Reinsurance

6 Months Ended

Jun. 30, 2020

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 Cincinnati Re^®, our reinsurance assumed operations. 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 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,
	2020		2019		2020		2019
Direct written premiums	$	1,539	$	1,472	$	2,997	$	2,807
Assumed written premiums	101		75		212		162
Ceded written premiums	(81)		(71)		(132)		(112)
Net written premiums	$	1,559	$	1,476	$	3,077	$	2,857
Direct earned premiums	$	1,388	$	1,319	$	2,759	$	2,585
Assumed earned premiums	63		50		129		93
Ceded earned premiums	(48)		(52)		(96)		(94)
Earned premiums	$	1,403	$	1,317	$	2,792	$	2,584
Direct incurred loss and loss expenses	$	976	$	866	$	1,876	$	1,653
Assumed incurred loss and loss expenses	45		25		79		50
Ceded incurred loss and loss expenses	(14)		(28)		(18)		(50)
Incurred loss and loss expenses	$	1,007	$	863	$	1,937	$	1,653

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,
	2020		2019		2020		2019
Direct earned premiums	$	98	$	86	$	183	$	169
Ceded earned premiums	(19)		(19)		(37)		(36)
Earned premiums	$	79	$	67	$	146	$	133
Direct contract holders' benefits incurred	100		87		185		172
Ceded contract holders' benefits incurred	(21)		(14)		(33)		(29)
Contract holders' benefits incurred	$	79	$	73	$	152	$	143

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