v3.25.2
Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2024
Credit Loss [Abstract]  
Allowance for Credit Losses Allowance for Credit Losses
Premiums Receivable
The following tables set forth the changes in the allowance for expected credit losses on premiums receivable for the years ended December 31, 2024 and 2023
($ in thousands)Premiums Receivable, NetAllowance for Estimated Uncollectible Premiums
Balance at December 31, 2023$179,235 $964 
Current period change for estimated uncollectible premiums3,235 
Write-offs of uncollectible premiums receivable(1,895)
Recoveries of amounts previously written off128 
Balance at December 31, 2024$321,641 $2,432 
($ in thousands)Premiums Receivable, NetAllowance for Estimated Uncollectible Premiums
Balance at December 31, 2022$139,215 $629 
Cumulative effect of adoption of ASU 2016-13 at January 1, 2023— 
Current period change for estimated uncollectible premiums748 
Write-offs of uncollectible premiums receivable(513)
Recoveries of amounts previously written off100 
Balance at December 31, 2023$179,235 $964 
Reinsurance Recoverables
The Company analyzes the credit risk associated with its reinsurance recoverables by monitoring the financial strength rating of its reinsurers from A.M. Best, a widely recognized rating agency with an exclusive insurance industry focus. The Company assesses the financial strength rating annually and throughout the year as A.M. Best provides updates on ratings and outlooks. The Company assesses the adequacy of various forms of credit enhancements such as reinsurance payables, letters of credit and funds held. The following table sets forth the Company’s reinsurance recoverables net of credit enhancements by A.M. Best as of December 31, 2024:
December 31, 2024
A.M. Best RatingReinsurance Recoverables, Gross, Amortized CostPercent of Total
A- and above$837,807 97.4 %
B++ to B+6,021 0.7 
Not rated16,343 1.9 
The Company considers reinsurance balances to be past due when they are 90 days past due. The following tables set forth the changes in the allowance for estimated uncollectible reinsurance for the years ended December 31, 2024 and 2023:
($ in thousands)Reinsurance Recoverables, NetAllowance for Estimated Uncollectible Reinsurance
Balance at December 31, 2023$596,334 $2,295 
Current period change for estimated uncollectible reinsurance13,585 
Write-offs of uncollectible reinsurance recoverables(13,585)
Balance at December 31, 2024$857,876 $2,295 
($ in thousands)Reinsurance Recoverables, NetAllowance for Estimated Uncollectible Reinsurance
Balance at December 31, 2022$581,359 $— 
Cumulative effect of adoption of ASU 2016-13 at January 1, 20232,295 
Current period change for estimated uncollectible reinsurance— 
Write-offs of uncollectible reinsurance recoverables— 
Balance at December 31, 2023$596,334 $2,295 
On January 31, 2025, the Company commuted the LPT with R&Q Re (Bermuda) Ltd. ("R&Q") related to accident years 2018 and prior. The Company recognized the uncollectible reinsurance recoverable balance related to the LPT as a net increase of $13.6 million to the allowance for estimated uncollectible reinsurance, which was subsequently written-off during the year ended December 31, 2024.