Bonnie Fitzpatrick - Kaliszewski SSV Treasury Management

ERIE’s Treasury Technology TMS, Account Analysis & Bank Recon

Erie Insurance Group Company Facts Industry / Financial Stats Property & Casualty / Life Insurer Founded 1925, Located Erie, Pennsylvania Serves 12 States and District of Columbia 5.8MM Policies for auto, home and business insurance 339,000 Policies for life, annuity and disability income 12,400 Independent Agents 5,300 Employees FORTUNE 500 Company 9th Largest Home Insurer* 16th Largest property / Casualty Insurance group 11th Largest Auto Insurer* 2nd Largest Auto Insurer in Pennsylvania Ratings Erie’s Property / Casualty companies Rated A+ Erie Family Life Co – Rated A *Based on Direct Written Premium

Erie Insurance Group Corporate Treasurer Treasury Department Sourcing & Vendor Management Billing / Premium Cash Processing Capital Management & Investor Relations Treasury Accounting Strategic Initiatives Treasury Management

Consider Your Current Environment What is your Treasury / Cash Management Department’s current process for: Tracking and analyzing bank expenses Calculating daily cash position Reconciling bank accounts

Opportunities To Do More With Improved Banking Technology

ERIE – Banking Technology Implementations TrinTech Smart Analysis: Bank Account Analysis software in 2009 (Required IT resources for FTP files only) Wall Street Systems: Treasury Workstation in 2010 Cash Management Cash Accounting Treasury Software: Reconciliation Software in 2010 Kyriba – Treasury Workstation in 2016/2017 Cash Forecasting Financial Transactions Payments General Ledger Reconciliation Bank Fee

Treasury Workstation Increase Productivity Implementation Objectives Increase Productivity Reduce time spent on labor intensive processes Increase time spent on analyzing Improve Visibility Centralize database for cash balances Enhance Internal controls Provides Flexibility to integrate with other business applications Cloud based systems (most) provides latest upgrades Scalability Faster implementation

Vendor / System Considerations Does the TWS functionality and service offering match my business requirements? Are the TWS reporting capabilities in line with my reporting needs? Is the Vendor current client list similar or compatible with my business needs? Can the TWS handle my software requirements? Is the Vendor stable with favorable reference in your industry?

Vendor Considerations Types of Installation SaaS Vendor Company 1 Company 2 Company 3 ASP On-premise Company

Vendor Selection Information Gathering Utilize resources of industry focus groups or banking partners Talk to your peers / networking group Participate in webinars and conferences Conduct RFI / RFP process Check references

Vendor Selection RFI – Request for Information ERIE’S RFI / RFP Process RFI – Request for Information Used for supplier qualification Prioritize specifications RFP – Request for Proposal Functionality Service Implementation Pricing template Evaluation criteria References – Similar industry

Project Team Vendor Team Members Vendor Project Manager Implementation Coordinator Implementors Transmission Analyst Outside Consultants (if necessary) Internal Team Members Project Sponsor Project Manager Functional Team Leader Functional Members Technical Team Leader Technical Team Members

Team Member Roles Treasury Cash Management Strategic Initiatives Treasury Accounting Internal Audit Controller / Accounting IT Programmers Transmission Analysts (FTP)

Kyriba 12/31/2015: Statement of work (SOW) completed Implementation 12/31/2015: Statement of work (SOW) completed 1/28/2016: Project Team Formation and Project Plan 3/9-10/2016: Information Gathering Session 6/30/2016: Phase I: Full migration from previous TWS Cash Management Bank Connectivity Cash Position Cash Accounting 9/30/2016: Phase II: Financial Transactions (Investments / Debt –Non-Custody) Payments GL Reconciliation Bank Administration Cash Forecasting Mid 2017: Completion, Post-Production – (finalizing Custody Cash / MMF integration) Planning Design Build Test Parallel Go Live Post Implementation

Kyriba SOW – Statement of Work Implementation / Challenges SOW – Statement of Work TWS Migration vs Implementation (Migrated from Treasura to Kyriba) Bank Connectivity Bank Polling Electronic Funds Transfer (ACH /Wires) Fully Remote Implementation SME Resources Aggressive Implementation Schedule Integration of Custody Cash Activity

Kyriba ERP Integration Custody Cash Integration Benefits ERP Integration Custody Cash Integration Daily Transaction Reconciliation

Contact Info: Email: Bonnie.Fitzpatrick@ErieInsurance.com Phone: 814.870.2585