UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

For the quarterly period ended June 30, 2001

                                       OR

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from ______ to ______

                         Commission file number 2-39458

                       ERIE FAMILY LIFE INSURANCE COMPANY
               (Exact name of registrant as specified in its charter)

             PENNSYLVANIA                                        25-1186315
  (State or other jurisdiction of                            (I.R.S. Employer
  incorporation or organization)                             Identification No.)


100 Erie Insurance Place, Erie, Pennsylvania                        16530
  (Address of principal executive offices)                        (Zip Code)

Registrant's telephone number, including area code   (814) 870-2000


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

        Yes  X        No ___


Indicate the number of shares outstanding of each of the Registrant's classes of
common stock, as of the latest practicable date: 9,450,000 shares of Common
Stock outstanding on July 31, 2001.


                                       1
<PAGE>


                                      INDEX

                       ERIE FAMILY LIFE INSURANCE COMPANY


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

        Statements of Financial Position--June 30, 2001 and December 31, 2000

        Statements of Operations--Three and six months ended June 30, 2001 and
        2000

        Statements of Comprehensive Income--Three and six months ended June 30,
        2001 and 2000

        Statements of Cash Flows--Six months ended June 30, 2001 and 2000

        Notes to Financial Statements--June 30, 2001

Item 2. Management's Discussion and Analysis of Financial
               Condition and Results of Operations

Item 3. Quantitative and Qualitative Disclosures About Market Risk

PART II. OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K


SIGNATURES


                                       2
<PAGE>


PART I.  FINANCIAL INFORMATION

<TABLE>
<CAPTION>

                       ERIE FAMILY LIFE INSURANCE COMPANY
                        STATEMENTS OF FINANCIAL POSITION

                                                                                                   (Dollars in thousands)
                                                                                               June 30,             December 31,
ASSETS                                                                                           2001                  2000
                                                                                              -----------           ------------
                                                                                              (Unaudited)
<S>                                                                                            <C>                    <C>
Investments:
      Fixed Maturities at fair value (amortized cost
        of $689,873 and $695,078, respectively)                                                $  697,379             $  683,651
      Equity Securities at fair value
        (cost of $136,295 and $127,389, respectively)                                             144,634                137,918
      Limited Partnerships
        (cost of $38,060 and $35,504, respectively)                                                39,169                 42,074
      Real Estate                                                                                   1,302                  1,376
      Policy Loans                                                                                  8,372                  7,766
      Real Estate Mortgage Loans                                                                    7,431                  8,284
                                                                                               ----------             ----------


        Total Invested Assets                                                                  $  898,287             $  881,069

      Cash and Cash Equivalents                                                                    43,559                 17,955
      Premiums Receivable from Policyholders                                                        4,755                  4,609
      Reinsurance Recoverable                                                                         360                    612
      Other Receivables                                                                               474                    392
      Accrued Investment Income                                                                    12,353                 12,038
      Deferred Policy Acquisition Costs                                                            87,386                 84,723
      Reserve Credit for Reinsurance Ceded                                                         10,100                  9,076
      Prepaid Federal Income Taxes                                                                    282                    167
      Other Assets                                                                                 10,158                  9,702
                                                                                               ----------             ----------

        Total Assets                                                                           $1,067,714             $1,020,343
                                                                                               ==========             ==========

<FN>
See notes to financial statements.
</FN>

</TABLE>


                                       3
<PAGE>

<TABLE>
<CAPTION>

                       ERIE FAMILY LIFE INSURANCE COMPANY
                        STATEMENTS OF FINANCIAL POSITION

                                                                                                 (Dollars in thousands)
                                                                                               June 30,             December 31,
LIABILITIES AND SHAREHOLDERS' EQUITY                                                             2001                   2000
                                                                                             -----------            ------------
                                                                                             (Unaudited)
<S>                                                                                           <C>                     <C>
Liabilities:
      Policy Liabilities and Accruals:
       Future Life Policy Benefits                                                            $   81,023              $   76,879
       Future Accident and Health Policy Benefits                                                     19                       0
       Policy and Contract Claims                                                                  1,577                   2,473
        Annuity Deposits                                                                         604,209                 584,174
        Universal Life Deposits                                                                  114,306                 107,192
        Supplementary Contracts Not
          Including Life Contingencies                                                               522                     550
      Other Policyholder Funds                                                                     5,172                   4,615
      Deferred Income Taxes                                                                       28,038                  23,819
      Reinsurance Premium Due                                                                        715                     894
      Accounts Payable and Accrued Expenses                                                        5,416                   5,297
      Note Payable to Erie Indemnity Company                                                      15,000                  15,000
      Due to Affiliate                                                                             1,408                   2,029
      Dividends Payable                                                                            3,686                   1,701
                                                                                              ----------              ----------

        Total Liabilities                                                                     $  861,091              $  824,623
                                                                                              ----------              ----------

Shareholders' Equity:
      Common Stock, $.40 Par Value Per Share;
        Authorized 15,000,000 Shares; 9,450,000
        Shares Issued and Outstanding                                                         $    3,780              $    3,780
      Additional Paid-In Capital                                                                     630                     630
      Accumulated Other Comprehensive Income                                                      11,020                   3,687
      Retained Earnings                                                                          191,193                 187,623
                                                                                              ----------              ----------

        Total Shareholders' Equity                                                            $  206,623              $  195,720
                                                                                              ----------              ----------

        Total Liabilities and Shareholders' Equity                                            $1,067,714              $1,020,343
                                                                                              ==========              ==========


<FN>
See notes to financial statements.
</FN>

</TABLE>


                                       4
<PAGE>

<TABLE>
<CAPTION>

                       ERIE FAMILY LIFE INSURANCE COMPANY
                      STATEMENTS OF OPERATIONS (Unaudited)

                                                                                (Dollars in thousands, except per share data)
                                                                              Three Months Ended             Six Months Ended
                                                                                   June 30                       June 30
                                                                            ----------------------        ----------------------
                                                                             2001           2000           2001           2000
<S>                                                                        <C>             <C>           <C>             <C>
Revenues:
   Policy:
   Life Premiums, net of premiums ceded of
     $1,976, $1,200, $3,422 and
     $2,103, respectively                                                   $11,213        $10,986        $21,528        $20,783
   Group and Other Premiums, net of premiums
     ceded of $25, $0, $39 and $0, respectively                                 648            657          1,329          1,332
                                                                            -------        -------        -------        -------
       Total Policy Revenue                                                 $11,861        $11,643        $22,857        $22,115
   Investment Income, net of expenses of
     $527, $454, $998 and $917, respectively                                 15,865         14,966         30,574         29,730
   Equity in Earnings of Limited Partnerships                                 1,767          1,399            802          2,370
   Net Realized (Losses)Gains on Investments                               (  1,067)         1,603       (    473)         3,852
   Other Income                                                                 178            211            370            515
                                                                            -------        -------        -------        -------
Total Revenues                                                              $28,604        $29,822        $54,130        $58,582
                                                                            -------        -------        -------        -------

Benefits and Expenses:
   Death Benefits, net of reinsurance recoveries
     of $224, $263, $766 and $1,285, respectively                           $ 1,956        $ 3,444        $ 5,284        $ 6,170
   Interest on Annuity Deposits                                               8,789          8,331         17,146         16,883
   Interest on Universal Life Deposits                                        1,677          1,510          3,332          2,968
   Surrender and Other Benefits                                                 330            271            467            546
   Increase in Future Life Policy Benefits, net of
     the increase in reserve credit for reinsurance
     ceded of $676, $256, $1,024 and
     $389, respectively                                                       1,449          1,529          3,137          2,623
   Amortization of Deferred Policy Acquisition Costs                          2,192          2,456          3,838          3,933
   Commissions, net of reinsurance reimbursements
     of $828, $545, $1,677 and $924, respectively                               318            225            911            702
   General Expenses                                                           2,724          2,502          5,067          4,720
   Taxes, Licenses and Fees                                                     527            563          1,045          1,097
                                                                            -------        -------        -------        -------
Total Benefits and Expenses                                                 $19,962        $20,831        $40,227        $39,642
                                                                            -------        -------        -------        -------

Income From Operations                                                      $ 8,642        $ 8,991        $13,903        $18,940
Provision for Federal Income Taxes:
   Current                                                                    2,627          2,404          4,533          5,380
   Deferred                                                                     358            707            272          1,173
                                                                            -------        -------        -------        -------
Total Provision for Federal Income Taxes                                      2,985          3,111          4,805          6,553
                                                                            -------        -------        -------        -------

Net Income                                                                  $ 5,657        $ 5,880        $ 9,098        $12,387
                                                                            =======        =======        =======        =======

Net Income Per Share                                                        $  0.60        $  0.62        $  0.96        $  1.31
                                                                            =======        =======        =======        =======

Dividends Declared Per Share                                                $  0.39        $  0.36        $ 0.585        $  0.54
                                                                            =======        =======        =======        =======

<FN>
See notes to financial statements.
</FN>

</TABLE>


                                       5
<PAGE>

<TABLE>
<CAPTION>

                       ERIE FAMILY LIFE INSURANCE COMPANY
                 STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

                                                                                             (Dollars in thousands)
                                                                                Three Months Ended             Six Months Ended
                                                                                     June 30                       June 30
                                                                              ----------------------        ----------------------
                                                                               2001           2000           2001           2000

<S>                                                                          <C>            <C>            <C>            <C>
Net Income                                                                    $5,657         $5,880         $ 9,098        $12,387
                                                                              ------         ------         -------        -------
Unrealized Gains (Losses) on Securities:
   Unrealized Holding Gains (Losses) Arising
     During Period                                                             1,452        ( 7,229)         10,808         15,173
   Less:  Reclassification Adjustment for Losses (Gains)
     Included in Net Income                                                    1,067        ( 1,603)            473       (  3,852)
                                                                              ------         ------         -------        -------
     Net Unrealized Holding Gains (Losses)
       Arising During Period                                                  $2,519        ($8,832)        $11,281        $11,321
                                                                              ------         ------         -------        -------

Income Tax (Expense) Benefit Related to
   Unrealized Gains (Losses)                                                 (   881)         3,091        (  3,948)      (  3,963)
                                                                              ------         ------         -------        -------

Other Comprehensive Income (Loss), Net of Tax                                 $1,638        ($5,741)        $ 7,333        $ 7,358
                                                                              ------         ------         -------        -------

Comprehensive Income                                                          $7,295         $  139         $16,431        $19,745
                                                                              ======         ======         =======        =======

<FN>
See notes to financial statements.
</FN>

</TABLE>




                                       6
<PAGE>

<TABLE>
<CAPTION>

                       ERIE FAMILY LIFE INSURANCE COMPANY
                      STATEMENTS OF CASH FLOWS (Unaudited)

                                                                                                (Dollars in thousands)
                                                                                           Six Months Ended        Six Months Ended
                                                                                             June 30, 2001           June 30, 2000
                                                                                           ----------------        ----------------
<S>                                                                                             <C>                     <C>
Cash flows from operating activities:
Net income                                                                                       $  9,098                $ 12,387
Adjustments to reconcile net income to net cash
   provided by operating activities:
     Net amortization of bond and mortgage premium                                                     94                     107
     Amortization of deferred policy acquisition costs                                              3,838                   3,933
     Real estate depreciation                                                                          41                      41
     Software amortization                                                                            125                     125
     Deferred federal income tax expense                                                              272                   1,173
Realized losses (gains) on investments                                                                473               (   3,852)
Increase in premiums receivable                                                                 (     146)              (     246)
(Increase) decrease in other receivables                                                        (      82)                     78
Increase in accrued investment income                                                           (     315)              (   1,169)
Increase in policy acquisition costs deferred                                                   (   6,501)              (   6,087)
Increase in other assets                                                                        (     547)              (     431)
Increase in reinsurance recoverables
   and reserve credits                                                                          (     772)              (     243)
Increase in future policy benefits and claims                                                       3,265                   4,216
Increase (decrease) in other Policyholder funds                                                       559               (     594)
Decrease in reinsurance premium due                                                             (     179)              (     318)
Increase in prepaid federal income taxes                                                        (     115)              (   1,623)
(Decrease) increase in accounts payable and due to affiliate                                    (     502)                    312
                                                                                                 --------                --------
       Net cash provided by operating activities                                                 $  8,606                $  7,809
                                                                                                 --------                --------

Cash flows from investing activities:
Purchase of investments:
   Fixed maturities                                                                             ($ 87,905)              ($ 60,507)
   Equity securities                                                                            (   9,531)              (  18,817)
   Limited partnerships                                                                         (   3,410)              (   3,751)
Sales/maturities of investments:
   Fixed maturities                                                                                84,522                  28,905
   Equity securities                                                                                8,643                  15,269
   Limited partnerships                                                                               853                   1,903
Principal payments received on mortgage loans                                                         853                   1,594
Loans made to Policyholders                                                                     (   1,095)              (   1,118)
Payments received on policy loans                                                                     491                     590
                                                                                                 --------                --------
       Net cash used in investing activities                                                    ($  6,579)              ($ 35,932)
                                                                                                 --------                --------

Cash flows from financing activities:
Increase in annuity and supplementary contract deposits                                          $ 20,006                $  3,481
Increase in universal life deposits                                                                 7,115                   6,481
Dividends paid to Shareholders                                                                  (   3,544)              (   3,260)
                                                                                                 --------                --------
       Net cash provided by financing activities                                                 $ 23,577                $  6,702
                                                                                                 --------                --------
Net increase (decrease) in cash and cash equivalents                                               25,604               (  21,421)
Cash and cash equivalents at beginning of year                                                     17,955                  27,358
                                                                                                 --------                --------
Cash and cash equivalents at end of quarter                                                      $ 43,559                $  5,937
                                                                                                 ========                ========

Supplemental disclosures of cash flow information: Cash paid during the year
for:
   Interest                                                                                      $    588                $    596
   Income taxes                                                                                     4,550                   6,900

<FN>
See notes to financial statements
</FN>

</TABLE>

                                       7
<PAGE>

                       ERIE FAMILY LIFE INSURANCE COMPANY
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                     All amounts are in thousands of dollars

NOTE A -- BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting  principles for interim financial information
and with  the  instructions  to Form  10-Q and  Rule  10-01 of  Regulation  S-X.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting  principles for complete financial  statements.
In the opinion of management,  all adjustments  (consisting of normal  recurring
accruals)  considered  necessary  for a fair  presentation  have been  included.
Operating  results  for  the  six-month  period  ended  June  30,  2001  are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 2001. For further  information,  refer to the financial  statements
and footnotes  thereto  included in the Company's annual report on Form 10-K for
the year ended December 31, 2000.

NOTE B -- INVESTMENTS

Management  considers all fixed  maturities  and  marketable  equity  securities
available-for-sale. Marketable equity securities consist primarily of common and
non-redeemable  preferred  stock  while  fixed  maturities  consist of bonds and
notes.  Available-for-sale  securities  are  stated  at  fair  value,  with  the
unrealized  gains and losses,  net of tax,  reported as a separate  component of
Shareholders' equity.  Management  determines the appropriate  classification of
fixed  maturities at the time of purchase and reevaluates such designation as of
each statement of financial position date.

The following is a summary of available-for-sale securities:

<TABLE>
<CAPTION>
                                                                                    Gross              Gross
                                                               Amortized          Unrealized        Unrealized        Estimated
                                                                  Cost               Gains            Losses          Fair Value
                                                               -----------------------------------------------------------------
<S>                                                            <C>                <C>                <C>                <C>
June 30, 2001
Fixed Maturities:
U.S. Treasuries and Government
   Agencies                                                    $ 12,090           $    768           $      0           $ 12,858
States and Political Subdivisions                                   195                  2                  0                197
Special Revenue                                                   9,431                307                  0              9,738
Public Utilities                                                 71,639              1,700              1,364             71,975
U.S. Banks, Trusts and Insurance
   Companies                                                    121,265              4,209              1,662            123,812
U.S. Industrial and Miscellaneous                               407,624              8,811              3,897            412,538
Foreign                                                          67,629              1,089              2,457             66,261
                                                               --------           --------           --------           --------
     Total Fixed Maturities                                    $689,873           $ 16,886           $  9,380           $697,379
                                                               --------           --------           --------           --------

Equity Securities:
Common Stock                                                   $ 67,542           $ 18,268           $ 11,918           $ 73,892
Non-Redeemable Preferred Stock                                   68,753              2,637                648             70,742
                                                               --------           --------           --------           --------
     Total Equity Securities                                   $136,295           $ 20,905           $ 12,566           $144,634
                                                               --------           --------           --------           --------
       Total Available-for-Sale
       Securities                                              $826,168           $ 37,791           $ 21,946           $842,013
                                                               ========           ========           ========           ========

</TABLE>

                                       8
<PAGE>

<TABLE>
<CAPTION>


                                                  ERIE FAMILY LIFE INSURANCE COMPANY
                                         NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTE B -- INVESTMENTS (Continued)

                                                                                      Gross             Gross
                                                                 Amortized          Unrealized        Unrealized        Estimated
                                                                   Cost               Gains             Losses          Fair Value
                                                                 -----------------------------------------------------------------
  <S>                                                            <C>                <C>                <C>                <C>
  December 31, 2000
  Fixed Maturities:
  U.S. Treasuries and Government
     Agencies                                                    $ 12,114           $    835           $      6           $ 12,943
  States and Political Subdivisions                                   195                  8                  0                203
  Special Revenue                                                   9,458                271                  0              9,729
  Public Utilities                                                 71,732              1,774              1,439             72,067
  U.S. Banks, Trusts and Insurance
     Companies                                                    125,125              2,162              4,163            123,124
  U.S. Industrial and Miscellaneous                               401,160              5,645             13,105            393,700
  Foreign                                                          67,630                489              4,394             63,725
                                                                 --------           --------           --------           --------
       Total Bonds                                               $687,414           $ 11,184           $ 23,107           $675,491

  Redeemable Preferred Stock                                        7,664                496                  0              8,160
                                                                 --------           --------           --------           --------
       Total Fixed Maturities                                    $695,078           $ 11,680           $ 23,107           $683,651
                                                                 --------           --------           --------           --------

  Equity Securities:
  Common Stock                                                   $ 62,081           $ 21,621           $ 10,177           $ 73,525
  Non-Redeemable Preferred Stock                                   65,308                804              1,719             64,393
                                                                 --------           --------           --------           --------
       Total Equity Securities                                   $127,389           $ 22,425           $ 11,896           $137,918
                                                                 --------           --------           --------           --------
         Total Available-for-Sale
         Securities                                              $822,467           $ 34,105           $ 35,003           $821,569
                                                                 ========           ========           ========           ========

</TABLE>

If management  determines that any declines in market value of these investments
are other than temporary,  the securities will be written down to the realizable
value and reflected in income.  If a bond is in default of interest payments and
it is determined that liquidation of the security would be in the Company's best
interest,  the security will be sold to return the proceeds to income  producing
assets.

In the third  quarter  2000,  the Company  began  participating  in a securities
lending  program  whereby  certain  securities  from its portfolio are loaned to
other  institutions  for short  periods of time. A fee is paid to the Company by
the borrower.  Collateral that exceeds the market value of the loaned securities
is maintained by the lending agent. The Company has an indemnification agreement
with the lending  agents in the event a borrower  becomes  insolvent or fails to
return  securities.  At June 30, 2001, the Company had loaned  securities with a
market value of $40.5 million and secured by collateral  of $41.5  million.  The
borrower of the  securities  is not permitted to sell or replace the security on
loan.

Limited  partnerships  include U.S. and foreign private equity,  real estate and
fixed income  investments.  The private  equity limited  partnerships  invest in
small- to medium-sized  companies.  The private equity limited  partnerships are
carried at  estimated  market  value with  unrealized  gains and losses,  net of
deferred  taxes,   reflected  in  Shareholders'   equity  in  accumulated  other
comprehensive income. Investment income or loss is recognized on the sale of the
equity  investment.  Real  estate  and fixed  income  limited  partnerships  are
recorded using the equity method,  which approximates the Company's share of the
carrying value of the partnership.


                                       9
<PAGE>


                       ERIE FAMILY LIFE INSURANCE COMPANY
              NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTE B -- INVESTMENTS (Continued)

The components of equity in earnings of limited  partnerships as reported on the
Statements of Operations are as follows:

                      Three Months Ended          Six Months Ended
                           June 30                    June 30
                     --------------------       --------------------
                       2001         2000         2001          2000

  Private Equity     $ 1,435      ($   91)      $ 198        ($   36)
  Real Estate            292        1,345         559          1,555
  Fixed Income            40          145          45            851
                     -------      -------       -----        -------
                     $ 1,767      $ 1,399       $ 802        $ 2,370
                     =======      =======       =====        =======

The Company began using forward currency contracts to hedge the risks related to
investments in partnerships in 2001.  These contracts are being recorded at fair
value on the  Statements of Financial  Position.  A loss of $36 and $68 has been
recognized in the Statements of Operations during the three and six months ended
June 30, 2001, respectively.

Real estate  investments are carried on the Statements of Financial  Position at
cost, less allowances for depreciation and possible losses.  Commercial mortgage
loans  on real  estate  are  carried  at their  unpaid  balances,  adjusted  for
amortization  of premium or discount,  less allowances for possible loan losses.
Policy loans are carried at their unpaid balances.

NOTE C -- SEGMENT INFORMATION

The  Company's  portfolio of  Traditional  insurance  includes  permanent  life,
endowment and term policies,  including whole life. The Group and Other category
presented in the table below includes group life insurance and disability income
products.  The Corporate category includes investment income earned from surplus
not specifically attached to any one product type.

<TABLE>
<CAPTION>


Three Months Ended                                               Universal                    Group &
   June 30, 2001                                   Traditional      Life        Annuities      Other        Corporate       Total
--------------------                               -----------   ---------      ---------     -------       ---------      -------
  <S>                                               <C>           <C>           <C>          <C>             <C>           <C>
  Total policy revenue, net of
     reinsurance                                    $ 8,558       $ 2,654       $     7       $   642        $     0       $11,861
  Total investment-related
    and other income                                  1,597         1,939        10,585            39          2,583        16,743
                                                    -------       -------       -------       -------        -------       -------
       Total revenues                               $10,155       $ 4,593       $10,592       $   681        $ 2,583       $28,604
                                                    -------       -------       -------       -------        -------       -------

  Less: Total benefits and
     expenses                                         6,551         3,380         9,312           719              0        19,962
                                                    -------       -------       -------       -------        -------       -------

     Income (loss) from
       operations, before taxes                     $ 3,604       $ 1,213       $ 1,280      ($    38)       $ 2,583       $ 8,642
                                                    =======       =======       =======       =======        =======       =======

</TABLE>

                                       10
<PAGE>

<TABLE>
<CAPTION>
                                                  ERIE FAMILY LIFE INSURANCE COMPANY
                                         NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTE C -- SEGMENT INFORMATION (Continued)



Six Months Ended                                                 Universal                    Group &
  June 30, 2001                                   Traditional       Life       Annuities       Other       Corporate        Total
------------------                                -----------    ---------     ---------      --------     ---------       -------
  <S>                                                <C>           <C>           <C>           <C>           <C>           <C>
  Total policy revenue, net of
     reinsurance                                     $16,192       $ 5,335       $     8       $ 1,322       $     0       $22,857
  Total investment-related
    and other income                                   2,994         3,641        19,814            72         4,752        31,273
                                                     -------       -------       -------       -------       -------       -------
       Total revenues                                $19,186       $ 8,976       $19,822       $ 1,394       $ 4,752       $54,130
                                                     -------       -------       -------       -------       -------       -------

  Less: Total benefits and
     expenses                                         13,779         7,482        18,142           824             0        40,227
                                                     -------       -------       -------       -------       -------       -------

     Income from operations,
       before taxes                                  $ 5,407       $ 1,494       $ 1,680       $   570       $ 4,752       $13,903
                                                     =======       =======       =======       =======       =======       =======
</TABLE>

<TABLE>
<CAPTION>

Three Months Ended                                               Universal                    Group &
   June 30, 2000                                 Traditional       Life       Annuities       Other       Corporate        Total
---------------------                             -----------    ---------     ---------      --------     ---------       -------
  <S>                                                <C>           <C>           <C>           <C>           <C>           <C>
  Total policy revenue, net of
     reinsurance                                     $ 8,406       $ 2,579       $     0       $   658       $     0       $11,643
  Total investment-related
    and other income                                     471         2,258        12,320            26         3,104        18,179
                                                     -------       -------       -------       -------       -------       -------
       Total revenues                                $ 8,877       $ 4,837       $12,320       $   684       $ 3,104       $29,822
                                                     -------       -------       -------       -------       -------       -------

  Less: Total benefits and
     expenses                                          7,130         4,037         9,180           484             0        20,831
                                                     -------       -------       -------       -------       -------       -------

     Income from operations,
       before taxes                                  $ 1,747       $   800       $ 3,140       $   200       $ 3,104       $ 8,991
                                                     =======       =======       =======       =======       =======       =======
</TABLE>

<TABLE>
<CAPTION>

Six Months Ended                                                 Universal                    Group &
  June 30, 2000                                   Traditional       Life       Annuities       Other       Corporate        Total
-----------------                                 -----------   -----------    ---------      --------     ---------       -------
  <S>                                                <C>           <C>           <C>           <C>           <C>           <C>
  Total policy revenue, net of
     reinsurance                                     $15,655       $ 5,127       $     1       $ 1,332       $     0       $22,115
  Total investment-related
    and other income                                   2,133         4,244        23,911            65         6,114        36,467
                                                     -------       -------       -------       -------       -------       -------
       Total revenues                                $17,788       $ 9,371       $23,912       $ 1,397       $ 6,114       $58,582
                                                     -------       -------       -------       -------       -------       -------

  Less: Total benefits and
     expenses                                         13,195         7,292        18,324           831             0        39,642
                                                     -------       -------       -------       -------       -------       -------

     Income from operations,
       before taxes                                  $ 4,593       $ 2,079       $ 5,588       $   566       $ 6,114       $18,940
                                                     =======       =======       =======       =======       =======       =======

</TABLE>

                                       11
<PAGE>





                       ERIE FAMILY LIFE INSURANCE COMPANY
              NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTE D -- REINSURANCE

The Company has entered  into  various  reinsurance  treaties for the purpose of
ceding the excess of life insurance over retention limits. Reinsurance contracts
do not relieve the Company from its  obligations  to  Policyholders.  Failure of
reinsurers to honor their obligations could result in losses to the Company. The
Company  evaluates  the  financial  condition  of its  reinsurers  and  monitors
concentrations  of credit risk to minimize  its exposure to  significant  losses
from reinsurer insolvencies. The Company considers all of its reinsurance assets
to  be   collectible,   therefore,   no  allowance  has  been   established  for
uncollectible  amounts.  The Company's  retention limit is $300,000 per life for
individual and $200,000 per life for group coverage.  For its disability  income
product,  the Company also has a 50%  coinsurance  agreement with its reinsurer.
Reinsurance recoveries for the three and six months ended June 30, 2001 and 2000
were $224, $263, $766 and $1,285, respectively.

NOTE E -- RECLASSIFICATION

Certain amounts, as previously reported in the 2000 financial  statements,  have
been  reclassified  to  conform  to  the  current  year's  financial   statement
presentation.


                                       12
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

The following  discussion and analysis  should be read in  conjunction  with the
historical financial  information and related notes found on pages 3 through 12,
herein,  and  Management's  Discussion  and Analysis of Financial  Condition and
Results of  Operations  contained in our Annual Report on Form 10-K for the year
ended December 31, 2000 as filed with the Securities and Exchange  Commission on
March 19, 2001.

FINANCIAL OVERVIEW

Net income decreased to $5,657,782,  or $.60 per share, in the second quarter of
2001, compared to $5,880,107, or $.62 per share, for the second quarter of 2000.
Steady premium  growth and a decrease in death  benefits were offset by realized
losses  on  investments.  For the six  months  ended  June 30,  2001 net  income
decreased 26.5% to $9,098,425,  or $.96 per share,  compared to $12,386,531,  or
$1.31 per share for the same period in 2000. A  $4,325,518  decrease in realized
gains on investments contributed to the year-to-date decline in earnings.

REVENUES

Analysis of Policy Revenue

Total policy revenue increased  $217,624,  or 1.9%, to $11,860,541 in the second
quarter of 2001.  Contributing  to this  growth was an  increase  in premiums on
traditional  life insurance  policies of 1.5% to $9,196,070 for the three months
ended June 30, 2001. Direct new premiums on traditional life insurance  policies
were up 23.3%,  to $1,744,193 for the quarter ended June 30, 2001.  Total policy
revenue  increased  $742,399,  or 3.4%, to $22,857,318  for the six months ended
June 30, 2001.

The Company's  sales of the ERIE  Flagship Term product have  continued to grow.
This product,  introduced late in 1999, is more  competitively  priced at larger
policy face amounts.  As such,  the  Company's  reinsurance  premiums  ceded and
related  commission  and expense  allowance has increased for the year 2001 when
compared  with 2000.  Under the  reinsurance  treaty for this new  product,  the
reinsurer  assumes 50% of all insurance up to $600,000 (the Company's  retention
limit is $300,000)  and assumes all insurance  above that amount.  This product,
before consideration of reinsurance ceded,  contributed  $1,475,413 and $395,442
to total  life  premiums  for the three  months  ended  June 30,  2001 and 2000,
respectively.  The reinsurance  premiums ceded recognized in total life premiums
for the ERIE  Flagship Term product  amount to  $1,058,490  and $304,456 for the
three months ended June 30, 2001 and 2000, respectively.

Analysis of Investment-related Income

Net investment income increased $899,551, or 6.0%, in the second quarter of 2001
due to increased levels of investment from cash flows generated by the Company's
operations  and by cash from annuity and universal  life  deposits.  For the six
months ended June 30, 2001, net investment income increased  $844,614,  or 2.8%,
to $30,573,980.

During the second  quarter of 2000 the Company took  advantage of strong  equity
markets producing  realized gains of $1,603,260.  In the second quarter of 2001,
with  equity   markets   much  weaker,   the   Company's   realized   losses  on
available-for-sale securities totaled $1,067,436. This amount consisted of gains
on the sale and maturity of securities of $482,564,less losses of $1,550,000 for
securities  that  became  impaired  during the  quarter.  Equity in  earnings of
limited  partnerships  increased  $367,504  in the  second  quarter of 2001 when
compared  with  the same  period  in 2000 as a result  of  partnership  gains in
private equity limited partnerships. For the six months ended June 30, 2001, net
realized losses were $473,521, compared to realized gains of $3,851,997 in 2000.
Equity in earnings of limited  partnerships  decreased  to $802,197  for the six
months ended June 30, 2001, compared to $2,370,253 in 2000.



                                       13
<PAGE>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Continued)

BENEFITS AND EXPENSES

Analysis of Policy-related Benefits and Expenses

Net death benefits on life insurance policies  decreased  $1,488,240 or 43.2% in
the second  quarter  of 2001 to  $1,956,181.  For the six months  ended June 30,
2001, death benefits on life insurance policies decreased $886,041, or 14.4%, to
$5,284,160.  Random fluctuations in death benefits incurred can be expected when
mortality  results are measured over a short time period due to the small number
of claims  involved.  These short-term  fluctuations can influence  quarterly or
annual results without impacting  long-term  profitability.  Management believes
that its underwriting philosophy and practices are sound.

Interest  expense  incurred on deposits  increased  6.4% to  $10,466,885  in the
second quarter of 2001, from $9,840,756 in the second quarter of 2000.  Interest
expense incurred on deposits increased $627,817 or 3.2% for the six months ended
June 30, 2001.  This increase is the result of a slight  increase in new annuity
deposits  and a decrease in annuity  surrenders  during the twelve  month period
ended June 30, 2001 when  compared  to the twelve  month  period  ended June 30,
2000. The interest rate credited on universal life deposits  ranges from 6.0% to
6.75% in 2001 and 2000. The rate credited on annuity  deposits  ranges from 5.0%
to 6.25% in 2001.

The liability for future life policy  benefits is computed  considering  various
factors such as anticipated mortality, future investment yields, withdrawals and
anticipated  credit for reinsurance.  The second quarter 2001 future life policy
benefit expenses were  $1,448,884,  compared to $1,529,101 in the second quarter
of 2000,  a decrease  of 5.3%.  For the six  months  ended  June 30,  2001,  the
liability for future life policy benefits increased $513,792 or 19.6%.

Amortization of deferred policy  acquisition costs decreased 10.8% to $2,191,484
in the second  quarter  of 2001.  For the six months  ended June 30,  2001,  the
decrease in amortization of deferred policy  acquisition  costs was $95,315,  or
2.4%.  During 2000,  updated  projection  assumptions  were used to more closely
estimate  actual  annual  experience  during the  interim  months.  Amortization
totaled   $5,144,539  for  the  year  2000.  The  annualized  2001  amortization
calculated at June amounts to $7,675,600  which  reflects the Company's  current
estimate of actual 2001 annual experience.

Analysis of Other Expenses

Total operating expenses,  excluding taxes, licenses and fees increased 11.6% to
$3,042,750  for the three months ended June 30, 2001 compared to $2,726,807  for
the same period in 2000.

Certain  operating  expenses  of the  Company  are  paid by the  Erie  Indemnity
Company,  the management Company of the Erie Insurance Exchange,  and reimbursed
monthly by the  Company.  Additionally,  a portion of the Erie  Insurance  Group
common overhead expenses  attributed to the Company are also reimbursed monthly.
These expenses comprise the majority of the Company's general expenses.

General  expenses,  a component of total operating  expenses,  include wages and
salaries,  Employee benefits,  data processing expenses,  occupancy expenses and
other office and general administrative expenses of the Company. Certain general
expenses of the Company,  related to the  acquisition  and  underwriting  of new
policies, are deferred as policy acquisition costs (DAC). Medical inspection and
exam fees  related to new  business  production,  wages,  salaries  and Employee
benefits of underwriting personnel, and salaries,  employee benefits and bonuses
paid to branch sales Employees for the production of life and annuity  business,
are all deferred.


                                       14
<PAGE>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Continued)

General expenses,  net of deferred policy acquisition costs, increased $221,880,
or 8.9%, to $2,724,256  for the quarter ended June 30, 2001.  For the six months
ended June 30,  2001,  net general  expenses  increased  $346,648,  or 7.3%,  to
$5,067,089.  The increase for 2001 is primarily  the result of employee  benefit
expenses  increasing  $158,000  due to an  increase  in the  Company's  matching
contribution  rate to the Employee 401(K) plan,  effective  January 1, 2001, and
increased medical costs.

Another  component of total  operating  expenses is  commissions  to independent
Agents. Direct commission costs include new and renewal commissions,  production
bonuses and promotional  incentives to Agents.  These direct commission expenses
are reported on the Statements of Operations  net of  commissions  received from
reinsurers.  The reported  expense is also  affected by the amount of commission
expenses  capitalized  as DAC.  Commissions,  which  vary  with and are  related
primarily  to the  production  of new  business,  have  been  deferred  and  are
capitalized  as  DAC.  Most  first-year  and  incentive   commissions  and  some
second-year  commissions  qualify for deferral as DAC. During the second quarter
of 2001,  commission  expense  increased  $94,062 to  $318,494,  compared to the
second  quarter of 2000.  For the six months  ended  June 30,  2001,  commission
expense increased $209,844 to $911,433.  Renewal premiums,  very little of which
is eligible for the DAC, are up $100,017 in 2001.  Also  reflected in 2000 was a
reduction  to  commissions  of almost  $139,000  resulting  from a  decrease  in
promotional  incentive  costs  for  participation  in an  Erie  Insurance  Group
promotion.

FINANCIAL CONDITION

Reserve Liabilities

The Company's primary commitment is its obligation to meet the payment of future
policy benefits under the terms of its life insurance and annuity contracts.  To
meet these future  obligations,  the Company establishes life insurance reserves
based upon the type of policy,  the age of the insured,  and the number of years
the policy has been in force. The Company also establishes annuity and universal
life reserves  based on the amount of  Policyholder  deposits  (less  applicable
policy charges) plus interest earned on those deposits.  On June 30, 2001, there
was no  material  difference  between the  carrying  value and fair value of the
Company's  investment-type  policies.  These life insurance and annuity reserves
are supported primarily by the Company's long-term, fixed-income investments, as
the underlying policy reserves are generally also of a long-term nature.

Investments

The Company's  investment  strategies are designed and portfolios are structured
to match the features of the life  insurance  and annuity  products  sold by the
Company.   Annuities  and  life  insurance  policies  are  long-term   products,
therefore,  the  Company's  investment  strategy  takes a long-term  perspective
emphasizing  investment  quality,   diversification,   and  superior  investment
returns.  The  Company's  investments  are managed  prudently  on a total return
approach that focuses on current income and capital appreciation.

The Company's  invested  assets are liquid in order to meet  commitments  to our
Policyholders.  At June 30, 2001, the Company's  investment portfolio consisting
of cash,  marketable  short-term  investments,  investment  grade bonds,  common
stock,  and preferred  stock,  totaled  $868.7 million or 81.4% of total assets.
These  resources  provide  the  liquidity  the  Company  requires  to  meet  the
unforeseen demands on its funds.

At June 30, 2001, the amortized  cost of the Company's five largest  investments
in corporate debt securities  totaled $33.0 million,  none of which individually
exceeded $8.0 million. These investments had a market value of $34.5 million.



                                       15
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Continued)

The Company's investments are subject to certain risks,  including interest rate
and price risk.  The Company  monitors  exposure to interest  rate risk  through
periodic reviews of asset and liability  positions.  Estimates of cash flows and
the impact of interest rate  fluctuations  relating to the investment  portfolio
are  monitored  regularly.  Price  risk  is  defined  as the  potential  loss in
estimated fair value  resulting from an adverse change in prices.  The Company's
objective  is to earn  competitive  relative  returns by  investing in a diverse
portfolio of high-quality,  liquid  securities.  Portfolio  characteristics  are
analyzed  regularly  and market  risk is actively  managed  through a variety of
techniques.   Portfolio   holdings  are   diversified   across   industries  and
concentrations  in any  one  company  or  industry  are  limited  by  parameters
established by management and the Company's Board of Directors.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity is a measure of the  Company's  ability to secure  enough cash to meet
its contractual obligations and operating needs.  Generally,  insurance premiums
are  collected  prior to claims and  benefit  disbursements  and these funds are
invested to provide  necessary cash flows in future years.  The Company's  major
sources of cash from  operations  are life  insurance  premiums  and  investment
income.  The net positive cash flow is used to fund Company  commitments  and to
build the investment  portfolio,  thereby increasing future investment  returns.
Net cash provided by operating activities for the six months ended June 30, 2001
was  $8,605,938  compared to $7,809,253  for the six months ended June 30, 2000.
The Company's  liquidity position remains strong as invested assets increased by
more than $17 million during the first six months of 2001 to $898 million.

Annuity  and  universal  life  deposits,  which do not  appear as revenue on the
financial  statements,  are a source of funds.  These  deposits do not involve a
mortality or morbidity  risk and are accounted  for using methods  applicable to
comparable   "interest-bearing   obligations"   of  other  types  of   financial
institutions.  This method of accounting  records deposits as a liability rather
than as a revenue.  Annuity and universal life deposits were  $19,290,029 in the
second  quarter  of 2001 and  $15,512,708  in the second  quarter  of 2000.  The
Company's ability to attract policyholders depends in large part on the relative
attractiveness  of  its  products  compared  to  other  investment  alternatives
commercially  available.  The stronger  stock  markets in the first half of 2000
compared  to the  weaker  markets  in the  first  half  of 2001  contributed  to
increased annuity deposits because factors such as interest rate environment and
performance  of the stock market do influence the  Company's  ability to attract
policyholders.

The  Company's  current  commitments  for  expenditures  as of June 30, 2001 are
primarily for policy death benefits, policy surrenders and withdrawals,  general
operating expenses,  federal income taxes, and dividends to Shareholders.  These
commitments  are met by cash flows from policy  revenue,  annuity and  universal
life  deposits and  investment  income.  Management  believes its cash flow from
operations  and its liquid  assets and  marketable  securities  will  enable the
Company  to meet any  foreseeable  cash  requirements.  As an added  measure  of
liquidity,  the Company  has  arranged  for a $10 million  line of credit with a
commercial  bank.  At June 30, 2001 and 2000,  there were no  borrowings on this
line of credit.

The Company's 2000 year-end Risk Based Capital Analysis as reflected in its 2000
statutory  annual  statement shows total adjusted  capital of  $126,211,070  and
authorized  control level risk based capital of  $26,845,262.  These results are
indicative of the strong capital  position of the Company and are well in excess
of levels that would require regulatory action.


                                       16
<PAGE>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Continued)


FACTORS THAT MAY EFFECT FUTURE RESULTS

eCommerce Program and Related Infrastructure Expenditures

Emerging technologies are increasingly  facilitating  transactions between firms
and their  customers.  Electronic  transactions  between life insurers and their
customers  or  potential  customers  are becoming  more  generally  accepted and
utilized over time. In 2001,  the Erie Insurance  Group,  including the Company,
began the development of several eCommerce initiatives in support of the Group's
business  model  of  distributing   insurance   products   exclusively   through
independent agents.  These initiatives include customer  interaction systems and
are intended to improve service and  efficiency,  as well as result in increased
sales. The eCommerce program also includes  significant  information  technology
infrastructure  expenditures.  The cost of these  initiatives  will be allocated
among member  companies of the Erie  Insurance  Group.  Estimates of anticipated
costs to the Company related to this program are being refined during the second
half of 2001.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company's  exposure to market risk is primarily  related to  fluctuations in
prices and interest rates. Quantitative and qualitative disclosures about market
risk  resulting  from changes in prices and interest  rates are included in Item
7A. in the  Company's  2000  Annual  Report  on Form  10-K.  There  have been no
material  changes in such risks or the Company's  periodic  reviews of asset and
liability  positions  during the six months ended June 30, 2001. The information
contained in the Investments section of Management's  Discussion and Analysis of
Financial  Condition  and  Results  of  Operations  is  incorporated  herein  by
reference.






"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of
1995: Certain forward-looking statements contained herein involve risks and
uncertainties. Many factors could cause future results to differ materially from
those discussed. Examples of such factors include but are not limited to: better
(or worse) mortality rates, changes in insurance regulations or legislation that
disadvantage the Company in the marketplace and recession, economic conditions
or stock market changes affecting pricing or demand for insurance products or
ability to generate investment income. Growth and profitability have been and
will be potentially materially affected by these and other factors.





PART II.  OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

The Company did not file any reports on Form 8-K during the three-month period
ended June 30, 2001.



                                       17
<PAGE>


                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                      Erie Family Life Insurance Company
                                                  (Registrant)

Date: August 13, 2001                      /s/ Stephen A. Milne
                                     (Stephen A. Milne, President & CEO)


                                           /s/ Philip A. Garcia
                      (Philip A. Garcia, Executive Vice President & CFO)


                                       18