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Allowance for Expected Credit Losses (Tables) | 9 Months Ended
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Sep. 30, 2021
Credit Loss [Abstract] |
Premiums receivable | The following table provides a roll forward of the allowance for expected credit losses of the Company’s premium receivables:
| Premium Receivables, Net of Allowance | Allowance for Expected Credit Losses |
Three Months Ended September 30, 2021 |  |
Balance at beginning of period | $ | 2,866,578 |  | $ | 35,979 |  |
Change for provision of expected credit losses (1) |  | 2,736 |  |
Balance at end of period | $ | 2,807,720 |  | $ | 38,715 |  |
Three Months Ended September 30, 2020 |  |
Balance at beginning of period | $ | 2,203,753 |  | $ | 36,054 |  |
Change for provision of expected credit losses (1) |  | 1,046 |  |
Balance at end of period | $ | 2,225,311 |  | $ | 37,100 |  |
Nine Months Ended September 30, 2021 |  |  |
Balance at beginning of period | $ | 2,064,586 |  | $ | 37,781 |  |
Change for provision of expected credit losses (1) |  | 934 |  |
Balance at end of period | $ | 2,807,720 |  | $ | 38,715 |  |
Nine Months Ended September 30, 2020 |  |  |
Balance at beginning of period | $ | 1,778,717 |  | $ | 21,003 |  |
Cumulative effect of accounting change (2) |  | 6,539 |  |
Change for provision of expected credit losses (1) |  | 9,558 |  |
Balance at end of period | $ | 2,225,311 |  | $ | 37,100 |  |
(1)Amounts deemed uncollectible are written-off in operating expenses. For the 2021 third quarter and 2020 third quarter, amounts written off were $1.2 million and nil, respectively. For the nine months ended September 30, 2021 and 2020 period, amounts written off were were $2.4 million and $2.3 million, respectively. (2)Adoption of ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)”.
Reinsurance recoverables | The following table provides a roll forward of the allowance for expected credit losses of the Company’s reinsurance recoverables:
| Reinsurance Recoverables, Net of Allowance |  | Allowance for Expected Credit Losses |
Three Months Ended September 30, 2021 |  |
Balance at beginning of period | $ | 4,314,515 |  |  | $ | 11,029 |  |
Change for provision of expected credit losses |  |  | 1,802 |  |
Balance at end of period | $ | 5,358,852 |  |  | $ | 12,831 |  |
Three Months Ended September 30, 2020 |  |
Balance at beginning of period | $ | 4,363,507 |  |  | $ | 13,595 |  |
Change for provision of expected credit losses |  |  | 399 |  |
Balance at end of period | $ | 4,621,937 |  |  | $ | 13,994 |  |
Nine Months Ended September 30, 2021 |  |  |  |
Balance at beginning of period | $ | 4,500,802 |  |  | $ | 11,636 |  |
Change for provision of expected credit losses |  |  | 1,195 |  |
Balance at end of period | $ | 5,358,852 |  |  | $ | 12,831 |  |
Nine Months Ended September 30, 2020 |  |  |  |
Balance at beginning of period | $ | 4,346,816 |  |  | $ | 1,364 |  |
Cumulative effect of accounting change (1) |  |  | 12,010 |  |
Change for provision of expected credit losses |  |  | 620 |  |
Balance at end of period | $ | 4,621,937 |  |  | $ | 13,994 |  |
(1) Adoption of ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)”.
Ceded credit risk | The following table summarizes the Company’s reinsurance recoverables on paid and unpaid losses (not including ceded unearned premiums):
| September 30, |  | December 31
| 2021 |  | 2020
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses | $ | 5,358,852 |  | $ | 4,500,802
% due from carriers with A.M. Best rating of “A-” or better | 69.1 | % |  | 63.9 | %
% due from all other carriers with no A.M. Best rating (1) | 30.9 | % |  | 36.1 | %
Largest balance due from any one carrier as % of total shareholders’ equity | 6.5 | % |  | 1.8 | %
(1) At September 30, 2021 and December 31, 2020 over 93% and 94% of such amount were collateralized through reinsurance trusts, funds withheld arrangements, letters of credit or other, respectively.
Contractholder receivables | The following table provides a roll forward of the allowance for expected credit losses of the Company’s contractholder receivables:
| Contract-holder Receivables, Net of Allowance |  | Allowance for Expected Credit Losses |
Three Months Ended September 30, 2021 |  |
Balance at beginning of period | $ | 1,882,948 |  |  | $ | 4,471 |  |
Change for provision of expected credit losses |  |  | (987) |  |
Balance at end of period | $ | 1,824,990 |  |  | $ | 3,484 |  |
Three Months Ended September 30, 2020 |  |
Balance at beginning of period | $ | 2,179,124 |  |  | $ | 6,290 |  |
Change for provision of expected credit losses |  |  | (389) |  |
Balance at end of period | 2,185,614 |  |  | $ | 5,901 |  |
Nine Months Ended September 30, 2021 |  |  |  |
Balance at beginning of period | $ | 1,986,924 |  |  | $ | 8,638 |  |
Change for provision of expected credit losses |  |  | (5,154) |  |
Balance at end of period | $ | 1,824,990 |  |  | $ | 3,484 |  |
Nine Months Ended September 30, 2020 |  |  |  |
Balance at beginning of period | $ | 2,119,460 |  |  | $ | — |  |
Cumulative effect of accounting change (1) |  |  | 6,663 |  |
Change for provision of expected credit losses |  |  | (762) |  |
Balance at end of period | $ | 2,185,614 |  |  | $ | 5,901 |  |
(1) Adoption of ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)”.

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- Definition Tabular disclosure of allowance for credit loss on premium receivable. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919249-210447 + Details
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- Definition Tabular disclosure of reinsurer or group of reinsurers for whom the entity has a concentration of credit risk. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 825 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=123600520&loc=SL75241803-196195 + Details
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