Credit Losses

12 Months Ended

Dec. 31, 2021

13) ALLOWANCE FOR EXPECTED CREDIT LOSSES

We are exposed to credit losses primarily through three different pools of assets based on similar risk characteristics: premiums receivable for direct written business; reinsurance recoverables from ceded losses to our reinsurers; and our notes receivable. We estimate the expected credit losses based on historical trends, credit ratings assigned to reinsurers by rating agencies, average default rates, current economic conditions, and reasonable and supportable forecasts of future economic conditions that affect the collectability of the reported amounts over its expected life. Changes in the relevant information may significantly affect the estimates of expected credit losses.

The allowance for credit losses is deducted from the amortized cost basis of the assets to present their net carrying value at the amount expected to be collected. Each period, the allowance for credit losses is adjusted through earnings to reflect expected credit losses over the remaining lives of the assets.

The following tables summarize our allowance for expected credit losses by pooled asset for the years ended December 31, 2021 and 2020:


December 31, 2021
	December 31, 2020		Provision for expected credit losses		Write-offs		December 31, 2021
Premiums Receivable	$	140	$	(190)	$	82	$	32
Reinsurance Recoverables	386		177		—		563
Note Receivable	20		(20)		—		—
Total	$	546	$	(33)	$	82	$	595

December 31, 2020
	December 31, 2019		Provision for expected credit losses		Write-offs		December 31, 2020
Premiums Receivable	$	165	$	(311)	$	286	$	140
Reinsurance Recoverables	256		130		—		386
Note Receivable	141		(121)		—		20
Total	$	562	$	(302)	$	286	$	546