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Reserve for Known and Incurred but Not Reported Claims

6 Months Ended

Jun. 30, 2023

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:


	Six Months Ended June 30,
(in millions)	2023			2022
Balance at beginning of period	$	1,325.3		$	1,283.8
Provision related to:
Current year		174.4			239.7
Prior years		(2.6	)		9.2
		171.8			248.9
Payments, net of recoveries, related to:
Current year		78.6			92.8
Prior years		100.9			129.7
		179.5			222.5
Other		4.6			(2.1	)
Balance at end of period	$	1,322.2		$	1,308.1

The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 3.5% and 4.0% for the three and six months ended June 30, 2023 and 2022, respectively. The current year rate of 3.5% reflects an ultimate loss rate of 3.75% for the current policy year and a net decrease in loss reserve estimates for prior policy years of 0.25%, or $2.9 million and $5.4 million, respectively, for the three and six months ended June 30, 2023. The 4.0% rate for the respective periods of the prior year reflected the ultimate loss rate for the 2022 policy year and no change in loss reserve estimates for prior policy years.

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


(dollars in millions)	June 30, 2023				December 31, 2022
Known title claims	$	60.1	4.5	%	$	62.1	4.7	%
Incurred but not reported claims		1,210.8	91.6	%		1,207.2	91.1	%
Total title claims		1,270.9	96.1	%		1,269.3	95.8	%
Non-title claims		51.3	3.9	%		56.0	4.2	%
Total loss reserves	$	1,322.2	100.0	%	$	1,325.3	100.0	%