Reinsurance (Tables)

6 Months Ended

Jun. 30, 2022

Details on in-force life insurance were as follows:

	June 30, 2022			December 31, 2021
	(Dollars in thousands)
Direct life insurance in-force	$	916,778,660		$	905,819,671
Amounts ceded to other companies		(785,290,868	)		(777,826,233	)
Net life insurance in-force	$	131,487,792		$	127,993,438
Percentage of reinsured life insurance in-force		86	%		86	%

Reinsurance Recoverable and Financial Strength Ratings by Reinsurer

Reinsurance recoverables as of June 30, 2022 and December 31, 2021 include ceded reserve balances, ceded claim liabilities, and ceded claims paid. Reinsurance recoverables and financial strength ratings by reinsurer were as follows:

	June 30, 2022				December 31, 2021
	Reinsurance recoverables			A.M. Best rating	Reinsurance recoverables			A.M. Best rating
	(In thousands)
Swiss Re Life & Health America Inc. (Novated from Pecan Re Inc.) ^{(1) (2)}	$	2,490,426		A+	$	-		-
Pecan Re Inc. ⁽¹⁾⁽²⁾	-			-		2,567,602		NR
SCOR Global Life Reinsurance Companies ⁽³⁾		397,858		A+		426,634		A+
Munich Re of Malta ^{(2) (5)}		268,535		NR		278,591		NR
Swiss Re Life & Health America Inc. ⁽⁴⁾		236,628		A+		259,239		A+
American Health and Life Insurance Company ⁽²⁾		153,552		B++		157,837		B++
Munich American Reassurance Company		132,432		A+		142,705		A+
RGA Reinsurance		124,265		A+		140,953		A+
Korean Reinsurance Company		117,967		A		134,048		A
Hannover Life Reassurance Company		44,657		A+		49,749		A+
TOA Reinsurance Company		34,487		A		38,909		A
All other reinsurers		71,196		-		75,094		-
Allowance for credit losses		(2,964	)			(2,942	)
Reinsurance recoverables	$	4,069,039			$	4,268,419

NR – not rated

⁽¹⁾	^{Effective April 1, 2022, the coinsurance agreement with Pecan Re Inc. was novated and replaced by an agreement with Swiss Re Life and Health America, Inc.}

⁽²⁾

Reinsurance recoverables 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. Arrangements with these reinsurers include collateral trust agreements held in support of reinsurance recoverables.

⁽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⁾	^{Entity is rated AA- by S&P.}

Allowance for Credit Loss on Reinsurance Recoverable

The rollforward of the allowance for credit losses on reinsurance recoverables were as follows:

	Three months ended June 30,					Six months ended June 30,
	2022			2021		2022			2021
	(In thousands)
Balance, beginning of period	$	3,083		$	7,363	$	2,942		$	7,144
Current period provision for expected credit losses		51			291		192			510
Less: Recoveries from expected credit losses previously recorded		(170	)		-		(170	)		-
Balance, at the end of period	$	2,964		$	7,654	$	2,964		$	7,654