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Premium Deficiency Reserve (Tables)
 3 Months Ended
Mar. 31, 2014
Premium Deficiency Reserve [Abstract]  
Components of premium deficiency reserve
The components of the premium deficiency reserve at March 31, 2014, December 31, 2013 and March 31, 2013 appear in the table below.

 
 
March 31,
  
December 31,
  
March 31,
 
 
 
2014
  
2013
  
2013
 
 
 
(In millions)
 
Present value of expected future paid losses and expenses, net of expected future premium
 
$
(622
)
 
$
(669
)
 
$
(808
)
 
            
Established loss reserves
  
579
   
621
   
736
 
 
            
Net deficiency
 
$
(43
)
 
$
(48
)
 
$
(72
)
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, 2014 and 2013 was $5 million and $2 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, 2014 is primarily related to higher estimated ultimate premiums. The net change in assumptions for the three months ended March 31, 2013 is primarily related to higher estimated losses.
 
 
 
Three Months Ended March 31,
 
 
 
2014
  
2013
 
 
 
(In millions)
 
 
 
  
  
  
 
Premium Deficiency Reserve at beginning of period
 
  
$
(48
)
 
  
$
(74
)
 
 
      
     
Paid claims and loss adjustment expenses
 
$
48
      
$
58
     
Decrease in loss reserves
  
(42
)
      
(30
)
    
Premium earned
  
(21
)
      
(23
)
    
Effects of present valuing on future premiums,losses and expenses
  
(2
)
      
(2
)
    
 
                
Change in premium deficiency reserve to reflect actual premium, losses and expenses recognized
      
(17
)
      
3
 
 
                
Change in premium deficiency reserve to reflect change in assumptions relating to future premiums, losses, expenses and discount rate (1)
      
22
       
(1
)
 
                
Premium Deficiency Reserve at end of period
     
$
(43
)
     
$
(72
)

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