Reinsurance

3 Months Ended

Mar. 31, 2023

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 March 31,
		2023		2022
Direct written premiums		$	1,859	$	1,703
Assumed written premiums		244		263
Ceded written premiums		(84)		(67)
Net written premiums		$	2,019	$	1,899

Direct earned premiums		$	1,760	$	1,561
Assumed earned premiums		159		121
Ceded earned premiums		(78)		(64)
Earned premiums		$	1,841	$	1,618

Direct incurred loss and loss expenses		$	1,299	$	895
Assumed incurred loss and loss expenses		76		73
Ceded incurred loss and loss expenses		(58)		(12)
Incurred loss and loss expenses		$	1,317	$	956

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,
		2023		2022
Direct earned premiums		$	96	$	93

Ceded earned premiums		(19)		(18)
Earned premiums		$	77	$	75

Direct contract holders' benefits incurred		97		103

Ceded contract holders' benefits incurred		(16)		(27)
Contract holders' benefits incurred		$	81	$	76

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

The allowance for uncollectible property casualty premiums was $13 million at both March 31, 2023, and December 31, 2022. The allowances for credit losses on other premiums receivable and reinsurance recoverable assets were immaterial at March 31, 2023, and December 31, 2022.