Reinsurance

3 Months Ended

Mar. 31, 2021

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 March 31,
		2021		2020
Direct written premiums		$	1,545	$	1,458
Assumed written premiums		205		111
Ceded written premiums		(57)		(51)
Net written premiums		$	1,693	$	1,518

Direct earned premiums		$	1,429	$	1,371
Assumed earned premiums		101		66
Ceded earned premiums		(55)		(48)
Earned premiums		$	1,475	$	1,389

Direct incurred loss and loss expenses		$	868	$	900
Assumed incurred loss and loss expenses		78		34
Ceded incurred loss and loss expenses		(23)		(4)
Incurred loss and loss expenses		$	923	$	930

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 March 31,
		2021		2020
Direct earned premiums		$	87	$	85

Ceded earned premiums		(18)		(18)
Earned premiums		$	69	$	67

Direct contract holders' benefits incurred		107		85

Ceded contract holders' benefits incurred		(27)		(12)
Contract holders' benefits incurred		$	80	$	73

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

At March 31, 2021 and December 31, 2020, the allowance for uncollectible property casualty premiums was

$17 million and $19 million, respectively. At March 31, 2021 and December 31, 2020, the allowances for credit losses on other premiums receivable and recoverable assets were immaterial.