Reinsurance

9 Months Ended

Sep. 30, 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 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,
	2022		2021		2022		2021
Direct written premiums	$	1,730	$	1,527	$	5,304	$	4,721
Assumed written premiums	92		66		548		432
Ceded written premiums	(72)		(55)		(239)		(208)
Net written premiums	$	1,750	$	1,538	$	5,613	$	4,945

Direct earned premiums	$	1,743	$	1,553	$	4,935	$	4,447
Assumed earned premiums	161		117		416		327
Ceded earned premiums	(95)		(74)		(227)		(189)
Earned premiums	$	1,809	$	1,596	$	5,124	$	4,585

Direct incurred loss and loss expenses	$	1,247	$	876	$	3,316	$	2,525
Assumed incurred loss and loss expenses	164		165		304		297
Ceded incurred loss and loss expenses	(63)		(53)		(76)		(81)
Incurred loss and loss expenses	$	1,348	$	988	$	3,544	$	2,741

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,
	2022		2021		2022		2021
Direct earned premiums	$	92	$	93	$	278	$	278

Ceded earned premiums	(19)		(20)		(57)		(57)
Earned premiums	$	73	$	73	$	221	$	221

Direct contract holders' benefits incurred	93		103		298		310

Ceded contract holders' benefits incurred	(23)		(19)		(76)		(61)
Contract holders' benefits incurred	$	70	$	84	$	222	$	249

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

At September 30, 2022, and December 31, 2021, the allowance for uncollectible property casualty premiums was $15 million and $14 million, respectively. At September 30, 2022, and December 31, 2021, the allowances for credit losses on other premiums receivable and recoverable assets were immaterial.