Allowance for Expected Credit Losses

3 Months Ended

Mar. 31, 2023

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 March 31, 2023
Balance at beginning of period	$	3,625	$	35
Change for provision of expected credit losses (1)			$	1
Balance at end of period	$	4,513	$	36

Three Months Ended March 31, 2022
Balance at beginning of period	$	2,633	$	40
Change for provision of expected credit losses (1)			$	(1)
Balance at end of period	$	3,224	$	39

(1)Amounts deemed uncollectible are written-off in operating expenses. For the 2023 first quarter and 2022 first quarter, amounts written off were $1 million and $2 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 March 31, 2023
Balance at beginning of period	$	6,564	$	22
Change for provision of expected credit losses			(1)
Balance at end of period	$	6,612	$	21

Three Months Ended March 31, 2022
Balance at beginning of period	$	5,881	$	13
Change for provision of expected credit losses			5
Balance at end of period	$	5,941	$	18

The following table summarizes the Company’s reinsurance recoverables on paid and unpaid losses (not including ceded unearned premiums):


	March 31,			December 31
	2023			2022
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses	$	6,612		$	6,564
% due from carriers with A.M. Best rating of “A-” or better	68.3		%	68.8		%
% due from all other rated carriers	0.2		%	0.1		%
% due from all other carriers with no A.M. Best rating (1)	31.5		%	31.1		%
Largest balance due from any one carrier as % of total shareholders’ equity	8.7		%	9.0		%

(1) At March 31, 2023 and December 31, 2022 over 94% and 95% 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 March 31, 2023
Balance at beginning of period	$	1,731	$	3
Change for provision of expected credit losses			(1)
Balance at end of period	$	1,750	$	2

Three Months Ended March 31, 2022
Balance at beginning of period	$	1,829	$	3
Change for provision of expected credit losses			1
Balance at end of period	1,810		$	4