Allowance for Expected Credit Losses (Tables)

9 Months Ended

Sep. 30, 2020

The following table provides a roll forward of the allowance for expected credit losses of the Company’s premium receivables:


	September 30, 2020
	Premium Receivables, Net of Allowance		Allowance for Expected Credit Losses
Three Months Ended
Balance at beginning of period	$	2,203,753	$	36,054
Cumulative effect of accounting change (1)			—
Change for provision of expected credit losses (2)			1,046


Balance at end of period	$	2,225,311	$	37,100

Nine Months Ended
Balance at beginning of period	$	1,778,717	$	21,003
Cumulative effect of accounting change (1)			6,539
Change for provision of expected credit losses (2)			9,558


Balance at end of period	$	2,225,311	$	37,100

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

(2) Amounts deemed uncollectible are written-off in operating expenses. For the 2020 third quarter and nine months ended September 30, 2020, amounts written off totaled nil and $2.3 million, respectively.

Reinsurance recoverables

The following table provides a roll forward of the allowance for expected credit losses of the Company’s reinsurance recoverables:


	September 30, 2020
	Reinsurance Recoverables, Net of Allowance		Allowance for Expected Credit Losses
Three Months Ended
Balance at beginning of period	$	4,363,507	$	13,595
Cumulative effect of accounting change (1)			—
Change for provision of expected credit losses			399


Balance at end of period	$	4,621,937	$	13,994

Nine Months Ended
Balance at beginning of period	$	4,346,816	$	1,364
Cumulative effect of accounting change (1)			12,010
Change for provision of expected credit losses			620


Balance at end of period	$	4,621,937	$	13,994

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

Contractholder receivables

The following table provides a roll forward of the allowance for expected credit losses of the Company’s contractholder receivables:


	September 30, 2020
	Contractholder Receivables, Net of Allowance		Allowance for Expected Credit Losses
Three Months Ended
Balance at beginning of period	$	2,179,124	$	6,290
Cumulative effect of accounting change (1)			—
Change for provision of expected credit losses			(389)


Balance at end of period	$	2,185,614	$	5,901

Nine Months Ended
Balance at beginning of period	$	2,119,460	$	—
Cumulative effect of accounting change (1)			6,663
Change for provision of expected credit losses			(762)


Balance at end of period	$	2,185,614	$	5,901

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