Deferred Policy Acquisition Costs

9 Months Ended

Sep. 30, 2022

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 nine months ended September 30, 2022 and 2021.  The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Balance at beginning of period	$	10,747		$	13,121		$	12,267		$	12,243
Deferred policy acquisition costs		5,966			7,663			15,635			22,187
Amortization of policy acquisition costs		(6,230	)		(7,173	)		(17,419	)		(20,819	)
Net change		(264	)		490			(1,784	)		1,368
Balance at end of period	$	10,483		$	13,611		$	10,483		$	13,611