Reinsurance

In the normal course of business, the Company reinsures portions of certain policies that we underwrite to limit disproportionate risks. During 2018 and 2017, 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 2018 and 2017, this reinsurance provided $10.0 million 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 A+ (Superior) to B+ (Good). 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 $45,000 of the $3.7 million of reinsurance recoverable at December 31, 2018.

Assumed and ceded life reinsurance activity as of December 31, 2018 and 2017 is summarized as follows:



	At December 31,
	2018			2017
	(In thousands)
Aggregate assumed life insurance in force	$	5,202		5,564
Aggregate ceded life insurance in force	$	(490,295	)	(503,685	)
Net life insurance in force	$	4,350,538		4,469,735

The Company's reinsurance recoverable on ceded reinsurance were $3.7 million in 2018 and 2017. Premiums, claims and surrenders assumed and ceded for all lines of business for these years are summarized as follows:



	Years ended December 31,
	2018			2017		2016
	(In thousands)
Premiums from short-duration contracts:
Direct	$	6,840		6,933		6,927
Assumed	—			—		—
Ceded	(804		)	(781	)	(828	)
Net premiums earned	6,036			6,152		6,099
Premiums from long-duration contracts:
Direct	184,721			193,778		194,147
Assumed	99			142		151
Ceded	(2,996		)	(2,352	)	(2,521	)
Net premiums earned	181,824			191,568		191,777
Total premiums earned	$	187,860		197,720		197,876
Claims and surrenders assumed	$	159		247		237
Claims and surrenders ceded	$	(705	)	(946	)	(877	)

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 2018, 2017 and 2016.