Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables

9 Months Ended

Sep. 30, 2023

Allowance for Credit Loss [Abstract]

Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables

7.Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables

For premium receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, direct placement with collection agencies, solvency of insured or agent, terminated agents, and other relevant factors.

The following table is an analysis of the allowance for expected credit losses related to the Company's premium receivables for the quarters and nine months ended September 30, 2023 and 2022:

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2023			2022			2023			2022
Beginning balance	$	4,056		$	2,919		$	3,322		$	2,996
Current period provision for expected credit losses		428			393			2,145			1,012
Write-offs		(364	)		(461	)		(1,347	)		(1,157	)
Ending balance	$	4,120		$	2,851		$	4,120		$	2,851

For reinsurance receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, disputes, applicable coverage defenses, insolvent reinsurers, financial strength of solvent reinsurers based on AM Best Ratings and other relevant factors.

The following table is an analysis of the allowance for expected credit losses related to the Company's reinsurance receivables for the quarters and nine months ended September 30, 2023 and 2022:

	Quarters Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2023		2022		2023		2022
Beginning balance	$	8,992	$	8,992	$	8,992	$	8,992
Current period provision for expected credit losses		—		—		—		—
Write-offs		—		—		—		—
Recoveries of amounts previously written off		—		—		—		—
Ending balance	$	8,992	$	8,992	$	8,992	$	8,992