Reserve for Known and Incurred but Not Reported Claims

3 Months Ended

Mar. 31, 2024

Reserve for Known and Incurred but Not Reported Claims

Note 8 – Reserve for Known and Incurred But Not Reported Claims

Activity in the reserve for known and incurred but not reported claims is summarized as follows:


	Three Months Ended March 31,
(in millions)	2024			2023
Balance at beginning of period	$	1,282.4		$	1,325.3
Provision related to:
Current year		77.0			83.1
Prior years		(7.5	)		(0.8	)
		69.5			82.3
Payments, net of recoveries, related to:
Current year		30.6			31.1
Prior years		61.0			64.1
		91.6			95.2
Other		1.3			2.1
Balance at end of period	$	1,261.6		$	1,314.5

The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 3.0% and 3.5% for the three months ended March 31, 2024 and 2023, respectively.

The 3.0% loss provision rate in the current year reflects an ultimate loss rate of 3.75% for the 2024 policy year and reserve releases of 0.75%, or $7.3 million for prior policy years, all based on title insurance premiums and escrow fees for the three months ended March 31, 2024.

The 3.5% loss provision rate for the three months ended March 31, 2023 reflected an ultimate loss rate of 3.75% for the 2023 policy year and reserve releases of 0.25%, or $2.5 million for prior policy years, all based on title insurance premiums and escrow fees for the three months ended March 31, 2023.

A summary of the Company’s loss reserves is as follows:


(dollars in millions)	March 31, 2024				December 31, 2023
Known title claims	$	61.6	4.9	%	$	55.5	4.3	%
Incurred but not reported claims		1,162.5	92.1	%		1,186.5	92.5	%
Total title claims		1,224.1	97.0	%		1,242.0	96.8	%
Non-title claims		37.5	3.0	%		40.4	3.2	%
Total loss reserves	$	1,261.6	100.0	%	$	1,282.4	100.0	%