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Reinsurance
9 Months Ended
Sep. 30, 2017
Reinsurance Disclosures [Abstract]  
Reinsurance

Note 9.  Reinsurance

In the normal course of business, the Company seeks to limit its exposure to loss on any single insured life and to recover a portion of benefits paid by ceding mortality risk to other insurance enterprises or reinsurers under indemnity reinsurance agreements, primarily quota share coverage and coinsurance agreements. The maximum amount of mortality risk retained by the Company is approximately $1,000 on single and joint life policies. At September 30, 2017, the Company had a reinsurance receivable of $200 and reinsurance payable of $195. At December 31, 2016, the Company had a reinsurance receivable of $166 and reinsurance payable of $203.

Indemnity reinsurance agreements do not relieve the Company from its obligations to contract owners. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company regularly evaluates the financial condition of its reinsurers so as to minimize its exposure to significant losses from reinsurer insolvencies. The Company determined after this evaluation that no reserve was required.

 

In addition, the Company seeks to limit its exposure to guaranteed benefit features contained in certain variable annuity contracts. Specifically, the Company reinsures certain GMIB and GMDB provisions to the extent reinsurance capacity is available in the marketplace. The percentage of variable annuity contract account values containing GMIB provisions that were reinsured was 33% and 34% at September 30, 2017 and December 31, 2016. The percentage of account values for variable annuity contracts containing GMDB provisions that were reinsured was 4% at both September 30, 2017 and December 31, 2016.