Life and Annuity Benefits

The following table presents life and annuity benefits.



	December 31,
(dollars in thousands)	2018		2017
Life	$	122,798	$	127,208
Annuities	827,773		885,984
Accident and health	50,882		58,920
Total	$	1,001,453	$	1,072,112

Life and annuity benefits are compiled on a reinsurance contract-by-contract basis and are discounted using standard actuarial techniques and cash flow models. Since the development of the life and annuity reinsurance reserves is based upon cash flow projection models, the Company must make estimates and assumptions based on cedent experience, industry mortality tables, and expense and investment experience, including a provision for adverse deviation. The assumptions used to determine policy benefit reserves are generally locked-in for the life of the contract unless an unlocking event occurs. Loss recognition testing is performed to determine if existing policy benefit reserves, together with the present value of future gross premiums and expected investment income earned thereon, are adequate to cover the present value of future benefits, settlement and maintenance costs. If the existing policy benefit reserves are not sufficient, the locked-in assumptions are revised to current best estimate assumptions and a charge to earnings for life and annuity benefits is recognized at that time.

Because of the assumptions and estimates used in establishing the Company's reserves for life and annuity benefit obligations and the long-term nature of these reinsurance contracts, the ultimate liability may be greater or less than the estimates. The average discount rate for the life and annuity benefit reserves was 2.3% as of December 31, 2018.

As of December 31, 2018, the largest life and annuity benefits reserve for a single contract was 33.1% of the total.

No annuities included in life and annuity benefits in the consolidated balance sheet are subject to discretionary withdrawal.