Reinsurance (Tables)

12 Months Ended

Dec. 31, 2017

The following table represents the Company’s in-force life insurance at December 31, 2017 and 2016:

	December 31, 2017			December 31, 2016
	(Dollars in thousands)
Direct life insurance in force	$	767,001,938		$	731,822,070
Amounts ceded to other companies		(668,446,638	)		(643,364,460	)
Net life insurance in force	$	98,555,300		$	88,457,610
Percentage of reinsured life insurance in force		87	%		88	%

Reinsurance Recoverables and Financial Strength Ratings by Reinsurer

Reinsurance recoverables includes ceded reserve balances and ceded claim liabilities. Reinsurance recoverables and financial strength ratings by reinsurer were as follows:

	December 31, 2017			December 31, 2016
	Reinsurance recoverables		A.M. Best rating	Reinsurance recoverables		A.M. Best rating
	(In thousands)
Pecan Re Inc. ^{(1) (2)}	$	2,725,795	NR	$	2,754,424	NR
SCOR Global Life Reinsurance Companies ⁽³⁾		354,458	A+		355,759	A
Munich Re of Malta ^{(2) (5)}		302,391	NR		282,382	NR
Swiss Re Life & Health America Inc. ⁽⁴⁾		245,543	A+		249,299	A+
American Health and Life Insurance Company ⁽²⁾		172,956	B		176,010	B
Munich American Reassurance Company		112,841	A+		106,471	A+
Korean Reinsurance Company		102,915	A		96,921	A
RGA Reinsurance Company		90,037	A+		84,473	A+
Hannover Life Reassurance Company		32,250	A+		22,929	A+
TOA Reinsurance Company		24,619	A		23,977	A+
All other reinsurers		41,368	-		40,917	-
Reinsurance recoverables	$	4,205,173		$	4,193,562

NR – not rated

⁽¹⁾	Pecan Re Inc. is a wholly owned subsidiary of Swiss Re Life & Health America Inc.

⁽²⁾	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 receivable from other reinsurers.

⁽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⁾	This entity, which is rated AA- by S&P, ultimately assumed FRAC's obligations under the 80% Canada Coinsurance Agreement as a result of the Munich Re Novation Agreement.