Allowance for Credit Losses

3 Months Ended

Mar. 31, 2020

Credit Loss [Abstract]

Allowance for Credit Losses

Allowance for Credit Losses

Premiums receivable

The following table represents the balances of premiums receivable, net of allowance for expected credit losses, at March 31, 2020 and January 1, 2020, and the changes in the allowance for expected credit losses for the three months ended March 31, 2020.

(in millions)	Premiums Receivable, Net of Allowance for Estimated Uncollectible Premiums		Allowance for Estimated Uncollectible Premiums
Balance, January 1, 2020	$	688.2	$	7.9
Cumulative effect of adoption of ASU 2016-13 at January 1, 2020			—
Current period change for estimated uncollectible premiums			0.8
Write-offs of uncollectible premiums receivable			—
Balance, March 31, 2020	$	739.1	$	8.7

Reinsurance Recoverables

The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at March 31, 2020 and January 1, 2020, and changes in the allowance for estimated uncollectible reinsurance for the three months ended March 31, 2020.

(in millions)	Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance
Balance, January 1, 2020	$	3,104.6	$	1.1
Cumulative effect of adoption of ASU 2016-13 at January 1, 2020			2.5
Current period change for estimated uncollectible reinsurance			—
Write-offs of uncollectible reinsurance recoverables			—
Balance, March 31, 2020	$	2,820.9	$	3.6

Of the total rated by A.M. Best Company, 87.6% were rated A- or better. We utilize A.M. Best credit ratings when determining the allowance, adjusted as needed based on our historical experience with the reinsurers. Certain of our reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.