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Internal Revenue Bulletin — Rulings & Guidance

Rev. Proc. 2015-52

The loss payment patterns and discount factors are set forth for the 2015 accident year.

Official textirs.gov

# SECTION 1. PURPOSE

This revenue procedure prescribes the loss payment patterns and discount factors for the 2015 accident year. These factors will be used to compute discounted unpaid losses under § 846 of the Internal Revenue Code. See Rev. Proc. 2012–44, 2012–49 I.R.B. 645, for background concerning the loss payment patterns and application of the discount factors.

# SECTION 2. SCOPE

This revenue procedure applies to any taxpayer that is required to discount unpaid losses under § 846 for a line of business using the discount factors published by the Secretary.

# SECTION 3. TABLES OF DISCOUNT FACTORS

.01 The following tables present separately for each line of business the discount factors under § 846 for accident year 2015. All the discount factors presented in this section were determined using the applicable interest rate under § 846(c) for 2015, which is 1.68 percent, and by assuming all loss payments occur in the middle of the calendar year.

.02 If the groupings of individual lines of business on the annual statement change, taxpayers must discount unpaid losses on the resulting line of business in accordance with the discounting patterns that would have applied to those unpaid losses based on their classification on the 2010 annual statement. See Rev. Proc. 2012–44, 2012–49 I.R.B. 645, section 2, for additional background on discounting under § 846 and the use of the Secretary’s tables.

.03 Section V of Notice 88–100, 1988–2 C.B. 439, sets forth a composite method for computing discounted unpaid losses for accident years that are not separately reported on the annual statement. The tables separately provide discount factors for taxpayers who elect to use the composite method of section V of Notice 88–100. See Rev. Proc. 2002–74, 2002–2 C.B. 980.

.04 Tables.

Accident and Health (Other Than Disability Income or Credit Disability Insurance)

Taxpayers that do not use the composite method of Notice 88–100 should use 99.1704 percent to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the 2015 and later taxable years.

Taxpayers that use the composite method of Notice 88–100 should use 99.1704 percent to discount all unpaid losses in this line of business that are outstanding at the end of the 2015 taxable year.

Auto Physical Damage

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 90.2657 90.2657 9.7343 9.6474 99.1071
2016 99.7478 9.4822 0.2522 0.2480 98.3512
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2017 and later years 0.1261 0.1261 0.1250 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 99.1704 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2017 taxable year.

Commercial Auto/Truck Liability/Medical

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 25.7034 25.7034 74.2966 71.6547 96.4441
2016 48.2664 22.5629 51.7336 50.1068 96.8554
2017 67.8834 19.6171 32.1166 31.1674 97.0447
2018 82.0630 14.1795 17.9370 17.3929 96.9664
2019 90.4161 8.3532 9.5839 9.2621 96.6421
2020 94.6293 4.2132 5.3707 5.1693 96.2490
2021 97.0203 2.3910 2.9797 2.8451 95.4824
2022 98.2283 1.2081 1.7717 1.6748 94.5294
2023 98.6653 0.4370 1.3347 1.2623 94.5726
2024 98.8635 0.1982 1.1365 1.0836 95.3460
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 0.1982 0.9382 0.9019 96.1261
2026 0.1982 0.7400 0.7171 96.9117
2027 0.1982 0.5417 0.5293 97.6994
2028 0.1982 0.3435 0.3383 98.4775
2029 and later years 0.1982 0.1453 0.1441 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 96.6667 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

Composite

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 39.5281 39.5281 60.4719 57.6269 95.2953
2016 62.0267 22.4986 37.9733 35.9082 94.5617
2017 73.7017 11.6750 26.2983 24.7388 94.0699
2018 80.0846 6.3830 19.9154 18.7181 93.9881
2019 85.7818 5.6971 14.2182 13.2878 93.4557
2020 90.2809 4.4992 9.7191 8.9742 92.3358
2021 91.9588 1.6778 8.0412 7.4331 92.4370
2022 92.9722 1.0134 7.0278 6.5360 93.0027
2023 94.0835 1.1113 5.9165 5.5252 93.3872
2024 94.7469 0.6634 5.2531 4.9492 94.2135
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 0.6634 4.5898 4.3634 95.0678
2026 0.6634 3.9264 3.7678 95.9602
2027 0.6634 3.2631 3.1622 96.9087
2028 0.6634 2.5997 2.5464 97.9500
2029 and later years 0.6634 1.9364 1.9203 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 95.7290 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

Fidelity/Surety

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 22.8449 22.8449 77.1551 75.4362 97.7720
2016 55.8585 33.0137 44.1415 43.4137 98.3512
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2017 and later years 22.0707 22.0707 21.8877 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 99.1704 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2017 taxable year.

Financial Guaranty/Mortgage Guaranty

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 6.2515 6.2515 93.7485 91.5779 97.6847
2016 43.0154 36.7639 56.9846 56.0450 98.3512
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2017 and later years 28.4923 28.4923 28.2559 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 99.1704 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2017 taxable year.

International (Composite)

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 39.5281 39.5281 60.4719 57.6269 95.2953
2016 62.0267 22.4986 37.9733 35.9082 94.5617
2017 73.7017 11.6750 26.2983 24.7388 94.0699
2018 80.0846 6.3830 19.9154 18.7181 93.9881
2019 85.7818 5.6971 14.2182 13.2878 93.4557
2020 90.2809 4.4992 9.7191 8.9742 92.3358
2021 91.9588 1.6778 8.0412 7.4331 92.4370
2022 92.9722 1.0134 7.0278 6.5360 93.0027
2023 94.0835 1.1113 5.9165 5.5252 93.3872
2024 94.7469 0.6634 5.2531 4.9492 94.2135
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 0.6634 4.5898 4.3634 95.0678
2026 0.6634 3.9264 3.7678 95.9602
2027 0.6634 3.2631 3.1622 96.9087
2028 0.6634 2.5997 2.5464 97.9500
2029 and later years 0.6634 1.9364 1.9203 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 95.7290 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

Medical Professional Liability — Claims-Made

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 6.3462 6.3462 93.6538 88.8244 94.8434
2016 23.0958 16.7496 76.9042 73.4270 95.4785
2017 41.6827 18.5868 58.3173 55.9182 95.8861
2018 56.5267 14.8440 43.4733 41.8895 96.3568
2019 71.2882 14.7615 28.7118 27.7083 96.5047
2020 82.3023 11.0141 17.6977 17.0675 96.4390
2021 86.5143 4.2120 13.4857 13.1070 97.1918
2022 91.1422 4.6279 8.8578 8.6606 97.7734
2023 94.8664 3.7242 5.1336 5.0507 98.3855
2024 97.5408 2.6745 2.4592 2.4388 99.1704
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 and later years 2.4592 – – 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 99.1704 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

Medical Professional Liability — Occurrence

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 1.2044 1.2044 98.7956 91.1506 92.2618
2016 4.3376 3.1332 95.6624 89.5225 93.5817
2017 11.8161 7.4785 88.1839 83.4854 94.6719
2018 24.7088 12.8928 75.2912 71.8874 95.4792
2019 42.3863 17.6774 57.6137 55.2698 95.9316
2020 57.1600 14.7738 42.8400 41.3010 96.4076
2021 68.9797 11.8196 31.0203 30.0763 96.9568
2022 82.4247 13.4450 17.5753 17.0241 96.8638
2023 86.7084 4.2837 13.2916 12.9906 97.7352
2024 91.6701 4.9617 8.3299 8.2056 98.5079
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 and later years 4.9617 3.3683 3.3403 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 98.5586 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

Miscellaneous Casualty

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 69.0731 69.0731 30.9269 30.3163 98.0258
2016 85.5169 16.4438 14.4831 14.2443 98.3512
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2017 and later years 7.2415 7.2415 7.1815 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 99.1704 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2017 taxable year.

Multiple Peril Lines (Homeowners/Farmowners, Commercial Multiple Peril, and Special Liability (Ocean Marine, Aircraft (All Perils), Boiler and Machinery))

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 60.9719 60.9719 39.0281 37.8177 96.8985
2016 82.9059 21.9341 17.0941 16.3355 95.5623
2017 89.2783 6.3724 10.7217 10.1842 94.9872
2018 91.5605 2.2822 8.4395 8.0540 95.4327
2019 94.4255 2.8649 5.5745 5.3004 95.0828
2020 96.5899 2.1644 3.4101 3.2069 94.0420
2021 97.6023 1.0124 2.3977 2.2399 93.4201
2022 98.0034 0.4011 1.9966 1.8731 93.8151
2023 98.3410 0.3376 1.6590 1.5642 94.2830
2024 98.5727 0.2317 1.4273 1.3568 95.0605
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 0.2317 1.1957 1.1460 95.8478
2026 0.2317 0.9640 0.9317 96.6463
2027 0.2317 0.7324 0.7138 97.4581
2028 0.2317 0.5007 0.4922 98.2899
2029 and later years 0.2317 0.2691 0.2668 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 96.3945 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

Other (Including Credit)

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 54.6589 54.6589 45.3411 44.5795 98.3204
2016 84.2314 29.5725 15.7686 15.5086 98.3512
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2017 and later years 7.8843 7.8843 7.8189 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 99.1704 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2017 taxable year.

Other Liability — Claims-Made

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 7.4270 7.4270 92.5730 87.4800 94.4984
2016 25.2808 17.8538 74.7192 70.9466 94.9508
2017 44.2108 18.9301 55.7892 53.0500 95.0902
2018 56.4956 12.2848 43.5044 41.5538 95.5162
2019 69.2838 12.7883 30.7162 29.3566 95.5739
2020 77.6662 8.3823 22.3338 21.3974 95.8070
2021 83.1572 5.4910 16.8428 16.2199 96.3016
2022 88.1777 5.0205 11.8223 11.4299 96.6807
2023 93.1315 4.9539 6.8685 6.6266 96.4791
2024 92.9490 –0.1826 7.0510 6.9221 98.1708
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 3.2639 3.7871 3.7471 98.9441
2026 and later years 3.2639 0.5232 0.5189 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 98.9650 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

Other Liability — Occurrence

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 10.0721 10.0721 89.9279 83.6425 93.0106
2016 24.3995 14.3274 75.6005 70.6004 93.3861
2017 37.3366 12.9372 62.6634 58.7411 93.7408
2018 52.4142 15.0776 47.5858 44.5242 93.5663
2019 64.3437 11.9295 35.6563 33.2430 93.2318
2020 73.7950 9.4512 26.2050 24.2712 92.6202
2021 79.7756 5.9807 20.2244 18.6482 92.2067
2022 84.0963 4.3206 15.9037 14.6047 91.8321
2022 85.6878 1.5915 14.3122 13.2452 92.5451
2024 86.9224 1.2346 13.0776 12.2229 93.4639
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 1.2346 11.8431 11.1833 94.4293
2026 1.2346 10.6085 10.1263 95.4547
2027 1.2346 9.3740 9.0516 96.5607
2028 1.2346 8.1394 7.9587 97.7804
2029 and later years 1.2346 6.9048 6.8476 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 95.2710 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

Private Passenger Auto Liability/Medical

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 42.9881 42.9881 57.0119 55.5802 97.4887
2016 71.9931 29.0051 28.0069 27.2662 97.3556
2017 84.8250 12.8318 15.1750 14.7851 97.4308
2018 92.3500 7.5251 7.6500 7.4455 97.3277
2019 96.2665 3.9165 3.7335 3.6213 96.9973
2020 97.9880 1.7214 2.0120 1.9463 96.7363
2021 98.7958 0.8078 1.2042 1.1645 96.7011
2022 99.2445 0.4487 0.7555 0.7315 96.8343
2023 99.4543 0.2097 0.5457 0.5324 97.5483
2024 99.6370 0.1827 0.3630 0.3570 98.3568
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 and later years 0.1827 0.1803 0.1788 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 99.1704 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

Products Liability — Claims-Made

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 4.5270 4.5270 95.4730 88.3407 92.5295
2016 16.0134 11.4865 83.9866 78.2423 93.1605
2017 45.1313 29.1179 54.8687 50.1953 91.4826
2018 39.2459 –5.8854 60.7541 56.9733 93.7768
2019 44.8357 5.5898 55.1643 52.2938 94.7965
2020 72.1615 27.3258 27.8385 25.6180 92.0236
2021 80.4448 8.2834 19.5552 17.6957 90.4915
2022 73.2957 –7.1491 26.7043 25.2019 94.3742
2023 87.4824 14.1866 12.5176 11.3200 90.4327
2024 87.7500 0.2677 12.2500 11.2403 91.7579
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 0.2677 11.9823 11.1593 93.1310
2026 0.2677 11.7147 11.0768 94.5553
2027 0.2677 11.4470 10.9930 96.0341
2028 0.2677 11.1793 10.9078 97.5711
2029 and later years 0.2677 10.9117 10.8211 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 95.1288 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

Products Liability – Occurrence

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 7.1936 7.1936 92.8064 85.5749 92.2080
2016 16.9555 9.7619 83.0445 77.1690 92.9249
2017 28.3624 11.4069 71.6376 66.9631 93.4748
2018 39.7945 11.4321 60.2055 56.5604 93.9455
2019 54.3906 14.5961 45.6094 42.7924 93.8236
2020 60.9060 6.5154 39.0940 36.9414 94.4937
2021 67.7760 6.8700 32.2240 30.6345 95.0674
2022 75.7119 7.9359 24.2881 23.1469 95.3014
2023 79.5966 3.8847 20.4034 19.6186 96.1535
2024 83.9430 4.3464 16.0570 15.5654 96.9385
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 4.3464 11.7107 11.4442 97.7248
2026 4.3464 7.3643 7.2538 98.4990
2027 and later years 4.3464 3.0179 2.9929 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 98.1163 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

Reinsurance — Nonproportional Assumed Property

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 20.1003 20.1003 79.8997 77.2233 96.6502
2016 59.2833 39.1830 40.7167 39.0098 95.8079
2017 73.0867 13.8034 26.9133 25.7463 95.6639
2018 80.3675 7.2808 19.6325 18.8371 95.9487
2019 87.7278 7.3603 12.2722 11.7317 95.5959
2020 94.4454 6.7175 5.5546 5.1551 92.8065
2021 96.5143 2.0689 3.4857 3.1555 90.5250
2022 97.9468 1.4326 2.0532 1.7639 85.9122
2023 97.4560 –0.4909 2.5440 2.2885 89.9567
2024 97.0652 –0.3908 2.9348 2.7210 92.7154
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 0.1836 2.7512 2.5816 93.8350
2026 0.1836 2.5675 2.4398 95.0234
2027 0.1836 2.3839 2.2956 96.2949
2028 0.1836 2.2003 2.1490 97.6687
2029 and later years 0.1836 2.0166 1.9999 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 94.8999 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

Reinsurance — Nonproportional Assumed Liability

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 3.4987 3.4987 96.5013 89.0482 92.2767
2016 23.2170 19.7183 76.7830 70.6610 92.0268
2017 43.7483 20.5313 56.2517 51.1450 90.9217
2018 38.9131 –4.8352 61.0869 56.8799 93.1131
2019 47.9298 9.0167 52.0702 48.7434 93.6108
2020 80.0315 32.1017 19.9685 17.1920 86.0957
2021 76.5053 –3.5292 23.4947 21.0366 89.5374
2022 78.1701 1.6649 21.8299 19.7112 90.2946
2023 80.0717 1.9015 19.9283 18.1249 90.9504
2024 79.8791 –0.1926 20.1209 18.6236 92.5584
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 1.1246 18.9963 17.8025 93.7153
2026 1.1246 17.8717 16.9675 94.9407
2027 1.1246 16.7471 16.1186 96.2469
2028 1.1246 15.6225 15.2554 97.6499
2029 and later years 1.1246 14.4979 14.3776 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 94.8307 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

Reinsurance — Nonproportional Assumed Financial Lines

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 1.5423 1.5423 98.4577 92.6340 94.0850
2016 20.9273 19.3850 79.0727 74.6431 94.3980
2017 30.4705 9.5433 69.5295 66.2740 95.3179
2018 46.3043 15.8337 53.6957 51.4212 95.7641
2019 51.8464 5.5421 48.1536 46.6966 96.9743
2020 72.7869 20.9405 27.2131 26.3654 96.8851
2021 82.0967 9.3097 17.9033 17.4208 97.3044
2022 89.2630 7.1664 10.7370 10.4871 97.6728
2023 95.3692 6.1062 4.6308 4.5060 97.3057
2024 96.7995 1.4303 3.2005 3.1394 98.0930
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 1.4303 1.7702 1.7499 98.8558
2026 and later years 1.4303 0.3399 0.3370 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 98.8979 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

Special Property (Fire, Allied Lines, Inland Marine, Earthquake, Burglary and Theft)

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 55.6145 55.6145 44.3855 43.7565 98.5830
2016 89.3328 33.7182 10.6672 10.4913 98.3512
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2017 and later years 5.3336 5.3336 5.2894 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 99.1704 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2017 taxable year.

Warranty

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 85.4101 85.4101 14.5899 14.4576 99.0932
2016 99.5388 14.1287 0.4612 0.4536 98.3512
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2017 and later years 0.2306 0.2306 0.2287 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 99.1704 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2017 taxable year.

Workers’ Compensation

Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors
Tax Year (%) (%) (%) (%) (%)
2015 21.8973 21.8973 78.1027 72.0853 92.2956
2016 43.4962 21.5989 56.5038 51.5168 91.1741
2017 56.0061 12.5099 43.9939 39.7677 90.3938
2018 63.5544 7.5482 36.4456 32.8244 90.0641
2019 68.9880 5.4337 31.0120 27.8968 89.9549
2020 73.9567 4.9687 26.0433 23.3552 89.6784
2021 76.0580 2.1013 23.9420 21.6287 90.3379
2022 77.6365 1.5785 22.3635 20.4004 91.2217
2023 80.1194 2.4828 19.8806 18.2395 91.7448
2024 81.3456 1.2262 18.6544 17.3094 92.7898
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2015 accident year and that are outstanding at the end of the tax year shown.
2025 1.2262 17.4281 16.3637 93.8922
2026 1.2262 16.2019 15.4021 95.0634
2027 1.2262 14.9757 14.4243 96.3185
2028 1.2262 13.7494 13.4301 97.6780
2029 and later years 1.2262 12.5232 12.4193 99.1704
Taxpayers that use the composite method of Notice 88–100 should use 95.3961 percent to discount unpaid losses incurred in this line of business in 2015 and prior years and that are outstanding at the end of the 2025 taxable year.

# SECTION 4. DRAFTING INFORMATION

The principal author of this revenue procedure is Linda K. Boyd of the Office of Associate Chief Counsel (Financial Institutions & Products). For further information regarding this revenue procedure contact Ms. Boyd at (202) 317-6995 (not a toll free number).

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