Table of Contents CITIZENS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) management of interest rate risk, which seeks to minimize exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts. Various assumptions used to determine the future policy benefit reserves of life insurance include valuation interest rates, mortality assumptions and withdrawals. The following table presents information on changes in the liability for life, accident and health and property policy and contract claims for the years ended December 31, 2019, 2018 and 2017. The Company experienced unfavorable development in 2019 of $0.5 million and favorable development of $0.2 million in 2018 and 2017. No unusual claims or trends have been noted. In the normal course of business, the Company reinsures portions of certain policies that we underwrite to limit disproportionate risks. During 2019 and 2018, 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 2019 and 2018, this reinsurance provided $10.0 million 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). December 31, 2019 | 10-K 90 (4) POLICY LIABILITIES AND SHORT DURATION CONTRACTS (5) REINSURANCE Years ended December 31, (In thousands) 2019 2018 2017 Policy claims payable: Balance at January 1 $ 7,614 8,610 9,538 Less: reinsurance recoverable 511 367 407 Net balance at January 1 7,103 8,243 9,131 Add claims incurred, related to: Current year 26,816 24,793 25,036 Prior years 543 (197) (209) 27,359 24,596 24,827 Deduct claims paid, related to: Current year 20,629 18,933 18,037 Prior years 6,570 6,803 7,678 27,199 25,736 25,715 Net balance December 31 7,263 7,103 8,243 Plus: reinsurance recoverable 796 511 367 Balance at December 31 $ 8,059 7,614 8,610