Reinsurance

3 Months Ended

Mar. 31, 2022

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)	Three months ended March 31,
		2022		2021
Direct written premiums		$	1,703	$	1,545
Assumed written premiums		263		205
Ceded written premiums		(67)		(57)
Net written premiums		$	1,899	$	1,693

Direct earned premiums		$	1,561	$	1,429
Assumed earned premiums		121		101
Ceded earned premiums		(64)		(55)
Earned premiums		$	1,618	$	1,475

Direct incurred loss and loss expenses		$	895	$	868
Assumed incurred loss and loss expenses		73		78
Ceded incurred loss and loss expenses		(12)		(23)
Incurred loss and loss expenses		$	956	$	923

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,
		2022		2021
Direct earned premiums		$	90	$	87

Ceded earned premiums		(18)		(18)
Earned premiums		$	72	$	69

Direct contract holders' benefits incurred		114		107

Ceded contract holders' benefits incurred		(31)		(27)
Contract holders' benefits incurred		$	83	$	80

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, 2022, and December 31, 2021, the allowance for uncollectible property casualty premiums was $14 million. At March 31, 2022, and December 31, 2021, the allowances for credit losses on other premiums receivable and recoverable assets were immaterial.