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Premium Deficiency Reserve (Tables)
 3 Months Ended
Mar. 31, 2013
Premium Deficiency Reserve [Abstract]  
Components of premium deficiency reserve
The components of the premium deficiency reserve at March 31, 2013, December 31, 2012 and March 31, 2012 appear in the table below.

   
March 31,
  
December 31,
 
March 31,
 
   
2013
  
2012
  
2012
 
   
(In millions)
 
Present value of expected future paid losses and expenses, net of expected future premium
 $(808) $(840) $(903)
              
Established loss reserves
  736   766   782 
              
Net deficiency
 $(72) $(74) $(121)
Reconciliation of beginning and ending balances in the premium deficiency reserve
The decrease in the premium deficiency reserve for the three months ended March 31, 2013 and 2012 was $2 million and $14 million, respectively, as shown in the table below, which represents the net result of actual premiums, losses and expenses as well as a net change in assumptions for these periods. The net change in assumptions for the three months ended March 31, 2013 is primarily related to higher estimated ultimate losses. The net change in assumptions for the three months ended March 31, 2012 is primarily related to higher estimated ultimate premiums.

   
Three Months Ended March 31,
 
   
2013
  
2012
 
   
(In millions)
 
              
Premium Deficiency Reserve at beginning of period
    $(74)    $(135)
                
Paid claims and loss adjustment expenses
 $58      $76     
Decrease in loss reserves
  (30)      (44)    
Premium earned
  (23)      (28)    
Effects of present valuing on future premiums, losses and expenses
  (2)      -     
                  
Change in premium deficiency reserve to reflect actual premium, losses and expenses recognized
      3       4 
                 
Change in premium deficiency reserve to reflect change in assumptions relating to future premiums, losses, expenses and discount rate (1)
      (1)      10 
                  
Premium Deficiency Reserve at end of period
     $(72)     $(121)

(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.