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Premium Deficiency Reserve (Tables)
 9 Months Ended
Sep. 30, 2014
Premium Deficiency Reserve [Abstract]  
Components of premium deficiency reserve
The components of the premium deficiency reserve at September 30, 2014, December 31, 2013 and September 30, 2013 appear in the table below.

  
September 30,
2014
  
December 31,
2013
  
September 30,
2013
 
  
(In millions)
 
Present value of expected future paid losses and expenses, net of expected future premium
 
$
(570
)
 
$
(669
)
 
$
(709
)
             
Established loss reserves
  
541
   
621
   
652
 
             
Net deficiency
 
$
(29
)
 
$
(48
)
 
$
(57
)
Reconciliation of beginning and ending balances in the premium deficiency reserve
The decrease in the premium deficiency reserve for the three and nine months ended September 30, 2014 was $6 million and $19 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 September 30, 2014 is primarily related to higher estimated ultimate losses. The net change in assumptions for the nine months ended September 30, 2014 is primarily related to higher estimated ultimate premiums.
 
  
Three Months Ended
  
Nine Months Ended
 
  
September 30, 2014
 
  
(In millions)
 
         
Premium Deficiency Reserve at beginning of period
   
$
(35
)
   
$
(48
)
             
Paid claims and loss adjustment expenses
 
$
41
      
$
132
     
Decrease in loss reserves
  
(15
)
      
(81
)
    
Premium earned
  
(17
)
      
(59
)
    
Effects of present valuing on future premiums, losses and expenses
  
3
       
(1
)
    
                 
Change in premium deficiency reserve to reflect actual premium, losses and expenses recognized
      
12
       
(9
)
                 
Change in premium deficiency reserve to reflect change in assumptions relating to future premiums, losses, expenses and discount rate (1)
      
(6
)
      
28
 
                 
Premium Deficiency Reserve at end of period
     
$
(29
)
     
$
(29
)

(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.

The decrease in the premium deficiency reserve for the three and nine months ended September 30, 2013 was $4 million and $17 million, respectively, as shown in the table below. The net change in assumptions for both the three months and nine months ended September 30, 2013 is primarily related to higher estimated ultimate premiums.
 
  
Three Months Ended
  
Nine Months Ended
 
  
September 30, 2013
 
  
(In millions)
 
         
Premium Deficiency Reserve at beginning of period
   
$
(61
)
   
$
(74
)
             
Paid claims and loss adjustment expenses
 
$
51
      
$
172
     
Decrease in loss reserves
  
(37
)
      
(114
)
    
Premium earned
  
(24
)
      
(72
)
    
Effects of present valuing on future premiums, losses and expenses
  
-
       
(2
)
    
                 
Change in premium deficiency reserve to reflect actual premium, losses and expenses recognized
      
(10
)
      
(16
)
                 
Change in premium deficiency reserve to reflect change in assumptions relating to future premiums, losses, expenses and discount rate (1)
      
14
       
33
 
                 
Premium Deficiency Reserve at end of period
     
$
(57
)
     
$
(57
)

(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.