Note 6 – 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 thousands)	2017			2016
Balance at beginning of period	$	1,025,863		$	983,880
Provision related to:
Current year		99,408			100,587
Prior years		2,980			6,511
		102,388			107,098
Payments, net of recoveries, related to:
Current year		30,610			30,230
Prior years		83,404			83,779
		114,014			114,009
Other		(772	)		6,705
Balance at end of period	$	1,013,465		$	983,674

The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 4.0% and 5.5% for the three months ended March 31, 2017 and 2016, respectively. The current quarter rate of 4.0% reflects the ultimate loss rate for the current policy year and no change in the loss reserve estimates for prior policy years. The first quarter of 2016 rate of 5.5% reflected the ultimate loss rate of 5.0% for the 2016 policy year and a $4.7 million net increase in the loss reserve estimates for prior policy years.

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

(in thousands, except percentages)	March 31, 2017				December 31, 2016
Known title claims	$	72,759	7.2	%	$	83,805	8.1	%
Incurred but not reported claims		886,693	87.5	%		888,126	86.6	%
Total title claims		959,452	94.7	%		971,931	94.7	%
Non-title claims		54,013	5.3	%		53,932	5.3	%
Total loss reserves	$	1,013,465	100.0	%	$	1,025,863	100.0	%