Reinsurance

In the normal course of business, the Company reinsures portions of certain policies that we underwrite to limit disproportionate risks. During 2016 and 2015, we retained varying amounts of individual insurance up to a maximum retention of $100,000 on any life. The Company also reinsures 100% of our accidental death benefit rider coverage. Catastrophe reinsurance is in place for our property policies. In 2016 and 2015, this reinsurance provided $10,000,000 of coverage above a $500,000 deductible. Our health insurance policies are substantially all reinsured on a 100% coinsurance basis. We remain contingently liable to the extent that the reinsuring companies cannot meet their obligations under these reinsurance treaties.

Our amounts recoverable from reinsurers represent receivables from and reserves ceded to reinsurers. We obtain reinsurance from multiple reinsurers, and we monitor concentration as well as financial strength ratings of our principal reinsurers. The ratings by A.M. Best Company range from B+ (Good) to A+ (Superior). To protect our position, we have established and funded a trust to cover the contingent liabilities related to accident and health reinsurance ceded to Unified Life Insurance Company, which represents $51,000 of the $3.9 million of reinsurance recoverable at December 31, 2016.

Assumed and ceded life reinsurance activity as of December 31, 2016 and 2015 is summarized as follows:



	At December 31,
	2016			2015
	(In thousands)
Aggregate assumed life insurance in force	$	22,915		36,766
Aggregate ceded life insurance in force	$	(522,821	)	(516,933	)
Net life insurance in force	$	4,497,735		4,478,202

The Company's reinsurance recoveries on ceded reinsurance were $3.9 million in 2016 and $4.2 million in 2015. Premiums, claims and surrenders assumed and ceded for all lines of business for these years are summarized as follows:



	Years ended December 31,
	2016			2015		2014
	(In thousands)
Premiums from short-duration contracts:
Direct	$	6,927		7,223		7,209
Assumed	—			—		—
Ceded	(828		)	(873	)	(967	)
Net premiums earned	6,099			6,350		6,242
Premiums from long-duration contracts:
Direct	194,147			190,114		184,229
Assumed	151			353		421
Ceded	(2,521		)	(2,337	)	(2,360	)
Net premiums earned	191,777			188,130		182,290
Total premiums earned	$	197,876		194,480		188,532
Claims and surrenders assumed	$	237		414		466
Claims and surrenders ceded	$	(877	)	(1,013	)	(1,108	)

SPFIC has catastrophe reinsurance that covers the first event in excess of a $500,000 deductible up to $10.0 million. In consideration for a reinstatement premium, second event coverage is provided in excess of a $500,000 deductible up to $10.0 million. The annual premium was approximately $0.8 million in 2016, $0.9 million in 2015 and $1.0 million in 2014.