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Allowance for Expected Credit Losses (Tables) | 9 Months Ended
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Sep. 30, 2022
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, 2022 |  |
Balance at beginning of period | $ | 3,634,182 |  | $ | 38,170 |  |
Change for provision of expected credit losses (1) | 59 |  |
Balance at end of period | $ | 3,579,380 |  | $ | 38,229 |  |
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 |  |
Nine Months Ended September 30, 2022 |  |  |
Balance at beginning of period | $ | 2,633,280 |  | $ | 39,958 |  |
Change for provision of expected credit losses (1) | (1,729) |  |
Balance at end of period | $ | 3,579,380 |  | $ | 38,229 |  |
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 |  |
(1)Amounts deemed uncollectible are written-off in operating expenses. For the 2022 third quarter and 2021 third quarter, amounts written off were $1.9 million and $1.2 million, respectively. For the nine months ended September 30, 2022 and 2021 period, amounts written off were $6.6 million and $2.4 million, respectively.
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, 2022 |  |
Balance at beginning of period | $ | 5,938,511 |  |  | $ | 14,740 |  |
Change for provision of expected credit losses |  | 2,626 |  |
Balance at end of period | $ | 6,356,456 |  |  | $ | 17,366 |  |
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 |  |
Nine Months Ended September 30, 2022 |  |  |  |
Balance at beginning of period | $ | 5,880,735 |  |  | $ | 13,230 |  |
Change for provision of expected credit losses |  | 4,136 |  |
Balance at end of period | $ | 6,356,456 |  |  | $ | 17,366 |  |
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 |  |
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
| 2022 |  | 2021
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses | $ | 6,356,456 |  | $ | 5,880,735
% due from carriers with A.M. Best rating of “A-” or better | 69.5 | % |  | 69.7 | %
% due from all other rated carriers | 0.1 | % |  | 0.1 | %
% due from all other carriers with no A.M. Best rating (1) | 30.4 | % |  | 30.2 | %
Largest balance due from any one carrier as % of total shareholders’ equity | 9.1 | % |  | 6.7 | %
(1) At September 30, 2022 and December 31, 2021 over 95% and 91% 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, 2022 |  |
Balance at beginning of period | $ | 1,758,018 |  |  | $ | 3,005 |  |
Change for provision of expected credit losses |  | (645) |  |
Balance at end of period | $ | 1,735,730 |  |  | $ | 2,360 |  |
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 |  |
Nine Months Ended September 30, 2022 |  |  |  |
Balance at beginning of period | $ | 1,828,691 |  |  | $ | 3,437 |  |
Change for provision of expected credit losses |  | (1,077) |  |
Balance at end of period | $ | 1,735,730 |  |  | $ | 2,360 |  |
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 |  |

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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 https://asc.fasb.org/extlink&oid=124255953&loc=SL82919249-210447 + Details
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- Definition Tabular disclosure of allowance for credit loss on reinsurance recoverable. + 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 https://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 https://asc.fasb.org/extlink&oid=123600520&loc=SL75241803-196195 + Details
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