Deferred Policy Acquisition Costs

12 Months Ended

Dec. 31, 2022

Deferred Policy Acquisition Costs Disclosures [Abstract]

Deferred Policy Acquisition Costs

. Deferred Policy Acquisition Costs

The Company defers costs incurred which are incremental and directly related to the successful acquisition of new or renewal insurance business, net of corresponding amounts of ceded reinsurance commissions. Net deferred policy acquisition costs are amortized and charged to expense in proportion to premium earned over the estimated policy term. The Company anticipates that its deferred policy acquisition costs will be fully recoverable and there were no premium deficiencies for the years December 31, 2022, 2021, and 2020. The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands):

	December 31,
	2022			2021			2020
Balance at beginning of period	$	12,267		$	12,243		$	11,906
Deferred policy acquisition costs		20,202			28,475			26,442
Amortization of policy acquisition costs		(22,179	)		(28,451	)		(26,105	)
Net change		(1,977	)		24			337
Balance at end of period	$	10,290		$	12,267		$	12,243