Allowance for Credit Losses - Premiums Receivable and Reinsurance Receivables

3 Months Ended

Mar. 31, 2020

Allowance For Credit Loss [Abstract]

Allowance for Credit Losses - Premiums Receivable and Reinsurance Receivables

5.Allowance for Credit Losses - Premiums Receivable and Reinsurance Receivables

The Company implemented new accounting guidance on January 1, 2020 related to the measurement of credit losses on financial instruments.  Please see footnote 16 for further discussion on this new accounting guidance.  

For premiums 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. 

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 A.M Best Ratings and other relevant factors. 

The following table is an analysis of the allowance for credit losses related to the Company's premiums receivable and reinsurance receivables for the quarter ended March 31, 2020:

(Dollars in thousands)	Premiums Receivable			Reinsurance Receivables
Beginning balance	$	2,754		$	8,992
Current period provision for expected credit losses		162			—
Write-offs		(170	)		—
Recoveries of amounts previously written off		—			—
Ending balance	$	2,746		$	8,992