Reserve for Known and Incurred But Not Reported Claims

12 Months Ended

Dec. 31, 2022

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)	2022			2021			2020
Balance at beginning of year	$	1,284		$	1,178		$	1,063
Provision related to:
Current year		468			570			532
Prior years		18			19			48
		486			589			580
Payments, net of recoveries, related to:
Current year		227			292			268
Prior years		207			190			203
		434			482			471
Other		(11	)		(1	)		6
Balance at end of year	$	1,325		$	1,284		$	1,178

The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 4.0% for the years ended December 31, 2022 and 2021, and 5.0% for the year ended December 31, 2020.

The current year loss 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 2021 loss 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 2020 loss rate of 5.0% reflected an ultimate loss rate of 4.5% for policy year 2020 and a net increase in the loss reserve estimates for prior policy years of 0.5%, or $26 million.

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

	December 31,
(dollars in millions)	2022				2021
Known title claims	$	62	4.7	%	$	67	5.2	%
IBNR title claims		1,207	91.1	%		1,143	89.0	%
Total title claims		1,269	95.8	%		1,210	94.2	%
Non-title claims		56	4.2	%		74	5.8	%
Total loss reserves	$	1,325	100.0	%	$	1,284	100.0	%

Short-Duration Insurance Contracts

Home Warranty

The following reflects information as of December 31, 2022 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, 2013 to 2021, is presented as supplementary information.

	Incurred claims and allocated claim adjustment expenses																				December 31, 2022
Accident	Years ended December 31,																				Cumulative number of reported
Year	2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022		claims
	(in millions)
2013	$	124		124		124		124		124		124		124		124		124	$	124		0.7
2014				124		124		124		124		124		124		124		124		124		0.8
2015						144		144		144		144		144		144		144		144		0.9
2016								173		173		173		173		173		173		173		1.0
2017										167		167		167		167		167		167		1.0
2018												180		180		180		180		180		1.1
2019														174		174		174		174		1.1
2020																197		197		197		1.2
2021																		218		218		1.2
2022																				211		1.1
																	Total		$	1,712

*Amounts unaudited.

	Cumulative paid claims and allocated claim adjustment expenses
Accident	Years ended December 31,
Year	2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022
	(in millions)
2013	$	111		124		124		124		124		124		124		124		124	$	124
2014				111		124		124		124		124		124		124		124		124
2015						129		144		144		144		144		144		144		144
2016								155		173		173		173		173		173		173
2017										151		167		167		167		167		167
2018												163		180		180		180		180
2019														159		174		174		174
2020																178		197		197
2021																		199		218
2022																				192
																	Total		$	1,693
			All outstanding liabilities before 2013																	—
			Liabilities for claims and claims adjustment expenses																$	19

*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, 2022, is as follows:

	December 31, 2022
	(in millions)
Liability for unpaid claims and claim adjustment    expenses — short-duration:
Home warranty	$	19
Property and casualty insurance		37
		56
Insurance lines other than short-duration:
Title insurance		1,269
Total liability for unpaid claims and claims adjustment    expenses	$	1,325

Supplementary information about average historical claims duration for the Company’s home warranty business as of December 31, 2022, is as follows:

Average annual percentage payout of incurred claims by age (unaudited)
Years	1		2		3	4	5	6	7	8	9	10
Annual payout	90.3	%	9.7	%	—	—	—	—	—	—	—	—