Reinsurance

12 Months Ended

Dec. 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)	Years ended December 31,
	2023		2022		2021
Direct written premiums	$	7,784	$	7,002	$	6,229
Assumed written premiums	597		619		515
Ceded written premiums	(335)		(314)		(265)
Net written premiums	$	8,046	$	7,307	$	6,479

Direct earned premiums	$	7,407	$	6,677	$	5,996
Assumed earned premiums	569		561		443
Ceded earned premiums	(331)		(314)		(255)
Earned premiums	$	7,645	$	6,924	$	6,184

Direct incurred loss and loss expenses	$	4,843	$	4,495	$	3,352
Assumed incurred loss and loss expenses	280		396		366
Ceded incurred loss and loss expenses	(165)		(175)		(122)
Incurred loss and loss expenses	$	4,958	$	4,716	$	3,596

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,
	2023		2022		2021
Direct earned premiums	$	394	$	379	$	370
Ceded earned premiums	(81)		(78)		(76)
Earned premiums	$	313	$	301	$	294

Direct contract holders' benefits incurred	$	391	$	394	$	380
Ceded contract holders' benefits incurred	(75)		(91)		(67)
Contract holders' benefits incurred	$	316	$	303	$	313

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