Allowance for Expected Credit Losses

12 Months Ended

Dec. 31, 2020

Credit Loss [Abstract]

Allowance for Expected Credit Losses

ALLOWANCE FOR EXPECTED CREDIT LOSSES

Premiums Receivable

The following table presents the balances of premiums receivable, net of the allowance for expected credit losses, at January 1, 2020 and December 31, 2020, and the changes in the allowance for expected credit losses for the twelve months ended December 31, 2020.

	At and For the Twelve Months Ended December 31, 2020
(in millions)	Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period	$	7,909	$	49
Current period change for expected credit losses			103
Write-offs of uncollectible premiums receivable			47
Balance, end of period	$	7,829	$	105

Reinsurance Recoverables

The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at January 1, 2020 and December 31, 2020, and the changes in the allowance for estimated uncollectible reinsurance for the twelve months ended December 31, 2020.

	At and For the Twelve Months Ended December 31, 2020
(in millions)	Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance
Balance, beginning of period	$	8,235	$	92
Cumulative effect of adoption of updated accounting guidance for  credit losses at January 1, 2020			53
Current period change for estimated uncollectible reinsurance			1
Write-offs of uncollectible reinsurance recoverables			—
Balance, end of period	$	8,350	$	146

Of the total reinsurance recoverables at December 31, 2020, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.85 billion, or 87%, were rated by A.M. Best Company.  The Company utilizes updated A.M. Best credit ratings on a quarterly basis when determining the allowance. Of the total rated by A.M. Best Company, 94% were rated A- or better. The remaining 13% of reinsurance recoverables were comprised of the following: 6% related to captive insurance companies, 1% related to the Company’s participation in voluntary pools, and 6% were balances from other companies not rated by A.M. Best Company.  Certain of the Company's reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.

Contractholder Receivables

The following table presents the balances of contractholder receivables, net of the allowance for expected credit losses, at January 1, 2020 and December 31, 2020, and the changes in the allowance for expected credit losses for the twelve months ended December 31, 2020.

	At and For the Twelve Months Ended December 31, 2020
(in millions)	Contractholder Receivables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period	$	4,599	$	20
Current period change for expected credit losses			1
Write-offs of uncollectible contractholder receivables			2
Balance, end of period	$	4,242	$	19