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 September 30,						Nine months ended September 30,
	2018			2017			2018			2017
Direct written premiums	$	1,248		$	1,221		$	3,831		$	3,712
Assumed written premiums	42			26			143			101
Ceded written premiums	(44		)	(39		)	(121		)	(103		)
Net written premiums	$	1,246		$	1,208		$	3,853		$	3,710

Direct earned premiums	$	1,238		$	1,195		$	3,680		$	3,547
Assumed earned premiums	38			39			107			99
Ceded earned premiums	(39		)	(43		)	(120		)	(123		)
Earned premiums	$	1,237		$	1,191		$	3,667		$	3,523

Direct incurred loss and loss expenses	$	792		$	760		$	2,394		$	2,318
Assumed incurred loss and loss expenses	26			62			55			97
Ceded incurred loss and loss expenses	(5		)	(7		)	(24		)	(18		)
Incurred loss and loss expenses	$	813		$	815		$	2,425		$	2,397

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 September 30,						Nine months ended September 30,
	2018			2017			2018			2017
Direct earned premiums	$	79		$	72		$	237		$	223
Ceded earned premiums	(18		)	(16		)	(52		)	(50		)
Earned premiums	$	61		$	56		$	185		$	173

Direct contract holders' benefits incurred	82			73			228			236
Ceded contract holders' benefits incurred	(16		)	(14		)	(37		)	(52		)
Contract holders' benefits incurred	$	66		$	59		$	191		$	184

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