Internal Revenue Bulletin:  2011-46 

November 14, 2011 

Rev. Proc. 2011-53


SECTION 1. PURPOSE

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.

SECTION 2. SCOPE

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.

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 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 DiscountUnpaid Losses Incurred inAccident 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.

DRAFTING INFORMATION

The principal author of this revenue procedure is Sarah E. Swan of the Office of Associate Chief Counsel (Financial Institutions & Products). For further information regarding this revenue procedure, contact Ms. Swan at (202) 622-8443 (not a toll-free call).


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