Reinsurance

12 Months Ended

Dec. 31, 2021

Primary components of our property casualty reinsurance assumed operations include involuntary and voluntary assumed as well as contracts from our reinsurance assumed operations, known as Cincinnati Re. 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)	Years ended December 31,
	2021		2020		2019
Direct written premiums	$	6,229	$	5,756	$	5,477
Assumed written premiums	515		335		244
Ceded written premiums	(265)		(227)		(205)
Net written premiums	$	6,479	$	5,864	$	5,516

Direct earned premiums	$	5,996	$	5,623	$	5,340
Assumed earned premiums	443		285		199
Ceded earned premiums	(255)		(217)		(205)
Earned premiums	$	6,184	$	5,691	$	5,334

Direct incurred loss and loss expenses	$	3,352	$	3,699	$	3,402
Assumed incurred loss and loss expenses	366		184		117
Ceded incurred loss and loss expenses	(122)		(46)		(167)
Incurred loss and loss expenses	$	3,596	$	3,837	$	3,352

Our life insurance company purchases reinsurance for protection of a portion of 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)	Years ended December 31,
	2021		2020		2019
Direct earned premiums	$	374	$	362	$	341
Ceded earned premiums	(76)		(73)		(71)
Earned premiums	$	298	$	289	$	270

Direct contract holders' benefits incurred	$	423	$	359	$	359
Ceded contract holders' benefits incurred	(83)		(62)		(73)
Contract holders' benefits incurred	$	340	$	297	$	286

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