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Premium Deficiency Reserve (Tables)
 12 Months Ended
Dec. 31, 2013
Premium Deficiency Reserve [Abstract]  
Components of premium deficiency reserve
The components of the premium deficiency reserve at December 31, 2013, 2012 and 2011 appear in the table below.
 
 
 December 31, 
 
 
2013
  
2012
  
2011
 
 
 
(In millions)
 
Present value of expected future premium
 
$
432
  
$
445
  
$
494
 
 
            
Present value of expected future paid losses and expenses
  
(1,101
)
  
(1,285
)
  
(1,455
)
 
            
Net present value of future cash flows
  
(669
)
  
(840
)
  
(961
)
 
            
Established loss reserves
  
621
   
766
   
826
 
 
            
Net deficiency
 
$
(48
)
 
$
(74
)
 
$
(135
)
 
            
Discount rate utilized at December 31,
  
1.6
%
  
1.3
%
  
2.3
%
Reconciliation of beginning and ending balances in the premium deficiency reserve
The decrease in the premium deficiency reserve for the years ended December 31, 2013, 2012 and 2011 appears in the table below.
 
 
 
Year ended December 31,
 
 
 
2013
  
2012
  
2011
 
 
 
(In millions)
 
 
 
  
  
  
  
  
 
Premium Deficiency Reserve at beginning of period
 
  
$
(74
)
 
  
$
(135
)
 
  
$
(179
)
 
 
      
      
     
Paid claims and loss adjustment expenses
 
$
214
      
$
279
      
$
334
     
Decrease in loss reserves
  
(145
)
      
(60
)
      
(249
)
    
Premium earned
  
(96
)
      
(102
)
      
(120
)
    
Effects of present valuing on future premiums, losses and expenses
  
(1
)
      
(1
)
      
(8
)
    
 
                        
Change in premium deficiency reserve to reflect actual premium, losses and expenses recognized
      
(28
)
      
116
       
(43
)
 
                        
Change in premium deficiency reserve to reflect change in assumptions relating to future premiums, losses, expenses and discount rate (1)
      
54
       
(55
)
      
87
 
 
                        
Premium Deficiency Reserve at end of period
     
$
(48
)
     
$
(74
)
     
$
(135
)

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