Reinsurance

9 Months Ended

Sep. 30, 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 September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Direct written premiums	$	1,939	$	1,730	$	5,869	$	5,304
Assumed written premiums	89		92		527		548
Ceded written premiums	(71)		(72)		(270)		(239)
Net written premiums	$	1,957	$	1,750	$	6,126	$	5,613

Direct earned premiums	$	1,912	$	1,743	$	5,478	$	4,935
Assumed earned premiums	142		161		435		416
Ceded earned premiums	(97)		(95)		(252)		(227)
Earned premiums	$	1,957	$	1,809	$	5,661	$	5,124

Direct incurred loss and loss expenses	$	1,220	$	1,247	$	3,784	$	3,316
Assumed incurred loss and loss expenses	82		164		216		304
Ceded incurred loss and loss expenses	(41)		(63)		(160)		(76)
Incurred loss and loss expenses	$	1,261	$	1,348	$	3,840	$	3,544

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,
	2023		2022		2023		2022
Direct earned premiums	$	97	$	94	$	293	$	283

Ceded earned premiums	(21)		(19)		(60)		(57)
Earned premiums	$	76	$	75	$	233	$	226

Direct contract holders' benefits incurred	92		90		289		302

Ceded contract holders' benefits incurred	(21)		(20)		(59)		(74)
Contract holders' benefits incurred	$	71	$	70	$	230	$	228

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 $16 million and $13 million at September 30, 2023, and December 31, 2022, respectively. The allowances for credit losses on other premiums receivable and reinsurance recoverable assets were immaterial at September 30, 2023, and December 31, 2022.