Reinsurance

6 Months Ended

Jun. 30, 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 June 30,				Six months ended June 30,
	2021		2020		2021		2020
Direct written premiums	$	1,649	$	1,539	$	3,194	$	2,997
Assumed written premiums	161		101		366		212
Ceded written premiums	(96)		(81)		(153)		(132)
Net written premiums	$	1,714	$	1,559	$	3,407	$	3,077

Direct earned premiums	$	1,465	$	1,388	$	2,894	$	2,759
Assumed earned premiums	109		63		210		129
Ceded earned premiums	(60)		(48)		(115)		(96)
Earned premiums	$	1,514	$	1,403	$	2,989	$	2,792

Direct incurred loss and loss expenses	$	781	$	976	$	1,649	$	1,876
Assumed incurred loss and loss expenses	54		45		132		79
Ceded incurred loss and loss expenses	(5)		(14)		(28)		(18)
Incurred loss and loss expenses	$	830	$	1,007	$	1,753	$	1,937

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,
	2021		2020		2021		2020
Direct earned premiums	$	98	$	98	$	185	$	183

Ceded earned premiums	(19)		(19)		(37)		(37)
Earned premiums	$	79	$	79	$	148	$	146

Direct contract holders' benefits incurred	100		100		207		185

Ceded contract holders' benefits incurred	(15)		(21)		(42)		(33)
Contract holders' benefits incurred	$	85	$	79	$	165	$	152

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

At June 30, 2021 and December 31, 2020, the allowance for uncollectible property casualty premiums was

$16 million and $19 million, respectively. At June 30, 2021 and December 31, 2020, the allowances for credit losses on other premiums receivable and recoverable assets were immaterial.