Allowance for Expected Credit Losses

9 Months Ended

Sep. 30, 2023

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, 2023
Balance at beginning of period	$	5,296	$	34
Change for provision of expected credit losses (1)			$	—
Balance at end of period	$	4,937	$	34

Three Months Ended September 30, 2022
Balance at beginning of period	$	3,634	$	38
Change for provision of expected credit losses (1)			$	—
Balance at end of period	$	3,579	$	38

Nine Months Ended September 30, 2023
Balance at beginning of period	$	3,625	$	35
Change for provision of expected credit losses (1)			(1)
Balance at end of period	$	4,937	$	34

Nine Months Ended September 30, 2022
Balance at beginning of period	$	2,633	$	40
Change for provision of expected credit losses (1)			(2)
Balance at end of period	$	3,579	$	38

(1)Amounts deemed uncollectible are written-off in operating expenses. For the 2023 third quarter and 2022 third quarter, amounts written off were nil and $2 million, respectively. For the nine months ended September 30, 2023 and 2022 period, amounts written off were $2 million and $7 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, 2023
Balance at beginning of period	$	6,717	$	22
Change for provision of expected credit losses			1
Balance at end of period	$	6,821	$	23

Three Months Ended September 30, 2022
Balance at beginning of period	$	5,939	$	15
Change for provision of expected credit losses			2
Balance at end of period	$	6,356	$	17

Nine Months Ended September 30, 2023
Balance at beginning of period	$	6,564	$	22
Change for provision of expected credit losses			1
Balance at end of period	$	6,821	$	23

Nine Months Ended September 30, 2022
Balance at beginning of period	$	5,881	$	13
Change for provision of expected credit losses			4
Balance at end of period	$	6,356	$	17

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


	September 30,			December 31
	2023			2022
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses	$	6,821		$	6,564
% due from carriers with A.M. Best rating of “A-” or better	66.7		%	68.8		%
% due from all other rated carriers	0.2		%	0.1		%
% due from all other carriers with no A.M. Best rating (1)	33.1		%	31.1		%
Largest balance due from any one carrier as % of total shareholders’ equity	8.3		%	9.0		%

(1) At September 30, 2023 and December 31, 2022 over 95% 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, 2023
Balance at beginning of period	$	1,761	$	3
Change for provision of expected credit losses			—
Balance at end of period	$	1,805	$	3

Three Months Ended September 30, 2022
Balance at beginning of period	$	1,758	$	3
Change for provision of expected credit losses			(1)
Balance at end of period	1,736		$	2

Nine Months Ended September 30, 2023
Balance at beginning of period	$	1,731	$	3
Change for provision of expected credit losses			—
Balance at end of period	$	1,805	$	3

Nine Months Ended September 30, 2022
Balance at beginning of period	$	1,829	$	3
Change for provision of expected credit losses			(1)
Balance at end of period	1,736		$	2