease in prepaid pension	(47,335		)	(27,265		)	10,524
Increase in prepaid expenses and other assets	(727		)	(7,636		)	(4,674		)
Increase in accounts payable and accrued expenses	11,039			17,183			11,144
Increase in commissions payable	13,449			17,565			15,017
(Decrease) increase in accrued agent bonuses	(19,066		)	7,756			8,020
Increase in contract liability	3,213			—			—
Net cash provided by operating activities	$	263,585		$	197,126		$	254,336


(1)	Other income tax expense for 2017 was impacted by the re-measurement of our deferred tax assets and liabilities due to the enactment of the TCJA on December 22, 2017, which reduced the corporate tax rate from 35% to 21% effective January 1, 2018.

Quarterly Results of Operations (unaudited) (Tables)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Results of Operations (Unaudited)



	Year ended December 31, 2018
(in thousands, except per share data)	First quarter		Second quarter		Third quarter		Fourth quarter			Year
Operating revenue ⁽¹⁾	$	572,160	$	621,458	$	612,126	$	576,468		$	2,382,212
Operating expenses ⁽¹⁾	494,593		526,135		515,431		501,710			2,037,869
Investment income	6,163		6,207		8,431		4,995			25,796
Interest expense and other (income), net ⁽²⁾	509		544		655		(2,889		)	(1,181		)
Income before income taxes	83,221		100,986		104,471		82,642			371,320
Net income	$	65,758	$	79,706	$	80,446	$	62,314		$	288,224

Earnings per share ⁽³⁾
Net income per share
Class A common stock – basic	$	1.41	$	1.71	$	1.73	$	1.34		$	6.19
Class A common stock – diluted	$	1.26	$	1.52	$	1.54	$	1.19		$	5.51
Class B common stock – basic and diluted	$	212	$	257	$	259	$	201		$	928

(1)


(2)	The decrease in interest expense and other (income), net in the fourth quarter is driven by the $3.4 million gain recognized on the sale of the field offices we owned to Exchange. See Note 7, "Fixed Assets".


(3)	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, 2017
(in thousands, except per share data)	First quarter		Second quarter		Third quarter		Fourth quarter		Year
Operating revenue	$	399,316	$	448,564	$	442,492	$	401,402	$	1,691,774
Operating expenses ⁽¹⁾	332,376		365,116		361,253		342,777		1,401,522
Investment income ⁽¹⁾	6,589		6,451		8,418		7,134		28,592
Interest expense and other, net ⁽¹⁾	575		664		792		1,118		3,149
Income before income taxes	72,954		89,235		88,865		64,641		315,695
Net income	$	47,876	$	58,527	$	58,543	$	32,053	$	196,999

Earnings per share ⁽²⁾
Net income per share
Class A common stock – basic	$	1.03	$	1.26	$	1.26	$	0.69	$	4.23
Class A common stock – diluted ⁽³⁾	$	0.91	$	1.12	$	1.12	$	0.61	$	3.76
Class B common stock – basic	$	154	$	189	$	189	$	103	$	635
Class B common stock – diluted	$	154	$	188	$	189	$	103	$	634


(1)	Amounts presented have been reclassified from previously reported amounts as a result of the adoption of ASU 2017-07, "Compensation-Retirement Benefits". See Note 2, "Significant Accounting Policies".


(2)	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.


(3)	Class A diluted earnings per share was reduced by $0.19 for the fourth quarter and total year as a result of increased income tax expense from enactment of the TCJA of $10.1 million. See Note 4, "Earnings Per Share" and Note 11, "Income Taxes".

Nature of Operations (Details)	12 Months Ended
Nature of Operations (Details)	Dec. 31, 2018 Obligations
Revenue, Performance Obligation [Abstract]
Performance obligations under subscriber's agreement	2
Agent compensation expense
Nature of expense as a percentage of total policy issuance and renewal expenses
Nature of expense as a percentage of total policy issuance and renewal expenses	67.00%
Underwriting and policy processing expense
Nature of expense as a percentage of total policy issuance and renewal expenses
Nature of expense as a percentage of total policy issuance and renewal expenses	10.00%
Information technology expense
Nature of expense as a percentage of total policy issuance and renewal expenses
Nature of expense as a percentage of total policy issuance and renewal expenses	10.00%

Significant Accounting Policies (Details)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2018

USD ($)

fund

Sep. 30, 2018

USD ($)

Jun. 30, 2018

USD ($)

Mar. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Sep. 30, 2017

USD ($)

Jun. 30, 2017

USD ($)

Mar. 31, 2017

USD ($)

Dec. 31, 2018

USD ($)

Obligations

fund

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Jan. 01, 2018

USD ($)

Revenue, Performance Obligation [Abstract]

Performance obligations under subscriber's agreement | Obligations

Indemnity's management fee rate as a percent of premiums written and assumed by the Exchange

25.00%

New Accounting Pronouncements

Decrease in accumulated other comprehensive income and increase in retained earnings due to ASU 2018-02

^[1]

$ 0

Cumulative effect adjustment

^[2]

$ 38,392

Impact of adoption on our Statement of Financial Position and Operations

Deferred tax asset

24,101

$ 19,390

24,101

19,390

$ 29,578

Contract liability

51,727

48,514

Retained earnings

2,231,417

2,140,853

2,231,417

2,140,853

2,102,527

Operating revenue

576,468

$ 612,126

$ 621,458

$ 572,160

401,402

$ 442,492

$ 448,564

$ 399,316

2,382,212

1,691,774

$ 1,596,631

Operating expenses

$ 501,710

$ 515,431

$ 526,135

$ 494,593

342,777

$ 361,253

$ 365,116

$ 332,376

$ 2,037,869

1,401,522

1,303,114

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

Limited partnerships

Number of real estate limited partnerships that do not meet the criteria of an investment company | fund

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

Administrative services

Cash settlements

522,300

496,100

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

General ownership percentage of limited partnerships (as a percent)

10.00%

Balances without ASC 606

Impact of adoption on our Statement of Financial Position and Operations

Deferred tax asset

$ 13,238

19,390

$ 13,238

19,390

Contract liability

Retained earnings

2,272,281

$ 2,140,853

2,272,281

2,140,853

Accounting Standards Update 2014-09 | Adjustments due to ASC 606

Impact of adoption on our Statement of Financial Position and Operations

Deferred tax asset

10,863

10,188

Contract liability

51,727

48,514

Retained earnings

$ (40,864)

(38,326)

Accounting Standards Update 2018-02

New Accounting Pronouncements

Decrease in accumulated other comprehensive income and increase in retained earnings due to ASU 2018-02

(26,400)

Accounting Standards Update 2016-01

New Accounting Pronouncements

Cumulative effect adjustment

$ (100)

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]

Period of time over which management fee revenue allocated to administrative services will be recognized (in years)

4 years

Management fee revenue, policy issuance and renewal services

Impact of adoption on our Statement of Financial Position and Operations

Management fee revenue, gross

$ 1,721,309

Less: change in allowance for management fee returned on cancelled policies

(1,742)

Operating revenue

1,719,567

1,662,625

1,567,431

Operating expenses

1,457,533

$ 1,401,522

$ 1,303,114

Management fee revenue, policy issuance and renewal services | Balances without ASC 606

Impact of adoption on our Statement of Financial Position and Operations

Management fee revenue, gross

1,778,212

Less: change in allowance for management fee returned on cancelled policies

(1,800)

Operating revenue

1,776,412

Management fee revenue, policy issuance and renewal services | Accounting Standards Update 2014-09 | Adjustments due to ASC 606

Impact of adoption on our Statement of Financial Position and Operations

Management fee revenue, gross

(56,903)

Less: change in allowance for management fee returned on cancelled policies

Operating revenue

(56,845)

Management fee revenue, administrative services

Impact of adoption on our Statement of Financial Position and Operations

Management fee revenue, gross

53,694

Less: change in allowance for management fee returned on cancelled policies

(62)

Operating revenue

53,632

Management fee revenue, administrative services | Balances without ASC 606

Impact of adoption on our Statement of Financial Position and Operations

Management fee revenue, gross

Less: change in allowance for management fee returned on cancelled policies

Operating revenue

Management fee revenue, administrative services | Accounting Standards Update 2014-09 | Adjustments due to ASC 606

Impact of adoption on our Statement of Financial Position and Operations

Management fee revenue, gross

53,694

Less: change in allowance for management fee returned on cancelled policies

(62)

Operating revenue

53,632

Administrative services reimbursements

Impact of adoption on our Statement of Financial Position and Operations

Operating revenue

580,336

Operating expenses

580,336

Administrative services reimbursements | Balances without ASC 606

Impact of adoption on our Statement of Financial Position and Operations

Operating revenue

Operating expenses

Administrative services reimbursements | Accounting Standards Update 2014-09 | Adjustments due to ASC 606

Impact of adoption on our Statement of Financial Position and Operations

Operating revenue

580,336

Operating expenses

580,336

Administrative services

Impact of adoption on our Statement of Financial Position and Operations

Operating revenue

633,968

Administrative services | Balances without ASC 606

Impact of adoption on our Statement of Financial Position and Operations

Operating revenue

Administrative services | Accounting Standards Update 2014-09 | Adjustments due to ASC 606

Impact of adoption on our Statement of Financial Position and Operations

Operating revenue

$ 633,968

[1]	A one-time adjustment was made in the fourth quarter of 2017 to reclassify stranded tax effects of the components of accumulated other comprehensive income ("AOCI") resulting from enactment of Tax Cuts and Jobs Act ("TCJA") from AOCI to retained earnings. See Note 2, "Significant Accounting Policies".
[2]	Cumulative effect adjustments are primarily related to the implementation of new revenue recognition guidance effective January 1, 2018. See Note 2, "Significant Accounting Policies".

Revenue - Narrative (Details) $ in Thousands	12 Months Ended
Revenue - Narrative (Details) $ in Thousands	Dec. 31, 2018 USD ($) Obligations	Jan. 01, 2018 USD ($)
Revenue, Performance Obligation [Abstract]
Indemnity's management fee rate as a percent of premiums written and assumed by the Exchange	25.00%
Performance obligations under subscriber's agreement \| Obligations	2
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract liability recorded upon adoption of ASC 606	$ 51,727	$ 48,514
Adjustments due to ASC 606 \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract liability recorded upon adoption of ASC 606	$ 51,727	$ 48,514

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation of revenue by performance obligation
Operating revenue	$ 576,468	$ 612,126	$ 621,458	$ 572,160	$ 401,402	$ 442,492	$ 448,564	$ 399,316	$ 2,382,212	$ 1,691,774	$ 1,596,631
Management fee revenue, policy issuance and renewal services
Disaggregation of revenue by performance obligation
Gross management fee revenue recognized									1,721,309
Operating revenue									1,719,567	1,662,625	1,567,431
Management fee revenue, policy issuance and renewal services \| Transferred at point in time
Disaggregation of revenue by performance obligation
Operating revenue									1,719,567	1,662,625	1,567,431
Management fee revenue, administrative services
Disaggregation of revenue by performance obligation
Gross management fee revenue recognized									53,694
Operating revenue									53,632
Management fee revenue, administrative services \| Transferred over time
Disaggregation of revenue by performance obligation
Operating revenue									53,632	0	0
Administrative services reimbursements
Disaggregation of revenue by performance obligation
Operating revenue									580,336
Administrative services reimbursements \| Transferred over time
Disaggregation of revenue by performance obligation
Operating revenue									580,336	0	0
Administrative services
Disaggregation of revenue by performance obligation
Operating revenue									633,968
Administrative services \| Transferred over time
Disaggregation of revenue by performance obligation
Operating revenue									$ 633,968	$ 0	$ 0

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Effect of Tax Cuts and Jobs Act of 2017
Increase in income tax expense									$ 0	$ 10,095	$ 0
Class A Common Stock
Income available to stockholders (Basic EPS:)
Allocated net income (numerator)									$ 285,864	$ 195,386	$ 208,644
Weighted shares (denominator)									46,188,637	46,186,831	46,188,952
Per- share amount	$ 1.34	$ 1.73	$ 1.71	$ 1.41	$ 0.69	$ 1.26	$ 1.26	$ 1.03	$ 6.19	$ 4.23	$ 4.52
Dilutive effect of stock-based awards
Allocated net income (numerator)									$ 0	$ 0	$ 0
Weighted shares (denominator)									25,776	49,832	145,551
Assumed conversion of Class B shares
Allocated net income (numerator)									$ 2,360	$ 1,613	$ 1,722
Weighted shares (denominator)									6,100,800	6,100,800	6,100,800
Income available to stockholders on equivalent shares (Diluted EPS:)
Allocated net income (numerator)									$ 288,224	$ 196,999	$ 210,366
Weighted shares (denominator)									52,315,213	52,337,463	52,435,303
Per- share amount	$ 1.19	1.54	1.52	1.26	$ 0.61	1.12	1.12	0.91	$ 5.51	$ 3.76	$ 4.01
Class B Common Stock
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)									$ 2,360	$ 1,613	$ 1,722
Weighted shares (denominator)									2,542	2,542	2,542
Per- share amount	$ 201	259	257	212	$ 103	189	189	154	$ 928	$ 635	$ 678
Income available to stockholders on equivalent shares (Diluted EPS:)
Allocated net income (numerator)									$ 2,359	$ 1,613	$ 1,721
Weighted shares (denominator)									2,542	2,542	2,542
Per- share amount	$ 201	$ 259	$ 257	$ 212	$ 103	$ 189	$ 188	$ 154	$ 928	$ 634	$ 677
Tax Cuts and Jobs Act of 2017
Effect of Tax Cuts and Jobs Act of 2017
Increase in income tax expense					$ 10,100					$ 10,100
Tax Cuts and Jobs Act of 2017 \| Class A Common Stock
Effect of Tax Cuts and Jobs Act of 2017
Impact on basic EPS (per share)					$ (0.22)
Impact on diluted EPS (per share)					(0.19)					$ (0.19)
Tax Cuts and Jobs Act of 2017 \| Class B Common Stock
Effect of Tax Cuts and Jobs Act of 2017
Impact on basic EPS (per share)					(33)
Impact on diluted EPS (per share)					$ (32)

Fair Value - Fair Value Measurements on a Recurring Basis, Unobservable Input Reconciliation (Details) - Level 3 - Available-for-sale securities - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Roll forward of level 3 fair value measurements on a recurring basis
Beginning balance	$ 10,079	$ 9,352
Included in earnings	6	(85)
Included in other comprehensive income	(302)	(41)
Purchases	6,455	7,154
Sales	(2,854)	(5,411)
Transfers into Level 3	18,232	11,196
Transfers out of Level 3	(19,039)	(12,086)
Ending balance	12,577	10,079
Change in unrealized gains or losses included in other comprehensive income related to Level 3 securities held at the reporting date
Net unrealized losses on Level 3 securities held at reporting date	(554)
Corporate debt securities
Roll forward of level 3 fair value measurements on a recurring basis
Beginning balance	7,879	9,352
Included in earnings	6	(85)
Included in other comprehensive income	(312)	(41)
Purchases	5,550	4,954
Sales	(2,854)	(5,411)
Transfers into Level 3	18,232	11,196
Transfers out of Level 3	(15,924)	(12,086)
Ending balance	12,577	7,879
Change in unrealized gains or losses included in other comprehensive income related to Level 3 securities held at the reporting date
Net unrealized losses on Level 3 securities held at reporting date	(554)
Collateralized debt obligations
Roll forward of level 3 fair value measurements on a recurring basis
Beginning balance	2,200	0
Included in earnings	0	0
Included in other comprehensive income	10	0
Purchases	905	2,200
Sales	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	(3,115)	0
Ending balance	$ 0	$ 2,200

Fair Value - Fair Value Measurements on a Recurring Basis by Pricing Source (Details) $ in Thousands	Dec. 31, 2018 USD ($) fund	Dec. 31, 2017 USD ($)
Fair value by pricing source
Available-for-sale debt securities	$ 748,523	$ 745,961
Equity securities	11,853
Total	$ 763,582	763,529
Number of real estate funds reported under the fair value option \| fund	1
Level 1
Fair value by pricing source
Available-for-sale debt securities	$ 0	0
Equity securities	1,809
Total	1,809	2,015
Level 2
Fair value by pricing source
Available-for-sale debt securities	735,946	735,882
Equity securities	10,044
Total	745,990	746,619
Level 3
Fair value by pricing source
Available-for-sale debt securities	12,577	10,079
Equity securities	0
Total	12,577	10,079
Fair Value, Measurements, Recurring Basis \| Fixed maturities \| Priced via pricing services
Fair value by pricing source
Available-for-sale debt securities	748,480
Fair Value, Measurements, Recurring Basis \| Fixed maturities \| Priced via market comparables/broker quotes
Fair value by pricing source
Available-for-sale debt securities	43
Fair Value, Measurements, Recurring Basis \| Equity securities \| Priced via pricing services
Fair value by pricing source
Equity securities	$ 11,853
Fair Value, Measurements, Recurring Basis \| Real estate
Fair value by pricing source
Number of real estate funds reported under the fair value option \| fund	1
Fair Value, Measurements, Recurring Basis \| Level 1 \| Fixed maturities \| Priced via pricing services
Fair value by pricing source
Available-for-sale debt securities	$ 0
Fair Value, Measurements, Recurring Basis \| Level 1 \| Fixed maturities \| Priced via market comparables/broker quotes
Fair value by pricing source
Available-for-sale debt securities	0
Fair Value, Measurements, Recurring Basis \| Level 1 \| Equity securities \| Priced via pricing services
Fair value by pricing source
Equity securities	1,809
Fair Value, Measurements, Recurring Basis \| Level 2 \| Fixed maturities \| Priced via pricing services
Fair value by pricing source
Available-for-sale debt securities	735,946
Fair Value, Measurements, Recurring Basis \| Level 2 \| Fixed maturities \| Priced via market comparables/broker quotes
Fair value by pricing source
Available-for-sale debt securities	0
Fair Value, Measurements, Recurring Basis \| Level 2 \| Equity securities \| Priced via pricing services
Fair value by pricing source
Equity securities	10,044
Fair Value, Measurements, Recurring Basis \| Level 3 \| Fixed maturities \| Priced via pricing services
Fair value by pricing source
Available-for-sale debt securities	12,534
Fair Value, Measurements, Recurring Basis \| Level 3 \| Fixed maturities \| Priced via market comparables/broker quotes
Fair value by pricing source
Available-for-sale debt securities	43
Fair Value, Measurements, Recurring Basis \| Level 3 \| Equity securities \| Priced via pricing services
Fair value by pricing source
Equity securities	0
Fair Value, Measurements, Recurring Basis \| Fair value option using net asset value (NAV) \| Real estate
Fair value by pricing source
Other limited partnership investments	3,206	$ 4,816
Fair Value, Measurements, Recurring Basis \| Fair value option using net asset value (NAV) \| Real estate \| Priced via unobservable inputs
Fair value by pricing source
Other limited partnership investments	$ 3,206

Fair Value - Financial Instruments Disclosed Not Carried at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Carrying Value
Financial assets
Agent loans	$ 58,006	$ 21,849
Financial liabilities
Long-term borrowings	99,730	74,728
Fair Value
Financial assets
Agent loans	54,110	21,849
Financial liabilities
Long-term borrowings	$ 94,057	$ 72,424

Investments - Cost and Fair Value of AFS Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Available-for-sale securities
Amortized cost	$ 757,395	$ 741,799
Amortized cost		754,636
Gross unrealized gains	2,358	7,707
Gross unrealized gains		7,722
Gross unrealized losses	11,230	3,545
Gross unrealized losses		3,645
Estimated fair value	748,523	745,961
Estimated fair value		758,713
U.S. Treasury
Available-for-sale securities
Amortized cost	208,610	11,873
Gross unrealized gains	18	0
Gross unrealized losses	216	139
Estimated fair value	208,412	11,734
States and political subdivisions
Available-for-sale securities
Amortized cost	157,003	254,533
Gross unrealized gains	2,020	5,351
Gross unrealized losses	0	620
Estimated fair value	159,023	259,264
Foreign government securities
Available-for-sale securities
Amortized cost		501
Gross unrealized gains		2
Gross unrealized losses		0
Estimated fair value		503
Corporate debt securities
Available-for-sale securities
Amortized cost	259,362	346,759
Gross unrealized gains	139	1,688
Gross unrealized losses	9,554	1,924
Estimated fair value	249,947	346,523
Residential mortgage-backed securities
Available-for-sale securities
Amortized cost	4,603	25,324
Gross unrealized gains	38	371
Gross unrealized losses	32	124
Estimated fair value	4,609	25,571
Commercial mortgage-backed securities
Available-for-sale securities
Amortized cost	47,022	33,475
Gross unrealized gains	80	26
Gross unrealized losses	587	697
Estimated fair value	46,515	32,804
Collateralized debt obligations
Available-for-sale securities
Amortized cost	65,039	57,838
Gross unrealized gains	30	237
Gross unrealized losses	830	41
Estimated fair value	64,239	58,034
Other debt securities
Available-for-sale securities
Amortized cost	15,756	11,496
Gross unrealized gains	33	32
Gross unrealized losses	11	0
Estimated fair value	$ 15,778	11,528
Nonredeemable preferred stock \| Financial Services Sector
Available-for-sale securities
Amortized cost		11,719
Gross unrealized gains		15
Gross unrealized losses		75
Estimated fair value		11,659
Nonredeemable preferred stock \| Utilities Sector
Available-for-sale securities
Amortized cost		1,118
Gross unrealized gains		0
Gross unrealized losses		25
Estimated fair value		$ 1,093

Investments - Amortized Cost and Estimated Fair Value of AFS Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Amortized cost
Due in one year or less	$ 263,957
Due after one year through five years	163,276
Due after five years through ten years	217,659
Due after ten years	112,503
Amortized cost	757,395	$ 741,799
Estimated fair value
Due in one year or less	263,837
Due after one year through five years	160,504
Due after five years through ten years	212,692
Due after ten years	111,490
Estimated fair value	$ 748,523	$ 745,961

Investments - Gross Unrealized Loss Positions (Details) $ in Thousands	Dec. 31, 2018 USD ($) Holdings	Dec. 31, 2017 USD ($) Holdings
Fair value
Less than 12 months	$ 368,634	$ 272,033
Less than 12 months		282,770
12 months or longer	118,105	66,019
12 months or longer		66,019
Total	486,739	338,052
Total		348,789
Unrealized losses
Less than 12 months	7,903	2,138
Less than 12 months		2,238
12 months or longer	3,327	1,407
12 months or longer		1,407
Total	$ 11,230	3,545
Total		$ 3,645
No. of holdings \| Holdings	721	411
No. of holdings \| Holdings		417
Investment grade
Fair value
Less than 12 months	$ 242,821	$ 214,586
12 months or longer	98,118	62,193
Total	340,939	276,779
Unrealized losses
Less than 12 months	1,295	1,064
12 months or longer	1,641	985
Total	$ 2,936	$ 2,049
No. of holdings \| Holdings	147	158
Non-investment grade
Fair value
Less than 12 months	$ 125,813	$ 57,447
12 months or longer	19,987	3,826
Total	145,800	61,273
Unrealized losses
Less than 12 months	6,608	1,074
12 months or longer	1,686	422
Total	$ 8,294	$ 1,496
No. of holdings \| Holdings	574	253
U.S. Treasury
Fair value
Less than 12 months	$ 129,474	$ 10,237
12 months or longer	11,656	1,497
Total	141,130	11,734
Unrealized losses
Less than 12 months	19	110
12 months or longer	197	29
Total	$ 216	$ 139
No. of holdings \| Holdings	7	4
States and political subdivisions
Fair value
Less than 12 months		$ 52,553
12 months or longer		14,361
Total		66,914
Unrealized losses
Less than 12 months		288
12 months or longer		332
Total		$ 620
No. of holdings \| Holdings		33
Corporate debt securities
Fair value
Less than 12 months	$ 157,300	$ 171,154
12 months or longer	86,586	31,113
Total	243,886	202,267
Unrealized losses
Less than 12 months	6,866	1,585
12 months or longer	2,688	339
Total	$ 9,554	$ 1,924
No. of holdings \| Holdings	635	331
Residential mortgage-backed securities
Fair value
Less than 12 months	$ 777	$ 4,156
12 months or longer	1,618	7,064
Total	2,395	11,220
Unrealized losses
Less than 12 months	6	29
12 months or longer	26	95
Total	$ 32	$ 124
No. of holdings \| Holdings	3	11
Commercial mortgage-backed securities
Fair value
Less than 12 months	$ 17,624	$ 10,836
12 months or longer	16,997	11,984
Total	34,621	22,820
Unrealized losses
Less than 12 months	175	85
12 months or longer	412	612
Total	$ 587	$ 697
No. of holdings \| Holdings	30	19
Collateralized debt obligations
Fair value
Less than 12 months	$ 55,246	$ 21,598
12 months or longer	1,248	0
Total	56,494	21,598
Unrealized losses
Less than 12 months	826	41
12 months or longer	4	0
Total	$ 830	$ 41
No. of holdings \| Holdings	39	12
Other debt securities
Fair value
Less than 12 months	$ 8,213	$ 1,499
12 months or longer	0	0
Total	8,213	1,499
Unrealized losses
Less than 12 months	11	0
12 months or longer	0	0
Total	$ 11	$ 0
No. of holdings \| Holdings	7	1
Nonredeemable preferred stock \| Financial Services Sector
Fair value
Less than 12 months		$ 9,644
12 months or longer		0
Total		9,644
Unrealized losses
Less than 12 months		75
12 months or longer		0
Total		$ 75
No. of holdings \| Holdings		5
Nonredeemable preferred stock \| Utilities Sector
Fair value
Less than 12 months		$ 1,093
12 months or longer		0
Total		1,093
Unrealized losses
Less than 12 months		25
12 months or longer		0
Total		$ 25
No. of holdings \| Holdings		1

Investments - Net Investment Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investment income from portfolios
Total investment income	$ 31,234	$ 26,155	$ 21,737
Less: investment expenses	1,025	1,516	1,179
Investment income, net of expenses	30,209	24,639	20,558
Fixed maturities
Investment income from portfolios
Total investment income	24,978	23,587	20,175
Equity securities
Investment income from portfolios
Total investment income	628	82	171
Cash equivalents and other
Investment income from portfolios
Total investment income	5,628	2,486	1,391
Erie Family Life Insurance Company (EFL)
Investment income from portfolios
Note receivable from EFL, interest income recognized by Indemnity	$ 1,600	$ 1,700	$ 1,700

Investments - Realized Investment Gains (Losses) and Impairments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2018
Realized (losses) gains on investments
Net realized investment (losses) gains	$ (2,010,000)	$ 1,334,000	$ 672,000
Other-than-temporary impairments on investments
Other-than-temporary impairments on available-for-sale securities recognized in earnings	(1,581,000)	(182,000)	(416,000)
Other-than-temporary impairments on available-for-sale securities recognized in other comprehensive income	0	0	0
Accounting Standards Update 2016-01
New Accounting Pronouncements
Cumulative effect of adopting ASU 2016-01				$ 100,000
Available-for-sale securities
Realized (losses) gains on investments
Gross realized gains	1,892,000	2,996,000	2,112,000
Gross realized losses	(3,189,000)	(1,756,000)	(2,147,000)
Net realized (losses) gains on available-for-sale securities	(1,297,000)	1,240,000	(35,000)
Equity securities
Realized (losses) gains on investments
Net losses recognized during the period	(819,000)
Less: net losses recognized on securities sold	(86,000)
Net unrealized losses recognized on securities held at reporting date	(733,000)
Common stock
Realized (losses) gains on investments
Common stock trading securities		0	707,000
Other investments
Realized (losses) gains on investments
Other	$ 106,000	$ 94,000	$ 0

Investments - Equity in Earnings (Losses) of Limited Partnerships (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) fund	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Investment in limited partnerships
Number of real estate limited partnerships that do not meet the criteria of an investment company \| fund	1
Equity in (losses) earnings of limited partnerships	$ (822)	$ 2,801	$ 7,025
Equity method of accounting
Investment in limited partnerships
Equity in (losses) earnings of limited partnerships	(448)	1,925	6,273
Fair value option
Investment in limited partnerships
Equity in (losses) earnings of limited partnerships	$ (374)	$ 876	$ 752

- Definition

This item represents the entity's proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. This item includes income or expense related to stock-based compensation based on the investor's grant of stock to employees of an equity method investee.

+ References + Details

Investments - Limited Partnership Investments by Sector (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Investment in limited partnerships
Asset recorded	$ 34,821	$ 45,122
Private equity
Investment in limited partnerships
Asset recorded	28,271	31,663
Mezzanine debt
Investment in limited partnerships
Asset recorded	1,152	3,516
Real estate
Investment in limited partnerships
Asset recorded	2,192	5,127
Fair value option \| Real estate
Investment in limited partnerships
Asset recorded	$ 3,206	$ 4,816

Fixed Assets (Details) - USD ($) $ in Thousands	12 Months Ended
Fixed Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fixed assets
Total fixed assets, gross	$ 255,907	$ 200,623
Less: Accumulated depreciation and amortization	(125,075)	(117,474)
Fixed assets, net	130,832	83,149
Gain on sale of field offices	3,400
Depreciation and amortization expense	13,400	14,800	$ 15,100
Land, buildings, and building improvements
Fixed assets
Total tangible fixed assets, gross	0	7,627
Leasehold improvements
Fixed assets
Total tangible fixed assets, gross	617	1,375
Software
Fixed assets
Software	163,735	129,553
Equipment
Fixed assets
Total tangible fixed assets, gross	15,075	13,858
Projects in progress
Fixed assets
Projects in progress	10,392	21,898
Construction in progress
Fixed assets
Total tangible fixed assets, gross	66,088	26,312
Capitalized interest included in construction in progress	$ 2,100	$ 600

Borrowing Arrangements - Bank Line of Credit (Details) - Revolving Line of Credit	Dec. 31, 2018 USD ($)
Bank line of credit
Maximum borrowing capacity under the bank revolving line of credit	$ 100,000,000.0
Maximum letter of credit sublimit under the bank revolving line of credit	25,000,000
Available borrowing capacity under the bank revolving line of credit, due to outstanding letters of credit	99,100,000
Outstanding amount of letters of credit sublimit under the bank revolving line of credit	900,000
Available amount of letters of credit sublimit under the bank revolving line of credit	24,100,000
Borrowings outstanding under the bank revolving line of credit	0
Fair value of bonds pledged as collateral on the bank revolving line of credit	$ 108,700,000

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Borrowing Arrangements - Term Loan Credit Facility (Details) - Secured Debt - USD ($)					12 Months Ended
	Jun. 01, 2018	Dec. 01, 2017	Jun. 01, 2017	Dec. 01, 2016	Dec. 31, 2018	Dec. 31, 2016
Term loan credit facility
Amount of senior secured draw term loan credit facility						$ 100,000,000.0
Scheduled draws on the credit facility	$ 25,000,000	$ 25,000,000	$ 25,000,000	$ 25,000,000
Total amount drawn on the credit facility					$ 100,000,000
Repayment period of credit facility					28 years
Fixed interest rate of credit facility					4.35%
Quarterly commitment fee on the unused portion of the credit facility					0.08%
Fair value of bonds pledged as collateral on the credit facility					$ 114,300,000
Principal payments due in 2019					1,870,000
Principal payments due in 2020					1,953,000
Principal payments due in 2021					2,040,000
Principal payments due in 2022					2,130,000
Principal payments due in 2023					2,225,000
Principal payments due after 2023					$ 89,782,000

Postretirement Benefits - Cost of Pension Plans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($) participant	Dec. 31, 2016 USD ($)
Cost of pension plans:
Service cost for benefits earned	$ 38,052	$ 31,106	$ 28,201
Interest cost on benefit obligation	35,382	34,275	33,125
Expected return on plan assets	(51,260)	(41,267)	(39,520)
Prior service cost amortization	1,353	871	696
Net actuarial loss amortization	12,809	9,301	8,111
Settlement cost	0	302	0
Pension plan cost	$ 36,336	$ 34,588	$ 30,613
Erie Insurance Exchange (EIE)
Postretirement benefits
Postretirement annual benefit expense reimbursed to Indemnity from the Exchange and its subsidiaries (as a percent)	59.00%
Nonqualified Plan \| Supplemental employee retirement plan (SERP) \| Unfunded plan
Cost of pension plans:
Number of former plan participants resulting in charges recognized as settlements \| participant		2

Postretirement Benefits - Actuarial Assumptions (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Actuarial assumptions used to determine benefit obligations:
Discount rate	4.47%	3.73%
Employee pension plan \| Qualified Plan \| Funded Plan
Actuarial assumptions used to determine benefit obligations:
Discount rate			4.24%	4.57%
Compensation increases	3.32%	3.32%	3.32%	3.32%
Actuarial assumptions used to determine net periodic benefit cost:
Discount rate	3.73%	4.24%	4.57%
Expected return on assets	6.75%	6.75%	7.00%	7.00%
Rate of compensation increase	3.32%	3.32%	3.32%
Supplemental employee retirement plan (SERP) \| Nonqualified Plan \| Unfunded plan
Actuarial assumptions used to determine benefit obligations:
Pre-retirement discount rate	4.47%	3.73%	4.24%	4.57%
Post-retirement discount rate	3.97%	3.23%	3.74%	4.07%
Compensation increases	5.00%	5.00%	5.00%	5.00%
Actuarial assumptions used to determine net periodic benefit cost:
Pre-retirement discount rate	3.73%	4.24%	4.57%
Post-retirement discount rate	3.23%	3.74%	4.07%
Rate of compensation increase	5.00%	5.00%	5.00%

Postretirement Benefits - Funding Policy/Funded Status (Details) - USD ($) $ in Thousands			12 Months Ended
	Dec. 22, 2017	Jan. 18, 2017	Dec. 31, 2018	Dec. 31, 2017
Postretirement benefits
Employer contributions during fiscal year			$ 80,061	$ 61,102
Net amount recognized in the Statements of Financial Position:
Funded status at end of year			(118,596)	(207,766)
Pension liabilities - due within one year			(1,730)	(236)
Pension liabilities - due after one year			(116,866)	(207,530)
Net amount recognized			(118,596)	$ (207,766)
Employee pension plan \| Qualified Plan \| Funded Plan
Postretirement benefits
Employer contributions during fiscal year	$ 39,900	$ 19,000	$ 80,000
Funding target (as a percentage of the funding target liability)			100.00%
Employee pension plan \| Qualified Plan \| Funded Plan \| Minimum
Postretirement benefits
Minimum target normal cost threshold necessary for future pension funding			$ 80,000

Postretirement Benefits - Benefit Obligations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Projected benefit obligation:
Projected benefit obligation, beginning of year	$ 951,666	$ 816,659
Service cost for benefits earned	38,052	31,106	$ 28,201
Interest cost on benefit obligation	35,382	34,275	33,125
Plan amendments	3,007	5,050
Actuarial (gain) loss	(123,910)	82,940
Benefits paid	(18,032)	(16,184)
Settlement cost	0	(2,180)
Projected benefit obligation, end of year	886,165	951,666	$ 816,659
Accumulated benefit obligation, end of year	727,340	$ 767,527
Projected benefit obligations decrease	$ 65,500
Discount rate used to measure future benefit obligations	4.47%	3.73%

Postretirement Benefits - Projected and Accumulated Benefit Obligation (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Plans with assets less than projected benefit obligations
Projected benefit obligation	$ 886,165	$ 951,666
Plan assets	767,569	743,900
Plans with assets less than accumulated benefit obligations
Accumulated benefit obligation		767,527
Plan assets		$ 743,900
Supplemental employee retirement plan (SERP) \| Nonqualified Plan \| Unfunded plan
Plans with assets less than accumulated benefit obligations
Accumulated benefit obligation	18,908
Plan assets	$ 0

Postretirement Benefits - Pension Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair value of plan assets:
Fair value of plan assets, beginning of year	$ 743,900	$ 592,544
Actual (loss) gain on plan assets	(38,360)	108,618
Employer contributions	80,061	61,102
Benefits paid	(18,032)	(16,184)
Settlements	0	(2,180)
Fair value of plan assets, end of year	$ 767,569	$ 743,900

Postretirement Benefits - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Amounts included in accumulated other comprehensive income
Net actuarial loss	$ 144,165	$ 191,264
Prior service cost	11,855	10,201
Net amount not yet recognized	$ 156,020	$ 201,465

Postretirement Benefits - Other Comprehensive Income (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) participant	Dec. 31, 2017 USD ($) participant
Amounts recognized in other comprehensive income for pension plans:
Net actuarial (gain) loss arising during the year	$ (34,290)	$ 15,588
Amortization of net actuarial loss	(12,809)	(9,301)
Amortization of prior service cost	(1,353)	(871)
Amendments	3,007	5,050
Impact due to settlement	0	(302)
Total recognized in other comprehensive income	(45,445)	10,164
Impact of amendments on pension obligation	$ 3,007	5,050
Employee pension plan \| Qualified Plan \| Funded Plan
Amounts recognized in other comprehensive income for pension plans:
Impact of amendments on pension obligation		$ 3,600
Supplemental employee retirement plan (SERP) \| Nonqualified Plan \| Unfunded plan
Amounts recognized in other comprehensive income for pension plans:
Number of new plan participants resulting in charges recognized as amendments \| participant	5	2
Impact of amendments on pension obligation		$ 300
Impact of amendments on prior service cost		$ 1,200
Number of former plan participants resulting in charges recognized as settlements \| participant		2

Postretirement Benefits - Asset Allocation (Details) - Employee pension plan - Qualified Plan - Funded Plan	Dec. 31, 2018	Dec. 31, 2017
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)	41.00%	55.00%
Actual asset allocation for the portfolio:
Total plan assets (as a percent)	38.00%	58.00%
U.S. equity securities
Target asset allocation for the portfolio:
Total plan assets (as a percent)	25.00%	35.00%
Actual asset allocation for the portfolio:
Total plan assets (as a percent)	24.00%	39.00%
U.S. small capitalization core equity
Target asset allocation for the portfolio:
Total plan assets (as a percent)	21.00%
U.S. equity index
Target asset allocation for the portfolio:
Total plan assets (as a percent)	79.00%
Non-U.S. equity securities
Target asset allocation for the portfolio:
Total plan assets (as a percent)	16.00%	20.00%
Actual asset allocation for the portfolio:
Total plan assets (as a percent)	14.00%	19.00%
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)	20.00%
International risk controlled equity
Target asset allocation for the portfolio:
Total plan assets (as a percent)	69.00%
Debt securities
Target asset allocation for the portfolio:
Total plan assets (as a percent)	58.00%	44.00%
Actual asset allocation for the portfolio:
Total plan assets (as a percent)	61.00%	41.00%
U.S. Treasury Strips
Target asset allocation for the portfolio:
Total plan assets (as a percent)	32.00%
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)	62.00%
Floating rate high income leverage loans
Target asset allocation for the portfolio:
Total plan assets (as a percent)	6.00%
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 - Fair Value Measurement for Pension Plan Assets by Major Category and Level of Input (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair value measurements of pension plan assets:
Total	$ 767,569	$ 743,900	$ 592,544
Employee pension plan \| Qualified Plan \| Funded Plan
Fair value measurements of pension plan assets:
Total	767,569	743,900
Employee pension plan \| Qualified Plan \| Funded Plan \| Quoted prices in active markets for identical assets Level 1
Fair value measurements of pension plan assets:
Total	9,519	6,470
Employee pension plan \| Qualified Plan \| Funded Plan \| Observable inputs Level 2
Fair value measurements of pension plan assets:
Total	758,050	737,430
Employee pension plan \| Qualified Plan \| Funded Plan \| Unobservable inputs Level 3
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Qualified Plan \| Funded Plan \| Total equity securities
Fair value measurements of pension plan assets:
Total	293,437	434,099
Employee pension plan \| Qualified Plan \| Funded Plan \| Total equity securities \| Quoted prices in active markets for identical assets Level 1
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Qualified Plan \| Funded Plan \| Total equity securities \| Observable inputs Level 2
Fair value measurements of pension plan assets:
Total	293,437	434,099
Employee pension plan \| Qualified Plan \| Funded Plan \| Total equity securities \| Unobservable inputs Level 3
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Qualified Plan \| Funded Plan \| U.S. equity securities
Fair value measurements of pension plan assets:
Total	182,495	288,861
Employee pension plan \| Qualified Plan \| Funded Plan \| U.S. equity securities \| Quoted prices in active markets for identical assets Level 1
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Qualified Plan \| Funded Plan \| U.S. equity securities \| Observable inputs Level 2
Fair value measurements of pension plan assets:
Total	182,495	288,861
Employee pension plan \| Qualified Plan \| Funded Plan \| U.S. equity securities \| Unobservable inputs Level 3
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Qualified Plan \| Funded Plan \| Non-U.S. equity securities
Fair value measurements of pension plan assets:
Total	110,942	145,238
Employee pension plan \| Qualified Plan \| Funded Plan \| Non-U.S. equity securities \| Quoted prices in active markets for identical assets Level 1
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Qualified Plan \| Funded Plan \| Non-U.S. equity securities \| Observable inputs Level 2
Fair value measurements of pension plan assets:
Total	110,942	145,238
Employee pension plan \| Qualified Plan \| Funded Plan \| Non-U.S. equity securities \| Unobservable inputs Level 3
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Qualified Plan \| Funded Plan \| Debt securities
Fair value measurements of pension plan assets:
Total	464,613	303,331
Employee pension plan \| Qualified Plan \| Funded Plan \| Debt securities \| Quoted prices in active markets for identical assets Level 1
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Qualified Plan \| Funded Plan \| Debt securities \| Observable inputs Level 2
Fair value measurements of pension plan assets:
Total	464,613	303,331
Employee pension plan \| Qualified Plan \| Funded Plan \| Debt securities \| Unobservable inputs Level 3
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Qualified Plan \| Funded Plan \| Other
Fair value measurements of pension plan assets:
Total	9,519	6,470
Employee pension plan \| Qualified Plan \| Funded Plan \| Other \| Quoted prices in active markets for identical assets Level 1
Fair value measurements of pension plan assets:
Total	9,519	6,470
Employee pension plan \| Qualified Plan \| Funded Plan \| Other \| Observable inputs Level 2
Fair value measurements of pension plan assets:
Total	0	0
Employee pension plan \| Qualified Plan \| Funded Plan \| Other \| Unobservable inputs Level 3
Fair value measurements of pension plan assets:
Total	$ 0	$ 0

Postretirement Benefits - Estimated Future Benefit Payments (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Benefits expected to be paid over the next 10 years from pension plans:
2019	$ 22,039
2020	23,244
2021	25,946
2022	29,319
2023	32,631
2024-2028	$ 213,490

Postretirement Benefits - Employee Savings Plan (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Employee savings plan
Employer matching contribution paid to the plan	$ 13.9	$ 12.8	$ 12.1
Employer discretionary contribution amount	$ 5.4
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%
Erie Insurance Exchange (EIE)
Employee savings plan
Matching contributions reimbursed to Indemnity from the Exchange and its subsidiaries (as a percent)	61.00%

Incentive and Deferred Compensation Plans - Narrative (Details)	1 Months Ended		12 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) Plans $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares
Incentive and deferred compensation plans
Number of incentive plans for executives, senior vice presidents and other selected officers \| Plans			2
Number of deferred compensation plans for executives, senior vice presidents and other selected officers \| Plans			2
Number of deferred compensation plans for outside directors \| Plans			2
Class A Common Stock
Incentive and deferred compensation plans
Total cost of shares purchased outside of publicly announced stock repurchase program			$ 3,200,000	$ 7,300,000	$ 1,500,000
Class A Common Stock \| Performance shares
Incentive and deferred compensation plans
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards \| shares			27,120	60,332	15,093
Annual incentive plan
Incentive and deferred compensation plans
Maximum percentage of employee compensation that can be deferred			100.00%
Long-term incentive plan
Incentive and deferred compensation plans
Maximum percentage of employee compensation that can be deferred			100.00%
Vesting period of performance and/or service condition(s)			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			6,300,000	$ 10,300,000	$ 8,200,000
Tax benefits recognized in income related to award expense			1,300,000	$ 3,600,000	$ 2,900,000
Total unrecognized compensation cost related to share-based compensation plan awards pertaining to open performance periods			$ 5,700,000
Expected period of recognition related to unrecognized compensation cost			2 years
Long-term incentive plan \| Class A Common Stock
Incentive and deferred compensation plans
Maximum number of shares authorized for grant \| shares			1,500,000
Maximum number of shares which may be received by any single participant during any specified period \| shares			250,000
Average price per share for shares purchased \| $ / shares				$ 122.40	$ 98.20
Total cost of shares purchased outside of publicly announced stock repurchase program				$ 5,700,000	$ 800,000
Long-term incentive plan \| Class A Common Stock \| Performance shares
Incentive and deferred compensation plans
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards \| shares				46,884	7,661
Long-term incentive plan \| Performance Period Long-Term Incentive Plan 2016-2018
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards			$ 7,400,000
Long-term incentive plan \| Performance Period Long-Term Incentive Plan 2015-2017
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards	$ 8,300,000
Long-term incentive plan \| Performance Period Long-Term Incentive Plan 2014-2016
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards		$ 4,700,000
Long-term incentive plan \| Performance Period Long-Term Incentive Plan 2014-2016 \| Class A Common Stock
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards		$ 5,900,000
Average price per share for shares delivered \| $ / shares		$ 126.21
Long-term incentive plan \| Performance Period Long-Term Incentive Plan 2014-2016 \| Class A Common Stock \| Performance shares
Incentive and deferred compensation plans
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards \| shares		46,884
Incentive compensation deferral plan
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards			$ 700,000	$ 1,400,000
Vesting percent of the grant in Class A common stock			100.00%
Payment period for vested share credits			3 years
Incentive compensation deferral plan \| Class A Common Stock
Incentive and deferred compensation plans
Average price per share for shares purchased \| $ / shares			$ 119.28
Total cost of shares purchased outside of publicly announced stock repurchase program			$ 1,400,000
Incentive compensation deferral plan \| Class A Common Stock \| Performance shares
Incentive and deferred compensation plans
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards \| shares			12,005
Stock compensation plan for outside directors
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards			$ 800,000	$ 900,000	$ 500,000
Stock compensation plan for outside directors \| Class A Common Stock
Incentive and deferred compensation plans
Average price per share for shares purchased \| $ / shares			$ 122.19	$ 121.85	$ 99.23
Total cost of shares purchased outside of publicly announced stock repurchase program			$ 1,100,000	$ 1,200,000	$ 700,000
Stock compensation plan for outside directors \| Class A Common Stock \| Performance shares
Incentive and deferred compensation plans
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards \| shares			9,285	9,663	7,432
Stock compensation plan for outside directors \| Three Month Vesting Period \| Class A Common Stock
Incentive and deferred compensation plans
Vesting period of performance and/or service condition(s)			3 months
Vesting percent of the grant in Class A common stock			25.00%
Equity compensation plan
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards			$ 400,000	$ 200,000	$ 800,000
Total unrecognized compensation cost related to share-based compensation plan awards pertaining to open performance periods			$ 300,000
Expected period of recognition related to unrecognized compensation cost			3 years
Equity compensation plan \| Class A Common Stock
Incentive and deferred compensation plans
Maximum number of shares authorized for grant \| shares			100,000
Maximum number of shares which may be received by any single participant during any specified period \| shares			5,000
Average price per share for shares purchased \| $ / shares			$ 117.39	$ 111.55
Total cost of shares purchased outside of publicly announced stock repurchase program			$ 700,000	$ 400,000
Equity compensation plan \| Class A Common Stock \| Performance shares
Incentive and deferred compensation plans
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards \| shares			5,830	3,785
Equity compensation plan \| Performance Period Equity Compensation Plan 2014-2015 \| Class A Common Stock
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards			$ 700,000
Average price per share for shares delivered \| $ / shares			$ 115.45
Equity compensation plan \| Performance Period Equity Compensation Plan 2014-2015 \| Class A Common Stock \| Performance shares
Incentive and deferred compensation plans
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards \| shares			5,830
Equity compensation plan \| Performance Period Equity Compensation Plan 2014 \| Class A Common Stock
Incentive and deferred compensation plans
Compensation cost related to share-based compensation plan awards				$ 400,000
Average price per share for shares delivered \| $ / shares				$ 109.41
Equity compensation plan \| Performance Period Equity Compensation Plan 2014 \| Class A Common Stock \| Performance shares
Incentive and deferred compensation plans
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards \| shares				3,785
Erie Insurance Exchange (EIE) \| Long-term incentive plan
Incentive and deferred compensation plans
Incentive plan compensation cost reimbursed to Indemnity from the Exchange and its subsidiaries (as a percent)			47.00%
Erie Insurance Exchange (EIE) \| Incentive compensation deferral plan
Incentive and deferred compensation plans
Incentive plan compensation cost reimbursed to Indemnity from the Exchange and its subsidiaries (as a percent)			42.00%
Erie Insurance Exchange (EIE) \| Equity compensation plan
Incentive and deferred compensation plans
Incentive plan compensation cost reimbursed to Indemnity from the Exchange and its subsidiaries (as a percent)			68.00%	38.00%

Incentive and Deferred Compensation Plans - Table (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred executive and outside directors' compensation liability
Total plan awards and earnings	$ 12,566	$ 19,713	$ 18,945
Total plan awards paid	(14,482)	(20,621)	(20,418)
Incentive plan and deferred compensation liabilities at end of period	26,182	30,057	32,908
Annual incentive plan
Deferred executive and outside directors' compensation liability
Annual incentive plan awards	4,751	6,118	6,460
Long-term incentive plan
Deferred executive and outside directors' compensation liability
Long-term incentive plan awards	6,331	10,931	11,321
Forfeitures	0	(593)	(3,117)
Deferred compensation plans and stock compensation plan for outside directors
Deferred executive and outside directors' compensation liability
Employer match and hypothetical earnings on deferred compensation	1,484	2,664	1,164
Compensation deferred	1,928	680	1,214
Distributions from the deferred compensation plans	(1,321)	(853)	(435)
Stock compensation plan for outside directors
Deferred executive and outside directors' compensation liability
Funding of rabbi trust	(1,165)	(1,177)	(738)
Incentive compensation deferral plan
Deferred executive and outside directors' compensation liability
Funding of rabbi trust	$ (1,401)	$ 0	$ 0

Income Taxes - Provision for Income Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Schedule of provision for income taxes
Current income tax expense	$ 84,454	$ 81,689	$ 109,727
Deferred income tax (benefit) expense	(1,358)	26,912	(2)
Other income tax expense	0	10,095	0
Income tax expense	$ 83,096	$ 118,696	$ 109,725

Income Taxes - Reconciliation of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of the provision for income taxes, with amounts determined by applying the statutory federal income tax rate to pre-tax income
Income tax at statutory rate	$ 77,977	$ 110,493	$ 112,032
Change in tax rate	0	10,095	0
Tax-exempt interest	(1,305)	(2,278)	(2,270)
Unrecognized tax benefits	3,088	0	0
Other, net	3,336	386	(37)
Income tax expense	$ 83,096	$ 118,696	$ 109,725

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Deferred tax assets:
Other employee benefits	$ 12,237		$ 14,092
Pension and other postretirement benefits	20,124		22,758
Allowance for management fee returned on cancelled policies	3,292		3,024
Deferred revenue	3,524		0
Unrealized losses on investments	2,030		0
Other	1,246		812
Total deferred tax assets	42,453		40,686
Deferred tax liabilities:
Depreciation	13,015		10,204
Prepaid expenses	1,376		5,568
Commissions	1,270		0
Limited partnerships	2,534		4,509
Unrealized gains on investments	0		856
Other	157		159
Total deferred tax liabilities	18,352		21,296
Net deferred tax asset	$ 24,101	$ 29,578	$ 19,390

Income Taxes - Unrecognized Tax Benefit (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Valuation Allowance [Abstract]
Deferred tax asset valuation allowance	$ 0	$ 0
Reconciliation of unrecognized tax benefits
Balance at the beginning of the year	0	0	$ 0
Additions for current year tax positions	7,719,000	0	0
Reductions for current year tax positions	(4,631,000)	0	0
Additions for prior year tax positions	0	2,337,000	0
Reductions for prior year tax positions	0	(2,337,000)	0
Balance at the end of the year	3,088,000	0	0
Tax expense related to uncertain tax positions	$ 3,088,000	0	0
Effective income tax rate change as a result of tax law change (percent)	0.80%
Current liability for uncertain tax position		2,300,000
Interest expense related to uncertain tax positions	$ 800,000	$ 100,000	$ 0

Capital Stock - Class A and B Common Stock (Details) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Common stock
Number of classes of common stock	2
Class B Common Stock
Common stock
Percentage of dividend declared on Class B common stock used to determine dividend payable on Class A common stock (as a percent)	0.67%
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
Class A Common Stock
Common stock
Minimum multiplier for dividend payable on Class A common stock per dividend declared on Class B common stock (as a percent)	0.67%

Capital Stock - Stock Repurchases (Details) - Class A Common Stock - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Oct. 31, 2011
Shares purchased outside of stock repurchase program
Total cost of shares purchased outside of publicly announced stock repurchase program	$ 3,200,000	$ 7,300,000	$ 1,500,000
Performance shares
Shares purchased outside of stock repurchase program
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards	27,120	60,332	15,093
Equity compensation plan
Shares purchased outside of stock repurchase program
Total cost of shares purchased outside of publicly announced stock repurchase program	$ 700,000	$ 400,000
Average price per share for shares purchased	$ 117.39	$ 111.55
Equity compensation plan \| Performance shares
Shares purchased outside of stock repurchase program
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards	5,830	3,785
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	$ 1,100,000	$ 1,200,000	$ 700,000
Average price per share for shares purchased	$ 122.19	$ 121.85	$ 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	9,285	9,663	7,432
Incentive compensation deferral plan
Shares purchased outside of stock repurchase program
Total cost of shares purchased outside of publicly announced stock repurchase program	$ 1,400,000
Average price per share for shares purchased	$ 119.28
Incentive compensation deferral plan \| Performance shares
Shares purchased outside of stock repurchase program
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards	12,005
Long-term incentive plan
Shares purchased outside of stock repurchase program
Total cost of shares purchased outside of publicly announced stock repurchase program		$ 5,700,000	$ 800,000
Average price per share for shares purchased		$ 122.40	$ 98.20
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		46,884	7,661
Stock repurchase program
Stock repurchases
Shares repurchased under stock repurchase program (in shares)	0	0	0
Amount of authorized stock repurchases approved for continuation under the current program				$ 150,000,000
Approximate amount of repurchase authority remaining under the current stock repurchase program	$ 17,800,000

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Accumulated other comprehensive income (loss), before tax

Amortization of prior service costs

$ (1,353)

$ (871)

Amortization of net actuarial loss

(12,809)

(9,301)

Settlement loss

(302)

Pension and other postretirement plans, OCI (loss)

10,300

Accumulated other comprehensive income (loss), net of tax

AOCI (loss), beginning of year

(156,059)

Investment securities, OCI (loss)

(9,937)

(190)

$ 43

Pension and other postretirement plans, OCI (loss)

(35,712)

8,105

24,560

Reclassification adjustment

^[1]

OCI (loss)

25,775

(8,295)

(24,517)

AOCI (loss), end of year

(130,284)

(156,059)

Investment securities:

Accumulated other comprehensive income (loss), before tax

AOCI (loss), beginning of year

3,410

3,954

3,888

OCI (loss) before reclassifications - pre TCJA

(648)

(385)

OCI before reclassifications - post TCJA

(15,372)

1,162

Realized investment losses (gains)

1,297

(1,240)

Impairment losses

1,581

182

416

Cumulative effect of adopting ASU 2016-01, before tax

(85)

Investment securities, OCI (loss)

(12,579)

(544)

AOCI (loss), end of year

(9,169)

3,410

3,954

Accumulated other comprehensive income (loss), tax

AOCI (loss), beginning of year

716

1,384

1,361

OCI (loss) before reclassifications - pre TCJA

(227)

(135)

OCI before reclassifications - post TCJA

(3,228)

243

Realized investment losses (gains)

272

(434)

Impairment losses

332

146

Cumulative tax effect of adopting ASU 2016-01

(18)

Investment securities, OCI (loss)

(2,642)

(354)

Reclassification adjustment

(314)

AOCI (loss), end of year

(1,926)

716

1,384

Accumulated other comprehensive income (loss), net of tax

AOCI (loss), beginning of year

2,694

2,570

2,527

OCI (loss) before reclassifications - pre TCJA

(421)

(250)

OCI before reclassifications - post TCJA

(12,144)

919

Realized investment losses (gains)

1,025

(806)

Impairment losses

1,249

118

270

Cumulative effect of adopting ASU 2016-01, net of tax

(67)

Investment securities, OCI (loss)

(9,937)

(190)

Reclassification adjustment

314

AOCI (loss), end of year

(7,243)

2,694

2,570

Pension and other postretirement plans:

Accumulated other comprehensive income (loss), before tax

AOCI (loss), beginning of year

(200,954)

(190,695)

(152,910)

OCI (loss) before reclassifications

31,401

(20,314)

(46,244)

Amortization of prior service costs

1,353

871

695

Amortization of net actuarial loss

12,451

8,882

7,764

Settlement loss

302

Pension and other postretirement plans, OCI (loss)

(45,205)

10,259

37,785

AOCI (loss), end of year

(155,749)

(200,954)

(190,695)

Accumulated other comprehensive income (loss), tax

AOCI (loss), beginning of year

(42,201)

(66,744)

(53,519)

OCI (loss) before reclassifications

6,594

(7,111)

(16,185)

Amortization of prior service costs

284

306

243

Amortization of net actuarial loss

2,615

3,109

2,717

Settlement loss

106

Impact of change in tax rate

1,436

Pension and other postretirement plans, OCI (loss)

(9,493)

2,154

13,225

Reclassification adjustment

26,697

AOCI (loss), end of year

(32,708)

(42,201)

(66,744)

Accumulated other comprehensive income (loss), net of tax

AOCI (loss), beginning of year

(158,753)

(123,951)

(99,391)

OCI (loss) before reclassifications

24,807

(13,203)

(30,059)

Amortization of prior service costs

1,069

565

452

Amortization of net actuarial loss

9,836

5,773

5,047

Settlement loss

196

Impact of change in tax rate

(1,436)

Pension and other postretirement plans, OCI (loss)

35,712

(8,105)

(24,560)

Reclassification adjustment

(26,697)

AOCI (loss), end of year

(123,041)

(158,753)

(123,951)

Total

Accumulated other comprehensive income (loss), before tax

AOCI (loss), beginning of year

(197,544)

(186,741)

(149,022)

Investment securities, OCI (loss)

(12,579)

(544)

Pension and other postretirement plans, OCI (loss)

45,205

(10,259)

(37,785)

OCI (loss)

32,626

(10,803)

(37,719)

AOCI (loss), end of year

(164,918)

(197,544)

(186,741)

Accumulated other comprehensive income (loss), tax

AOCI (loss), beginning of year

(41,485)

(65,360)

(52,158)

Investment securities, OCI (loss)

(2,642)

(354)

Pension and other postretirement plans, OCI (loss)

9,493

(2,154)

(13,225)

Reclassification adjustment

26,383

OCI (loss)

6,851

(2,508)

(13,202)

AOCI (loss), end of year

(34,634)

(41,485)

(65,360)

Accumulated other comprehensive income (loss), net of tax

AOCI (loss), beginning of year

(156,059)

(121,381)

(96,864)

Investment securities, OCI (loss)

(9,937)

(190)

Pension and other postretirement plans, OCI (loss)

(35,712)

8,105

24,560

Reclassification adjustment

^[1]

(26,383)

OCI (loss)

25,775

(8,295)

(24,517)

AOCI (loss), end of year

$ (130,284)

$ (156,059)

$ (121,381)

[1]

A one-time adjustment was made in the fourth quarter of 2017 to reclassify stranded tax effects of the components of accumulated other comprehensive income ("AOCI") resulting from enactment of Tax Cuts and Jobs Act ("TCJA") from AOCI to retained earnings. See Note 2, "Significant Accounting Policies".

Related Party (Details) $ in Thousands	11 Months Ended	12 Months Ended
Related Party (Details) $ in Thousands	Dec. 14, 2018 USD ($)	Dec. 31, 2019	Dec. 31, 2018 USD ($) Insurers Offices Affiliates	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Related party transactions
Indemnity's management fee rate as a percent of premiums written and assumed by the Exchange			25.00%
Minimum number of affiliates to be classified as an insurance holding company system \| Affiliates			2
Minimum number of insurer affiliates to be classified as an insurance holding company system \| Insurers			1
Rent expense on office space leased from Exchange			$ 6,200	$ 6,300	$ 14,300
Operating expenses on office space leased from Exchange			14,500	13,100
Reimbursements from the Exchange for rent and related operating expenses			4,700	4,600	$ 4,900
Note receivable from EFL			$ 0	$ 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			25.00%	25.00%	25.00%
Number of field office facilities leased from the Exchange \| Offices			3
Erie Insurance Exchange (EIE) \| Scenario, Forecast [Member]
Related party transactions
Indemnity's management fee rate as a percent of premiums written and assumed by the Exchange		25.00%
Erie Family Life Insurance Company (EFL)
Related party transactions
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			$ 1,600	$ 1,700	$ 1,700

Commitments and Contingencies (Details) $ in Millions	Dec. 31, 2018 USD ($)
Contractual commitments to invest in limited partnership investments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	$ 12.2
Private equity
Contractual commitments to invest in limited partnership investments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	4.4
Mezzanine debt
Contractual commitments to invest in limited partnership investments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	7.5
Real estate
Contractual commitments to invest in limited partnership investments
Represents the entity's maximum contractual commitments to invest in its limited partnership investments	$ 0.3

Supplementary Data on Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 62,314	$ 80,446	$ 79,706	$ 65,758	$ 32,053	$ 58,543	$ 58,527	$ 47,876	$ 288,224	$ 196,999	$ 210,366
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization									13,368	14,831	15,095
Deferred income tax (benefit) expense									(1,358)	26,912	(2)
Other income tax expense									0	10,095	0
Realized losses (gains) and impairments on investments									3,591	(1,152)	(256)
Equity in losses (earnings) of limited partnerships									822	(2,801)	(7,025)
(Gain) loss on disposal of fixed assets									(3,047)	98	59
Net amortization of bond premium									5,601	7,038	7,436
Decrease in deferred compensation									(3,886)	(2,681)	(4,561)
Limited partnership distributions									7,173	5,128	17,837
Increase in receivables from affiliates									(30,804)	(39,788)	(30,485)
Decrease (increase) in accrued investment income									1,590	(516)	(846)
Decrease (increase) in federal income taxes recoverable									21,738	(24,640)	6,687
(Increase) decrease in prepaid pension									(47,335)	(27,265)	10,524
Increase in prepaid expenses and other assets									(727)	(7,636)	(4,674)
Increase in accounts payable and accrued expenses									11,039	17,183	11,144
Increase in commissions payable									13,449	17,565	15,017
(Decrease) increase in accrued agent bonuses									(19,066)	7,756	8,020
Increase in contract liability									3,213	0	0
Net cash provided by operating activities									$ 263,585	$ 197,126	$ 254,336

Quarterly Results of Operations (unaudited) (Details) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares	Sep. 30, 2018 USD ($) $ / shares	Jun. 30, 2018 USD ($) $ / shares	Mar. 31, 2018 USD ($) $ / shares	Dec. 31, 2017 USD ($) $ / shares	Sep. 30, 2017 USD ($) $ / shares	Jun. 30, 2017 USD ($) $ / shares	Mar. 31, 2017 USD ($) $ / shares	Dec. 31, 2018 USD ($) Obligations $ / shares	Dec. 31, 2017 USD ($) $ / shares	Dec. 31, 2016 USD ($) $ / shares
Quarterly Results of Operations (unaudited)
Operating revenue	$ 576,468	$ 612,126	$ 621,458	$ 572,160	$ 401,402	$ 442,492	$ 448,564	$ 399,316	$ 2,382,212	$ 1,691,774	$ 1,596,631
Operating expenses	501,710	515,431	526,135	494,593	342,777	361,253	365,116	332,376	2,037,869	1,401,522	1,303,114
Investment income	4,995	8,431	6,207	6,163	7,134	8,418	6,451	6,589	25,796	28,592	27,839
Interest expense and other (income), net	(2,889)	655	544	509	1,118	792	664	575	(1,181)	3,149
Income before income taxes	82,642	104,471	100,986	83,221	64,641	88,865	89,235	72,954	371,320	315,695	320,091
Net income	$ 62,314	$ 80,446	$ 79,706	$ 65,758	$ 32,053	$ 58,543	$ 58,527	$ 47,876	288,224	196,999	210,366
Gain on sale of field offices									$ 3,400
Revenue, Performance Obligation [Abstract]
Performance obligations under subscriber's agreement \| Obligations									2
Effect of Tax Cuts and Jobs Act of 2017
Increase in income tax expense									$ 0	$ 10,095	$ 0
Class A Common Stock
Net income per share
Common stock - basic (in dollars per share) \| $ / shares	$ 1.34	$ 1.73	$ 1.71	$ 1.41	$ 0.69	$ 1.26	$ 1.26	$ 1.03	$ 6.19	$ 4.23	$ 4.52
Common stock - diluted (in dollars per share) \| $ / shares	1.19	1.54	1.52	1.26	0.61	1.12	1.12	0.91	5.51	3.76	4.01
Class B Common Stock
Net income per share
Common stock - basic (in dollars per share) \| $ / shares	201	259	257	212	103	189	189	154	928	635	678
Common stock - diluted (in dollars per share) \| $ / shares	$ 201	$ 259	$ 257	$ 212	$ 103	$ 189	$ 188	$ 154	$ 928	$ 634	$ 677
Tax Cuts and Jobs Act of 2017
Effect of Tax Cuts and Jobs Act of 2017
Increase in income tax expense					$ 10,100					$ 10,100
Tax Cuts and Jobs Act of 2017 \| Class A Common Stock
Effect of Tax Cuts and Jobs Act of 2017
Impact on diluted EPS (per share) \| $ / shares					$ (0.19)					$ (0.19)
Tax Cuts and Jobs Act of 2017 \| Class B Common Stock
Effect of Tax Cuts and Jobs Act of 2017
Impact on diluted EPS (per share) \| $ / shares					$ (32)

STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Class A Common Stock
Dividends declared (in dollars per share)	$ 3.42	$ 3.1875	$ 2.9725
Class B Common Stock
Dividends declared (in dollars per share)	$ 513.00	$ 478.1250	$ 445.8750

Concentrations of Credit Risk	12 Months Ended
Concentrations of Credit Risk	Dec. 31, 2018
Risks and Uncertainties [Abstract]
Concentrations of Credit Risk	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 its subsidiaries. See also Note 1, "Nature of Operations". Management fee amounts and other reimbursements due from the Exchange and its subsidiaries were $449.9 million and $418.3 million at December 31, 2018 and 2017, respectively.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events No items were identified in this period subsequent to the financial statement date that required adjustment or additional disclosure.

Fair Value - Fair Value Measurements on a Recurring Basis by Asset Class and Level of Input (Details)	12 Months Ended
	Dec. 31, 2018 USD ($) fund	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	$ 748,523,000	$ 745,961,000
Equity securities	11,853,000
Total available-for-sale securities		758,713,000
Total	763,582,000	763,529,000
Other limited partnership investments:
Contributions made to the funds	243,000	410,000	$ 578,000
Distributions received from the funds	$ 3,387,000	10,768,000	$ 16,113,000
Number of real estate funds reported under the fair value option \| fund	1
U.S. Treasury
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	$ 208,412,000	11,734,000
States and political subdivisions
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	159,023,000	259,264,000
Foreign government securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities		503,000
Corporate debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	249,947,000	346,523,000
Residential mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	4,609,000	25,571,000
Commercial mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	46,515,000	32,804,000
Collateralized debt obligations
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	64,239,000	58,034,000
Other debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	15,778,000	11,528,000
Nonredeemable preferred stock \| Financial Services Sector
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale equity securities		11,659,000
Nonredeemable preferred stock \| Utilities Sector
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale equity securities		1,093,000
Quoted prices in active markets for identical assets Level 1
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0	0
Equity securities	1,809,000
Total available-for-sale securities		2,015,000
Total	1,809,000	2,015,000
Observable inputs Level 2
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	735,946,000	735,882,000
Equity securities	10,044,000
Total available-for-sale securities		746,619,000
Total	745,990,000	746,619,000
Unobservable inputs Level 3
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	12,577,000	10,079,000
Equity securities	0
Total available-for-sale securities		10,079,000
Total	12,577,000	10,079,000
Fair Value, Measurements, Recurring Basis \| U.S. Treasury
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	208,412,000	11,734,000
Fair Value, Measurements, Recurring Basis \| States and political subdivisions
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	159,023,000	259,264,000
Fair Value, Measurements, Recurring Basis \| Foreign government securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities		503,000
Fair Value, Measurements, Recurring Basis \| Corporate debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	249,947,000	346,523,000
Fair Value, Measurements, Recurring Basis \| Residential mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	4,609,000	25,571,000
Fair Value, Measurements, Recurring Basis \| Commercial mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	46,515,000	32,804,000
Fair Value, Measurements, Recurring Basis \| Collateralized debt obligations
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	64,239,000	58,034,000
Fair Value, Measurements, Recurring Basis \| Other debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	15,778,000	11,528,000
Fair Value, Measurements, Recurring Basis \| Nonredeemable preferred stock \| Financial Services Sector
Fair value measurements on a recurring basis by asset class and level of input
Equity securities	11,853,000
Available-for-sale equity securities		11,659,000
Fair Value, Measurements, Recurring Basis \| Nonredeemable preferred stock \| Utilities Sector
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale equity securities		1,093,000
Fair Value, Measurements, Recurring Basis \| Real estate
Other limited partnership investments:
Contributions made to the funds	0	0
Distributions received from the funds	1,200,000	500,000
Unfunded commitments	$ 0	0
Number of real estate funds reported under the fair value option \| fund	1
Fair Value, Measurements, Recurring Basis \| Quoted prices in active markets for identical assets Level 1 \| U.S. Treasury
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	$ 0	0
Fair Value, Measurements, Recurring Basis \| Quoted prices in active markets for identical assets Level 1 \| States and political subdivisions
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring Basis \| Quoted prices in active markets for identical assets Level 1 \| Foreign government securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities		0
Fair Value, Measurements, Recurring Basis \| Quoted prices in active markets for identical assets Level 1 \| Corporate debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring Basis \| Quoted prices in active markets for identical assets Level 1 \| Residential mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring Basis \| Quoted prices in active markets for identical assets Level 1 \| Commercial mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring Basis \| Quoted prices in active markets for identical assets Level 1 \| Collateralized debt obligations
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring Basis \| Quoted prices in active markets for identical assets Level 1 \| Other debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring Basis \| Quoted prices in active markets for identical assets Level 1 \| Nonredeemable preferred stock \| Financial Services Sector
Fair value measurements on a recurring basis by asset class and level of input
Equity securities	1,809,000
Available-for-sale equity securities		2,015,000
Fair Value, Measurements, Recurring Basis \| Quoted prices in active markets for identical assets Level 1 \| Nonredeemable preferred stock \| Utilities Sector
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale equity securities		0
Fair Value, Measurements, Recurring Basis \| Observable inputs Level 2 \| U.S. Treasury
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	208,412,000	11,734,000
Fair Value, Measurements, Recurring Basis \| Observable inputs Level 2 \| States and political subdivisions
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	159,023,000	259,264,000
Fair Value, Measurements, Recurring Basis \| Observable inputs Level 2 \| Foreign government securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities		503,000
Fair Value, Measurements, Recurring Basis \| Observable inputs Level 2 \| Corporate debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	237,370,000	338,644,000
Fair Value, Measurements, Recurring Basis \| Observable inputs Level 2 \| Residential mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	4,609,000	25,571,000
Fair Value, Measurements, Recurring Basis \| Observable inputs Level 2 \| Commercial mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	46,515,000	32,804,000
Fair Value, Measurements, Recurring Basis \| Observable inputs Level 2 \| Collateralized debt obligations
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	64,239,000	55,834,000
Fair Value, Measurements, Recurring Basis \| Observable inputs Level 2 \| Other debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	15,778,000	11,528,000
Fair Value, Measurements, Recurring Basis \| Observable inputs Level 2 \| Nonredeemable preferred stock \| Financial Services Sector
Fair value measurements on a recurring basis by asset class and level of input
Equity securities	10,044,000
Available-for-sale equity securities		9,644,000
Fair Value, Measurements, Recurring Basis \| Observable inputs Level 2 \| Nonredeemable preferred stock \| Utilities Sector
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale equity securities		1,093,000
Fair Value, Measurements, Recurring Basis \| Unobservable inputs Level 3 \| U.S. Treasury
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring Basis \| Unobservable inputs Level 3 \| States and political subdivisions
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring Basis \| Unobservable inputs Level 3 \| Foreign government securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities		0
Fair Value, Measurements, Recurring Basis \| Unobservable inputs Level 3 \| Corporate debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	12,577,000	7,879,000
Fair Value, Measurements, Recurring Basis \| Unobservable inputs Level 3 \| Residential mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring Basis \| Unobservable inputs Level 3 \| Commercial mortgage-backed securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring Basis \| Unobservable inputs Level 3 \| Collateralized debt obligations
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0	2,200,000
Fair Value, Measurements, Recurring Basis \| Unobservable inputs Level 3 \| Other debt securities
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring Basis \| Unobservable inputs Level 3 \| Nonredeemable preferred stock \| Financial Services Sector
Fair value measurements on a recurring basis by asset class and level of input
Equity securities	0
Available-for-sale equity securities		0
Fair Value, Measurements, Recurring Basis \| Unobservable inputs Level 3 \| Nonredeemable preferred stock \| Utilities Sector
Fair value measurements on a recurring basis by asset class and level of input
Available-for-sale equity securities		0
Fair Value, Measurements, Recurring Basis \| Fair value option using net asset value (NAV) \| Real estate
Fair value measurements on a recurring basis by asset class and level of input
Other limited partnership investments	$ 3,206,000	$ 4,816,000

Concentrations of Credit Risk (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Concentrations of credit risk from unsecured receivables
Receivables from Erie Insurance Exchange and its subsidiaries	$ 449,873	$ 418,328