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Reinsurance
 12 Months Ended
Dec. 31, 2017
Reinsurance Disclosures [Abstract]  
Reinsurance
Reinsurance
Primary components of our property casualty reinsurance assumed operations 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.
 
The tables below summarize our consolidated property casualty insurance net written premiums, earned premiums and incurred loss and loss expenses:
(Dollars in millions)
 
Years ended December 31,
 
 
2017
 
2016
 
2015
Direct written premiums
 
$
4,854

 
$
4,646

 
$
4,461

Assumed written premiums
 
125

 
103

 
77

Ceded written premiums
 
(139
)
 
(169
)
 
(177
)
Net written premiums
 
$
4,840

 
$
4,580

 
$
4,361

 
 
 
 
 
 
 


(Dollars in millions)
 
Years ended December 31,
 
 
2017
 
2016
 
2015
Direct earned premiums
 
$
4,752

 
$
4,567

 
$
4,396

Assumed earned premiums
 
132

 
77

 
29

Ceded earned premiums
 
(162
)
 
(162
)
 
(154
)
Earned premiums
 
$
4,722

 
$
4,482

 
$
4,271

 
 
 
 
 
 
 


(Dollars in millions)
 
Years ended December 31,
 
 
2017
 
2016
 
2015
Direct incurred loss and loss expenses
 
$
2,961

 
$
2,874

 
$
2,596

Assumed incurred loss and loss expenses
 
113

 
43

 
12

Ceded incurred loss and loss expenses
 
64

 
(56
)
 
(36
)
Incurred loss and loss expenses
 
$
3,138

 
$
2,861

 
$
2,572

 
 
 
 
 
 
 


Our changes in direct incurred and ceded incurred compared to prior years resulted primarily from a large settlement paid by USAIG, a joint underwriting association of individual insurance companies that collectively functions as a worldwide aviation insurance market. This settlement resulted in offsetting amounts to direct incurred and ceded incurred with no change to our net incurred loss and loss expenses. We terminated our participation in the USAIG pool after policy year 2002.

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.
 
The tables below summarize our consolidated life insurance earned premiums and contract holders' benefits incurred:
(Dollars in millions)
 
Years ended December 31,
 
 
2017
 
2016
 
2015
Direct earned premiums
 
$
300

 
$
290

 
$
271

Ceded earned premiums
 
(68
)
 
(62
)
 
(62
)
Earned premiums
 
$
232

 
$
228

 
$
209

 
 
 
 
 
 
 

 
(Dollars in millions)
 
Years ended December 31,
 
 
2017
 
2016
 
2015
Direct contract holders' benefits incurred
 
$
319

 
$
303

 
$
292

Ceded contract holders' benefits incurred
 
(67
)
 
(57
)
 
(56
)
Contract holders' benefits incurred
 
$
252

 
$
246

 
$
236

 
 
 
 
 
 
 


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