Allowance for Credit Losses on Premiums Receivable

12 Months Ended

Dec. 31, 2020

Premium Receivable, Allowance for Credit Loss

Allowance for Credit Losses on Premiums Receivable

The following table provides a roll forward of the ACL on our premiums receivable balance for 2020:


($ in thousands)	December 31, 2020
Balance at beginning of year	$	6,400
Cumulative effect adjustment1	1,058
Balance at beginning of year, as adjusted	$	7,458
Current period provision for expected credit losses	16,751

Write-offs charged against the allowance for credit losses	(3,754)
Recoveries	545
ACL, end of year	$	21,000

1See Note 3. "Adoption of Accounting Pronouncements" above for additional information regarding our adoption of ASU 2016-13.

In 2020, we recognized an additional allowance for credit losses of $13.5 million, net of write-offs and recoveries. We based this increase on an evaluation of the recoverability of our premiums receivable in light of (i) the billing accommodations we announced during the first quarter of 2020, and (ii) the impact of certain state regulations that provided for deferral of payments without cancellation for a period up to 90 days and increased earned but uncollected premiums. The billing accommodations included individualized payment flexibility and suspending the effect of policy cancellations, late payment notices, and late or reinstatement fees.