Reserve for Known and Incurred but Not Reported Claims

3 Months Ended

Mar. 31, 2021

Insurance Loss Reserves [Abstract]

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 thousands)	2021		2020
Balance at beginning of period	$	1,178,004	$	1,063,044
Provision related to:
Current year		134,820		103,213
Prior years		5,627		14,264
		140,447		117,477
Payments, net of recoveries, related to:
Current year		38,384		32,685
Prior years		79,824		75,853
		118,208		108,538
Other		2,926		(14,445	)
Balance at end of period	$	1,203,169	$	1,057,538

The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 4.0% and 5.0% for the three months ended March 31, 2021 and 2020, 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 5.0% rate for the first quarter of 2020 reflected an ultimate loss rate of 4.5% for the 2020 policy year and a net increase in the loss reserve estimates for prior policy years of 0.5%, or $5.5 million.

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

(in thousands, except percentages)	March 31, 2021				December 31, 2020
Known title claims	$	62,884	5.2	%	$	64,601	5.5	%
Incurred but not reported claims		1,049,835	87.3	%		1,025,761	87.1	%
Total title claims		1,112,719	92.5	%		1,090,362	92.6	%
Non-title claims		90,450	7.5	%		87,642	7.4	%
Total loss reserves	$	1,203,169	100.0	%	$	1,178,004	100.0	%