Reinsurance

12 Months Ended

Dec. 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 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,
	2022		2021		2020
Direct written premiums	$	7,002	$	6,229	$	5,756
Assumed written premiums	619		515		335
Ceded written premiums	(314)		(265)		(227)
Net written premiums	$	7,307	$	6,479	$	5,864

Direct earned premiums	$	6,677	$	5,996	$	5,623
Assumed earned premiums	561		443		285
Ceded earned premiums	(314)		(255)		(217)
Earned premiums	$	6,924	$	6,184	$	5,691

Direct incurred loss and loss expenses	$	4,495	$	3,352	$	3,699
Assumed incurred loss and loss expenses	396		366		184
Ceded incurred loss and loss expenses	(175)		(122)		(46)
Incurred loss and loss expenses	$	4,716	$	3,596	$	3,837

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,
	2022		2021		2020
Direct earned premiums	$	373	$	374	$	362
Ceded earned premiums	(78)		(76)		(73)
Earned premiums	$	295	$	298	$	289

Direct contract holders' benefits incurred	$	386	$	423	$	359
Ceded contract holders' benefits incurred	(90)		(83)		(62)
Contract holders' benefits incurred	$	296	$	340	$	297

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