Premium Deficiency Reserves (Tables)

3 Months Ended

Mar. 31, 2012

Premium Deficiency Reserve [Abstract]

Components of the premium deficiency reserve

The components of the premium deficiency reserve at March 31, 2012, December 31, 2011 and March 31, 2011 appear in the table below.

	March 31,			December 31,			March 31,
	2012			2011			2011
	(In millions)
Present value of expected future paid losses and expenses, net of expected future premium	$	(903	)	$	(961	)	$	(1,170	)
Established loss reserves		782			826			1,000
Net deficiency	$	(121	)	$	(135	)	$	(170	)

Reconciliation of beginning and ending balances in the premium deficiency reserve

	Three Months Ended March 31,
	2012						2011
	(In millions)
Premium Deficiency Reserve at beginning of period				$	(135	)				$	(179	)
Paid claims and loss adjustment expenses	$	76					$	75
Decrease in loss reserves		(44	)					(75	)
Premium earned		(28	)					(33	)
Effects of present valuing on future premiums, losses and expenses		-						(11	)
Change in premium deficiency reserve to reflect actual premium, losses and expenses recognized					4						(44	)
Change in premium deficiency reserve to reflect change in assumptions relating to future premiums, losses, expenses and discount rate (1)					10						53
Premium Deficiency Reserve at end of period				$	(121	)				$	(170	)

(1) A (negative) positive number for changes in assumptions relating to premiums, losses, expenses and discount rate indicates a (deficiency) redundancy of the prior premium deficiency reserve.