Allowance For Expected Credit Losses

6 Months Ended

Jun. 30, 2025

13)

ALLOWANCE FOR EXPECTED CREDIT LOSSES

The Company is 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 its reinsurers; and its investment holdings. The Company estimates 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 the Company's allowance for expected credit losses by pooled asset for the six months ended June 30, 2025 and 2024, respectively:


June 30, 2025	December 31, 2024		Provision for (reversal of) expected credit losses			Write-offs			June 30, 2025
Premiums Receivable	$	26	$	(23	)	$	(3	)	$	—
Reinsurance Recoverables		75		(31	)		—			44
Total	$	101	$	(54	)	$	(3	)	$	44


June 30, 2024	December 31, 2023		Provision for (reversal of) expected credit losses			Write-offs		June 30, 2024
Premiums Receivable	$	49	$	—		$	—	$	49
Reinsurance Recoverables		97		(46	)		—		51
Total	$	146	$	(46	)	$	—	$	100

As of June 30, 2025 and 2024, the Company had no allowance for expected credit losses related to its investment holdings.

AMERICAN COASTAL INSURANCE Corp 10-Q