Allowance for Expected Credit Losses

6 Months Ended

Jun. 30, 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 June 30, 2022
Balance at beginning of period	$	3,223,504	$	39,073

Change for provision of expected credit losses (1)			(903)


Balance at end of period	$	3,634,182	$	38,170

Three Months Ended June 30, 2021
Balance at beginning of period	$	2,618,175	$	36,111

Change for provision of expected credit losses (1)			(132)
Balance at end of period	$	2,866,578	$	35,979

Six Months Ended June 30, 2022
Balance at beginning of period	$	2,633,280	$	39,958

Change for provision of expected credit losses (1)			(1,788)

Balance at end of period	$	3,634,182	$	38,170

Six Months Ended June 30, 2021
Balance at beginning of period	$	2,064,586	$	37,781

Change for provision of expected credit losses (1)			(1,802)


Balance at end of period	$	2,866,578	$	35,979

(1)Amounts deemed uncollectible are written-off in operating expenses. For the 2022 second quarter and 2021 second quarter, amounts written off were $3.3 million and $1.1 million, respectively. For the six months ended June 30, 2022 and 2021 period, amounts written off were $4.8 million and $1.2 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 June 30, 2022
Balance at beginning of period	$	5,941,000	$	18,483

Change for provision of expected credit losses			(3,743)
Balance at end of period	$	5,938,511	$	14,740

Three Months Ended June 30, 2021
Balance at beginning of period	$	4,041,076	$	10,872

Change for provision of expected credit losses			157
Balance at end of period	$	4,314,515	$	11,029

Six Months Ended June 30, 2022
Balance at beginning of period	$	5,880,735	$	13,230

Change for provision of expected credit losses			1,510


Balance at end of period	$	5,938,511	$	14,740

Six Months Ended June 30, 2021
Balance at beginning of period	$	4,500,802	$	11,636

Change for provision of expected credit losses			(607)
Balance at end of period	$	4,314,515	$	11,029

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


	June 30,			December 31
	2022			2021
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses	$	5,938,511		$	5,880,735
% due from carriers with A.M. Best rating of “A-” or better	69.3		%	69.7		%
% due from all other rated carriers	0.1		%	0.1		%
% due from all other carriers with no A.M. Best rating (1)	30.6		%	30.2		%
Largest balance due from any one carrier as % of total shareholders’ equity	7.8		%	6.7		%

(1) At June 30, 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 June 30, 2022
Balance at beginning of period	$	1,810,199	$	3,731
Change for provision of expected credit losses			(726)
Balance at end of period	$	1,758,018	$	3,005

Three Months Ended June 30, 2021
Balance at beginning of period	$	1,919,655	$	5,853
Change for provision of expected credit losses			(1,382)
Balance at end of period	1,882,948		$	4,471

Six Months Ended June 30, 2022
Balance at beginning of period	$	1,828,691	$	3,437
Change for provision of expected credit losses			(432)
Balance at end of period	$	1,758,018	$	3,005

Six Months Ended June 30, 2021
Balance at beginning of period	$	1,986,924	$	8,638
Change for provision of expected credit losses			(4,167)
Balance at end of period	1,882,948		$	4,471