Allowance for Uncollectible Premiums Receivable (Notes)

6 Months Ended

Jun. 30, 2022

Allowance for Uncollectible Premiums Receivable Note [Text Block]

Premiums Receivable

The following table provides a roll forward of the allowance for credit losses on our premiums receivable balance for the indicated periods:


	Quarter ended June 30,				Six Months ended June 30,
($ in thousands)	2022		2021		2022		2021
Balance at beginning of period	$	14,300	$	21,000	$	13,600	$	21,000


Current period change for expected credit losses	1,169		733		2,085		1,541

Write-offs charged against the allowance for credit losses	(918)		(3,526)		(1,438)		(4,400)
Recoveries	349		93		653		159
Allowance for credit losses, end of period	$	14,900	$	18,300	$	14,900	$	18,300

In Second Quarter 2022, we recognized an additional allowance for credit losses on premiums receivable of $1.5 million, excluding the impact of write-offs. The additional allowance consisted of a reserve of $0.6 million on 2022 policies based on our historical write-off percentages and assumptions, and an additional reserve of $0.9 million on 2021 and older policies.

In Six Months 2022, we recognized an additional allowance for credit losses on premiums receivable of $2.7 million, excluding the impact of write-offs. The additional allowance consisted of a reserve of $4.2 million on 2022 policies based on our historical write-off percentages and assumptions, partially offset by a $1.5 million allowance reduction on 2021 and older policies, primarily impacted by the COVID-19 pandemic, for which the credit loss did not fully materialize.

In Second Quarter 2021, we recognized expected credit losses, excluding the impact of write-offs, of $3.0 million on 2021 policies based on our historical write-off percentages and assumptions, partially offset by a $2.2 million allowance reduction on older policies. In Six Months 2021, we recognized expected credit losses, excluding the impact of write-offs, of $5.1 million on 2021 policies based on our historical write-off percentages and assumptions, partially offset by a $3.4 million allowance reduction on older policies.

For a discussion of the methodology used to evaluate our estimate of expected credit losses on premiums receivable, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2021 Annual Report.