Reserve for Claims

Activity in the reserve for claims for the nine-month period ended September 30, 2019 and the year ended December 31, 2018 are summarized as follows:



(in thousands)	September 30, 2019			December 31, 2018
Balance, beginning of period	$	31,729		$	34,801
Provision (benefit), charged to operations	3,610			(332		)
Payments of claims, net of recoveries	(3,534		)	(2,740		)
Balance, end of period	$	31,805		$	31,729

The total reserve for all reported and unreported losses the Company incurred through September 30, 2019 is represented by the reserve for claims on the Consolidated Balance Sheets. 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 for claims is adequate to cover claim losses which might result from pending and future claims under title insurance policies issued through September 30, 2019. Management continually reviews and adjusts its reserve for claims estimates to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews could be significant.

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



(in thousands, except percentages)	September 30, 2019		%	December 31, 2018		%
Known title claims	$	3,587	11.3	$	3,007	9.5
IBNR	28,218		88.7	28,722		90.5
Total reserve for claims	$	31,805	100.0	$	31,729	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 fair value, net of any indebtedness on the property.