Allowance for Expected Credit Losses

12 Months Ended

Dec. 31, 2022

Credit Loss [Abstract]

Allowance for expected credit losses

Premiums Receivable

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

Year Ended December 31, 2022	Premium Receivables, Net of Allowance		Allowance for Expected Credit Losses
Balance at beginning of period	$	2,633,280	$	39,958
Change for provision of expected credit losses (1)			(4,556)
Balance at end of period	$	3,624,777	$	35,402
Year Ended December 31, 2021
Balance at beginning of period	$	2,064,586	$	37,781
Change for provision of expected credit losses (1)			2,177
Balance at end of period	$	2,633,280	$	39,958

(1) Amounts deemed uncollectible are written-off in operating expenses. For the 2022 and 2021 periods, amounts written off totaled $11.4 million and $3.8 million, respectively.

Reinsurance Recoverables

The Company monitors the financial condition of its reinsurers and attempts to place coverages only with substantial, financially sound carriers. Although the Company has not experienced any material credit losses to date, an inability of its reinsurers or retrocessionaires to meet their obligations to it over the relevant exposure periods for any reason could have a material adverse effect on its financial condition and results of operations.

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

Year Ended December 31, 2022	Reinsurance Recoverables, Net of Allowance		Allowance for Expected Credit Losses
Balance at beginning of period	$	5,880,735	$	13,230
Change for provision of expected credit losses			8,314
Balance at end of period	$	6,563,654	$	21,544
Year Ended December 31, 2021
Balance at beginning of period	$	4,500,802	$	11,636
Change for provision of expected credit losses			1,594
Balance at end of period	5,880,735		$	13,230

The following table summarizes the Company’s reinsurance recoverables on paid and unpaid losses (not including ceded unearned premiums) at December 31, 2022 and 2021:

	December 31,
	2022			2021
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses	$	6,563,654		$	5,880,735
% due from carriers with A.M. Best rating of “A-” or better	68.8		%	69.7		%
% due from all other rated carriers	0.1		%	0.1		%
% due from all other carriers with no A.M. Best rating (1)	31.1		%	30.2		%
Largest balance due from any one carrier as % of total shareholders’ equity	9.0		%	6.7		%

(1)    At December 31, 2022 and 2021 period, over 95% and 91% of such amount is 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:

Year Ended December 31, 2022	Contractholder Receivables, Net of Allowance		Allowance for Expected Credit Losses
Balance at beginning of period	$	1,828,691	$	3,437
Change for provision of expected credit losses			(746)
Balance at end of period	$	1,731,293	$	2,691
Year Ended December 31, 2021
Balance at beginning of period	$	1,986,924	$	8,638
Change for provision of expected credit losses			(5,201)
Balance at end of period	1,828,691		$	3,437