Allowance for Expected Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024
Balance at beginning of period	$	5,765	$	32
Change for provision of expected credit losses (1)			$	4
Balance at end of period	$	6,268	$	36

Three Months Ended June 30, 2023
Balance at beginning of period	$	4,513	$	36
Change for provision of expected credit losses (1)			$	(2)
Balance at end of period	$	5,296	$	34

Six Months Ended June 30, 2024
Balance at beginning of period	$	4,644	$	34
Change for provision of expected credit losses (1)			2
Balance at end of period	$	6,268	$	36

Six Months Ended June 30, 2023
Balance at beginning of period	$	3,625	$	35
Change for provision of expected credit losses (1)			(1)
Balance at end of period	$	5,296	$	34

(1)Amounts deemed uncollectible are written-off in operating expenses. For the 2024 second quarter and 2023 second quarter, amounts written off were nil and $1 million, respectively. For the six months ended June 30, 2024 and 2023 period, amounts written off were nil and $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, 2024
Balance at beginning of period	$	7,509	$	16
Change for provision of expected credit losses			4
Balance at end of period	$	7,473	$	20

Three Months Ended June 30, 2023
Balance at beginning of period	$	6,612	$	21
Change for provision of expected credit losses			1
Balance at end of period	$	6,717	$	22

Six Months Ended June 30, 2024
Balance at beginning of period	$	7,064	$	21
Change for provision of expected credit losses			(1)
Balance at end of period	$	7,473	$	20

Six Months Ended June 30, 2023
Balance at beginning of period	$	6,564	$	22
Change for provision of expected credit losses			—
Balance at end of period	$	6,717	$	22

Ceded credit risk

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


	June 30,			December 31
	2024			2023
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses	$	7,473		$	7,064
% due from carriers with A.M. Best rating of “A-” or better	66.5		%	66.8		%
% due from all other rated carriers	0.0		%	0.1		%
% due from all other carriers with no A.M. Best rating (1)	33.5		%	33.1		%
Largest balance due from any one carrier as % of total shareholders’ equity	6.9		%	7.2		%

(1) At June 30, 2024 and December 31, 2023 over 94% and 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 June 30, 2024
Balance at beginning of period	$	1,907	$	3
Change for provision of expected credit losses			1
Balance at end of period	$	2,016	$	4

Three Months Ended June 30, 2023
Balance at beginning of period	$	1,750	$	2
Change for provision of expected credit losses			1
Balance at end of period	1,761		$	3

Six Months Ended June 30, 2024
Balance at beginning of period	$	1,814	$	3
Change for provision of expected credit losses			1
Balance at end of period	$	2,016	$	4

Six Months Ended June 30, 2023
Balance at beginning of period	$	1,731	$	3
Change for provision of expected credit losses			—
Balance at end of period	1,761		$	3