NOTE 11

Estimated title losses.


	2012			2011			2010
	($000 omitted)

Balances at January 1		502,611			495,849			503,475
Provisions:
Current year		100,406			94,115			97,559
Previous policy years		39,623			47,986			50,879

Total provisions		140,029			142,101			148,438

Payments:
Current year		(16,782	)		(22,404	)		(24,118	)
Previous policy years		(107,194	)		(111,915	)		(134,191	)

Total payments		(123,976	)		(134,319	)		(158,309	)

Effects of changes in foreign currency exchange rates		1,711			(1,020	)		2,245

Balances at December 31		520,375			502,611			495,849

Provisions for title losses, as a percentage of title operating revenues, were 8.1%, 9.4% and 9.6% in 2012, 2011 and 2010, respectively. The total provisions included charges (above the annual provisioning rate) of $18.2 million, $24.6 million and $13.3 million for large title claims, including defalcations, in 2012, 2011 and 2010, respectively. The charges were reduced by insurance recoveries received of $0.5 million, $2.4 million and $2.8 million in 2012, 2011 and 2010, respectively.

The years ended 2012, 2011 and 2010 included $14.9 million, $15.0 million and $26.7 million, respectively, related to maintaining a high provisioning rate for title losses due to continued elevated claims payment experience and $24.3 million, $32.8 million and $19.2 million, respectively, related to large title losses. During 2012 our overall loss experience continued to improve relative to prior year periods and was generally in line with our actuarial expectations, which allowed us to lower the overall loss provision rate effective with policies issued in the third quarter 2012. The previous policy years’ title loss provision amounts in 2010 included a reserve strengthening adjustment of $4.8 million, related to higher than expected loss payment experience for policy years 2005 through 2008.