Other

3 Months Ended

Mar. 31, 2023

Other Disclosures [Abstract]

Income Tax Disclosure

Income Tax

In August 2022, the Inflation Reduction Act (IRA) was signed into law in the U.S. and includes certain corporate tax provisions effective January 1, 2023. The IRA imposes a new 15 percent corporate alternative minimum tax (CAMT) on adjusted financial statement income (AFSI) on corporations that have average AFSI over $1.0 billion in any prior three-year period, starting with years 2020 to 2022. We anticipate that our company will be an applicable corporation. We have not recorded any CAMT as of March 31, 2023. We do not expect that any CAMT incurred would impact earnings since it would be offset with a credit toward regular income tax in subsequent years.

Allowance for Expected Credit Losses on Premiums Receivable

Allowance for Expected Credit Losses on Premiums Receivable

At March 31, 2023 and December 31, 2022, the allowance for expected credit losses on premiums receivables was $31.6 million and $32.5 million, respectively, on gross premiums receivable of $635.6 million and $557.6 million, respectively. The decrease in the allowance of $0.9 million during the three months ended March 31, 2023 was driven primarily by improvements in the age of premiums receivable.

At March 31, 2022 and December 31, 2021, the allowance for expected credit losses on premiums receivables was $35.0 million and $34.2 million, respectively, on gross premiums receivable of $600.9 million and $530.7 million, respectively. The increase in the allowance of $0.8 million during the three months ended March 31, 2022 was driven primarily by an increase in the gross premiums receivable, partially offset by improvements in unemployment levels.