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Erie Insurance To Defend Against HUD Charges


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ERIE, Pa., Oct. 27, 2006 -- Erie Insurance Group is proud of its commitment to fair and non-discriminatory business practices. ERIE regrets that HUD fair housing staff yesterday issued a press release promoting its misguided claims against ERIE and several independent insurance agencies.

The claims by HUD staff are based on several telephone calls to independent insurance agents made more than five years ago and the claim that an insurer's distribution of agents within a state must mirror the racial composition of each community within that state.

"It is always problematic when the same HUD staff that initiates a complaint decides whether the complaint should be pursued. It is especially troubling when that staff issues an inaccurate and inflammatory press release before its claims are presented to an impartial HUD judge," said ERIE's counsel, Andrew Sandler of the Skadden Arps law firm.

ERIE looks forward to presenting its defense to these baseless charges and hopes that HUD staff, having already taken five years to pursue its claims, does not seek further delay in permitting ERIE to obtain a fair hearing.

According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 15th largest automobile insurer in the United States based on direct premiums written and the 22nd largest property/casualty insurer in the United States based on total lines net premium written. The Group, rated A+ (Superior) by A.M. Best Company, has almost 3.8 million policies in force and operates in 11 states and the District of Columbia. Erie Insurance Group ranked 421 on the FORTUNE 500 and Erie Indemnity Company is included in Forbes Magazine's PLATINUM 400 list of the best-managed companies in America. News releases and more information about Erie Insurance Group are available at http://www.erieinsurance.com/