Allowance for Expected Credit Losses (Tables)

12 Months Ended

Dec. 31, 2022

Allowance for credit losses on 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.

Allowance for credit losses on reinsurance recoverable

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

Summary of reinsurance recoverables on paid and unpaid losses

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.

Allowance for credit losses on 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