Allowance for Credit Losses

12 Months Ended

Dec. 31, 2023

Credit Loss [Abstract]

Allowance for Credit Losses

Allowance for Credit Losses

Premiums Receivable

The following table sets forth the changes in the allowance for expected credit losses on premiums receivable for the year ended ended December 31, 2023.

($ in thousands)	Premiums Receivable, Net		Allowance for Estimated Uncollectible Premiums
Balance at December 31, 2022	$	139,215	$	629
Cumulative effect of adoption of ASU 2016-13 at January 1, 2023			—
Current period change for estimated uncollectible premiums			748
Write-offs of uncollectible premiums receivable			(513)
Recoveries of amounts previously written off			100
Balance at December 31, 2023	$	179,235	$	964

Reinsurance Recoverables

The Company analyzes the credit risk associated with its reinsurance recoverables by monitoring the financial strength rating of its reinsurers from A.M. Best, a widely recognized rating agency with an exclusive insurance industry focus. The Company assesses the financial strength rating annually and throughout the year as A.M. Best provides updates on ratings and outlooks. The Company assesses the adequacy of various forms of credit enhancements such as reinsurance payables, letters of credit and funds held. The following table sets forth the Company’s reinsurance recoverables net of credit enhancements by A.M. Best as of December 31, 2023:

A.M. Best Rating	December 31, 2023
A- and above	98.5	%
B++ to B+	0.7
B to B -	—
Not rated	0.8

The Company considers reinsurance balances to be past due when they are 90 days past due. The following table sets forth the changes in the allowance for estimated uncollectible reinsurance for the year ended ended December 31, 2023:

($ in thousands)	Reinsurance Recoverables, Net		Allowance for Estimated Uncollectible Reinsurance
Balance at December 31, 2022	$	581,359	$	—
Cumulative effect of adoption of ASU 2016-13 at January 1, 2023			2,295
Current period change for estimated uncollectible reinsurance			—
Write-offs of uncollectible reinsurance recoverables			—
Balance at December 31, 2023	$	596,334	$	2,295