Estimated title losses

3 Months Ended

Mar. 31, 2021

Estimated title losses. A summary of estimated title losses for the three months ended March 31 is as follows:


	2021		2020
	($000 omitted)
Balances at January 1	496,275		459,053
Provisions:
Current year	28,407		18,521
Previous policy years	366		111
Total provisions	28,773		18,632
Payments, net of recoveries:
Current year	(3,606)		(2,214)
Previous policy years	(12,933)		(19,227)
Total payments, net of recoveries	(16,539)		(21,441)

Effects of changes in foreign currency exchange rates	1,032		(8,662)
Balances at March 31	509,541		447,582
Loss ratios as a percentage of title operating revenues:
Current year provisions	4.5	%	4.2	%
Total provisions	4.6	%	4.2	%

Provisions in the first quarter 2021 increased compared to the first quarter 2020, primarily as a result of increased title revenues. Claim payments in the first quarter 2021 decreased compared to the same period in 2020, primarily due to lower payments on large and non-large claims relating to prior policy years; while the effect of changes in foreign currency exchange rates for the first quarters 2021 and 2020 were primarily influenced by the appreciation and depreciation, respectively, of the Canadian dollar against the U.S. dollar during those periods.