Allowance for Expected Credit Losses

3 Months Ended

Mar. 31, 2022

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
Three Months Ended March 31, 2022
Balance at beginning of period	$	2,633,280	$	39,958

Change for provision of expected credit losses (1)			(885)


Balance at end of period	$	3,223,504	$	39,073

Three Months Ended 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

(1)Amounts deemed uncollectible are written-off in operating expenses. For the 2022 first quarter and 2021 first quarter, amounts written off were $1.5 million and $0.1 million, respectively.

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
Three Months Ended March 31, 2022
Balance at beginning of period	$	5,880,735	$	13,230

Change for provision of expected credit losses			5,253


Balance at end of period	$	5,941,000	$	18,483

Three Months Ended 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

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


	March 31,			December 31
	2022			2021
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses	$	5,941,000		$	5,880,735
% due from carriers with A.M. Best rating of “A-” or better	69.5		%	69.7		%
% due from all other rated carriers	0.1		%	0.1		%
% due from all other carriers with no A.M. Best rating (1)	30.4		%	30.2		%
Largest balance due from any one carrier as % of total shareholders’ equity	7.2		%	6.7		%

(1) At March 31, 2022 and December 31, 2021 over 93% and 91% 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
Three Months Ended March 31, 2022
Balance at beginning of period	$	1,828,691	$	3,437

Change for provision of expected credit losses			294


Balance at end of period	$	1,810,199	$	3,731


Three Months Ended 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