Allowance for Expected Credit Losses (Tables)

3 Months Ended

Mar. 31, 2021

Credit Loss [Abstract]

Premiums receivable

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

	Premium Receivables, Net of Allowance		Allowance for Expected Credit Losses
March 31, 2021
Balance at beginning of period	$	2,064,586	$	37,781
Change for provision of expected credit losses (1)			(1,670)
Balance at end of period	$	2,618,175	$	36,111
December 31, 2020
Balance at beginning of period	$	1,778,717	$	21,003
Cumulative effect of accounting change (2)			6,539
Change for provision of expected credit losses (1)			10,239
Balance at end of period	$	2,064,586	$	37,781

(1)Amounts deemed uncollectible are written-off in operating expenses. For the March 31, 2021 and as of December 31, 2020, amounts written off were $0.1 million and $2.8 million, respectively.

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

Reinsurance recoverables

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

	Reinsurance Recoverables, Net of Allowance		Allowance for Expected Credit Losses
March 31, 2021
Balance at beginning of period	$	4,500,802	$	11,636
Change for provision of expected credit losses			(764)
Balance at end of period	$	4,041,076	$	10,872
December 31, 2020
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			(1,738)
Balance at end of period	$	4,500,802	$	11,636

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

Ceded credit risk

The following table summarizes the Company’s reinsurance recoverables on paid and unpaid losses (not including ceded unearned premiums):

	March 31,			December 31
	2021			2020
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses	$	4,041,076		$	4,500,802
% due from carriers with A.M. Best rating of “A-” or better	64.5		%	63.9		%
% due from all other carriers with no A.M. Best rating (1)	35.5		%	36.1		%
Largest balance due from any one carrier as % of total shareholders’ equity	1.7		%	1.8		%

(1)    At March 31, 2021 and December 31, 2020 over 92% and 94% of such amount were collateralized through reinsurance trusts, funds withheld arrangements, letters of credit or other, respectively.

Contractholder receivables

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

	Contract-holder Receivables, Net of Allowance		Allowance for Expected Credit Losses
March 31, 2021
Balance at beginning of period	$	1,986,924	$	8,638
Change for provision of expected credit losses			(2,785)
Balance at end of period	$	1,919,655	$	5,853
December 31, 2020
Balance at beginning of period	$	2,119,460	$	—
Cumulative effect of accounting change (1)			6,663
Change for provision of expected credit losses			1,975
Balance at end of period	$	1,986,924	$	8,638

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