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Reinsurance
 12 Months Ended
Dec. 31, 2013
Reinsurance Disclosures [Abstract]  
Reinsurance
Reinsurance
Reinsurance mitigates the risk of highly uncertain exposures and limits the maximum net loss that can arise from large risks or risks concentrated in areas of exposure. Management’s decisions about the appropriate level of risk retention are affected by various factors, including changes in our underwriting practices, capacity to retain risks and reinsurance market conditions.

Primary components of our property and casualty reinsurance program include a property per risk treaty, property excess treaty, casualty per occurrence treaty, casualty excess treaty, property catastrophe treaty and catastrophe bonds.
 
Our consolidated statements of income include earned consolidated property casualty insurance premiums on assumed and ceded business:
(In millions)
 
Years ended December 31,
 
 
2013
 
2012
 
2011
Direct earned premiums
 
$
3,903

 
$
3,520

 
$
3,236

Assumed earned premiums
 
11

 
9

 
12

Ceded earned premiums
 
(201
)
 
(185
)
 
(219
)
Earned premiums
 
$
3,713

 
$
3,344

 
$
3,029

 
 
 
 
 
 
 

 
Our consolidated statements of income include incurred consolidated property casualty insurance loss and loss expenses on assumed and ceded business:
(In millions)
 
Years ended December 31,
 
 
2013
 
2012
 
2011
Direct incurred loss and loss expenses
 
$
2,323

 
$
2,235

 
$
2,588

Assumed incurred loss and loss expenses
 
11

 
6

 
24

Ceded incurred loss and loss expenses
 
(33
)
 
(104
)
 
(277
)
Incurred loss and loss expenses
 
$
2,301

 
$
2,137

 
$
2,335

 
 
 
 
 
 
 

 
Our life insurance company purchases reinsurance for protection of a portion of the risk that is written. Primary components of our life reinsurance program include individual mortality coverage and aggregate catastrophe and accidental death coverage in excess of certain deductibles.
 
Our consolidated statements of income include earned life insurance premiums on ceded business:
(In millions)
 
Years ended December 31,
 
 
2013
 
2012
 
2011
Direct earned premiums
 
$
248

 
$
235

 
$
220

Ceded earned premiums
 
(59
)
 
(57
)
 
(55
)
Earned premiums
 
$
189

 
$
178

 
$
165

 
 
 
 
 
 
 

 
Our consolidated statements of income include life insurance contract policyholders’ benefits incurred on ceded business:
(In millions)
 
Years ended December 31,
 
 
2013
 
2012
 
2011
Direct policyholders' benefits incurred
 
$
266

 
$
232

 
$
232

Ceded policyholders' benefits incurred
 
(62
)
 
(47
)
 
(43
)
Policyholders' benefits incurred
 
$
204

 
$
185

 
$
189

 
 
 
 
 
 
 

 
The ceded benefits incurred can vary depending on the type of life insurance policy held and the year the policy was issued.