Reinsurance [Text Block]

12 Months Ended

Dec. 31, 2017

Notes

Reinsurance

Note 9.Reinsurance 

The Insurance Group reinsures portions of certain business in order to limit the assumption of disproportionate risks. Amounts not retained are ceded to other companies on an automatic or facultative basis.  In addition, the Insurance Group participates in various coinsurance treaties on a quota share or excess basis. The Company is contingently liable with respect to reinsurance in the unlikely event that the assuming reinsurers are unable to meet their obligations.  The ceding of reinsurance does not discharge the primary liability of the original insurer to the insured.

The effects of reinsurance on premiums earned and insurance benefits, claims and reserves are shown below for the periods indicated (in thousands).

				ASSUMED		CEDED
		GROSS		FROM OTHER		TO OTHER		NET
		AMOUNT		COMPANIES		COMPANIES		AMOUNT
Premiums Earned:
December 31, 2017
Accident and health	$	249,134	$	7,574	$	32,290	$	224,418
Life and annuity		56,194		795		38,899		18,090
Property and liability		40,139		-		381		39,758
	$	345,467	$	8,369	$	71,570	$	282,266
December 31, 2016
Accident and health	$	461,467	$	19,744	$	276,392	$	204,819
Life and annuity		57,938		1,595		42,078		17,455
Property and liability		40,697		-		267		40,430
	$	560,102	$	21,339	$	318,737	$	262,704
December 31, 2015
Accident and health	$	513,814	$	28,822	$	126,613	$	416,023
Life and annuity		46,699		4,330		23,078		27,951
Property and liability		35,812		-		252		35,560
	$	596,325	$	33,152	$	149,943	$	479,534
Insurance benefits, claims and reserves:
December 31, 2017	$	199,063	$	5,965	$	69,974	$	135,054
December 31, 2016	$	335,968	$	(5,512)	$	185,225	$	145,231
December 31, 2015	$	365,634	$	24,956	$	83,412	$	307,178

Effective January 1, 2016, all of the in-force stop-loss business of Standard Security Life and Independence American produced by Risk Solutions was co-insured in connection with the Risk Solutions Sale and Coinsurance Transaction (see Note 3).

On July 31, 2015, Madison National Life and Standard Security Life together entered into a coinsurance and sale agreement with an unaffiliated reinsurer, National Guardian Life Insurance Company, to: (i) cede substantially all of their individual life and annuity policy blocks currently in run-off; and (ii) sell the related infrastructure associated with the administration of such policies. In 2016, a large block of assumed policies were novated, thereby relieving the Company of its liability with regards to those policies.