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 table below summarizes our consolidated property casualty insurance net written premiums, earned premiums and incurred loss and loss expenses:



(Dollars in millions)	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Direct written premiums	$	1,336		$	1,265		$	2,583		$	2,491
Assumed written premiums	52			42			101			75
Ceded written premiums	(39		)	(36		)	(77		)	(64		)
Net written premiums	$	1,349		$	1,271		$	2,607		$	2,502

Direct earned premiums	$	1,235		$	1,189		$	2,442		$	2,352
Assumed earned premiums	36			33			69			60
Ceded earned premiums	(41		)	(41		)	(81		)	(80		)
Earned premiums	$	1,230		$	1,181		$	2,430		$	2,332

Direct incurred loss and loss expenses	$	821		$	770		$	1,602		$	1,558
Assumed incurred loss and loss expenses	13			20			29			35
Ceded incurred loss and loss expenses	(13		)	4			(19		)	(11		)
Incurred loss and loss expenses	$	821		$	794		$	1,612		$	1,582

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 table below summarizes our consolidated life insurance earned premiums and contract holders' benefits incurred:



(Dollars in millions)	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Direct earned premiums	$	81		$	77		$	158		$	151
Ceded earned premiums	(17		)	(17		)	(34		)	(34		)
Earned premiums	$	64		$	60		$	124		$	117

Direct contract holders' benefits incurred	70			87			146			163
Ceded contract holders' benefits incurred	(8		)	(27		)	(21		)	(38		)
Contract holders' benefits incurred	$	62		$	60		$	125		$	125

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