Estimated title losses

12 Months Ended

Dec. 31, 2019

Loss Contingency [Abstract]

Estimated title losses

Estimated title losses. A summary of estimated title losses is as follows:

	2019		2018		2017
	($000 omitted)
Balances at January 1	461,560		480,990		462,572
Provisions:
Current year	79,141		70,480		90,401
Previous policy years	5,282		1,034		6,131
Total provisions	84,423		71,514		96,532
Payments, net of recoveries:
Current year	(19,052	)	(17,460	)	(20,335	)
Previous policy years	(71,956	)	(65,246	)	(63,914	)
Total payments, net of recoveries	(91,008	)	(82,706	)	(84,249	)
Effects of changes in foreign currency exchange rates	4,078		(8,238	)	6,135
Balances at December 31	459,053		461,560		480,990
Loss ratios as a percentage of title operating revenues:
Current year provisions	4.3	%	3.8	%	4.8	%
Total provisions	4.6	%	3.9	%	5.1	%

Total title loss provisions during 2019, compared to 2018, increased primarily due to unfavorable loss experience in 2019, resulting in a higher current year policy provisioning rate and increased provisions in portions of the Company's non-Canadian international operations, and a prior policy year reserve reduction during 2018. Total provisions in 2018 decreased from 2017, primarily due to favorable loss experience in 2018, which resulted in a lower current year policy provisioning rate and a $4.0 million prior policy year reserve reduction. The $5.3 million and $6.1 million net increases in the loss reserve estimates for prior year policy years during 2019 and 2017 were primarily driven by large title claims reported during those years. Total provisions for large title claims related to prior policy years were $6.0 million, $4.4 million and $4.3 million in 2019, 2018 and 2017, respectively.