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Reinsurance
 12 Months Ended
Dec. 31, 2015
Reinsurance Disclosures [Abstract]  
Reinsurance
Reinsurance
Primary components of our property casualty operations assumed reinsurance include involuntary and voluntary assumed as well as contracts from our reinsurance assumed operations, known as Cincinnati Re. Primary components of our ceded reinsurance include a property per risk treaty, property excess treaty, casualty per occurrence treaty, casualty excess treaty, property catastrophe treaty and catastrophe bonds and retrocessions on our reinsurance assumed operations. 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.
 
Our consolidated statements of income include earned consolidated property casualty insurance premiums on assumed and ceded business:
(Dollars in millions)
 
Years ended December 31,
 
 
2015
 
2014
 
2013
Direct earned premiums
 
$
4,396

 
$
4,209

 
$
3,903

Assumed earned premiums
 
29

 
12

 
11

Ceded earned premiums
 
(154
)
 
(176
)
 
(201
)
Earned premiums
 
$
4,271

 
$
4,045

 
$
3,713

 
 
 
 
 
 
 

 
Our consolidated statements of income include incurred consolidated property casualty insurance loss and loss expenses on assumed and ceded business:
(Dollars in millions)
 
Years ended December 31,
 
 
2015
 
2014
 
2013
Direct incurred loss and loss expenses
 
$
2,596

 
$
2,661

 
$
2,323

Assumed incurred loss and loss expenses
 
12

 
6

 
11

Ceded incurred loss and loss expenses
 
(36
)
 
(40
)
 
(33
)
Incurred loss and loss expenses
 
$
2,572

 
$
2,627

 
$
2,301

 
 
 
 
 
 
 

 
Our ceded incurred results generally vary with our catastrophe experience.

Our life insurance company purchases reinsurance for protection of a portion of risks that are written. Primary components of our life reinsurance program include individual mortality coverage, aggregate catastrophe and accidental death coverage in excess of certain deductibles.
 
Our consolidated statements of income include earned life insurance premiums on ceded business:
(Dollars in millions)
 
Years ended December 31,
 
 
2015
 
2014
 
2013
Direct earned premiums
 
$
271

 
$
259

 
$
248

Ceded earned premiums
 
(62
)
 
(61
)
 
(59
)
Earned premiums
 
$
209

 
$
198

 
$
189

 
 
 
 
 
 
 

 
Our consolidated statements of income include life insurance contract holders’ benefits incurred on ceded business:
(Dollars in millions)
 
Years ended December 31,
 
 
2015
 
2014
 
2013
Direct contract holders' benefits incurred
 
$
292

 
$
299

 
$
266

Ceded contract holders' benefits incurred
 
(56
)
 
(70
)
 
(62
)
Contract holders' benefits incurred
 
$
236

 
$
229

 
$
204

 
 
 
 
 
 
 

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