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Allowance for Credit Losses - Premiums Receivable and Reinsurance Receivables
 9 Months Ended
Sep. 30, 2020
Allowance For Credit Loss [Abstract]  
Allowance for Credit Losses - Premiums Receivable and Reinsurance Receivables

6.Allowance for Credit Losses - Premiums Receivable and Reinsurance Receivables

 

The Company implemented new accounting guidance on January 1, 2020 related to the measurement of credit losses on financial instruments.  Please see Note 17 for further discussion on this new accounting guidance.  

For premiums receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, direct placement with collection agencies, solvency of insured or agent, terminated agents, and other relevant factors. 

For reinsurance receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, disputes, applicable coverage defenses, insolvent reinsurers, financial strength of solvent reinsurers based on A.M Best Ratings and other relevant factors. 

 

The following table is an analysis of the allowance for credit losses related to the Company's premiums receivable and reinsurance receivables for the quarter and nine months ended September 30, 2020:

 

 

 

Quarter Ended September 30, 2020

 

 

Nine Months Ended September 30, 2020

 

(Dollars in thousands)

 

Premiums

Receivable

 

 

Reinsurance Receivables

 

 

Premiums

Receivable

 

 

Reinsurance Receivables

 

Beginning balance

 

$

2,931

 

 

$

8,992

 

 

$

2,754

 

 

$

8,992

 

Current period provision for expected credit losses

 

 

476

 

 

 

—

 

 

 

951

 

 

 

—

 

Write-offs

 

 

(538

)

 

 

—

 

 

 

(836

)

 

 

—

 

Ending balance

 

$

2,869

 

 

$

8,992

 

 

$

2,869

 

 

$

8,992