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:

	Nine months ended September 30,
(in thousands)	2017		2016
Balance at beginning of period	$	1,025,863	$	983,880
Provision related to:
Current year		330,342		345,556
Prior years		3,353		20,917
		333,695		366,473
Payments, net of recoveries, related to:
Current year		165,914		160,693
Prior years		185,483		190,656
		351,397		351,349
Other		13,487		19,036
Balance at end of period	$	1,021,648	$	1,018,040

The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 4.0% for the three and nine months ended September 30, 2017 compared to 5.5% for the three and nine months ended September 30, 2016. 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 third quarter of 2016 rate of 5.5% reflected the ultimate loss rate of 5.0% for the 2016 policy year and a $5.8 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)	September 30, 2017				December 31, 2016
Known title claims	$	74,755	7.3	%	$	83,805	8.1	%
Incurred but not reported claims		889,079	87.0	%		888,126	86.6	%
Total title claims		963,834	94.3	%		971,931	94.7	%
Non-title claims		57,814	5.7	%		53,932	5.3	%
Total loss reserves	$	1,021,648	100.0	%	$	1,025,863	100.0	%