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## Dear Shareholders: 

A shared vision and supporting strategic plan are critical elements to ERIE’s success. It’s superior execution, however, that leads to the creation of shareholder value. This is where we excel today, and it’s an attribute we’re building on to ensure the high performance of both the Exchange and Indemnity. 

The success of Erie Indemnity Company depends on the success of the Erie Insurance Exchange, the reciprocal insurer we manage. They have a symbiotic relationship. One cannot stand strong without the other. Therefore, it’s important to discuss the health of the Exchange to lend greater transparency to the business operations and fi nancial results of Erie Indemnity. 

## Working our plan 

Last year, I shared our enterprise strategy with you and outlined the fi ve goals we’re striving toward: 

1. Grow market share 

2. Outperform the industry’s combined ratio 

3. Improve our service delivery in a cost-effective manner 

4. Improve Employee and Agent competencies 

5. Maintain strong balance sheets across the enterprise 

I’m pleased to tell you that we’ve made good progress toward each. I credit this to four things— clear direction, strong leadership, a high-level of Employee competency and solid execution. 

## 2010 financial highlights 

## 2010 A.M. Best Ratings: 

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## Erie Insurance Exchange 

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## Erie Indemnity Company 

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