Allowance for Expected Credit Losses

9 Months Ended

Sep. 30, 2025

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, 2025
Balance at beginning of period	$	7,067	$	46

Change for provision of expected credit losses (1)			8
Balance at end of period	$	6,450	$	54

Three Months Ended September 30, 2024
Balance at beginning of period	$	6,268	$	36
Provision on business acquired (2)			16
Change for provision of expected credit losses (1)			—
Balance at end of period	$	6,364	$	52

Nine Months Ended September 30, 2025
Balance at beginning of year	$	5,634	$	45

Change for provision of expected credit losses (1)			9
Balance at end of period	$	6,450	$	54

Nine Months Ended September 30, 2024
Balance at beginning of year	$	4,644	$	34
Provision on business acquired (2)			16
Change for provision of expected credit losses (1)			2
Balance at end of period	$	6,364	$	52

(1) Amounts deemed uncollectible are written-off in operating expenses. For the 2025 third quarter and 2024 third quarter, amounts written off were nil and $1 million, respectively. For the nine months ended September 30, 2025 and 2024 period, amounts written off were $1 million and $1 million, respectively.

(2) Represents MCE’s provision for current expected credit losses on premiums receivable. See note 2.

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, 2025
Balance at beginning of period	$	9,044	$	19
Change for provision of expected credit losses			—
Balance at end of period	$	9,070	$	19

Three Months Ended September 30, 2024
Balance at beginning of period	$	7,473	$	20
Change for provision of expected credit losses			(3)
Balance at end of period	$	7,948	$	17

Nine Months Ended September 30, 2025
Balance at beginning of year	$	8,260	$	17
Change for provision of expected credit losses			2
Balance at end of period	$	9,070	$	19

Nine Months Ended September 30, 2024
Balance at beginning of year	$	7,064	$	21
Change for provision of expected credit losses			(4)
Balance at end of period	$	7,948	$	17

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


	September 30,			December 31,
	2025			2024
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses	$	9,070		$	8,260
% due from carriers with A.M. Best rating of “A-” or better	63.8		%	63.8		%
% due from all other rated carriers	0.1		%	—		%
% due from all other carriers with no A.M. Best rating (1)	36.1		%	36.2		%
Largest balance due from any one carrier as % of total shareholders’ equity	7.8		%	7.8		%

(1) At September 30, 2025 and December 31, 2024 over 95% of such amount were collateralized through reinsurance trusts, funds withheld arrangements, letters of credit or other.

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, 2025
Balance at beginning of period	$	2,280	$	6
Change for provision of expected credit losses			—
Balance at end of period	$	2,287	$	6

Three Months Ended September 30, 2024
Balance at beginning of period	$	2,016	$	4
Change for provision of expected credit losses			—
Balance at end of period	2,078		$	4

Nine Months Ended September 30, 2025
Balance at beginning of year	$	2,161	$	5
Change for provision of expected credit losses			1
Balance at end of period	$	2,287	$	6

Nine Months Ended September 30, 2024
Balance at beginning of year	$	1,814	$	3
Change for provision of expected credit losses			1
Balance at end of period	2,078		$	4