Reinsurance

9 Months Ended

Sep. 30, 2020

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 September 30,						Nine months ended September 30,
	2020		2019		2020		2019
Direct written premiums	$	1,386	$	1,361	$	4,383	$	4,168
Assumed written premiums	55		41		267		203
Ceded written premiums	(48)		(50)		(180)		(162)
Net written premiums	$	1,393	$	1,352	$	4,470	$	4,209

Direct earned premiums	$	1,439	$	1,386	$	4,198	$	3,971
Assumed earned premiums	78		52		207		145
Ceded earned premiums	(67)		(62)		(163)		(156)
Earned premiums	$	1,450	$	1,376	$	4,242	$	3,960

Direct incurred loss and loss expenses	$	1,039	$	855	$	2,915	$	2,508
Assumed incurred loss and loss expenses	54		37		133		87
Ceded incurred loss and loss expenses	(22)		(28)		(40)		(78)
Incurred loss and loss expenses	$	1,071	$	864	$	3,008	$	2,517

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,
	2020		2019		2020		2019
Direct earned premiums	$	90	$	87	$	273	$	256

Ceded earned premiums	(18)		(17)		(55)		(53)
Earned premiums	$	72	$	70	$	218	$	203

Direct contract holders' benefits incurred	85		87		270		259

Ceded contract holders' benefits incurred	(13)		(19)		(46)		(48)
Contract holders' benefits incurred	$	72	$	68	$	224	$	211

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