Reinsurance (Tables)

12 Months Ended

Dec. 31, 2020

The following table presents the amounts receivable from reinsurers.


December 31
(In millions)	2020		2019
Reinsurance receivables related to insurance reserves:
Ceded claim and claim adjustment expenses	$	4,005	$	3,835
Ceded future policy benefits	263		226
Reinsurance receivables related to paid losses	210		143
Reinsurance receivables	4,478		4,204
Allowance for uncollectible reinsurance	(21)		(25)
Reinsurance receivables, net of allowance for uncollectible reinsurance	$	4,457	$	4,179

Reinsurance Recoverable, Credit Quality Indicator

The following table summarizes the outstanding amount of voluntary reinsurance receivables, gross of any collateral arrangements, by financial strength rating.


(In millions)	December 31, 2020
A- to A++	$	2,820
B- to B++	904
Insolvent	3
Total voluntary reinsurance outstanding balance(1)	$	3,727

(1) Expected credit losses for legacy A&EP receivables are ceded to NICO and the reinsurance limit on the LPT has not been exhausted, therefore no allowance is recorded for these receivables and they are excluded from the table above. Refer to Note E to the Consolidated Financial Statements for information regarding the LPT. The Company has also excluded receivables from involuntary pools.

Components of Earned and Written Premiums

The effects of reinsurance on earned premiums and written premiums are presented in the following tables.


(In millions)	Direct		Assumed		Ceded		Net		Assumed/ Net %
2020 Earned Premiums
Property and casualty	$	11,547	$	238	$	4,640	$	7,145	3.3	%
Long term care	454		50		—		504		9.9	%
Total earned premiums	$	12,001	$	288	$	4,640	$	7,649	3.8	%

2019 Earned Premiums
Property and casualty	$	11,021	$	288	$	4,401	$	6,908	4.2	%
Long term care	470		50		—		520		9.6	%
Total earned premiums	$	11,491	$	338	$	4,401	$	7,428	4.6	%

2018 Earned Premiums
Property and casualty	$	10,857	$	305	$	4,380	$	6,782	4.5	%
Long term care	480		50		—		530		9.4	%
Total earned premiums	$	11,337	$	355	$	4,380	$	7,312	4.9	%


(In millions)	Direct		Assumed		Ceded		Net		Assumed/ Net %
2020 Written Premiums
Property and casualty	$	12,168	$	229	$	4,832	$	7,565	3.0	%
Long term care	444		50		—		494		10.1	%
Total written premiums	$	12,612	$	279	$	4,832	$	8,059	3.5	%

2019 Written Premiums
Property and casualty	$	11,421	$	281	$	4,569	$	7,133	3.9	%
Long term care	473		50		—		523		9.6	%
Total written premiums	$	11,894	$	331	$	4,569	$	7,656	4.3	%

2018 Written Premiums
Property and casualty	$	11,094	$	310	$	4,583	$	6,821	4.5	%
Long term care	474		50		—		524		9.5	%
Total written premiums	$	11,568	$	360	$	4,583	$	7,345	4.9	%