This revenue procedure prescribes the loss payment patterns and discount factors for the 2011 accident year. These factors will be used for computing discounted unpaid losses under § 846 of the Internal Revenue Code. See Rev. Proc. 2008-10, 2008-1 C.B. 290, for background concerning the loss payment patterns and application of the discount factors.
This revenue procedure applies to any taxpayer that is required to discount its unpaid losses under § 846 for a line of business using discount factors published by the Secretary.
.01 The following tables present separately for each line of business the discount factors under § 846 for accident year 2011. All the discount factors presented in this section were determined using the applicable interest rate under § 846(c) for 2011, which is 3.46 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 the unpaid losses on the affected lines of business in accordance with the discounting patterns that would have applied to those unpaid losses based on their classification on the 2005 annual statement. See Rev. Proc. 2008-10, 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.
| Tables of Factors to be Used to Discount Unpaid Losses Incurred in Accident Year 2011 |
|---|
| (Interest rate: 3.46 percent) |
| Lines of Business |
| 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 98.3136 percent to discount unpaid losses incurred in this line of business in the 2011 accident year and that are outstanding at the end of the 2011 and later taxable years. |
| Taxpayers that use the composite method of Notice 88-100 should use 98.3136 percent to discount all unpaid losses in this line of business that are outstanding at the end of the 2011 taxable year. |
| Auto Physical Damage | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 89.4096 | 89.4096 | 10.5904 | 10.3964 | 98.1685 |
| 2012 | 99.6848 | 10.2752 | 0.3152 | 0.3047 | 96.6697 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2013 and later years | 0.1576 | 0.1576 | 0.1549 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.3136 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2013 taxable year. | |||||
| Commercial Auto/Truck Liability/Medical | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 23.6718 | 23.6718 | 76.3282 | 71.0319 | 93.0611 |
| 2012 | 47.5425 | 23.8708 | 52.4575 | 49.2094 | 93.8082 |
| 2013 | 66.6847 | 19.1421 | 33.3153 | 31.4416 | 94.3756 |
| 2014 | 81.5105 | 14.8258 | 18.4895 | 17.4493 | 94.3741 |
| 2015 | 90.0548 | 8.5443 | 9.9452 | 9.3622 | 94.1377 |
| 2016 | 94.7311 | 4.6763 | 5.2689 | 4.9297 | 93.5605 |
| 2017 | 97.0602 | 2.3292 | 2.9398 | 2.7311 | 92.9015 |
| 2018 | 98.1174 | 1.0572 | 1.8826 | 1.7502 | 92.9713 |
| 2019 | 98.8692 | 0.7518 | 1.1308 | 1.0461 | 92.5132 |
| 2020 | 99.1160 | 0.2467 | 0.8840 | 0.8313 | 94.0394 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 | 0.2467 | 0.6373 | 0.6092 | 95.5812 | |
| 2022 | 0.2467 | 0.3906 | 0.3793 | 97.1026 | |
| 2023 and later years | 0.2467 | 0.1439 | 0.1414 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 96.2951 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
| Composite | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 34.7004 | 34.7004 | 65.2996 | 60.0800 | 92.0067 |
| 2012 | 58.6076 | 23.9072 | 41.3924 | 37.8415 | 91.4214 |
| 2013 | 71.7608 | 13.1532 | 28.2392 | 25.7720 | 91.2632 |
| 2014 | 81.4987 | 9.7379 | 18.5013 | 16.7588 | 90.5816 |
| 2015 | 87.8488 | 6.3501 | 12.1512 | 10.8797 | 89.5353 |
| 2016 | 91.4226 | 3.5739 | 8.5774 | 7.6209 | 88.8491 |
| 2017 | 93.4057 | 1.9831 | 6.5943 | 5.8675 | 88.9785 |
| 2018 | 94.2280 | 0.8222 | 5.7720 | 5.2341 | 90.6813 |
| 2019 | 95.4875 | 1.2595 | 4.5125 | 4.1341 | 91.6149 |
| 2020 | 96.3560 | 0.8685 | 3.6440 | 3.3937 | 93.1328 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 | 0.8685 | 2.7754 | 2.6277 | 94.6779 | |
| 2022 | 0.8685 | 1.9069 | 1.8352 | 96.2404 | |
| 2023 | 0.8685 | 1.0383 | 1.0152 | 97.7760 | |
| 2024 and later years | 0.8685 | 0.1698 | 0.1669 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 95.6434 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
| Fidelity/Surety | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 25.2328 | 25.2328 | 74.7672 | 71.6094 | 95.7765 |
| 2012 | 61.1025 | 35.8698 | 38.8975 | 37.6020 | 96.6697 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2013 and later years | 19.4487 | 19.4487 | 19.1207 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.3136 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2013 taxable year. | |||||
| Financial Guaranty/Mortgage Guaranty | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 7.7824 | 7.7824 | 92.2176 | 88.8160 | 96.3114 |
| 2012 | 62.1390 | 54.3565 | 37.8610 | 36.6001 | 96.6697 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2013 and later years | 18.9305 | 18.9305 | 18.6113 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.3136 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2013 taxable year. | |||||
| International (Composite) | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 34.7004 | 34.7004 | 65.2996 | 60.0800 | 92.0067 |
| 2012 | 58.6076 | 23.9072 | 41.3924 | 37.8415 | 91.4214 |
| 2013 | 71.7608 | 13.1532 | 28.2392 | 25.7720 | 91.2632 |
| 2014 | 81.4987 | 9.7379 | 18.5013 | 16.7588 | 90.5816 |
| 2015 | 87.8488 | 6.3501 | 12.1512 | 10.8797 | 89.5353 |
| 2016 | 91.4226 | 3.5739 | 8.5774 | 7.6209 | 88.8491 |
| 2017 | 93.4057 | 1.9831 | 6.5943 | 5.8675 | 88.9785 |
| 2018 | 94.2280 | 0.8222 | 5.7720 | 5.2341 | 90.6813 |
| 2019 | 95.4875 | 1.2595 | 4.5125 | 4.1341 | 91.6149 |
| 2020 | 96.3560 | 0.8685 | 3.6440 | 3.3937 | 93.1328 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 | 0.8685 | 2.7754 | 2.6277 | 94.6779 | |
| 2022 | 0.8685 | 1.9069 | 1.8352 | 96.2404 | |
| 2023 | 0.8685 | 1.0383 | 1.0152 | 97.7760 | |
| 2024 and later years | 0.8685 | 0.1698 | 0.1669 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 95.6434 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
| Medical Malpractice — Claims-Made | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 4.9425 | 4.9425 | 95.0575 | 86.3797 | 90.8709 |
| 2012 | 19.9369 | 14.9944 | 80.0631 | 74.1168 | 92.5729 |
| 2013 | 44.3489 | 24.4120 | 55.6511 | 51.8504 | 93.1706 |
| 2014 | 64.8374 | 20.4885 | 35.1626 | 32.8046 | 93.2939 |
| 2015 | 80.2530 | 15.4156 | 19.7470 | 18.2596 | 92.4675 |
| 2016 | 85.7907 | 5.5377 | 14.2093 | 13.2586 | 93.3097 |
| 2017 | 91.2722 | 5.4815 | 8.7278 | 8.1419 | 93.2867 |
| 2018 | 93.3314 | 2.0593 | 6.6686 | 6.3290 | 94.9084 |
| 2019 | 96.1257 | 2.7942 | 3.8743 | 3.7058 | 95.6514 |
| 2020 | 97.6538 | 1.5281 | 2.3462 | 2.2798 | 97.1671 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 and later years | 1.5281 | 0.8182 | 0.8044 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.3136 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
| Medical Malpractice — Occurrence | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 1.5878 | 1.5878 | 98.4122 | 84.2728 | 85.6325 |
| 2012 | 4.4720 | 2.8842 | 95.5280 | 84.2550 | 88.1992 |
| 2013 | 17.7738 | 13.3018 | 82.2262 | 73.6402 | 89.5581 |
| 2014 | 35.8814 | 18.1076 | 64.1186 | 57.7700 | 90.0986 |
| 2015 | 52.9447 | 17.0633 | 47.0553 | 42.4128 | 90.1340 |
| 2016 | 68.4348 | 15.4901 | 31.5652 | 28.1245 | 89.0998 |
| 2017 | 79.5616 | 11.1268 | 20.4384 | 17.7799 | 86.9929 |
| 2018 | 85.8198 | 6.2582 | 14.1802 | 12.0296 | 84.8338 |
| 2019 | 90.1267 | 4.3069 | 9.8733 | 8.0650 | 81.6854 |
| 2020 | 90.3701 | 0.2434 | 9.6299 | 8.0965 | 84.0769 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 | 0.2434 | 9.3865 | 8.1291 | 86.6041 | |
| 2022 | 0.2434 | 9.1431 | 8.1628 | 89.2781 | |
| 2023 | 0.2434 | 8.8998 | 8.1977 | 92.1115 | |
| 2024 | 0.2434 | 8.6564 | 8.2338 | 95.1182 | |
| 2025 and later years | 0.2434 | 8.4130 | 8.2711 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 91.4625 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
| Miscellaneous Casualty | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 72.9064 | 72.9064 | 27.0936 | 26.3237 | 97.1587 |
| 2012 | 93.5836 | 20.6771 | 6.4164 | 6.2028 | 96.6697 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2013 and later years | 3.2082 | 3.2082 | 3.1541 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.3136 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2013 taxable year. | |||||
| Multiple Peril Lines (Homeowners/Farmowners, Commercial Multiple Peril, and Special Liability (Ocean Marine, Aircraft (All Perils), Boiler and Machinery)) | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 52.5880 | 52.5880 | 47.4120 | 44.6798 | 94.2372 |
| 2012 | 80.0449 | 27.4570 | 19.9551 | 18.2978 | 91.6948 |
| 2013 | 86.1625 | 6.1175 | 13.8375 | 12.7084 | 91.8401 |
| 2014 | 90.7452 | 4.5827 | 9.2548 | 8.4868 | 91.7013 |
| 2015 | 93.9006 | 3.1555 | 6.0994 | 5.5709 | 91.3350 |
| 2016 | 95.7613 | 1.8607 | 4.2387 | 3.8710 | 91.3257 |
| 2017 | 96.8755 | 1.1141 | 3.1245 | 2.8717 | 91.9076 |
| 2018 | 97.6715 | 0.7960 | 2.3285 | 2.1614 | 92.8219 |
| 2019 | 98.0329 | 0.3615 | 1.9671 | 1.8685 | 94.9895 |
| 2020 | 98.6810 | 0.6481 | 1.3190 | 1.2740 | 96.5862 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 | 0.6481 | 0.6709 | 0.6588 | 98.2018 | |
| 2022 and later years | 0.6481 | 0.0228 | 0.0224 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.2000 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
| Other (Including Credit) | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 67.9528 | 67.9528 | 32.0472 | 30.9928 | 96.7098 |
| 2012 | 89.4609 | 21.5081 | 10.5391 | 10.1881 | 96.6697 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2013 and later years | 5.2695 | 5.2695 | 5.1807 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.3136 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2013 taxable year. | |||||
| Other Liability — Claims-Made | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 5.8796 | 5.8796 | 94.1204 | 84.6911 | 89.9817 |
| 2012 | 18.8735 | 12.9938 | 81.1265 | 74.4047 | 91.7144 |
| 2013 | 41.6840 | 22.8105 | 58.3160 | 53.7774 | 92.2171 |
| 2014 | 62.5322 | 20.8483 | 37.4678 | 34.4322 | 91.8982 |
| 2015 | 73.5207 | 10.9885 | 26.4793 | 24.4466 | 92.3234 |
| 2016 | 82.0036 | 8.4829 | 17.9964 | 16.6641 | 92.5965 |
| 2017 | 88.6279 | 6.6244 | 11.3721 | 10.5026 | 92.3548 |
| 2018 | 90.7107 | 2.0828 | 9.2893 | 8.7475 | 94.1680 |
| 2019 | 94.8439 | 4.1332 | 5.1561 | 4.8461 | 93.9880 |
| 2020 | 96.2689 | 1.4249 | 3.7311 | 3.5644 | 95.5308 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 | 1.4249 | 2.3062 | 2.2383 | 97.0573 | |
| 2022 and later years | 1.4249 | 0.8812 | 0.8664 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 97.3588 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
| Other Liability — Occurrence | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 13.6594 | 13.6594 | 86.3406 | 76.0999 | 88.1392 |
| 2012 | 24.8389 | 11.1795 | 75.1611 | 67.3616 | 89.6231 |
| 2013 | 41.7792 | 16.9403 | 58.2208 | 52.4615 | 90.1079 |
| 2014 | 58.4995 | 16.7203 | 41.5005 | 37.2696 | 89.8052 |
| 2015 | 69.5197 | 11.0203 | 30.4803 | 27.3499 | 89.7297 |
| 2016 | 77.7513 | 8.2316 | 22.2487 | 19.9234 | 89.5486 |
| 2017 | 84.2243 | 6.4730 | 15.7757 | 14.0287 | 88.9261 |
| 2018 | 83.2275 | -0.9968 | 16.7725 | 15.5280 | 92.5801 |
| 2019 | 88.8524 | 5.6249 | 11.1476 | 10.3439 | 92.7903 |
| 2020 | 91.3852 | 2.5328 | 8.6148 | 8.1256 | 94.3207 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 | 2.5328 | 6.0820 | 5.8304 | 95.8639 | |
| 2022 | 2.5328 | 3.5492 | 3.4559 | 97.3721 | |
| 2023 and later years | 2.5328 | 1.0164 | 0.9992 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 96.4881 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
| Private Passenger Auto Liability/Medical | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 42.6108 | 42.6108 | 57.3892 | 54.5122 | 94.9868 |
| 2012 | 71.5827 | 28.9719 | 28.4173 | 26.9295 | 94.7643 |
| 2013 | 84.6947 | 13.1120 | 15.3053 | 14.5243 | 94.8972 |
| 2014 | 92.3556 | 7.6610 | 7.6444 | 7.2345 | 94.6384 |
| 2015 | 96.2369 | 3.8812 | 3.7631 | 3.5370 | 93.9912 |
| 2016 | 97.9275 | 1.6907 | 2.0725 | 1.9397 | 93.5951 |
| 2017 | 98.7719 | 0.8444 | 1.2281 | 1.1480 | 93.4770 |
| 2018 | 99.2692 | 0.4973 | 0.7308 | 0.6818 | 93.3059 |
| 2019 | 99.5053 | 0.2361 | 0.4947 | 0.4653 | 94.0619 |
| 2020 | 99.6440 | 0.1387 | 0.3560 | 0.3404 | 95.6034 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 | 0.1387 | 0.2174 | 0.2111 | 97.1228 | |
| 2022 and later years | 0.1387 | 0.0787 | 0.0774 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 97.3953 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
| Products Liability — Claims-Made | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 1.0259 | 1.0259 | 98.9741 | 85.6995 | 86.5878 |
| 2012 | 11.7927 | 10.7667 | 88.2073 | 77.7132 | 88.1029 |
| 2013 | 29.3642 | 17.5716 | 70.6358 | 62.5291 | 88.5234 |
| 2014 | 55.1655 | 25.8012 | 44.8345 | 38.4488 | 85.7572 |
| 2015 | 83.4171 | 28.2516 | 16.5829 | 11.0430 | 66.5925 |
| 2016 | 64.8933 | -18.5238 | 35.1067 | 30.2666 | 86.2132 |
| 2017 | 82.3346 | 17.4414 | 17.6654 | 13.5733 | 76.8357 |
| 2018 | 86.3986 | 4.0640 | 13.6014 | 9.9092 | 72.8547 |
| 2019 | 76.3310 | -10.0676 | 23.6690 | 20.4924 | 86.5791 |
| 2020 | 78.7910 | 2.4600 | 21.2090 | 18.6993 | 88.1666 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 | 2.4600 | 18.7490 | 16.8441 | 89.8398 | |
| 2022 | 2.4600 | 16.2890 | 14.9247 | 91.6242 | |
| 2023 | 2.4600 | 13.8290 | 12.9389 | 93.5633 | |
| 2024 | 2.4600 | 11.3691 | 10.8844 | 95.7372 | |
| 2025 and later years | 2.4600 | 8.9091 | 8.7588 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 92.5254 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
| Products Liability — Occurrence | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 5.0466 | 5.0466 | 94.9534 | 82.0839 | 86.4466 |
| 2012 | 13.6935 | 8.6469 | 86.3065 | 76.1288 | 88.2075 |
| 2013 | 28.2541 | 14.5606 | 71.7459 | 63.9525 | 89.1376 |
| 2014 | 41.3083 | 13.0542 | 58.6917 | 52.8872 | 90.1102 |
| 2015 | 59.3693 | 18.0610 | 40.6307 | 36.3463 | 89.4552 |
| 2016 | 73.0717 | 13.7024 | 26.9283 | 23.6664 | 87.8868 |
| 2017 | 74.6612 | 1.5895 | 25.3388 | 22.8685 | 90.2510 |
| 2018 | 78.9833 | 4.3221 | 21.0167 | 19.2636 | 91.6582 |
| 2019 | 86.1231 | 7.1398 | 13.8769 | 12.6678 | 91.2869 |
| 2020 | 88.6931 | 2.5700 | 11.3069 | 10.4920 | 92.7930 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 | 2.5700 | 8.7369 | 8.2410 | 94.3235 | |
| 2022 | 2.5700 | 6.1669 | 5.9120 | 95.8667 | |
| 2023 | 2.5700 | 3.5969 | 3.5025 | 97.3749 | |
| 2024 and later years | 2.5700 | 1.0269 | 1.0096 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 95.3617 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
| Reinsurance — Nonproportional Assumed Liability | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 12.9458 | 12.9458 | 87.0542 | 81.6728 | 93.8183 |
| 2012 | 60.1796 | 47.2338 | 39.8204 | 36.4547 | 91.5477 |
| 2013 | 80.8225 | 20.6429 | 19.1775 | 16.7190 | 87.1802 |
| 2014 | 84.9430 | 4.1205 | 15.0570 | 13.1063 | 87.0445 |
| 2015 | 85.6680 | 0.7250 | 14.3320 | 12.8223 | 89.4664 |
| 2016 | 80.0452 | -5.6229 | 19.9548 | 18.9853 | 95.1412 |
| 2017 | 86.7013 | 6.6561 | 13.2987 | 12.8718 | 96.7903 |
| 2018 | 97.2533 | 10.5520 | 2.7467 | 2.5843 | 94.0847 |
| 2019 | 97.6721 | 0.4188 | 2.3279 | 2.2476 | 96.5528 |
| 2020 | 98.8078 | 1.1357 | 1.1922 | 1.1702 | 98.1580 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 and later years | 1.1357 | 0.0564 | 0.0555 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.3136 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
| Reinsurance — Nonproportional Assumed Liability | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 32.5917 | 32.5917 | 67.4083 | 56.1766 | 83.3379 |
| 2012 | 33.3995 | 0.8078 | 66.6005 | 57.2987 | 86.0335 |
| 2013 | 35.4948 | 2.0953 | 64.5052 | 57.1500 | 88.5975 |
| 2014 | 44.0321 | 8.5373 | 55.9679 | 50.4437 | 90.1297 |
| 2015 | 64.8299 | 20.7979 | 35.1701 | 31.0344 | 88.2411 |
| 2016 | 66.4358 | 1.6059 | 33.5642 | 30.4748 | 90.7956 |
| 2017 | 77.8097 | 11.3738 | 22.1903 | 19.9603 | 89.9504 |
| 2018 | 82.4438 | 4.6341 | 17.5562 | 15.9373 | 90.7787 |
| 2019 | 84.1944 | 1.7507 | 15.8056 | 14.7081 | 93.0562 |
| 2020 | 87.9223 | 3.7279 | 12.0777 | 11.4251 | 94.5971 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 | 3.7279 | 8.3498 | 8.0286 | 96.1534 | |
| 2022 | 3.7279 | 4.6219 | 4.5146 | 97.6776 | |
| 2023 and later years | 3.7279 | 0.8940 | 0.8790 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 96.7069 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
| Reinsurance — Nonproportional Assumed Financial Lines | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 8.4783 | 8.4783 | 91.5217 | 83.8160 | 91.5804 |
| 2012 | 28.0475 | 19.5693 | 71.9525 | 66.8111 | 92.8545 |
| 2013 | 60.4351 | 32.3875 | 39.5649 | 36.1797 | 91.4438 |
| 2014 | 82.4448 | 22.0097 | 17.5552 | 15.0442 | 85.6967 |
| 2015 | 90.2720 | 7.8271 | 9.7280 | 7.6033 | 78.1590 |
| 2016 | 85.3168 | -4.9551 | 14.6831 | 12.9065 | 87.9002 |
| 2017 | 88.3777 | 3.0608 | 11.6223 | 10.2397 | 88.1042 |
| 2018 | 89.9934 | 1.6157 | 10.0066 | 8.9507 | 89.4471 |
| 2019 | 81.6664 | -8.3269 | 18.3336 | 17.7301 | 96.7084 |
| 2020 | 91.0491 | 9.3827 | 8.9509 | 8.7999 | 98.3136 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 and later years | - | - | - | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.3136 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
| Special Property (Fire, Allied Lines, Inland Marine, Earthquake, Glass, Burglary and Theft) | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 44.5756 | 44.5756 | 55.4244 | 53.8278 | 97.1193 |
| 2012 | 88.4263 | 41.8507 | 13.5737 | 13.1217 | 96.6697 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2013 and later years | 6.7869 | 6.7869 | 6.6724 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.3136 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2013 taxable year. | |||||
| Workers’ Compensation | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| 2011 | 19.0410 | 19.0410 | 80.9590 | 71.0539 | 87.7653 |
| 2012 | 40.2442 | 21.2032 | 59.7558 | 51.9454 | 86.9295 |
| 2013 | 57.1497 | 16.9055 | 42.8503 | 36.5472 | 85.2906 |
| 2014 | 67.8601 | 10.7104 | 32.1399 | 26.9177 | 83.7516 |
| 2015 | 75.5399 | 7.6797 | 24.4601 | 20.0375 | 81.9192 |
| 2016 | 80.1157 | 4.5758 | 19.8843 | 16.0766 | 80.8504 |
| 2017 | 82.1828 | 2.0672 | 17.8172 | 14.5302 | 81.5516 |
| 2018 | 84.4045 | 2.2217 | 15.5955 | 12.7731 | 81.9028 |
| 2019 | 85.5195 | 1.1150 | 14.4805 | 12.0810 | 83.4293 |
| 2020 | 86.2855 | 0.7661 | 13.7145 | 11.7198 | 85.4558 |
| 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 2011 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2021 | 0.7661 | 12.9484 | 11.3461 | 87.6256 | |
| 2022 | 0.7661 | 12.1823 | 10.9595 | 89.9620 | |
| 2023 | 0.7661 | 11.4163 | 10.5595 | 92.4949 | |
| 2024 | 0.7661 | 10.6502 | 10.1456 | 95.2622 | |
| 2025 and later years | 0.7661 | 9.8842 | 9.7175 | 98.3136 | |
| Taxpayers that use the composite method of Notice 88-100 should use 91.7432 percent to discount unpaid losses incurred in this line of business in 2011 and prior years and that are outstanding at the end of the 2021 taxable year. | |||||
The Internal Revenue Bulletin is produced and published by the Internal Revenue Service and contains IRS pronouncements affecting tax analysis under the Code and the Regulations, including but not limited to Revenue Procedures, Revenue Rulings, Notices and Announcements. Access the IRS site at https://www.irs.gov/help/irsgov-accessibility for information concerning accessibility of IRS materials. While every effort has been made to ensure that the IRB database files available through the TouchTax application are accurate, those using TouchTax for legal research should verify their results against the printed versions of the IRBs available from the IRS.