Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables

9 Months Ended

Sep. 30, 2024

Allowance for Credit Loss [Abstract]

Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables

5.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, agents, or reinsurers on assumed reinsurance, 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, 2024 and 2023:

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2024			2023			2024			2023
Beginning balance	$	4,043		$	4,056		$	4,796		$	3,322
Current period provision for expected credit losses		(522	)		428			(695	)		2,145
Write-offs		(35	)		(364	)		(615	)		(1,347	)
Ending balance	$	3,486		$	4,120		$	3,486		$	4,120

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 allowance for expected credit losses related to the Company's reinsurance receivables was $9.0 million at September 30, 2024 and December 31, 2023.