Allowance for Expected Credit Losses

9 Months Ended

Sep. 30, 2023

Credit Loss [Abstract]

Allowance for Expected Credit Losses

ALLOWANCE FOR EXPECTED CREDIT LOSSES

Premiums Receivable

The following tables present the balances of premiums receivable, net of the allowance for expected credit losses, at September 30, 2023 and 2022, and the changes in the allowance for expected credit losses for the three and nine months ended September 30, 2023 and 2022.

	At and For the Three Months Ended September 30, 2023				At and For the Three Months Ended September 30, 2022
(in millions)	Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period	$	10,327	$	72	$	9,132	$	89
Current period change for expected credit losses			11				14
Write-offs of uncollectible premiums receivable			15				17
Balance, end of period	$	10,345	$	68	$	8,886	$	86

	At and For the Nine Months Ended September 30, 2023				At and For the Nine Months Ended September 30, 2022
(in millions)	Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period	$	8,922	$	77	$	8,085	$	107
Current period change for expected credit losses			28				49
Write-offs of uncollectible premiums receivable			37				70
Balance, end of period	$	10,345	$	68	$	8,886	$	86

Reinsurance Recoverables

The following tables present the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at September 30, 2023 and 2022, and the changes in the allowance for estimated uncollectible reinsurance for the three and nine months ended September 30, 2023 and 2022.

	At and For the Three Months Ended September 30, 2023				At and For the Three Months Ended September 30, 2022
(in millions)	Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance		Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance
Balance, beginning of period	$	8,121	$	121	$	8,509	$	132
Current period change for estimated uncollectible reinsurance			—				1
Write-offs of uncollectible reinsurance recoverables			—				—
Balance, end of period	$	8,267	$	121	$	8,202	$	133

	At and For the Nine Months Ended September 30, 2023				At and For the Nine Months Ended September 30, 2022
(in millions)	Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance		Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance
Balance, beginning of period	$	8,063	$	132	$	8,452	$	141
Current period change for estimated uncollectible reinsurance			(11)				(8)
Write-offs of uncollectible reinsurance recoverables			—				—
Balance, end of period	$	8,267	$	121	$	8,202	$	133

Of the total reinsurance recoverables at September 30, 2023, $5.86 billion, or 87%, were rated by A.M. Best Company, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance.  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 comprised 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 tables present the balances of contractholder receivables, net of the allowance for expected credit losses, at September 30, 2023 and 2022, and the changes in the allowance for expected credit losses for the three and nine months ended September 30, 2023 and 2022.

	At and For the Three Months Ended September 30, 2023				At and For the Three Months Ended September 30, 2022
(in millions)	Contractholder Receivables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Contractholder Receivables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period	$	3,449	$	20	$	3,735	$	18
Current period change for expected credit losses			—				—
Write-offs of uncollectible contractholder receivables			—				—
Balance, end of period	$	3,467	$	20	$	3,749	$	18

	At and For the Nine Months Ended September 30, 2023				At and For the Nine Months Ended September 30, 2022
(in millions)	Contractholder Receivables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Contractholder Receivables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period	$	3,579	$	17	$	3,890	$	21
Current period change for expected credit losses			3				(2)
Write-offs of uncollectible contractholder receivables			—				1
Balance, end of period	$	3,467	$	20	$	3,749	$	18