Reserve for Known and Incurred but Not Reported Claims

9 Months Ended

Sep. 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:


	Nine Months Ended September 30,
(in millions)	2023			2022
Balance at beginning of period	$	1,325.3		$	1,283.8
Provision related to:
Current year		273.7			364.6
Prior years		(10.8	)		15.8
		262.9			380.4
Payments, net of recoveries, related to:
Current year		142.1			166.2
Prior years		147.0			171.5
		289.1			337.7
Other		0.4			(12.5	)
Balance at end of period	$	1,299.5		$	1,314.0

The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 3.0% and 3.33% for the three and nine months ended September 30, 2023, respectively, and 4.0% for the three and nine months ended September 30, 2022. The 3.0% and 3.33% loss rates in the current year reflect an ultimate loss rate of 3.75% for the current policy year and reserve releases of 0.75%, or $8.6 million and 0.42%, or $14.0 million for prior policy years, all based on current year title insurance premiums and escrow fees for the three and nine months ended September 30, 2023, respectively. 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)	September 30, 2023				December 31, 2022
Known title claims	$	60.8	4.7	%	$	62.1	4.7	%
Incurred but not reported claims		1,193.2	91.8	%		1,207.2	91.1	%
Total title claims		1,254.0	96.5	%		1,269.3	95.8	%
Non-title claims		45.5	3.5	%		56.0	4.2	%
Total loss reserves	$	1,299.5	100.0	%	$	1,325.3	100.0	%