During their normal course of business, our insurance subsidiaries assume and cede reinsurance on both a coinsurance and a risk premium basis. They also obtain reinsurance for that portion of risks exceeding their retention limits. The maximum amount of life insurance retained on any one life is $110,000.

		Direct Amount (a)		Ceded to Other Companies		Assumed from Other Companies		Net Amount (a)	Percentage of Amount Assumed to Net
		(In thousands)
Year ended December 31, 2016
Life insurance in force	$	937,779	$	249	$	915,769	$	1,853,299	49%
Premiums earned:
Life	$	50,251	$	–	$	10,626	$	60,877	17%
Accident and health		99,450		310		2,263		101,403	2%
Annuity		505		–		794		1,299	61%
Property and casualty		52,329		–		5		52,334	0%
Total	$	202,535	$	310	$	13,688	$	215,913

Year ended December 31, 2015
Life insurance in force	$	927,647	$	397	$	949,413	$	1,876,663	51%
Premiums earned:
Life	$	49,126	$	8	$	11,310	$	60,428	19%
Accident and health		99,354		312		2,545		101,587	3%
Annuity		392		–		255		647	39%
Property and casualty		50,012		–		8		50,020	0%
Total	$	198,884	$	320	$	14,118	$	212,682

Year ended December 31, 2014
Life insurance in force	$	905,987	$	402	$	990,406	$	1,895,991	52%
Premiums earned:
Life	$	47,298	$	–	$	12,337	$	59,635	21%
Accident and health		93,319		345		2,796		95,770	3%
Annuity		386		–		312		698	45%
Property and casualty		46,417		–		39		46,456	0%
Total	$	187,420	$	345	$	15,484	$	202,559

(a) Balances are reported net of inter-segment transactions.

To the extent that a reinsurer is unable to meet its obligation under the related reinsurance agreements, Repwest would remain liable for the unpaid losses and loss expenses. Pursuant to certain of these agreements, Repwest holds letters of credit as of December 31, 2016 in the amount of $0.1 million from re-insurers and has issued letters of credit in the amount of $1.9 million in favor of certain ceding companies.

Policy benefits and losses, claims and loss expenses payable for Property and Casualty Insurance were as follows:

		December 31,
		2016		2015
		(In thousands)
Unpaid losses and loss adjustment expense	$	244,400	$	251,964
Reinsurance losses payable		580		855
Total	$	244,980	$	252,819

Activity in the liability for unpaid losses and loss adjustment expenses for Property and Casualty Insurance is summarized as follows:

		December 31,
		2016		2015		2014
		(In thousands)
Balance at January 1	$	251,964	$	271,609	$	295,126
Less: reinsurance recoverable		107,311		120,894		136,535
Net balance at January 1		144,653		150,715		158,591
Incurred related to:
Current year		13,297		11,713		11,690
Prior years		107		585		(694)
Total incurred		13,404		12,298		10,996
Paid related to:
Current year		7,777		7,007		6,155
Prior years		9,832		11,353		12,717
Total paid		17,609		18,360		18,872
Net balance at December 31		140,448		144,653		150,715
Plus: reinsurance recoverable		103,952		107,311		120,894
Balance at December 31	$	244,400	$	251,964	$	271,609

The liability for incurred losses and loss adjustment expenses (net of reinsurance recoverable of $104.0 million) decreased by $4.2 million in 2016.

The information about property and casualty incurred and paid loss and loss adjustment expense development for the years end December 31, 2012 through 2015, and the average annual percentage payout of incurred claims by age as of December 31, 2016, is presented as supplementary information. Claims data for 2012 through 2015 is unaudtied.

												As of
												December 31, 2016
												Total of
												Incurred-but-
												Not-Reported
												Liabilities Plus
												Expected	Cumulative
												Development	Number of
Accident												on Reported	Reported
Year		2012		2013		2014		2015		2016		Claims	Claims
		(In thousands, except claim counts)
2012	$	8,971	$	8,903	$	8,831	$	8,788	$	8,753	$	2	6,888
2013				9,861		9,853		9,914		9,741		100	7,640
2014						11,691		10,907		10,720		338	9,696
2015								12,214		12,459		1,779	10,700
2016										13,297		3,486	10,932
										Total		5,705

The following table presents paid claims development as of December 31, 2016, net of reinsurance. Claims data for 2012 through 2015 are unaudited.

Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
		(In thousands)
Accident
Year		2012		2013		2014		2015		2016
2012	$	4,415	$	6,345	$	8,179	$	8,410	$	8,734
2013				5,227		7,608		8,718		9,462
2014						6,154		8,087		9,270
2015								7,509		9,601
2016										7,777
								Total		44,844
		All outstanding liabilities before 2012, net of reinsurance								130,323
Liabilities for claims and claim adjustment expenses, net of reinsurance										140,448

The reconciliation of the net incurred and paid claims development tables for the liability for claims and claims adjustment expenses is as follows:

		December 31, 2016
		(In thousands)
Liabilities for unpaid Property and Casualty claims
and claim adjustment expenses, net of reinsurance	$	140,448

Total reinsurance recoverable on unpaid
Property and Casualty claims	$	103,952

Total gross liability for unpaid Property and Casualty
claims and claim adjustment expense	$	244,400

The following is supplementary information about average historical claims duration as of December 31, 2016.

Average Annual Percentage Payout of Incurred Claims by Age, net of Reinsurance

Property and Casualty Insurance