Reinsurance

In the normal course of business, the Company reinsures portions of certain policies that we underwrite to limit disproportionate risks. During 2014 and 2013, 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 2014 and 2013, this reinsurance provided $10,000,000 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 B+ (Good) to A+ (Superior). 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 $64,000 of the $4.4 million of reinsurance recoverable at December 31, 2014.

Assumed and ceded life reinsurance activity as of December 31, 2014 and 2013 is summarized as follows:



	At December 31,
	2014			2013
	(In thousands)
Aggregate assumed life insurance in force	$	268,641		352,013
Aggregate ceded life insurance in force	$	(516,643	)	(467,491	)
Net life insurance in force	$	4,662,660		4,616,128

The Company's reinsurance recoveries on ceded reinsurance were $4.4 million in 2014 and $4.4 million in 2013. Premiums, claims and surrenders assumed and ceded for all lines of business for these years are summarized as follows:



	For the Years Ended December 31,
	2014			2013		2012
	(In thousands)
Premiums from short-duration contracts:
Direct	$	7,209		7,129		7,274
Assumed	—			—		—
Ceded	(967		)	(1,107	)	(1,034	)
Net premiums earned	6,242			6,022		6,240
Premiums from long-duration contracts:
Direct	184,229			172,257		168,272
Assumed	421			188		1,275
Ceded	(2,360		)	(2,309	)	(5,914	)
Net premiums earned	182,290			170,136		163,633
Total premiums earned	$	188,532		176,158		169,873
Claims and surrenders assumed	$	466		232		1,313
Claims and surrenders ceded	$	(1,108	)	(424	)	(5,486	)

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 $1.0 million in 2014, $1.1 million in 2013 and $1.0 million in 2012.