Schedule V - Valuation Allowance and Qualifying Accounts

12 Months Ended

Dec. 31, 2020

Schedule V - Valuation Allowances and Qualifying Accounts [Abstract]

Schedule V - Valuation Allowances and Qualifying Accounts

SCHEDULE V

PROTECTIVE INSURANCE CORPORATION AND SUBSIDIARIES

VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS

(in thousands)

			Additions
Description	Balance as of Beginning of Period		Charged to Costs and Expenses		Other Additions		Deductions		Balance as of End of Period
January 1, 2018
Accounts receivable	$	484	$	29		–	$	110	$	403
Reinsurance recoverable		1,365		32		–		278		1,119
December 31, 2018		1,849		61		–		388		1,522
Accounts receivable		403		1,908		–		78		2,233
Reinsurance recoverable		1,119		52		–		–		1,171
December 31, 2019		1,522		1,960		–		78		3,404
Fixed income securities		–		1,035		–		–		1,035
Accounts receivable		2,233		1,250		–		23		3,460
Reinsurance recoverable		1,171		–		–		199		972
Deductible receivable allowance (2)		–		16,500		–		–		16,500
Mortgage loans		–		195		–		–		195
December 31, 2020	$	3,404	$	18,980		–	$	222	$	22,162

⁽¹⁾ Effective January 1, 2020 the Company adopted the measurement of credit losses on financial instruments accounting standard that primarily affected its accounts receivable, reinsurance recoverable and commercial mortgage loans balances.  After consideration of existing valuation allowances maintained prior to adopting the new guidance, the Company increased its valuation allowance for credit losses at January 1, 2020 to conform to the new requirements.

⁽²⁾ In conjunction with the adoption of the credit losses accounting standard, the Company recorded an allowance for expected credit losses of $16,500 related to the PSG litigation matter.  See Note T – Litigation, Commitments and Contingencies for further discussion.