Reserve for Claims

Activity in the reserve for claims for the three-month period ended March 31, 2018 and the year ended December 31, 2017 are summarized as follows:



(in thousands)	March 31, 2018			December 31, 2017
Balance, beginning of period	$	34,801		$	35,305
(Benefit) provision, charged to operations	(1,406		)	3,311
Payments of claims, net of recoveries	(625		)	(3,815		)
Balance, end of period	$	32,770		$	34,801

The total reserve for all reported and unreported losses the Company incurred through March 31, 2018 is represented by the reserve for claims. The Company's reserves for unpaid losses and loss adjustment expenses are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy claims that have been incurred but not yet reported (“IBNR”). Despite the variability of such estimates, management believes that the total reserve is adequate to cover claim losses which might result from pending and future claims under title insurance policies issued through March 31, 2018. Management continually reviews and adjusts its reserve estimates to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews may be significant.

A summary of the Company’s loss reserve, broken down into its components of known title claims and IBNR, follows:



(in thousands, except percentages)	March 31, 2018		%	December 31, 2017		%
Known title claims	$	3,704	11.3	$	4,646	13.4
IBNR	29,066		88.7	30,155		86.6
Total loss reserves	$	32,770	100.0	$	34,801	100.0

Claims and losses paid are charged to the reserve for claims. Although claims losses are typically paid in cash, occasionally claims are settled by purchasing the interest of the insured or the claimant in the real property. When this event occurs, the Company carries assets at the lower of cost or estimated realizable value, net of any indebtedness on the property.