Reserve for Known and Incurred but Not Reported Claims

6 Months Ended

Jun. 30, 2024

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)	2024			2023
Balance at beginning of period	$	1,282.4		$	1,325.3
Provision related to:
Current year		165.7			174.4
Prior years		(16.7	)		(2.6	)
		149.0			171.8
Payments, net of recoveries, related to:
Current year		75.8			78.6
Prior years		103.6			100.9
		179.4			179.5
Other		0.2			4.6
Balance at end of period	$	1,252.2		$	1,322.2

The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 3.0% and 3.5% for the three and six months ended June 30, 2024 and 2023, respectively.

The 3.0% loss provision rate for the three and six months ended June 30, 2024 reflects an ultimate loss rate of 3.75% for the 2024 policy year and reserve releases of 0.75%, or $8.6 million and $15.9 million, respectively, for prior policy years, all based on title insurance premiums and escrow fees for the three and six months ended June 30, 2024.

The 3.5% loss provision rate for the three and six months ended June 30, 2023 reflected an ultimate loss rate of 3.75% for the 2023 policy year and reserve releases of 0.25%, or $2.9 million and $5.4 million, respectively, for prior policy years, all based on title insurance premiums and escrow fees for the three and six months ended June 30, 2023.

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


(dollars in millions)	June 30, 2024				December 31, 2023
Known title claims	$	54.8	4.4	%	$	55.5	4.3	%
Incurred but not reported claims		1,156.9	92.4	%		1,186.5	92.5	%
Total title claims		1,211.7	96.8	%		1,242.0	96.8	%
Non-title claims		40.5	3.2	%		40.4	3.2	%
Total loss reserves	$	1,252.2	100.0	%	$	1,282.4	100.0	%