Reinsurance

12 Months Ended

Dec. 31, 2023

In the normal course of business, the Company reinsures portions of certain policies that we underwrite to limit disproportionate risks. During 2023 and 2022, we generally retained $100,000 on any one individual life insurance policy. The Company also reinsures 100% of our accidental death benefit rider coverage. The Company maintained catastrophe reinsurance with the net retention on any one loss of $30,000, which is the maximum policy limit on any single risk. During 2023, this reinsurance provided $11.0 million of coverage with the Company retaining $2.4 million of the risk. In 2022, this reinsurance provided $11.0 million of coverage once the Company paid a $1.4 million deductible. In consideration for a reinstatement premium, second event coverage was provided under the same terms for both years. The Company remains contingently liable in the event that any of the reinsurers are unable to meet their obligations under any reinsurance agreement.

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- (Excellent) to A+ (Superior). Assumed and ceded life reinsurance activity is summarized as follows:


December 31, (In thousands)	2023		2022
Aggregate assumed life insurance in force	$	3,772	4,074
Aggregate ceded life insurance in force	$	619,597	543,496
Net life insurance in force	$	4,306,429	4,257,148

The Company's reinsurance recoverable on ceded reinsurance was $4.0 million and $4.6 million in 2023 and 2022, respectively. Premiums and claims and surrenders assumed and ceded for all lines of business for these years are summarized as follows:


Years ended December 31, (In thousands)	2023		2022	2021
Premiums from short duration contracts:
Direct	$	4,425	7,862	7,631
Assumed	—		—	—
Ceded	(1,792)		(1,413)	(2,312)
Net premiums earned	2,633		6,449	5,319
Premiums from long duration contracts:
Direct	166,132		169,111	171,175
Assumed	68		74	84
Ceded	(1,794)		(1,920)	(1,850)
Net premiums earned	164,406		167,265	169,409
Total premiums earned	$	167,039	173,714	174,728
Claims and surrenders assumed	$	113	151	169
Claims and surrenders ceded	$	(936)	(1,130)	(11,764)

During the third quarter of 2021, SPFIC was impacted by Hurricane Ida, the second-most damaging and intense hurricane in Louisiana on record, behind Hurricane Katrina in 2005. The Company has a reinsurance agreement that covers catastrophic events such as Hurricane Ida. We paid the $0.5 million retention in claim amounts for Ida and do not expect to exceed the maximum reinsurance coverage.