Reserve for Known and Incurred but Not Reported Claims

12 Months Ended

Dec. 31, 2024

Insurance Loss Reserves [Abstract]

Reserve for Known and Incurred but Not Reported Claims

NOTE 11. 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:

	December 31,
(in millions)	2024			2023			2022
Balance at beginning of year	$	1,282.4		$	1,325.3		$	1,283.8
Provision related to:
Current year		357.3			354.6			468.3
Prior years		(37.3	)		(18.3	)		18.0
		320.0			336.3			486.3
Payments, net of recoveries, related to:
Current year		204.6			199.6			225.8
Prior years		193.2			182.2			208.5
		397.8			381.8			434.3
Other		(11.2	)		2.6			(10.5	)
Balance at end of year	$	1,193.4		$	1,282.4		$	1,325.3

The provisions for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, were 3.0%, 3.25% and 4.0% for the years ended December 31, 2024, 2023 and 2022, respectively.

The 3.0% loss provision rate in the current year reflects an ultimate loss rate of 3.75% for the current policy year and a reserve release of 0.75%, or $34.6 million and for prior policy years, all of which are based on title insurance premiums and escrow fees for the year ended December 31, 2024.

The 2023 loss provision rate of 3.25% reflected an ultimate loss rate of 3.75% for the 2023 policy year and a reserve release of 0.5%, or $21.6 million and for prior policy years, all of which are based on title insurance premiums and escrow fees for the year ended December 31, 2023. The 2022 loss provision rate of 4.0% reflected the ultimate loss rate for policy year 2022 and no change in loss reserve estimates for prior policy years.

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

	December 31,
(dollars in millions)	2024				2023
Known title claims	$	55.3	4.6	%	$	55.5	4.3	%
IBNR title claims		1,109.4	93.0	%		1,186.5	92.5	%
Total title claims		1,164.7	97.6	%		1,242.0	96.8	%
Non-title claims		28.7	2.4	%		40.4	3.2	%
Total loss reserves	$	1,193.4	100.0	%	$	1,282.4	100.0	%

Short-Duration Insurance Contracts

Home Warranty

The following reflects information as of December 31, 2024 about incurred and paid claims development as well as cumulative claims frequency by claims event, and the total of incurred but not reported claims plus expected development on reported claims included with the net incurred claims amounts.

The information below about incurred and paid claims development for the years ended December 31, 2015 to 2023, is presented as supplementary information.

	Incurred claims and allocated claim adjustment expenses																				December 31, 2024
Accident	Years ended December 31,																				Cumulative number of reported
Year	2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023*		2024		claims
	(in millions)
2015		143.7		143.7		143.7		143.7		143.7		143.7		143.7		143.7		143.7	$	143.7		0.9
2016				172.7		172.7		172.7		172.7		172.7		172.7		172.7		172.7		172.7		1.0
2017						167.2		167.2		167.2		167.2		167.2		167.2		167.2		167.2		1.0
2018								179.8		179.8		179.8		179.8		179.8		179.8		179.8		1.1
2019										174.1		174.1		174.1		174.1		174.1		174.1		1.1
2020												197.4		197.4		197.4		197.4		197.4		1.2
2021														218.2		218.2		218.2		218.2		1.2
2022																211.8		211.8		211.8		1.1
2023																		193.2		193.2		1.0
2024																				184.4		1.0
																	Total		$	1,842.5

*Amounts unaudited.

	Cumulative paid claims and allocated claim adjustment expenses
Accident	Years ended December 31,
Year	2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023*		2024
	(in millions)
2015		129.5		143.7		143.7		143.7		143.7		143.7		143.7		143.7		143.7	$	143.7
2016				155.4		172.7		172.7		172.7		172.7		172.7		172.7		172.7		172.7
2017						151.1		167.2		167.2		167.2		167.2		167.2		167.2		167.2
2018								163.0		179.8		179.8		179.8		179.8		179.8		179.8
2019										159.2		174.1		174.1		174.1		174.1		174.1
2020												177.8		197.4		197.4		197.4		197.4
2021														198.7		218.2		218.2		218.2
2022																192.3		211.8		211.8
2023																		177.5		193.2
2024																				169.0
																	Total		$	1,827.1
			All outstanding liabilities before 2015																	—
			Liabilities for claims and claims adjustment expenses																$	15.4

*Amounts unaudited.

A reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expense at December 31, 2024, is as follows:

	December 31, 2024
	(in millions)
Liability for unpaid claims and claim adjustment expenses — short-duration:
Home warranty	$	15.4
Property and casualty insurance		13.3
		28.7
Insurance lines other than short-duration:
Title insurance		1,164.7
Total liability for unpaid claims and claims adjustment expenses	$	1,193.4

Supplementary information about average historical claims duration for the Company’s home warranty business as of December 31, 2024, is as follows:

Average annual percentage payout of incurred claims by age (unaudited)
Years	1		2
Annual payout	90.8	%	9.2	%