Reinsurance

In the normal course of business, the Company reinsures portions of certain policies that we underwrite to limit disproportionate risks. During 2015 and 2014, 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 2015 and 2014, 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 $50,000 of the $4.2 million of reinsurance recoverable at December 31, 2015.

Assumed and ceded life reinsurance activity as of December 31, 2015 and 2014 is summarized as follows:



	At December 31,
	2015			2014
	(In thousands)
Aggregate assumed life insurance in force	$	36,766		268,641
Aggregate ceded life insurance in force	$	(516,933	)	(516,643	)
Net life insurance in force	$	4,478,202		4,662,660

The Company's reinsurance recoveries on ceded reinsurance were $4.2 million in 2015 and $4.4 million in 2014. 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,
	2015			2014		2013
	(In thousands)
Premiums from short-duration contracts:
Direct	$	7,223		7,209		7,129
Assumed	—			—		—
Ceded	(873		)	(967	)	(1,107	)
Net premiums earned	6,350			6,242		6,022
Premiums from long-duration contracts:
Direct	190,114			184,229		172,257
Assumed	353			421		188
Ceded	(2,337		)	(2,360	)	(2,309	)
Net premiums earned	188,130			182,290		170,136
Total premiums earned	$	194,480		188,532		176,158
Claims and surrenders assumed	$	414		466		232
Claims and surrenders ceded	$	(1,013	)	(1,108	)	(424	)

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 $0.9 million in 2015, $1.0 million in 2014 and $1.1 million in 2013.