We use reinsurance extensively, which has a significant effect on our results of operations. Reinsurance arrangements do not relieve us of our primary obligation to the policyholder.

Details on in-force life insurance were as follows:


	June 30, 2025			December 31, 2024
	(Dollars in thousands)
Direct life insurance in-force	$	970,278,989		$	955,610,523
Amounts ceded to other companies		(828,854,218	)		(817,825,296	)
Net life insurance in-force	$	141,424,771		$	137,785,227
Percentage of reinsured life insurance in-force		85	%		86	%

Benefits and claims ceded to reinsurers during the three and six months ended June 30, 2025 were $379.6 million and $732.6 million, respectively, compared to $357.8 million and $714.8 million, respectively, for the three and six months ended June 30, 2024.

Reinsurance recoverables include ceded policy benefit reserve balances, ceded claim liabilities, and ceded claims paid that have not been reimbursed. The Company allocated reinsurance recoverables estimated at the cohort level to individual reinsurers for disclosure purposes. Reinsurance recoverables estimated by reinsurer and the financial strength ratings of those reinsurers were as follows:


	June 30, 2025				December 31, 2024
	Reinsurance recoverables			A.M. Best rating	Reinsurance recoverables			A.M. Best rating
	(In thousands)
Swiss Re Life & Health America Inc. (Novated from Pecan Re Inc.) (1)	$	2,049,871		A+	$	2,074,945		A+
Munich Re of Malta (1)(2)		214,938		NR		210,822		NR
SCOR Global Life Reinsurance Companies (3)		126,929		A		148,899		A
American Health and Life Insurance Company (1)		124,969		B++		127,601		B++
RGA Reinsurance Company		47,769		A+		44,132		A+
Swiss Re Life & Health America Inc. (4)		47,385		A+		43,826		A+
Korean Reinsurance Company		40,904		A		40,781		A
Munich American Reassurance Company		32,175		A+		36,487		A+
All other reinsurers		14,386		-		17,887		-
Allowance for credit losses		(1,182	)			(1,215	)
Reinsurance recoverables	$	2,698,144			$	2,744,165

NR – not rated by A.M. Best

(1)

Reinsurance recoverables include balances ceded under coinsurance transactions of term life insurance policies that were in-force as of December 31, 2009. Amounts shown are net of their share of the reinsurance recoverable from other reinsurers. Arrangements with these reinsurers include collateral trust agreements held in support of reinsurance recoverables.

(2)

Entity is rated AA by S&P as of June 30, 2025.

(3)

Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies.

(4)

Includes amounts ceded to Lincoln National Life Insurance and fully retroceded to Swiss Re Life & Health America Inc.

We estimate and recognize lifetime expected credit losses for reinsurance recoverables. In estimating the allowance for credit losses for reinsurance recoverables, we factor in the underlying collateral for reinsurance agreements where available. Specifically, for reinsurers with underlying trust assets, we compare the reinsurance recoverables balance to the underlying trust assets that mitigate the potential exposure to credit losses. We also analyze the financial condition of the reinsurers, as determined by third-party rating agencies, to determine the probability of default for the reinsurers. We then utilize a third-party credit default study to calculate an expected credit loss given default rate or recovery rate. The probability of default and loss given default rates are then applied to the reinsurers’ recoverable balance, while also factoring in any third-party letters of credit that support the reinsurance agreement, in order to calculate our allowance for credit losses.

The rollforward of the allowance for credit losses on reinsurance recoverables were as follows:


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025			2024
	(In thousands)
Balance, beginning of period	$	1,104	$	1,048	$	1,215		$	1,120
Current period (benefit) provision for expected credit losses		78		74		(33	)		2
Balance, at the end of period	$	1,182	$	1,122	$	1,182		$	1,122