Reinsurance

Primary components of our property casualty reinsurance assumed operations include involuntary and voluntary assumed risks 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)	Three months ended March 31,
	2018			2017
Direct written premiums	$	1,247		$	1,226
Assumed written premiums	49			33
Ceded written premiums	(38		)	(28		)
Net written premiums	$	1,258		$	1,231



(Dollars in millions)	Three months ended March 31,
	2018			2017
Direct earned premiums	$	1,207		$	1,163
Assumed earned premiums	33			27
Ceded earned premiums	(40		)	(39		)
Earned premiums	$	1,200		$	1,151



(Dollars in millions)	Three months ended March 31,
	2018			2017
Direct incurred loss and loss expenses	$	781		$	788
Assumed incurred loss and loss expenses	16			15
Ceded incurred loss and loss expenses	(6		)	(15		)
Incurred loss and loss expenses	$	791		$	788

Our life insurance company purchases reinsurance for protection of a portion of the 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)	Three months ended March 31,
	2018			2017
Direct earned premiums	$	77		$	74
Ceded earned premiums	(17		)	(17		)
Earned premiums	$	60		$	57



(Dollars in millions)	Three months ended March 31,
	2018			2017
Direct contract holders' benefits incurred	$	76		$	76
Ceded contract holders' benefits incurred	(13		)	(11		)
Contract holders' benefits incurred	$	63		$	65

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