Allowance for Credit Losses

9 Months Ended

Sep. 30, 2021

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 September 30, 2021 and January 1, 2021, and the changes in the allowance for expected credit losses for the nine months ended September 30, 2021.

(in millions)	Premiums Receivable, Net of Allowance for Estimated Uncollectible Premiums		Allowance for Estimated Uncollectible Premiums
Balance, January 1, 2021	$	679.8	$	9.4
Current period change for estimated uncollectible premiums			—
Write-offs of uncollectible premiums receivable			(0.6)
Foreign exchange adjustments			—
Balance, September 30, 2021	$	701.9	$	8.8

Reinsurance Recoverables

The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at September 30, 2021 and January 1, 2021, and changes in the allowance for estimated uncollectible reinsurance for the nine months ended September 30, 2021.

(in millions)	Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance
Balance, January 1, 2021	$	3,009.0	$	4.1
Current period change for estimated uncollectible reinsurance			(0.3)
Write-offs of uncollectible reinsurance recoverables			—
Balance, September 30, 2021	$	2,954.0	$	3.8

We primarily utilize A.M. Best credit ratings when determining the allowance, adjusted as needed based on our historical experience with the reinsurers. A portion of our reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.