Allowance for Expected Credit Losses

9 Months Ended

Sep. 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 September 30, 2022
Balance at beginning of period	$	3,634,182	$	38,170
Change for provision of expected credit losses (1)			59
Balance at end of period	$	3,579,380	$	38,229

Three Months Ended September 30, 2021
Balance at beginning of period	$	2,866,578	$	35,979
Change for provision of expected credit losses (1)			2,736
Balance at end of period	$	2,807,720	$	38,715

Nine Months Ended September 30, 2022
Balance at beginning of period	$	2,633,280	$	39,958
Change for provision of expected credit losses (1)			(1,729)
Balance at end of period	$	3,579,380	$	38,229

Nine Months Ended September 30, 2021
Balance at beginning of period	$	2,064,586	$	37,781
Change for provision of expected credit losses (1)			934
Balance at end of period	$	2,807,720	$	38,715

(1)Amounts deemed uncollectible are written-off in operating expenses. For the 2022 third quarter and 2021 third quarter, amounts written off were $1.9 million and $1.2 million, respectively. For the nine months ended September 30, 2022 and 2021 period, amounts written off were $6.6 million and $2.4 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 September 30, 2022
Balance at beginning of period	$	5,938,511	$	14,740
Change for provision of expected credit losses			2,626
Balance at end of period	$	6,356,456	$	17,366

Three Months Ended September 30, 2021
Balance at beginning of period	$	4,314,515	$	11,029
Change for provision of expected credit losses			1,802
Balance at end of period	$	5,358,852	$	12,831

Nine Months Ended September 30, 2022
Balance at beginning of period	$	5,880,735	$	13,230
Change for provision of expected credit losses			4,136
Balance at end of period	$	6,356,456	$	17,366

Nine Months Ended September 30, 2021
Balance at beginning of period	$	4,500,802	$	11,636
Change for provision of expected credit losses			1,195
Balance at end of period	$	5,358,852	$	12,831

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


	September 30,			December 31
	2022			2021
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses	$	6,356,456		$	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	9.1		%	6.7		%

(1) At September 30, 2022 and December 31, 2021 over 95% 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 September 30, 2022
Balance at beginning of period	$	1,758,018	$	3,005
Change for provision of expected credit losses			(645)
Balance at end of period	$	1,735,730	$	2,360

Three Months Ended September 30, 2021
Balance at beginning of period	$	1,882,948	$	4,471
Change for provision of expected credit losses			(987)
Balance at end of period	1,824,990		$	3,484

Nine Months Ended September 30, 2022
Balance at beginning of period	$	1,828,691	$	3,437
Change for provision of expected credit losses			(1,077)
Balance at end of period	$	1,735,730	$	2,360

Nine Months Ended September 30, 2021
Balance at beginning of period	$	1,986,924	$	8,638
Change for provision of expected credit losses			(5,154)
Balance at end of period	1,824,990		$	3,484