Deferred Policy Acquisition Costs

6 Months Ended

Jun. 30, 2023

Deferred Policy Acquisition Costs Disclosures [Abstract]

Deferred Policy Acquisition Costs

4. 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 six months ended June 30, 2023 and 2022. The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Balance at beginning of period	$	8,326		$	10,124		$	10,290		$	12,267
Deferred policy acquisition costs		5,587			6,348			8,344			9,669
Amortization of policy acquisition costs		(4,413	)		(5,725	)		(9,134	)		(11,189	)
Net change		1,174			623			(790	)		(1,520	)
Balance at end of period	$	9,500		$	10,747		$	9,500		$	10,747