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Reserve for Known and Incurred but Not Reported Claims | 12 Months Ended
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Dec. 31, 2024
Insurance Loss Reserves [Abstract] |
Reserve for Known and Incurred but Not Reported Claims | NOTE 11. 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:
|  | December 31, |
(in millions) |  | 2024 |  |  | 2023 |  |  | 2022 |
Balance at beginning of year |  | $ | 1,282.4 |  |  | $ | 1,325.3 |  |  | $ | 1,283.8 |
Provision related to: |  |  |  |  |  |  |  |  |
Current year |  |  | 357.3 |  |  |  | 354.6 |  |  |  | 468.3 |
Prior years |  |  | (37.3 | ) |  |  | (18.3 | ) |  |  | 18.0 |
|  |  | 320.0 |  |  |  | 336.3 |  |  |  | 486.3 |
Payments, net of recoveries, related to: |  |  |  |  |  |  |  |  |
Current year |  |  | 204.6 |  |  |  | 199.6 |  |  |  | 225.8 |
Prior years |  |  | 193.2 |  |  |  | 182.2 |  |  |  | 208.5 |
|  |  | 397.8 |  |  |  | 381.8 |  |  |  | 434.3 |
Other |  |  | (11.2 | ) |  |  | 2.6 |  |  |  | (10.5 | )
Balance at end of year |  | $ | 1,193.4 |  |  | $ | 1,282.4 |  |  | $ | 1,325.3 |
The provisions for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, were 3.0%, 3.25% and 4.0% for the years ended December 31, 2024, 2023 and 2022, respectively. The 3.0% loss provision rate in the current year reflects an ultimate loss rate of 3.75% for the current policy year and a reserve release of 0.75%, or $34.6 million and for prior policy years, all of which are based on title insurance premiums and escrow fees for the year ended December 31, 2024. The 2023 loss provision rate of 3.25% reflected an ultimate loss rate of 3.75% for the 2023 policy year and a reserve release of 0.5%, or $21.6 million and for prior policy years, all of which are based on title insurance premiums and escrow fees for the year ended December 31, 2023. The 2022 loss provision rate of 4.0% reflected the ultimate loss rate for policy year 2022 and no change in loss reserve estimates for prior policy years. A summary of the Company’s loss reserves is as follows:
|  | December 31, |
(dollars in millions) |  | 2024 |  |  | 2023 |
Known title claims |  | $ | 55.3 |  |  |  | 4.6 | % |  | $ | 55.5 |  |  |  | 4.3 | %
IBNR title claims |  |  | 1,109.4 |  |  |  | 93.0 | % |  |  | 1,186.5 |  |  |  | 92.5 | %
Total title claims |  |  | 1,164.7 |  |  |  | 97.6 | % |  |  | 1,242.0 |  |  |  | 96.8 | %
Non-title claims |  |  | 28.7 |  |  |  | 2.4 | % |  |  | 40.4 |  |  |  | 3.2 | %
Total loss reserves |  | $ | 1,193.4 |  |  |  | 100.0 | % |  | $ | 1,282.4 |  |  |  | 100.0 | %
Short-Duration Insurance Contracts Home Warranty The following reflects information as of December 31, 2024 about incurred and paid claims development as well as cumulative claims frequency by claims event, and the total of incurred but not reported claims plus expected development on reported claims included with the net incurred claims amounts. The information below about incurred and paid claims development for the years ended December 31, 2015 to 2023, is presented as supplementary information.
|  | Incurred claims and allocated claim adjustment expenses |  |  | December 31, 2024 |
Accident |  | Years ended December 31, |  |  | Cumulative number of reported |
Year |  | 2015* |  |  | 2016* |  |  | 2017* |  |  | 2018* |  |  | 2019* |  |  | 2020* |  |  | 2021* |  |  | 2022* |  |  | 2023* |  |  | 2024 |  |  | claims |
|  | (in millions) |
2015 |  |  | 143.7 |  |  |  | 143.7 |  |  |  | 143.7 |  |  |  | 143.7 |  |  |  | 143.7 |  |  |  | 143.7 |  |  |  | 143.7 |  |  |  | 143.7 |  |  |  | 143.7 |  |  | $ | 143.7 |  |  |  | 0.9 |
2016 |  |  |  |  |  | 172.7 |  |  |  | 172.7 |  |  |  | 172.7 |  |  |  | 172.7 |  |  |  | 172.7 |  |  |  | 172.7 |  |  |  | 172.7 |  |  |  | 172.7 |  |  |  | 172.7 |  |  |  | 1.0 |
2017 |  |  |  |  |  |  |  |  | 167.2 |  |  |  | 167.2 |  |  |  | 167.2 |  |  |  | 167.2 |  |  |  | 167.2 |  |  |  | 167.2 |  |  |  | 167.2 |  |  |  | 167.2 |  |  |  | 1.0 |
2018 |  |  |  |  |  |  |  |  |  |  |  | 179.8 |  |  |  | 179.8 |  |  |  | 179.8 |  |  |  | 179.8 |  |  |  | 179.8 |  |  |  | 179.8 |  |  |  | 179.8 |  |  |  | 1.1 |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 174.1 |  |  |  | 174.1 |  |  |  | 174.1 |  |  |  | 174.1 |  |  |  | 174.1 |  |  |  | 174.1 |  |  |  | 1.1 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 197.4 |  |  |  | 197.4 |  |  |  | 197.4 |  |  |  | 197.4 |  |  |  | 197.4 |  |  |  | 1.2 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 218.2 |  |  |  | 218.2 |  |  |  | 218.2 |  |  |  | 218.2 |  |  |  | 1.2 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 211.8 |  |  |  | 211.8 |  |  |  | 211.8 |  |  |  | 1.1 |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 193.2 |  |  |  | 193.2 |  |  |  | 1.0 |
2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 184.4 |  |  |  | 1.0 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 1,842.5 |  |  |  |
*Amounts unaudited.
|  | Cumulative paid claims and allocated claim adjustment expenses |
Accident |  | Years ended December 31, |
Year |  | 2015* |  |  | 2016* |  |  | 2017* |  |  | 2018* |  |  | 2019* |  |  | 2020* |  |  | 2021* |  |  | 2022* |  |  | 2023* |  |  | 2024 |
|  | (in millions) |
2015 |  |  | 129.5 |  |  |  | 143.7 |  |  |  | 143.7 |  |  |  | 143.7 |  |  |  | 143.7 |  |  |  | 143.7 |  |  |  | 143.7 |  |  |  | 143.7 |  |  |  | 143.7 |  |  | $ | 143.7 |
2016 |  |  |  |  |  | 155.4 |  |  |  | 172.7 |  |  |  | 172.7 |  |  |  | 172.7 |  |  |  | 172.7 |  |  |  | 172.7 |  |  |  | 172.7 |  |  |  | 172.7 |  |  |  | 172.7 |
2017 |  |  |  |  |  |  |  |  | 151.1 |  |  |  | 167.2 |  |  |  | 167.2 |  |  |  | 167.2 |  |  |  | 167.2 |  |  |  | 167.2 |  |  |  | 167.2 |  |  |  | 167.2 |
2018 |  |  |  |  |  |  |  |  |  |  |  | 163.0 |  |  |  | 179.8 |  |  |  | 179.8 |  |  |  | 179.8 |  |  |  | 179.8 |  |  |  | 179.8 |  |  |  | 179.8 |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 159.2 |  |  |  | 174.1 |  |  |  | 174.1 |  |  |  | 174.1 |  |  |  | 174.1 |  |  |  | 174.1 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 177.8 |  |  |  | 197.4 |  |  |  | 197.4 |  |  |  | 197.4 |  |  |  | 197.4 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 198.7 |  |  |  | 218.2 |  |  |  | 218.2 |  |  |  | 218.2 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 192.3 |  |  |  | 211.8 |  |  |  | 211.8 |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 177.5 |  |  |  | 193.2 |
2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 169.0 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 1,827.1 |
|  |  |  |  | All outstanding liabilities before 2015 |  |  |  | — |
|  |  |  |  | Liabilities for claims and claims adjustment expenses |  |  | $ | 15.4 |
*Amounts unaudited. A reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expense at December 31, 2024, is as follows:
|  | December 31, 2024 |
|  | (in millions) |
Liability for unpaid claims and claim adjustment expenses — short-duration: |  |  |
Home warranty |  | $ | 15.4 |
Property and casualty insurance |  |  | 13.3 |
|  |  | 28.7 |
Insurance lines other than short-duration: |  |  |
Title insurance |  |  | 1,164.7 |
Total liability for unpaid claims and claims adjustment expenses |  | $ | 1,193.4 |
Supplementary information about average historical claims duration for the Company’s home warranty business as of December 31, 2024, is as follows:
Average annual percentage payout of incurred claims by age (unaudited)
Years |  |  | 1 |  |  |  | 2 |  |
Annual payout |  |  | 90.8 | % |  |  | 9.2 | % |

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