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Reinsurance
 6 Months Ended
Jun. 30, 2019
Reinsurance Disclosures [Abstract]  
Reinsurance 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 ReSM. 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,
 
 
2019
 
2018
 
2019
 
2018
Direct written premiums
 
$
1,472

 
$
1,336

 
$
2,807

 
$
2,583

Assumed written premiums
 
75

 
52

 
162

 
101

Ceded written premiums
 
(71
)
 
(39
)
 
(112
)
 
(77
)
Net written premiums
 
$
1,476

 
$
1,349

 
$
2,857

 
$
2,607

 
 
 
 
 
 
 
 
 
Direct earned premiums
 
$
1,319

 
$
1,235

 
$
2,585

 
$
2,442

Assumed earned premiums
 
50

 
36

 
93

 
69

Ceded earned premiums
 
(52
)
 
(41
)
 
(94
)
 
(81
)
Earned premiums
 
$
1,317

 
$
1,230

 
$
2,584

 
$
2,430

 
 
 
 
 
 
 
 
 
Direct incurred loss and loss expenses
 
$
866

 
$
821

 
$
1,653

 
$
1,602

Assumed incurred loss and loss expenses
 
25

 
13

 
50

 
29

Ceded incurred loss and loss expenses
 
(28
)
 
(13
)
 
(50
)
 
(19
)
Incurred loss and loss expenses
 
$
863

 
$
821

 
$
1,653

 
$
1,612

 
 
 
 
 
 
 
 
 


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,
 
 
2019
 
2018
 
2019
 
2018
Direct earned premiums
 
$
86

 
$
81

 
$
169

 
$
158

Ceded earned premiums
 
(19
)
 
(17
)
 
(36
)
 
(34
)
Earned premiums
 
$
67

 
$
64

 
$
133

 
$
124

 
 
 
 
 
 
 
 
 
Direct contract holders' benefits incurred
 
87

 
70

 
172

 
146

Ceded contract holders' benefits incurred
 
(14
)
 
(8
)
 
(29
)
 
(21
)
Contract holders' benefits incurred
 
$
73

 
$
62

 
$
143

 
$
125

 
 
 
 
 
 
 
 
 

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