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Allowance for Expected Credit Losses (Tables)
 9 Months Ended
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 AllowanceAllowance 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 AllowanceAllowance 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 losses1,802 
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 losses399 
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 losses1,195 
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 losses620 
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
20212020
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 better69.1 %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’ equity6.5 %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 AllowanceAllowance 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 period2,185,614 $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)”.