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Reinsurance
 9 Months Ended
Sep. 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 September 30,
 
Nine months ended September 30,
 
 
2019
 
2018
 
2019
 
2018
Direct written premiums
 
$
1,361

 
$
1,248

 
$
4,168

 
$
3,831

Assumed written premiums
 
41

 
42

 
203

 
143

Ceded written premiums
 
(50
)
 
(44
)
 
(162
)
 
(121
)
Net written premiums
 
$
1,352

 
$
1,246

 
$
4,209

 
$
3,853

 
 
 
 
 
 
 
 
 
Direct earned premiums
 
$
1,386

 
$
1,238

 
$
3,971

 
$
3,680

Assumed earned premiums
 
52

 
38

 
145

 
107

Ceded earned premiums
 
(62
)
 
(39
)
 
(156
)
 
(120
)
Earned premiums
 
$
1,376

 
$
1,237

 
$
3,960

 
$
3,667

 
 
 
 
 
 
 
 
 
Direct incurred loss and loss expenses
 
$
855

 
$
792

 
$
2,508

 
$
2,394

Assumed incurred loss and loss expenses
 
37

 
26

 
87

 
55

Ceded incurred loss and loss expenses
 
(28
)
 
(5
)
 
(78
)
 
(24
)
Incurred loss and loss expenses
 
$
864

 
$
813

 
$
2,517

 
$
2,425

 
 
 
 
 
 
 
 
 


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,
 
 
2019
 
2018
 
2019
 
2018
Direct earned premiums
 
$
87

 
$
79

 
$
256

 
$
237

Ceded earned premiums
 
(17
)
 
(18
)
 
(53
)
 
(52
)
Earned premiums
 
$
70

 
$
61

 
$
203

 
$
185

 
 
 
 
 
 
 
 
 
Direct contract holders' benefits incurred
 
87

 
82

 
259

 
228

Ceded contract holders' benefits incurred
 
(19
)
 
(16
)
 
(48
)
 
(37
)
Contract holders' benefits incurred
 
$
68

 
$
66

 
$
211

 
$
191

 
 
 
 
 
 
 
 
 

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