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Allowance for Expected Credit Losses
3 Months Ended
Mar. 31, 2020
Credit Loss [Abstract]  
Allowance for expected credit losses Allowance for Expected Credit Losses
Premiums Receivable
The following table provides a roll forward of the allowance for expected credit losses of the Company’s premium receivables.
 
 
March 31, 2020
 
 
Premium Receivables, Net of Allowance
 
Allowance for Expected Credit Losses
Balance at beginning of period
 
$
1,778,717

 
$
21,003

Cumulative effect of accounting change (1)
 
 
 
6,539

Change for provision for expected credit losses
 
 
 
448

Write-offs charged against the allowance
 
 
 

Balance at end of period
 
$
2,155,204

 
$
27,990

(1) Adoption of ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)” See note 1.
Reinsurance Recoverables
The following table provides a roll forward of the allowance for expected credit losses of the Company’s reinsurance recoverables.
 
 
March 31, 2020
 
 
Reinsurance Recoverables, Net of Allowance
 
Allowance for Expected Credit Losses
Balance at beginning of period
 
$
4,346,816

 
$
1,364

Cumulative effect of accounting change (1)
 
 
 
12,010

Additions for current-period provision for expected credit losses
 
 
 
326

Write-offs charged against the allowance
 
 
 

Balance at end of period
 
$
4,303,135

 
$
13,700


(1) Adoption of ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)” See note 1.
At March 31, 2020 and December 31, 2019, approximately 60.8% and 61.2% of reinsurance recoverables on paid and unpaid losses (not including ceded unearned premiums) of $4.32 billion and $4.35 billion, respectively, were due from carriers which had an A.M. Best rating of “A-” or better while 38.4% and 38.8%, respectively, were from companies not rated. For items not rated, over 90% of such amount was collateralized through reinsurance trusts or letters of credit at March 31, 2020 and December 31, 2019. The largest reinsurance recoverables from any one carrier were approximately 1.9% and 1.7%, of total shareholders’ equity available to Arch at March 31, 2020 and December 31, 2019, respectively.
Contractholder Receivables
The following table provides a roll forward of the allowance for expected credit losses of the Company’s contractholder receivables.
 
 
March 31, 2020
 
 
Contractholder Receivables, Net of Allowance
 
Allowance for Expected Credit Losses
Balance at beginning of period
 
$
2,119,460

 
$

Cumulative effect of accounting change (1)
 
 
 
6,663

Additions for current-period provision for expected credit losses
 
 
 
2,375

Write-offs charged against the allowance
 
 
 

Balance at end of period
 
$
2,140,724

 
$
9,038

(1) Adoption of ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)” See note 1.