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Allowance for Credit Losses on Premiums Receivable (Notes)

3 Months Ended

Mar. 31, 2023

Allowance for Credit Losses on 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 March 31,
($ in thousands)	2023		2022
Balance at beginning of period	$	16,100	$	13,600


Current period change for expected credit losses	1,910		916

Write-offs charged against the allowance for credit losses	(1,164)		(520)
Recoveries	254		304
Allowance for credit losses, end of period	$	17,100	$	14,300

In First Quarter 2023, we recognized an additional allowance for credit losses on premiums receivable of $2.2 million, excluding the impact of write-offs. The additional allowance consisted of a reserve of $2.5 million on 2023 premiums based on our historical write-off percentages and assumptions, partially offset by a $0.3 million allowance reduction on older policies.

In First Quarter 2022, we recognized an additional allowance for credit losses on premiums receivable of $1.2 million, excluding the impact of write-offs. The additional allowance consisted of a reserve of $2.3 million on 2022 policies based on our historical write-off percentages and assumptions, partially offset by a $1.1 million allowance reduction on older policies, primarily impacted by the COVID-19 pandemic, for which the credit loss did not fully materialize.

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 2022 Annual Report.