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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 March 31, 2003

OR

o  
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
incorporation or organization) |  | (I.R.S. Employer
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

Not applicable

Former name, former address and former fiscal year, if changed since last report


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  o

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Act).

Yes  o
            No  x

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 April 18, 2003.





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TABLE OF CONTENTS



|                              |                                                                                               |                                    |  |  |  |  |  | 
|----------------------------- | --------------------------------------------------------------------------------------------- | ---------------------------------- |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION
|                              |                                                                                               | STATEMENTS OF FINANCIAL POSITION  
|                              |                                                                                               | STATEMENTS OF COMPREHENSIVE INCOME
|                              |                                                                                               | STATEMENTS OF CASH FLOWS          
|                              |                                                                                               | STATEMENTS OF CASH FLOWS          
|                              |                                                                                               | NOTES TO FINANCIAL STATEMENTS     
|                              | ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|                              | ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                           
|                              | ITEM 4. CONTROLS AND PROCEDURES                                                              
|PART II. OTHER INFORMATION   
|                              | ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K                                                     
|SIGNATURES                   
|CERTIFICATIONS               
|CERTIFICATIONS               
|Exhibit 99.1                 



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##### Table of Contents



INDEX

ERIE FAMILY LIFE INSURANCE COMPANY

PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements (Unaudited)



| |                                                                                
| | -------------------------------------------------------------------------------
| | Statements of Financial Position  March 31, 2003 and December 31, 2002        
|
| | Statements of Operations  Three months ended March 31, 2003 and 2002          
|
| | Statements of Comprehensive Income  Three months ended March 31, 2003 and 2002
|
| | Statements of Cash Flows  Three months ended March 31, 2003 and 2002          
|
| | Notes to Financial Statements  March 31, 2003                                 

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

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

Item 4.    Controls and Procedures

PART II.  OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

SIGNATURES

OFFICER CERTIFICATIONS

2



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##### Table of Contents






PART I. FINANCIAL INFORMATION




ERIE FAMILY LIFE INSURANCE COMPANY
STATEMENTS OF FINANCIAL POSITION

|                 |                                                                                          |                       |   |                        |           |              |   |           |           | 
|---------------- | ---------------------------------------------------------------------------------------- | --------------------- | - | ---------------------- | --------- | ------------ | - | --------- | --------- | 
|                 |                                                                                          |                       |   | (Dollars in thousands) |           |              |   |          
|                 |                                                                                          |                       |   | March 31,              |           | December 31,
|ASSETS           |                                                                                          | 2003                  |   | 2002                  
|                 |                                                                                          |                       |   |                       
|                 |                                                                                          |                       |   | (Unaudited)            |           |              |   |          
|                 |                                                                                          |                       |   |                        |           |              |   |          
|Invested Assets: |                                                                                          |                       |   |                        |           |              |   |          
|                 | Fixed Maturities at fair value (amortized cost
of $1,069,127 and $986,137, respectively) |                       | $ | 1,136,671              |           |              | $ | 1,039,367 |          
|                 | Equity Securities at fair value
(cost of $68,498 and $66,072, respectively)              |                       |   | 72,226                 |           |              |   | 68,749    |          
|                 | Limited Partnerships
(cost of $15,665 and $16,352, respectively)                         |                       |   | 15,530                 |           |              |   | 16,053    |          
|                 | Real Estate                                                                              |                       |   | 1,189                  |           |              |   | 1,210     |          
|                 | Policy Loans                                                                             |                       |   | 9,571                  |           |              |   | 9,516     |          
|                 | Real Estate Mortgage Loans                                                               |                       |   | 6,876                  |           |              |   | 7,175     |          
|                 |                                                                                          |                       |   |                        |           |              |   |          
|                 |                                                                                          | Total Invested Assets |   | $                      | 1,242,063 |              |   | $         | 1,142,070 | 
|                 | Cash and Cash Equivalents                                                                |                       |   | 109,795                |           |              |   | 97,022    |          
|                 | Premiums Receivable from Policyholders                                                   |                       |   | 5,994                  |           |              |   | 6,225     |          
|                 | Reinsurance Recoverable                                                                  |                       |   | 1,332                  |           |              |   | 1,713     |          
|                 | Other Receivables                                                                        |                       |   | 690                    |           |              |   | 1,486     |          
|                 | Accrued Investment Income                                                                |                       |   | 18,007                 |           |              |   | 13,353    |          
|                 | Deferred Policy Acquisition Costs                                                        |                       |   | 106,672                |           |              |   | 104,065   |          
|                 | Reserve Credit for Reinsurance Ceded                                                     |                       |   | 15,461                 |           |              |   | 14,123    |          
|                 | Prepaid Federal Income Taxes                                                             |                       |   | 0                      |           |              |   | 2,674     |          
|                 | Other Assets                                                                             |                       |   | 12,998                 |           |              |   | 6,888     |          
|                 |                                                                                          |                       |   |                        |           |              |   |          
|                 |                                                                                          | Total Assets          |   | $                      | 1,513,012 |              |   | $         | 1,389,619 | 
|                 |                                                                                          |                       |   |                        |           |              |   |          

See notes to financial statements.

3



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ERIE FAMILY LIFE INSURANCE COMPANY
STATEMENTS OF FINANCIAL POSITION

|                                     |                                                                                                               |                                                          |                                            |         |                        |           |              |         |         |           | 
|------------------------------------ | ------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------- | ------------------------------------------ | ------- | ---------------------- | --------- | ------------ | ------- | ------- | --------- | 
|                                     |                                                                                                               |                                                          |                                            |         | (Dollars in thousands)
|                                     |                                                                                                               |                                                          |                                            |         | March 31,              |           | December 31,
|LIABILITIES AND
SHAREHOLDERS EQUITY |                                                                                                               | 2003                                                     |                                            | 2002   
|                                     |                                                                                                               |                                                          |                                            |        
|                                     |                                                                                                               |                                                          |                                            |         | (Unaudited)            |           |              |         |        
|                                     |                                                                                                               |                                                          |                                            |         |                        |           |              |         |        
|Liabilities:                         |                                                                                                               |                                                          |                                            |         |                        |           |              |        
|                                     | Policy Liabilities and Accruals:                                                                              |                                                          |                                            |         |                        |           |              |         |        
|                                     |                                                                                                               | Future Policy Benefits                                   |                                            | $       | 97,369                 |           |              | $       | 94,243  |          
|                                     |                                                                                                               | Policy and Contract Claims                               |                                            |         | 2,559                  |           |              |         | 2,362   |          
|                                     |                                                                                                               | Annuity Deposits                                         |                                            |         | 863,507                |           |              |         | 803,675 |          
|                                     |                                                                                                               | Universal Life Deposits                                  |                                            |         | 139,393                |           |              |         | 135,551 |          
|                                     |                                                                                                               | Supplementary Contracts Not
Including Life Contingencies |                                            |         | 629                    |           |              |         | 625     |          
|                                     | Other Policyholder Funds                                                                                      |                                                          |                                            | 11,567  |                        |           |              | 14,335  |        
|                                     | Federal Income Taxes Payable                                                                                  |                                                          |                                            | 1,036   |                        |           |              | 0       |        
|                                     | Deferred Income Taxes                                                                                         |                                                          |                                            | 46,160  |                        |           |              | 41,577  |        
|                                     | Reinsurance Premium Due                                                                                       |                                                          |                                            | 607     |                        |           |              | 1,591   |        
|                                     | Securities Lending Collateral                                                                                 |                                                          |                                            | 74,188  |                        |           |              | 41,669  |        
|                                     | Accounts Payable and Accrued Expenses                                                                         |                                                          |                                            | 19,088  |                        |           |              | 9,673   |        
|                                     | Note Payable to Erie Indemnity Company                                                                        |                                                          |                                            | 15,000  |                        |           |              | 15,000  |        
|                                     | Due to Affiliates                                                                                             |                                                          |                                            | 1,962   |                        |           |              | 2,886   |        
|                                     | Dividends Payable                                                                                             |                                                          |                                            | 1,985   |                        |           |              | 1,985   |        
|                                     |                                                                                                               |                                                          |                                            |         |                        |           |              |        
|                                     |                                                                                                               |                                                          | Total Liabilities                          |         | $                      | 1,275,050 |              |         | $       | 1,165,172 | 
|                                     |                                                                                                               |                                                          |                                            |         |                        |           |              |        
|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                                                                        |                                                          |                                            | 46,239  |                        |           |              | 36,145  |        
|                                     | Retained Earnings                                                                                             |                                                          |                                            | 187,313 |                        |           |              | 183,892 |        
|                                     |                                                                                                               |                                                          |                                            |         |                        |           |              |        
|                                     |                                                                                                               |                                                          | Total Shareholders Equity                 |         | $                      | 237,962   |              |         | $       | 224,447   | 
|                                     |                                                                                                               |                                                          |                                            |         |                        |           |              |        
|                                     |                                                                                                               |                                                          | Total Liabilities and Shareholders Equity |         | $                      | 1,513,012 |              |         | $       | 1,389,619 | 
|                                     |                                                                                                               |                                                          |                                            |         |                        |           |              |        

See notes to financial statements.

4



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ERIE FAMILY LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS (Unaudited)

|                                            |                                                   |                                        |                          |        |                                               |        |                    |        |        |        | 
|------------------------------------------- | ------------------------------------------------- | -------------------------------------- | ------------------------ | ------ | --------------------------------------------- | ------ | ------------------ | ------ | ------ | ------ | 
|                                            |                                                   |                                        |                          |        | (Dollars in thousands, except per share data)
|                                            |                                                   |                                        |                          |        | Three Months Ended                            |        | Three Months Ended
|                                            |                                                   |                                        |                          |        | March 31, 2003                                |        | March 31, 2002    
|                                            |                                                   |                                        |                          |        |                                               |        |                   
|Revenues:                                   |                                                   |                                        |                          |        |                                               |        |                    |       
|                                            | Net Policy Revenue:                               |                                        |                          |        |                                               |        |                    |        |       
|                                            | Life Premiums                                     |                                        | $                        | 12,242 |                                               |        | $                  | 11,579 |       
|                                            | Group Life and Other Premiums                     |                                        |                          | 847    |                                               |        |                    | 750    |       
|                                            |                                                   |                                        |                          |        |                                               |        |                    |       
|                                            |                                                   |                                        | Total Net Policy Revenue |        | $                                             | 13,089 |                    |        | $      | 12,329 | 
|                                            | Net Investment Income                             |                                        |                          | 18,584 |                                               |        |                    | 14,510 |       
|                                            | Net Realized Gains on Investments                 |                                        |                          | 2,162  |                                               |        |                    | 2,054  |       
|                                            | Equity in Earnings of Limited Partnerships        |                                        |                          | 280    |                                               |        |                    | 1,069  |       
|                                            | Other Income                                      |                                        |                          | 177    |                                               |        |                    | 244    |       
|                                            |                                                   |                                        |                          |        |                                               |        |                    |       
|                                            |                                                   |                                        | Total Revenues           |        | $                                             | 34,292 |                    |        | $      | 30,206 | 
|                                            |                                                   |                                        |                          |        |                                               |        |                    |       
|Benefits and Expenses:                      |                                                   |                                        |                          |        |                                               |        |                    |       
|                                            | Death Benefits                                    |                                        | $                        | 3,841  |                                               |        | $                  | 3,500  |       
|                                            | Interest on Annuity Deposits                      |                                        |                          | 9,935  |                                               |        |                    | 9,541  |       
|                                            | Interest on Universal Life Deposits               |                                        |                          | 1,779  |                                               |        |                    | 1,763  |       
|                                            | Surrender and Other Benefits                      |                                        |                          | 273    |                                               |        |                    | 268    |       
|                                            | Increase in Future Life Policy Benefits           |                                        |                          | 1,788  |                                               |        |                    | 2,565  |       
|                                            | Amortization of Deferred Policy
Acquisition Costs |                                        |                          | 3,315  |                                               |        |                    | 1,612  |       
|                                            | Commissions                                       |                                        |                          | 1,341  |                                               |        |                    | 944    |       
|                                            | General Expenses                                  |                                        |                          | 3,064  |                                               |        |                    | 2,695  |       
|                                            | Taxes, Licenses and Fees                          |                                        |                          | 677    |                                               |        |                    | 612    |       
|                                            |                                                   |                                        |                          |        |                                               |        |                    |       
|                                            |                                                   | Total Benefits and Expenses            |                          | $      | 26,013                                        |        |                    | $      | 23,500 |       
|                                            |                                                   |                                        |                          |        |                                               |        |                    |       
|Income before Income Taxes                  |                                                   | $                                      | 8,279                    |        |                                               | $      | 6,706              |       
|Provision for Federal Income Tax (Benefit): |                                                   |                                        |                          |        |                                               |        |                    |       
|                                            | Current                                           |                                        |                          | 3,725  |                                               |        |                    | 1,847  |       
|                                            | Deferred                                          |                                        |                          | (852   | )                                             |        |                    | 473    |       
|                                            |                                                   |                                        |                          |        |                                               |        |                    |       
|                                            |                                                   | Total Provision for Federal Income Tax |                          |        | 2,873                                         |        |                    |        | 2,320  |       
|                                            |                                                   |                                        |                          |        |                                               |        |                    |       
|Net Income                                  |                                                   | $                                      | 5,406                    |        |                                               | $      | 4,386              |       
|                                            |                                                   |                                        |                          |        |                                               |        |                    |       
|Net Income Per Share (Basic and Diluted)    |                                                   | $                                      | 0.57                     |        |                                               | $      | 0.46               |       
|                                            |                                                   |                                        |                          |        |                                               |        |                    |       
|Dividends Declared Per Share                |                                                   | $                                      | 0.21                     |        |                                               | $      | 0.21               |       
|                                            |                                                   |                                        |                          |        |                                               |        |                    |       

See notes to financial statements.

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

|                                                                  |                                                         |                                                             |        |                        |        |                    |         |         |         |  
|----------------------------------------------------------------- | ------------------------------------------------------- | ----------------------------------------------------------- | ------ | ---------------------- | ------ | ------------------ | ------- | ------- | ------- | -
|                                                                  |                                                         |                                                             |        | (Amounts in thousands)
|                                                                  |                                                         |                                                             |        | Three Months Ended     |        | Three Months Ended
|                                                                  |                                                         |                                                             |        | March 31, 2003         |        | March 31, 2002    
|                                                                  |                                                         |                                                             |        |                        |        |                   
|Net income                                                        |                                                         | $                                                           | 5,406  |                        |        | $                  | 4,386   |        
|Unrealized Gains (Losses) on Securities:                          |                                                         |                                                             |        |                        |        |                    |         |        
|                                                                  | Unrealized Holding Gains (Losses) Arising
During Period |                                                             |        | 17,691                 |        |                    |         | (13,882 | )      
|                                                                  | Less: Gains Included in Net Income                      |                                                             |        | (2,162                 | )      |                    |         | (2,054  | )      
|                                                                  |                                                         |                                                             |        |                        |        |                    |         |        
|                                                                  |                                                         | Net Unrealized Holding Gains (Losses)
Arising During Period |        | $                      | 15,529 |                    |         | $       | (15,936 | )
|                                                                  |                                                         |                                                             |        |                        |        |                    |         |        
|Income Tax Expense (Benefit) Related to
Unrealized Gains (Losses) |                                                         |                                                             | 5,435  |                        |        |                    | (5,577  | )      
|                                                                  |                                                         |                                                             |        |                        |        |                    |         |        
|Unrealized Appreciation (Depreciation) of
Investments, net of Tax |                                                         | $                                                           | 10,094 |                        |        | $                  | (10,359 | )      
|                                                                  |                                                         |                                                             |        |                        |        |                    |         |        
|Comprehensive Income (Loss)                                       |                                                         | $                                                           | 15,500 |                        |        | $                  | (5,973  | )      
|                                                                  |                                                         |                                                             |        |                        |        |                    |         |        

See notes to financial statements.

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

|                                                                                  |                                                          |                                                     |        |                        |         |                    |         |          |         |  
|--------------------------------------------------------------------------------- | -------------------------------------------------------- | --------------------------------------------------- | ------ | ---------------------- | ------- | ------------------ | ------- | -------- | ------- | -
|                                                                                  |                                                          |                                                     |        | (Dollars in thousands)
|                                                                                  |                                                          |                                                     |        | Three Months Ended     |         | Three Months Ended
|                                                                                  |                                                          |                                                     |        | March 31, 2003         |         | March 31, 2002    
|                                                                                  |                                                          |                                                     |        |                        |         |                   
|Cash flows from operating activities:                                             |                                                          |                                                     |        |                        |         |                    |         |         
|Net income                                                                        |                                                          | $                                                   | 5,406  |                        |         | $                  | 4,386   |         
|Adjustments to reconcile net income to net cash
provided by operating activities: |                                                          |                                                     |        |                        |         |                    |         |         
|                                                                                  | Net amortization of bond and mortgage
premium (discount) |                                                     |        | 37                     |         |                    |         | (58      | )      
|                                                                                  | Amortization of deferred policy acquisition costs        |                                                     |        | 3,315                  |         |                    |         | 1,612    |        
|                                                                                  | Real estate depreciation                                 |                                                     |        | 21                     |         |                    |         | 21       |        
|                                                                                  | Software amortization                                    |                                                     |        | 62                     |         |                    |         | 62       |        
|                                                                                  | Deferred federal income tax (benefit) expense            |                                                     |        | ( 852                  | )       |                    |         | 473      |        
|                                                                                  | Realized gains on investments                            |                                                     |        | ( 2,162                | )       |                    |         | (2,054   | )      
|                                                                                  | Equity in earnings of limited partnerships               |                                                     |        | (280                   | )       |                    |         | (1,069   | )      
|Decrease in premiums receivable                                                   |                                                          |                                                     | 230    |                        |         |                    | 82      |         
|Decrease (increase) in other receivables                                          |                                                          |                                                     | 798    |                        |         |                    | (598    | )       
|Increase in accrued investment income                                             |                                                          |                                                     | (4,654 | )                      |         |                    | (4,390  | )       
|Increase in policy acquisition costs deferred                                     |                                                          |                                                     | (5,922 | )                      |         |                    | (4,662  | )       
|(Increase) decrease in other assets                                               |                                                          |                                                     | (6,173 | )                      |         |                    | 446     |         
|(Increase) decrease in reinsurance recoverables
and reserve credits               |                                                          |                                                     | (958   | )                      |         |                    | 1,660   |         
|Decrease in prepaid federal income taxes                                          |                                                          |                                                     | 3,711  |                        |         |                    | 1,833   |         
|Increase in future policy benefits and claims                                     |                                                          |                                                     | 3,323  |                        |         |                    | 2,553   |         
|(Decrease) increase in other Policyholder funds                                   |                                                          |                                                     | (2,768 | )                      |         |                    | 1,315   |         
|Decrease in reinsurance premium due                                               |                                                          |                                                     | (985   | )                      |         |                    | (1,319  | )       
|Increase (decrease) in accounts payable and due
to affiliates                     |                                                          |                                                     | 8,492  |                        |         |                    | (1,727  | )       
|                                                                                  |                                                          |                                                     |        |                        |         |                    |         |         
|                                                                                  |                                                          | Net cash provided by (used in) operating
activities |        | $                      | 641     |                    |         | $        | (1,434  | )
|                                                                                  |                                                          |                                                     |        |                        |         |                    |         |         
|Cash flows from investing activities:                                             |                                                          |                                                     |        |                        |         |                    |         |         
|Purchase of investments:                                                          |                                                          |                                                     |        |                        |         |                    |         |         
|                                                                                  | Fixed maturities                                         |                                                     | $      | (192,838               | )       |                    | $       | (106,771 | )      
|                                                                                  | Equity securities                                        |                                                     |        | (5,590                 | )       |                    |         | (12,426  | )      
|                                                                                  | Mortgage loans                                           |                                                     |        | (1,500                 | )       |                    |         | 0        |        
|                                                                                  | Limited partnerships                                     |                                                     |        | (650                   | )       |                    |         | (4,937   | )      
|Sales/maturities of investments:                                                  |                                                          |                                                     |        |                        |         |                    |         |         
|                                                                                  | Sales of fixed maturities                                |                                                     |        | 82,950                 |         |                    |         | 22,630   |        
|                                                                                  | Calls/maturities of fixed maturities                     |                                                     |        | 29,032                 |         |                    |         | 40,399   |        
|                                                                                  | Equity securities                                        |                                                     |        | 3,154                  |         |                    |         | 7,544    |        
|                                                                                  | Limited partnerships                                     |                                                     |        | 1,617                  |         |                    |         | 2,421    |        
|Increase (decrease) in collateral from
securities lending                         |                                                          |                                                     | 32,519 |                        |         |                    | (10,013 | )       
|Principal payments received on mortgage loans                                     |                                                          |                                                     | 1,800  |                        |         |                    | 45      |         
|Loans made to Policyholders                                                       |                                                          |                                                     | (463   | )                      |         |                    | (437    | )       
|Payments received on policy loans                                                 |                                                          |                                                     | 409    |                        |         |                    | 224     |         
|                                                                                  |                                                          |                                                     |        |                        |         |                    |         |         
|                                                                                  |                                                          | Net cash used in investing activities               |        | $                      | (49,560 | )                  |         | $        | (61,321 | )
|                                                                                  |                                                          |                                                     |        |                        |         |                    |         |         

See notes to financial statements.

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

|                                                              |              |                                           |         |                        |        |                    |         |    |        | 
|------------------------------------------------------------- | ------------ | ----------------------------------------- | ------- | ---------------------- | ------ | ------------------ | ------- | -- | ------ | 
|                                                              |              |                                           |         | (Dollars in thousands)
|                                                              |              |                                           |         | Three Months Ended     |        | Three Months Ended
|                                                              |              |                                           |         | March 31, 2003         |        | March 31, 2002    
|                                                              |              |                                           |         |                        |        |                   
|Cash flows from financing activities:                         |              |                                           |         |                        |        |                    |         |   
|Annuity and supplementary
contract deposits and interest      |              | $                                         | 72,153  |                        |        | $                  | 40,486  |   
|Annuity and supplementary
contract surrenders and withdrawals |              |                                           | (12,318 | )                      |        |                    | (9,992  | ) 
|Universal life deposits and interest                          |              |                                           | 5,093   |                        |        |                    | 4,563   |   
|Universal life surrenders                                     |              |                                           | (1,251  | )                      |        |                    | (1,183  | ) 
|Dividends paid to Shareholders                                |              |                                           | (1,985  | )                      |        |                    | (1,843  | ) 
|                                                              |              |                                           |         |                        |        |                    |         |   
|                                                              |              | Net cash provided by financing activities |         | $                      | 61,692 |                    |         | $  | 32,031 | 
|                                                              |              |                                           |         |                        |        |                    |         |   
|Net increase (decrease) in cash and cash equivalents          |              |                                           | 12,773  |                        |        |                    | (30,724 | ) 
|Cash and cash equivalents at beginning of year                |              |                                           | 97,022  |                        |        |                    | 159,462 |   
|                                                              |              |                                           |         |                        |        |                    |         |   
|Cash and cash equivalents at end of quarter                   |              | $                                         | 109,795 |                        |        | $                  | 128,738 |   
|                                                              |              |                                           |         |                        |        |                    |         |   
|Supplemental disclosures of cash flow information:            |              |                                           |         |                        |        |                    |         |   
|Cash paid during the period for:                              |              |                                           |         |                        |        |                    |         |   
|                                                              | Interest     |                                           | $       | 52                     |        |                    | $       | 52 |       
|                                                              | Income taxes |                                           |         | 14                     |        |                    |         | 14 |       

See notes to financial statements.

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

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 three-month
period ended March 31, 2003 are not necessarily indicative of the results that
may be expected for the year ending December 31, 2003. 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,
2002 as filed with the Securities and Exchange Commission on March 27, 2003.

NOTE B  INVESTMENTS

At March 31, 2003 marketable equity securities consist of nonredeemable
preferred stock while fixed maturities consist of bonds, notes and redeemable
preferred stock. The Company sold its entire common stock portfolio in the
fourth quarter of 2002. Management considers all fixed maturities and
marketable equity securities available-for-sale. 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.
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.

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

|                           |                                            |                        |       |           |           |            |     |            |        |            |    |       |       |  |       |         |           | 
|-------------------------- | ------------------------------------------ | ---------------------- | ----- | --------- | --------- | ---------- | --- | ---------- | ------ | ---------- | -- | ----- | ----- |  | ----- | ------- | --------- | 
|                           |                                            |                        |       |           |           |            |     | Gross      |        | Gross      |    |       |       | 
|                           |                                            |                        |       | Amortized |           | Unrealized |     | Unrealized |        | Estimated 
|                           |                                            |                        |       | Cost      |           | Gains      |     | Losses     |        | Fair Value
|                           |                                            |                        |       |           |           |            |     |            |        |           
|March 31, 2003             |                                            |                        |       |           |           |            |     |            |        |            |    |       |       |  |       |        
|Fixed Maturities:          |                                            |                        |       |           |           |            |     |            |        |            |    |       |       |  |       |        
|Bonds:                     |                                            |                        |       |           |           |            |     |            |        |            |    |       |       |  |       |        
|                           | U.S. Treasuries and Government
Agencies    |                        | $     | 52,142    |           |            | $   | 1,983      |        |            | $  | 0     |       |  | $     | 54,125  |          
|                           | Special Revenue                            |                        |       | 61,863    |           |            |     | 3,230      |        |            |    | 0     |       |  |       | 65,093  |          
|                           | Public Utilities                           |                        |       | 110,111   |           |            |     | 7,883      |        |            |    | 489   |       |  |       | 117,505 |          
|                           | U.S. Banks, Trusts and Insurance
Companies |                        |       | 211,561   |           |            |     | 13,818     |        |            |    | 376   |       |  |       | 225,003 |          
|                           | U.S. Industrial and Miscellaneous          |                        |       | 518,134   |           |            |     | 38,424     |        |            |    | 3,037 |       |  |       | 553,521 |          
|                           | Foreign                                    |                        |       | 108,268   |           |            |     | 7,441      |        |            |    | 1,776 |       |  |       | 113,933 |          
|                           |                                            |                        |       |           |           |            |     |            |        |            |    |       |       |  |       |        
|                           |                                            | Total Bonds            |       |           | 1,062,079 |            |     |            | 72,779 |            |    |       | 5,678 |  |       |         | 1,129,180 | 
|
|Redeemable Preferred Stock |                                            |                        | 7,048 |           |           |            | 459 |            |        |            | 16 |       |       |  | 7,491 |        
|                           |                                            |                        |       |           |           |            |     |            |        |            |    |       |       |  |       |        
|                           |                                            | Total Fixed Maturities |       | $         | 1,069,127 |            |     | $          | 73,238 |            |    | $     | 5,694 |  |       | $       | 1,136,671 | 
|                           |                                            |                        |       |           |           |            |     |            |        |            |    |       |       |  |       |        

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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
|                               |                                            |                         |                                     |         |           |           |            |        |            |        |           
|Equity Securities:             |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|Nonredeemable Preferred Stock: |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|                               | U.S. Banks, Trusts and Insurance
Companies |                         | $                                   | 9,826   |           |           | $          | 406    |            |        | $          | 0     |       |       | $     | 10,232  |          
|                               | U.S. Industrial and Miscellaneous          |                         |                                     | 11,871  |           |           |            | 766    |            |        |            | 62    |       |       |       | 12,575  |          
|                               | Foreign                                    |                         |                                     | 46,801  |           |           |            | 3,173  |            |        |            | 555   |       |       |       | 49,419  |          
|                               |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|                               |                                            | Total Equity Securities |                                     | $       | 68,498    |           |            | $      | 4,345      |        |            | $     | 617   |       |       | $       | 72,226    |          
|                               |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|                               |                                            |                         | Total Available-for-Sale
Securities |         | $         | 1,137,625 |            |        | $          | 77,583 |            |       | $     | 6,311 |       |         | $         | 1,208,897 | 
|                               |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|December 31, 2002              |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|Fixed Maturities:              |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|Bonds:                         |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|                               | U.S. Treasuries and Government
Agencies    |                         | $                                   | 51,268  |           |           | $          | 2,607  |            |        | $          | 0     |       |       | $     | 53,875  |          
|                               | Special Revenue                            |                         |                                     | 41,010  |           |           |            | 2,376  |            |        |            | 0     |       |       |       | 43,386  |          
|                               | Public Utilities                           |                         |                                     | 103,695 |           |           |            | 5,567  |            |        |            | 1,421 |       |       |       | 107,841 |          
|                               | U.S. Banks, Trusts and Insurance
Companies |                         |                                     | 180,503 |           |           |            | 11,751 |            |        |            | 334   |       |       |       | 191,920 |          
|                               | U.S. Industrial and Miscellaneous          |                         |                                     | 501,206 |           |           |            | 33,305 |            |        |            | 4,479 |       |       |       | 530,032 |          
|                               | Foreign                                    |                         |                                     | 99,624  |           |           |            | 5,947  |            |        |            | 2,393 |       |       |       | 103,178 |          
|                               |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|                               |                                            | Total Bonds             |                                     |         | 977,306   |           |            |        | 61,553     |        |            |       | 8,627 |       |       |         | 1,030,232 |          
|Redeemable preferred stock     |                                            |                         | 8,831                               |         |           |           | 304        |        |            |        | 0          |       |       |       | 9,135 |        
|                               |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|                               |                                            | Total fixed maturities  |                                     | $       | 986,137   |           |            | $      | 61,857     |        |            | $     | 8,627 |       |       | $       | 1,039,367 |          
|                               |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|Equity Securities:             |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|Nonredeemable Preferred Stock: |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|                               | U.S. Banks, Trusts and
Insurance Companies |                         | $                                   | 7,016   |           |           | $          | 211    |            |        | $          | 0     |       |       | $     | 7,227   |          
|                               | U.S. Industrial and Miscellaneous          |                         |                                     | 11,872  |           |           |            | 773    |            |        |            | 0     |       |       |       | 12,645  |          
|                               | Foreign                                    |                         |                                     | 47,184  |           |           |            | 2,496  |            |        |            | 803   |       |       |       | 48,877  |          
|                               |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|                               |                                            | Total Equity Securities |                                     | $       | 66,072    |           |            | $      | 3,480      |        |            | $     | 803   |       |       | $       | 68,749    |          
|                               |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        
|                               |                                            |                         | Total Available-for-Sale
Securities |         | $         | 1,052,209 |            |        | $          | 65,337 |            |       | $     | 9,430 |       |         | $         | 1,108,116 | 
|                               |                                            |                         |                                     |         |           |           |            |        |            |        |            |       |       |       |       |        

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

NOTE B  INVESTMENTS (Continued)

Realized gains and losses on the sales of investments are recognized in income
on the specific identification method. Investments that have declined in value
below cost and for which the decline is considered to be other-than-temporary
by management are written down to estimated realizable value. The impairments
are made on an individual security basis and are recorded as a component of net
realized gains (losses) on investments in the Statements of Operations.

The components of net realized gains on investments as reported on the
Statements of Operations are included below. Included in the March 31, 2003
gross realized losses on fixed maturities are impairment charges totaling
$3,445. These charges relate primarily to investments in the energy, real
estate and insurance sectors.

|                                  |                       |                             |       |                    |       |                    |       |       |       | 
|--------------------------------- | --------------------- | --------------------------- | ----- | ------------------ | ----- | ------------------ | ----- | ----- | ----- | 
|                                  |                       |                             |       | Three Months Ended |       | Three Months Ended
|                                  |                       |                             |       | March 31, 2003     |       | March 31, 2002    
|                                  |                       |                             |       |                    |       |                   
|Fixed maturities:                 |                       |                             |       |                    |       |                    |       |      
|                                  | Gross realized gains  |                             | $     | 7,004              |       |                    | $     | 969   |      
|                                  | Gross realized losses |                             |       | 4,833              |       |                    |       | 10    |      
|                                  |                       |                             |       |                    |       |                    |       |      
|                                  |                       | Net realized gains          |       | $                  | 2,171 |                    |       | $     | 959   | 
|                                  |                       |                             |       |                    |       |                    |       |      
|Equity securities:                |                       |                             |       |                    |       |                    |       |      
|                                  | Gross realized gains  |                             | $     | 0                  |       |                    | $     | 1,102 |      
|                                  | Gross realized losses |                             |       | 9                  |       |                    |       | 7     |      
|                                  |                       |                             |       |                    |       |                    |       |      
|                                  |                       | Net realized (losses) gains |       | $                  | (9    | )                  |       | $     | 1,095 | 
|                                  |                       |                             |       |                    |       |                    |       |      
|Net realized gains on investments |                       | $                           | 2,162 |                    |       | $                  | 2,054 |      
|                                  |                       |                             |       |                    |       |                    |       |      

The Company participates 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 in return.
Company policy requires collateral equal to 102% of the fair value of the
loaned securities. The Company maintains full ownership rights to the
securities loaned and continues to earn interest on them. In addition, the
Company has the ability to sell the securities while they are on loan. The
Company has an indemnification agreement with the lending agent in the event a
borrower becomes insolvent or fails to return securities. Securities lending
collateral is recorded by the Company as a liability. The proceeds from the
collateral are invested in cash and short-term investments and are reported on
the Statements of Financial Position as cash and cash equivalents. The Company
shares a portion of the interest on these short-term investments with the
borrower. Revenue received for the quarters ended March 31, 2003 and 2002,
related to this program totaled $21 and $35, respectively.

The Company had loaned securities with a market value of $72,590 and $37,499
and secured collateral of $74,188 and $38,946 at March 31, 2003 and 2002,
respectively. The Company
maintains the loaned securities on its Statements of Financial Position as part
of its invested assets. The Company has incurred no losses on the loan program
since the programs inception.

Limited partnerships at March 31, 2003 include U.S. and foreign real estate and
fixed income investments. These partnerships are recorded using the equity
method, which approximates the Companys share of the carrying value of the
partnership. The Company has not guaranteed any of the partnership
liabilities.

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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 |     | Three Months Ended
|             |  | March 31, 2003     |     | March 31, 2002    
|             |  |                    |     |                   
|Fixed Income |  | $                  | (88 | )                  |  | $ | 53    | 
|Real Estate  |  |                    | 368 |                    |  |   | 1,016 | 
|             |  |                    |     |                    |  |   |       | 
|             |  | $                  | 280 |                    |  | $ | 1,069 | 
|             |  |                    |     |                    |  |   |       | 

NOTE C  SEGMENT INFORMATION

The Company offers a range of products and services, but operates as one
reportable life insurance segment. The Companys Traditional Life insurance
line includes permanent life, endowment life, term life and whole life
policies. The Universal Life line includes all fixed universal life products
sold by the Company. Variable universal life products are not sold by the
Company. The Fixed Annuities line includes fixed ordinary deferred annuities,
tax advantaged deferred annuities, annuities in pay-out and structured
settlements. Neither variable nor equity indexed annuity products are sold by
the Company. The Group Life and Other line includes group life insurance and
disability income products. The Corporate Account line includes investment
income earned from surplus not specifically allocable to any one product type.
Investment-related income is allocated based on the assumption that the fixed
maturities and preferred stock portfolios support the insurance product lines
and the common stock, limited partnership and remaining fixed maturity
investments support the Corporate Account. Because the Company sold its entire
common stock portfolio at the end of 2002, a larger percentage of the fixed
maturity portfolio will support the Corporate Account in 2003 and future
periods.

|                                          |                                      |                |       |           |        |           |       |        |       |           |        |       |        |   |     |       |     |   |       |       |       |   |        |       |        | 
|----------------------------------------- | ------------------------------------ | -------------- | ----- | --------- | ------ | --------- | ----- | ------ | ----- | --------- | ------ | ----- | ------ | - | --- | ----- | --- | - | ----- | ----- | ----- | - | ------ | ----- | ------ | 
|                                          |                                      |                |       |           |        |           |       |        |       |           |        |       |        |   |     | Group |     |   |       |       |       |   |        |      
|Three Months Ended                        |                                      | Traditional    |       | Universal |        | Fixed     |       | Life & |       | Corporate |        |       |        |  
|March 31, 2003                            |                                      | Life           |       | Life      |        | Annuities |       | Other  |       | Account   |        | Total
|                                          |                                      |                |       |           |        |           |       |        |       |           |        |      
|Total policy revenue, net of
reinsurance  |                                      | $              | 8,963 |           |        | $         | 3,279 |        |       | $         | 1      |       |        | $ | 846 |       |     | $ | 0     |       |       | $ | 13,089 |      
|Total investment-related
and other income |                                      |                | 1,892 |           |        |           | 2,386 |        |       |           | 14,846 |       |        |   | 41  |       |     |   | 2,038 |       |       |   | 21,203 |      
|                                          |                                      |                |       |           |        |           |       |        |       |           |        |       |        |   |     |       |     |   |       |       |       |   |        |      
|                                          |                                      | Total revenues |       | $         | 10,855 |           |       | $      | 5,665 |           |        | $     | 14,847 |   |     | $     | 887 |   |       | $     | 2,038 |   |        | $     | 34,292 | 
|                                          |                                      |                |       |           |        |           |       |        |       |           |        |       |        |   |     |       |     |   |       |       |       |   |        |      
|Less: Total benefits and
expenses         |                                      |                | 9,406 |           |        |           | 4,309 |        |       |           | 11,488 |       |        |   | 810 |       |     |   | 0     |       |       |   | 26,013 |      
|                                          |                                      |                |       |           |        |           |       |        |       |           |        |       |        |   |     |       |     |   |       |       |       |   |        |      
|                                          | Income from operations,
before taxes |                | $     | 1,449     |        |           | $     | 1,356  |       |           | $      | 3,359 |        |   | $   | 77    |     |   | $     | 2,038 |       |   | $      | 8,279 |       
|                                          |                                      |                |       |           |        |           |       |        |       |           |        |       |        |   |     |       |     |   |       |       |       |   |        |      

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

NOTE C  SEGMENT INFORMATION (Continued)

|                                          |                                             |                |       |           |        |           |       |        |       |           |        |       |        |   |     |       |     |   |       |       |       |   |        |       |        | 
|----------------------------------------- | ------------------------------------------- | -------------- | ----- | --------- | ------ | --------- | ----- | ------ | ----- | --------- | ------ | ----- | ------ | - | --- | ----- | --- | - | ----- | ----- | ----- | - | ------ | ----- | ------ | 
|                                          |                                             |                |       |           |        |           |       |        |       |           |        |       |        |   |     | Group |     |   |       |       |       |   |        |      
|Three Months Ended                        |                                             | Traditional    |       | Universal |        | Fixed     |       | Life & |       | Corporate |        |       |        |  
|March 31, 2002                            |                                             | Life           |       | Life      |        | Annuities |       | Other  |       | Account   |        | Total
|                                          |                                             |                |       |           |        |           |       |        |       |           |        |      
|Total policy revenue, net of
reinsurance  |                                             | $              | 8,589 |           |        | $         | 2,987 |        |       | $         | 1      |       |        | $ | 752 |       |     | $ | 0     |       |       | $ | 12,329 |      
|Total investment-related
and other income |                                             |                | 1,583 |           |        |           | 2,067 |        |       |           | 10,786 |       |        |   | 44  |       |     |   | 3,397 |       |       |   | 17,877 |      
|                                          |                                             |                |       |           |        |           |       |        |       |           |        |       |        |   |     |       |     |   |       |       |       |   |        |      
|                                          |                                             | Total revenues |       | $         | 10,172 |           |       | $      | 5,054 |           |        | $     | 10,787 |   |     | $     | 796 |   |       | $     | 3,397 |   |        | $     | 30,206 | 
|                                          |                                             |                |       |           |        |           |       |        |       |           |        |       |        |   |     |       |     |   |       |       |       |   |        |      
|Less: Total benefits and
expenses         |                                             |                | 8,573 |           |        |           | 4,013 |        |       |           | 10,068 |       |        |   | 846 |       |     |   | 0     |       |       |   | 23,500 |      
|                                          |                                             |                |       |           |        |           |       |        |       |           |        |       |        |   |     |       |     |   |       |       |       |   |        |      
|                                          | Income (loss) from
operations, before taxes |                | $     | 1,599     |        |           | $     | 1,041  |       |           | $      | 719   |        |   | $   | (50   | )   |   | $     | 3,397 |       |   | $      | 6,706 |       
|                                          |                                             |                |       |           |        |           |       |        |       |           |        |       |        |   |     |       |     |   |       |       |       |   |        |      

NOTE D  REINSURANCE

The Company has entered into various reinsurance treaties for the purpose of
ceding the excess of life insurance over Company established 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 considers all of its reinsurance assets
to be collectible; therefore, no allowance has been established for
uncollectible amounts.

Generally, the Companys retention limit is $300 per life for individual
coverage. For its two newest products, ERIE Flagship Term2 and ERIE Target
Term, the Company reinsures 50% and 90%, respectively, with unaffiliated
reinsurers, subject to the Companys $300 retention limit. For its disability
income product, the Company has a 50% coinsurance agreement with its reinsurer.
As of March 31, 2003, and 2002, $7.4 billion and $4.8 billion, respectively,
of life insurance in force was ceded to other companies. The Companys most
significant reinsurance business is with Business Mens Assurance Company of
America (BMA), which reinsures a portion of the Companys life and accident and
health business. At March 31, 2003, the amount of in-force life insurance
ceded to BMA totaled approximately $4.5 billion.

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

NOTE D  REINSURANCE (Continued)

The effect of ceded reinsurance in the Statements of Operations is as follows:

|                       |                                                      |                             |   |                    |        |                    |   |        |        | 
|---------------------- | ---------------------------------------------------- | --------------------------- | - | ------------------ | ------ | ------------------ | - | ------ | ------ | 
|                       |                                                      |                             |   | Three Months Ended |        | Three Months Ended
|                       |                                                      |                             |   | March 31, 2003     |        | March 31, 2002    
|                       |                                                      |                             |   |                    |        |                   
|Revenues:              |                                                      |                             |   |                    |        |                    |   |       
|                       | Direct policy revenue                                |                             | $ | 16,400             |        |                    | $ | 13,986 |       
|                       | Policy revenue ceded                                 |                             |   | 3,311              |        |                    |   | 1,657  |       
|                       |                                                      |                             |   |                    |        |                    |   |       
|                       | Net policy revenue                                   |                             |   | 13,089             |        |                    |   | 12,329 |       
|                       | Net investment income                                |                             |   | 18,584             |        |                    |   | 14,510 |       
|                       | Net realized gains on investments                    |                             |   | 2,162              |        |                    |   | 2,054  |       
|                       | Equity in earnings of limited
partnerships           |                             |   | 280                |        |                    |   | 1,069  |       
|                       | Other income                                         |                             |   | 177                |        |                    |   | 244    |       
|                       |                                                      |                             |   |                    |        |                    |   |       
|                       |                                                      | Total revenues              |   | $                  | 34,292 |                    |   | $      | 30,206 | 
|                      
|Benefits and expenses: |                                                      |                             |   |                    |        |                    |   |       
|                       | Death benefits                                       |                             | $ | 5,207              |        |                    | $ | 3,865  |       
|                       | Reinsurance recoveries                               |                             |   | 1,366              |        |                    |   | 365    |       
|                       |                                                      |                             |   |                    |        |                    |   |       
|                       | Net death benefits                                   |                             |   | 3,841              |        |                    |   | 3,500  |       
|                       | Interest on deposits and
other Policyholder benefits |                             |   | 11,987             |        |                    |   | 11,572 |       
|                       | Increases in future life policy benefits             |                             |   | 3,126              |        |                    |   | 2,545  |       
|                       | Reinsurance reserve (credits) charges                |                             |   | (1,338             | )      |                    |   | 20     |       
|                       |                                                      |                             |   |                    |        |                    |   |       
|                       | Net increases in future life policy
benefits         |                             |   | 1,788              |        |                    |   | 2,565  |       
|                       | Amortization of deferred policy
acquisition costs    |                             |   | 3,315              |        |                    |   | 1,612  |       
|                       | Commissions                                          |                             |   | 2,895              |        |                    |   | 1,694  |       
|                       | Reinsurance commission allowance                     |                             |   | 1,554              |        |                    |   | 750    |       
|                       |                                                      |                             |   |                    |        |                    |   |       
|                       | Net commissions                                      |                             |   | 1,341              |        |                    |   | 944    |       
|                       | General expenses, taxes, licenses
and fees           |                             |   | 3,741              |        |                    |   | 3,307  |       
|                       |                                                      |                             |   |                    |        |                    |   |       
|                       |                                                      | Total benefits and expenses |   | $                  | 26,013 |                    |   | $      | 23,500 | 
|                       |                                                      |                             |   |                    |        |                    |   |       
|                       |                                                      | Income before income taxes  |   | $                  | 8,279  |                    |   | $      | 6,706  | 
|                       |                                                      |                             |   |                    |        |                    |   |       

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##### Table of Contents



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

NOTE E  COMMITMENTS

The Company has outstanding commitments to invest up to $3.4 million in limited
partnerships at March 31, 2003. These commitments will be funded as required
through the end of the respective investment periods, which typically span 3 to
5 years.

NOTE F  STATUTORY INFORMATION

The minimum statutory capital and surplus requirements under Pennsylvania law
for stock life insurance companies (Section 386 of the PA Insurance Code)
amounts to $1,650. The Companys total statutory capital and surplus well
exceeded these minimum requirements.

NOTE G  NOTE PAYABLE TO ERIE INDEMNITY COMPANY

The Company has a $15,000 surplus note payable to the Erie Indemnity Company
(EIC). This note bears an annual interest rate of 6.45%. Interest on the
surplus note is scheduled to be paid semi-annually, subject to approval of the
Pennsylvania Insurance Commissioner. The note will be payable on demand on or
after December 31, 2005. The Company accrued interest of $242 in the first
quarter of 2003 and 2002 which is payable to EIC.

The Company intends to issue an additional surplus note to EIC during the
second quarter of 2003 in an amount not to exceed $25,000 in exchange for
$25,000 in cash upon the approval of the Pennsylvania Insurance Department.
All payments of interest and principal on this second note may be paid only out
of unassigned surplus of EFL and are subject to prior approval by the
Pennsylvania Insurance Commissioner. This note is being issued to strengthen
the surplus of the Company.

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##### Table of Contents






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 15,
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, 2002 as filed with the Securities and Exchange Commission on
March 27, 2003.

FINANCIAL OVERVIEW

Net income increased to $5.4 million, or $0.57 per share, in the first quarter
of 2003, compared to $4.4 million or $0.46 per share, for the first quarter of
2002, an increase of 23.3%. Contributing to this growth were increases in
policy revenue and net investment income.

Net income, excluding net realized capital gains and related federal income
taxes increased to $4.0 million, or $0.42 per share, in the first quarter of
2003 compared to $3.1 million, or $0.32 per share, for the same period in 2002,
an increase of 31.1%. Increases in policy revenue and net investment income
during the quarter were partially offset by a decrease in equity in earnings of
limited partnerships and an increase in amortization of deferred acquisition
costs (DAC).

The table below reconciles the Companys GAAP-basis net income to net income
excluding net realized gains and related income taxes. Management believes
this measure assists the financial statement reader in interpreting and
evaluating the financial results of the Company by removing the effects of
non-recurring gains and losses from investment sales, which could significantly
impact the Companys financial results from one period to another based on the
timing of investment sales and resulting gains or losses.

|           |                                      |                                                                  |       |                    |        |      |       |        |        |  
|---------- | ------------------------------------ | ---------------------------------------------------------------- | ----- | ------------------ | ------ | ---- | ----- | ------ | ------ | -
|           |                                      |                                                                  |       | Three months ended
|           |                                      |                                                                  |       | March 31,         
|           |                                      |                                                                  |       |                   
|           |                                      |                                                                  |       | 2003               |        | 2002
|           |                                      |                                                                  |       |                    |        |     
|Net income |                                      | $                                                                | 5,406 |                    |        | $    | 4,386 |       
|           | Net realized gains on investments    |                                                                  |       | (2,162             | )      |      |       | (2,054 | )     
|           | Income tax expense on realized gains |                                                                  |       | 757                |        |      |       | 719    |       
|           |                                      |                                                                  |       |                    |        |      |       |       
|           |                                      | Realized gains net of income tax expense                         |       | $                  | (1,405 | )    |       | $      | (1,335 | )
|           |                                      |                                                                  |       |                    |        |      |       |       
|           |                                      | Net income excluding net realized gains
and related income taxes |       | $                  | 4,001  |      |       | $      | 3,051  |  
|           |                                      |                                                                  |       |                    |        |      |       |       

REVENUES

Analysis of Policy Revenue

Total net policy revenue increased $0.8 million, or 6.2%, to $13.1 million in
the first quarter of 2003, from $12.3 million during the same period in 2002.
Contributing to this growth was an increase in net premiums on traditional life
insurance policies of 13.3% to $9.4 million for the quarter ended March 31,
2003. Total policies in force on traditional life insurance products increased
9.4% to 191,257 at March 31, 2003, compared to 174,863 at March 31, 2002.

Sales of the Companys newest traditional life products  ERIE Target Term and
Erie Flagship Term2, continue to rise. These products, along with Erie
Flagship Term2s predecessor, Erie Flagship Term, generated direct premiums
totaling $4.8 million and $2.5 million during the quarters ended March 31, 2003
and 2002, respectively. Net premiums for these products, which are heavily
reinsured, totaled $1.7 million and $1.2 million for the three months ended
March 31, 2003 and 2002, respectively.

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

Analysis of Investment-related Income

Net investment income increased $4.1 million, or 28.1%, to $18.6 million in the
first quarter of 2003 from $14.5 million for the same period in 2002. The
increase in net investment income for the first quarter of 2003 compared to
similar periods in 2002 is related to larger invested balances in 2003,
compared to 2002, partially offset by lower yields in 2003 due to lower
interest rates.

Net realized gains on investments were $2.2 million in the first quarter of
2003, compared to $2.1 million in the first quarter of 2002. Net realized
gains for the first quarter of 2003 were net of $3.4 million of impairment
charges. There were no impairment charges in the first quarter of 2002. The
first quarter 2003 impairment charges were from investments primarily in the
energy, real estate and insurance sectors.

The Company recorded earnings in limited partnerships of $0.3 million in the
first quarter of 2003, compared to earnings of $1.1 million during the same
period in 2002. The 2003 decrease in partnership earnings relates to decreased
earnings on real estate partnerships in 2003.

The Companys performance of its fixed maturities and preferred stock compared
to market indices is presented below:

|                                                       |  |                                             |       |  
|------------------------------------------------------ |  | ------------------------------------------- | ----- | -
|                                                       |  | Two years ended                            
|                                                       |  | March 31,
2003
(Pre-tax annualized returns)
|                                                       |  |                                            
|Fixed maturities                                       |  |                                             | 9.53  | %
|Preferred stock                                        |  |                                             | 12.05 | %
|Other indices:                                         |  |                                             |       |  
|Lehman Brothers Global Aggregate
Bond Index  Unhedged |  |                                             | 11.03 | %

BENEFITS AND EXPENSES

Analysis of Policy-related Benefits and Expenses

Net death benefits on life insurance policies increased 9.7% in the first
quarter of 2003 to $3.8 million from $3.5 million for the same period in 2002.
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 $0.4 million, or 3.6%, to $11.7
million in the first quarter of 2003 from $11.3 million in the first quarter of
2002. Annuity and universal life deposits

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

continue to increase. However, the interest expense on these deposits
increased only slightly due to the interest rates credited on these deposits
being lowered in 2003 and 2002. The interest rates credited on annuity and
universal life deposits in 2003 and 2002 were at the following rates:

|                                     |  |          |              |                |  |  |              |  
|------------------------------------ |  | -------- | ------------ | -------------- |  |  | ------------ | -
|                                     |  | Annuity  |              | Universal Life
|                                     |  | Deposits |              | Deposits      
|                                     |  |          |              |               
|January 1, 2002  February 19, 2002  |  |          | 5.00% - 6.00 | %              |  |  | 6.00% - 6.75 | %
|February 20, 2002  October 7, 2002  |  |          | 4.75% - 5.50 | %              |  |  | 5.50% - 6.25 | %
|October 8, 2002  December 2, 2002   |  |          | 4.25% - 5.00 | %              |  |  | 5.25% - 6.00 | %
|December 3, 2002  February 24, 2003 |  |          | 4.00% - 4.80 | %              |  |  | 5.25% - 6.00 | %
|February 25, 2003  March 10, 2003   |  |          | 3.75% - 4.70 | %              |  |  | 5.25% - 6.00 | %
|March 11, 2003  March 31, 2003      |  |          | 3.75% - 4.70 | %              |  |  | 5.00% - 5.75 | %

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. Future life policy benefits totaled
$1.8 million in the first quarter of 2003, compared to $2.6 million in the
first quarter of 2002. March 2002 included $0.9 million in adjustments to
reflect a reduction in the reserve credit for rated business and the new term
products.

Amortization of deferred policy acquisition costs increased $1.7 million to
$3.3 million in the first quarter of 2003. Throughout the year the Company
evaluates the recoverability of the DAC asset for new issues using an actuarial
model that allocates actual expenses to the various lines and comparing them to
assumed, or expected, expenses. Unrecoverable deferred costs are expensed in
the period of determination. In the first quarter of 2003, a charge of $0.4
million was recorded to expense unrecoverable deferred costs.

Analysis of Other Expenses

General expenses and commissions increased $0.8 million, or 21.0%, to $4.4
million for the first quarter 2003, compared to $3.6 million for the same
period in 2002. General 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 DAC. Such expenses include 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.

General expenses, net of DAC, increased $0.4 million, or 13.7%, to $3.1 million
for the quarter ended March 31, 2003. This increase is the result of a
contribution to the supplemental employee retirement plan for a recently
retired executive of the Company.

Direct commissions to independent Agents 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, are
deferrable as DAC. Most first-year and incentive commissions and some
second-year commissions qualify for deferral as DAC. For the first quarter of
2003, net commission expense increased $0.4 million to $1.3 million, compared
to $0.9 million for the first quarter of 2002. This increase can be attributed
to the growth in annuity sales. Flexible premium deferred annuity commissions,
a portion of which have been capitalized as commissions in the DAC, have
increased $1.3 million to $1.6 million in 2003 from $0.3 million for the three
months ended March 31, 2002.

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

FINANCIAL CONDITION

Investments

The Companys investment strategies 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 on a total return approach that focuses on
current income and capital appreciation.

The Companys invested assets are sufficiently liquid to meet commitments to
our Policyholders. At March 31, 2003, the Companys investment portfolio
consisting of cash, investment grade bonds and investment grade preferred
stock, totaled more than $1.2 billion or 83% of total assets. These resources
provide the liquidity the Company requires to meet known and unforeseen demands
on its funds.

The Company continually reviews the investment portfolio to evaluate positions
that might incur other-than-temporary declines in value. For investment
holdings, general economic conditions and/or conditions specifically affecting
the underlying issuer or its industry, including downgrades by the major rating
agencies, are considered in evaluating impairment in value. In addition to
specific factors, other factors considered in the Companys review of
investment valuation are the length of time the market value is below cost and
the amount the market value is below cost.

For fixed maturity and preferred stock investments, the Company individually
analyzes all positions with emphasis on those that have declined more than 20%
below cost. The Company considers
market conditions, industry characteristics and the fundamental operating
results of the issuer to determine if declines in value are due to changes in
interest rates, changes relating to a decline in credit quality, or other
issues affecting the investment. Positions that have incurred market price
declines of over 20% for a period greater than six months where the
creditworthiness of the issuer or other factors indicate a decline that is
other-than-temporary, are either sold or recognized as impaired and reflected
as a charge to the Companys operations. The first quarter 2003 impairments of
$3.4 million were previously discussed in the Analysis of Investmentrelated
Income section and are related to impairments of fixed maturity investments.

If the Companys policy for determining the recognition of impaired positions
were different, the Companys Statements of Financial Position and Results of
Operations could be significantly
impacted. Management believes its investment valuation philosophy and
accounting practices result in appropriate and timely measurement of value and
recognition of impairment.

The Companys investments are subject to certain risks, including interest rate
price risk and credit 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. 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 Company
management and the Board of Directors.

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

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 for each
policy based upon factors such as 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 for each policy based on the
amount of Policyholder deposits (less applicable insurance and expense charges)
plus interest earned on those deposits. 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.

Financial Ratings

Insurance companies are rated by rating agencies to provide insurance consumers
and investors with meaningful information on the rated companies. Higher
ratings generally indicate financial stability and a stronger ability to pay
claims. The ratings are generally based upon factors relevant to Policyholders
and are not directed toward return to investors.

The Companys rating from A.M. Best was lowered from A+ (Superior) to A
(Excellent) in March 2003. The A (Excellent) rating places the Company in the
top 17% of more than 1,000 individual insurers or groups of insurers rated and
continues to affirm the Companys strong financial position. The Company also
has a rating of B+ (Good) from Weiss Ratings, Inc. The B+ rating means that
the Company offers good financial security and has the resources necessary to
deal with a variety of adverse conditions.

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 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 three months ended March 31, 2003 was
$0.6 million. The Companys liquidity position remains strong as invested assets and
cash and cash equivalents increased by more than $112.8 million during the
first quarter of 2003 to $1.4 billion.

Annuity and universal life deposits, which do not appear as revenue on the
Statement of Operations, 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
revenue. Annuity and universal life deposits were $65.5 million in the first
quarter of 2003 and $33.7 million in the first quarter of 2002. The increased
volatility in the equity markets has continued to help drive annuity sales.

The Companys current commitments for expenditures as of March 31, 2003 are
primarily for policy death benefits, policy surrenders and withdrawals, general
operating expenses, federal income taxes, and dividends to Shareholders. In
addition, the Company has outstanding commitments to invest up to $3.4 million
in its real estate limited partnerships at March 31, 2003. All Company
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 also 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 March
31, 2003 and 2002, there were no borrowings on this line of credit.

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

FACTORS THAT MAY AFFECT FUTURE RESULTS

Products with Interest Rate Guarantees

Several of the Companys annuity and universal life products offer guaranteed
interest rates to Policyholders. In response to the current interest rate
environment, the Company has recently reduced the credited interest rates to
historically low levels. Certain products are now within 5 basis points of the
minimum interest rates guaranteed under these policies.

If the interest rates on fixed income securities continue to decline, the
interest rates available in the marketplace may be insufficient to produce our
current target profit margins or, in extreme situations, could produce negative
profit margins on annuity and universal life deposits. In this situation, new
policy issuance and new money received on existing contracts could be
restricted.

The Company has filed a revision to current deferred annuity products to lower
interest rate guarantees on newly issued policies to 3.0% in all policy years.
The change has been approved and implemented in all states in which the Company
is licensed. The Company has filed additional revisions to lower the interest
rate guarantees on new deferred annuity products even further.

The Company has limited ability in its universal life and annuity policy
contracts to restrict new deposits on existing contracts. New deposits are
limited under the terms of the Companys universal life and annuity contracts
as follows:



| |  |  | Universal life products provide for planned premium amounts.
Additional unplanned premium payments may be made at any time during
the insureds life and before the end of the payment period. The
amounts of such payments must be acceptable to the Company and be
within IRS guidelines. Policies in force at March 31, 2003, have an
estimated annualized planned premium of approximately $28.1 million.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | Flexible premium deferred annuity contracts allow the Company
to limit deposits to a maximum of $25,000 per year. There are
currently over 21,000 contracts in force.                                                                                                                                                                                                                                        

The recovery of acquisition costs previously capitalized on annuity and
universal life products is dependent on the future profitability of this
business. Reduced investment margins over an extended period of time could
affect the recoverability of the deferred policy acquisition asset.

During the first quarter of 2003, the average rates credited on flexible
premium deferred annuities and universal life deposits were 4.7% and 5.5%,
respectively. The current coupon yield on fixed maturities matched against our
universal life and annuity products at March 31, 2003, was 6.5%.

Investment Market Conditions

The Companys deposit-type products compete with a wide variety of investment
options. Among other factors affecting the investment decisions of
Policyholders and potential Policyholders are
general investment market conditions, particularly the market interest rate
environment. Changes
in interest rates affect pricing and the relative attractiveness of
interest-sensitive investment
options, which bears directly on the ability of the Company to attract new
Policyholders and retain existing holders of annuity, universal life and
certain permanent life insurance products.

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

Terrorist Actions

The Company is exposed to direct losses arising from possible future terrorist
actions. Additionally, current and future proposed federal measures might
affect the way the life insurance industry handles losses from potential future
terrorist actions. These measures may include the establishment of a federal
reinsurance program for losses from terrorist actions and possible changes to
the tax laws governing the taxation of insurance companies.

The Companys substantial portfolio of equity and fixed income investments
could also be affected by
potential future terrorist actions which may affect the level of economic
activity as well as investor confidence in the U.S. capital markets.




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 2002 Annual Report on Form 10-K. The risks
associated with interest rate guarantees on our universal life and annuity
products are discussed in the Report on Form 10-K in Factors That May Affect
Future Results on page 27. 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.

The Company also has exposure to credit risk through its portfolios of fixed
maturity securities, preferred stock, mortgage loans and to a lesser extent
short-term investments. This risk is defined as the potential loss in market
value resulting from adverse changes in the borrowers ability to repay the
debt. The Companys objective is to earn competitive returns by investing in a
diversified portfolio of securities. The Company manages this risk by
performing up front underwriting analysis and regular reviews by its investment
staff. The fixed maturity investments are also maintained between minimum and
maximum percentages of invested assets.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995:Certain forward-looking statements contained herein involve risks and
uncertainties. These statements include certain discussions relating to
underwriting, premium and investment income volume, business strategies,
profitability and business relationships and the Companys other business
activities during 2003 and beyond. In some cases, you can identify
forward-looking statements by terms such as may, will, should, could,
would, expect, plan, intend, anticipate, believe, estimate,
project, predict, potential and similar expressions. These
forward-looking statements reflect the Companys current views about future
events, are based on assumptions and are subject to known and unknown risks and
uncertainties that may cause results to differ materially from those
anticipated in those statements. Many of the factors that will determine
future events or achievements are beyond our ability to control or predict.




ITEM 4.  CONTROLS AND PROCEDURES

Within 90 days prior to the date of filing of this report, the Company carried
out an evaluation, under the supervision and with the participation of the
Companys management, including its Chief Executive Officer and its Chief
Financial Officer, of the design and operation of the Companys disclosure
controls and procedures. Based on this evaluation, the Companys Chief
Executive Officer and Chief Financial Officer concluded that the Companys
disclosure controls and procedures are effective for gathering, analyzing and
disclosing the information the Company is required to disclose in the reports
it files under the Securities Exchange Act of 1934, within the time periods
specified in the SECs rules and forms. There have been no significant changes
in the Companys internal controls or in other factors that could significantly
affect internal controls subsequent to the date of this evaluation.

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PART II.  OTHER INFORMATION




ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

Exhibits

|        |  |                                                                                                                       
|------- |  | ----------------------------------------------------------------------------------------------------------------------
|Exhibit |  |                                                                                                                       
|Number  |  | Description of Exhibit                                                                                                
|        |  |                                                                                                                       
|99.1    |  | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the SarbanesOxley Act of 2002

Reports on Form 8-K

On February 25, 2003, the Company filed a report on Form 8-K, reporting under
Item 5, that a press release had been issued reporting the Companys earnings
for the quarter and year ended December 31, 2002.

On March 3, 2003, the Company filed a report on Form 8-K, reporting under Item
4, that effective March 3, 2003, Ernst & Young, LLP succeeded Malin, Bergquist
& Company, LLP as the Companys independent auditors. As mentioned in the Form
8-K, there were no disagreements with Malin, Bergquist & Company on any matter
of accounting principles or practices, financial statement disclosure, or
auditing scope or procedure during the Companys two most recent fiscal years
and throughout the date of the Form 8-K filing.

On March 27, 2003, the Company filed a report on Form 8-K/A, amending the Form
8-K filing of March 3, 2003. The amendment was filed to specify that Malin,
Bergquist & Company, LLP was dismissed on March 27, 2003 as the Companys
independent auditors and that Ernst & Young, LLP was engaged as the Companys
independent auditors on March 28, 2003. Malin, Bergquist & Company, LLPs
reports on the Companys financial statements for the past two years were
unqualified and there were no disagreements on any matter of accounting
principles, practices or financial statement disclosure. A consent letter was
filed as an exhibit to the 8-K in which Malin, Bergquist and Company, LLP
agreed with such statements.

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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: April 24, 2003 | /s/ Jeffrey A. Ludrof(Jeffrey A. Ludrof, President & CEO)
|-------------------- | ---------------------------------------------------------



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

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CERTIFICATIONS

I, Jeffrey A. Ludrof, certify that:



| | 1. |  | I have reviewed this quarterly report on Form 10-Q of Erie Family
Life Insurance Company;                                                                                                                                                                                                                                                                                         
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 2. |  | Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report;                                                    
|
| | 3. |  | Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the
periods presented in this quarterly report;                                                                       
|
| | 4. |  | The registrants other certifying officers and I are responsible
for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and have:                                                                                                                                                            
|
| |    |  | a)  designed such disclosure controls and procedures to
ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in
which this quarterly report is being prepared;                                                                               
|
| |    |  | b)  evaluated the effectiveness of the registrants
disclosure controls and procedures as of a date within 90 days
prior to the filing date of this quarterly report (the
Evaluation Date); and                                                                                                                                                                                 
|
| |    |  | c)  presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation Date;                                                                                                                                                                                                       
|
| | 5. |  | The registrants other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrants auditors and
the audit committee of registrants board of directors:                                                                                                                                                                                    
|
| |    |  | a)  all significant deficiencies in the design or
operation of internal controls which could adversely affect the
registrants ability to record, process, summarize and report
financial data and have identified for the registrants
auditors any material weaknesses in internal controls; and                                                                                
|
| |    |  | b)  any fraud, whether or not material, that involves
management or other employees who have a significant role in
the registrants internal controls; and                                                                                                                                                                                                                        
|
| | 6. |  | The registrants other certifying officers and I have indicated in
this quarterly report whether there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.

Date:  April 24, 2003



| | /s/ Jeffrey A.
LudrofJeffrey A. Ludrof, President & CEO
| | -------------------------------------------------------

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##### Table of Contents






CERTIFICATIONS

I, Philip A. Garcia, certify that:



| | 1. |  | I have reviewed this quarterly report on Form 10-Q of Erie Family
Life Insurance Company;                                                                                                                                                                                                                                                                                         
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 2. |  | Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report;                                                    
|
| | 3. |  | Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the
periods presented in this quarterly report;                                                                       
|
| | 4. |  | The registrants other certifying officers and I are responsible
for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and have:                                                                                                                                                            
|
| |    |  | a)  designed such disclosure controls and procedures to
ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in
which this quarterly report is being prepared;                                                                               
|
| |    |  | b)  evaluated the effectiveness of the registrants
disclosure controls and procedures as of a date within 90 days
prior to the filing date of this quarterly report (the
Evaluation Date); and                                                                                                                                                                                 
|
| |    |  | c)  presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation Date;                                                                                                                                                                                                       
|
| | 5. |  | The registrants other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrants auditors and
the audit committee of registrants board of directors:                                                                                                                                                                                    
|
| |    |  | a)  all significant deficiencies in the design or
operation of internal controls which could adversely affect the
registrants ability to record, process, summarize and report
financial data and have identified for the registrants
auditors any material weaknesses in internal controls; and                                                                                
|
| |    |  | b)  any fraud, whether or not material, that involves
management or other employees who have a significant role in
the registrants internal controls; and                                                                                                                                                                                                                        
|
| | 6. |  | The registrants other certifying officers and I have indicated in
this quarterly report whether there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.

Date:  April 24, 2003



| | /s/ Philip A.
GarciaPhilip A. Garcia, Executive Vice President & CFO
| | --------------------------------------------------------------------

26