(5) Reinsurance

We use reinsurance extensively, which has a significant effect on our results of operations. Reinsurance arrangements do not relieve us of our primary obligation to the policyholder. We monitor the concentration of credit risk we have with any reinsurer, as well as the financial condition of the reinsurers.

Details on in-force life insurance were as follows:

	June 30, 2018			December 31, 2017
	(Dollars in thousands)
Direct life insurance in force	$	776,662,402		$	767,001,938
Amounts ceded to other companies		(677,001,612	)		(668,446,638	)
Net life insurance in force	$	99,660,790		$	98,555,300
Percentage of reinsured life insurance in force		87	%		87	%

Reinsurance recoverables include ceded reserve balances and ceded claim liabilities. Reinsurance recoverables and financial strength ratings by reinsurer were as follows:

	June 30, 2018			December 31, 2017
	Reinsurance recoverables		A.M. Best rating	Reinsurance recoverables		A.M. Best rating
	(In thousands)
Pecan Re Inc. ^{(1) (2)}	$	2,740,406	NR	$	2,725,795	NR
SCOR Global Life Reinsurance Companies ⁽³⁾		358,777	A+		354,458	A+
Munich Re of Malta ^{(2) (5)}		287,853	NR		302,391	NR
Swiss Re Life & Health America Inc. ⁽⁴⁾		237,868	A+		245,543	A+
American Health and Life Insurance Company ⁽²⁾		171,072	B		172,956	B
Munich American Reassurance Company		113,630	A+		112,841	A+
Korean Reinsurance Company		102,602	A		102,915	A
RGA Reinsurance Company		89,156	A+		90,037	A+
Hannover Life Reassurance Company		31,126	A+		32,250	A+
TOA Reinsurance Company		24,446	A		24,619	A
All other reinsurers		42,339	-		41,368	-
Reinsurance recoverables	$	4,199,275		$	4,205,173

NR – not rated

⁽¹⁾	Pecan Re Inc. is a wholly owned subsidiary of Swiss Re Life & Health America Inc.

⁽²⁾	Includes balances ceded under coinsurance transactions of term life insurance policies that were in force as of December 31, 2009. Amounts shown are net of their share of the reinsurance recoverables from other reinsurers.

⁽³⁾	Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies.

⁽⁴⁾	Includes amounts ceded to Lincoln National Life Insurance and fully retroceded to Swiss Re Life & Health America Inc.

⁽⁵⁾	This entity is rated AA- by S&P.

Benefits and claims ceded to reinsurers during the three and six months ended June 30, 2018 were $312.9 million and $653.2 million, respectively, compared to $334.3 million and $677.2 million for the three and six months ended June 30, 2017, respectively.