Other

6 Months Ended

Jun. 30, 2023

Debt and 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 June 30, 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 June 30, 2023, March 31, 2023, and December 31, 2022, the allowance for expected credit losses on premiums receivable was $28.7 million, $31.6 million, and $32.5 million, respectively, on gross premiums receivable of $660.3 million, $635.6 million, and $557.6 million, respectively. The decrease in the allowance of $2.9 million and $3.8 million during the three and six months ended June 30, 2023, respectively, was driven primarily by improvements in the age of premiums receivable.

At June 30, 2022, March 31, 2022, and December 31, 2021, the allowance for expected credit losses on premiums receivable was $34.3 million, $35.0 million, and $34.2 million, respectively, on gross premiums receivable of $593.4 million, $600.9 million, and $530.7 million, respectively. The decrease in the allowance of $0.7 million during the three months ended June 30, 2022 was driven primarily by a decline in the gross premium receivable balance and an improvement in the age of premiums due to be collected. The allowance for expected credit losses on premiums receivable remained generally consistent during the six months ended June 30, 2022.