rp-13-36.pdf

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Part III

Administrative, Procedural, and Miscellaneous

26 CFR 601.201: Rulings and determination letters.
(Also: Part I, Sections 846; 1.846-1.)

Rev. Proc. 2013-36

SECTION 1. PURPOSE
This revenue procedure prescribes the loss payment patterns and discount factors for the
2013 accident year. These factors will be used to compute discounted unpaid losses under § 846
of the Internal Revenue Code. See
Rev. Proc. 2012-44, 2012-2 C.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 2013. All the discount factors presented in this section were

2
determined using the applicable interest rate under § 846(c) for 2013, which is 2.16 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, 2012-2 C.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 98.9372
percent to discount unpaid losses incurred in this line of business in the 2013 accident
year and that are outstanding at the end of the 2013 and later taxable years.

Taxpayers that use the composite method of Notice 88-100 should use 98.9372 percent
to discount all unpaid losses in this line of business that are outstanding at the end of
the 2013 taxable year.

3
Auto Physical Damage

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 90.2657 90.2657 9.7343 9.6230 98.8565
2014 99.7478 9.4822 0.2522 0.2469 97.8913

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
2013 accident year and that are outstanding at the end of the tax year shown.

2015 and later years 0.1261 0.1261 0.1247 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 98.9372
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2015 taxable year.

4
Commercial Auto/Truck Liability/Medical

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 25.7034 25.7034 74.2966 70.9382 95.4798
2014 48.2664 22.5629 51.7336 49.6652 96.0017
2015 67.8834 19.6171 32.1166 30.9101 96.2436
2016 82.0630 14.1795 17.9370 17.2459 96.1471
2017 90.4161 8.3532 9.5839 9.1756 95.7395
2018 94.6293 4.2132 5.3707 5.1153 95.2448
2019 97.0203 2.3910 2.9797 2.8092 94.2754
2020 98.2283 1.2081 1.7717 1.6488 93.0643
2021 98.6653 0.4370 1.3347 1.2428 93.1103
2022 98.8635 0.1982 1.1365 1.0692 94.0830

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 0.1982 0.9382 0.8920 95.0674
2024 0.1982 0.7400 0.7108 96.0618
2025 0.1982 0.5417 0.5258 97.0618
2026 0.1982 0.3435
0.3368 98.0526
2027 and later years 0.1982 0.1453 0.1437 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 95.2133
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

5
Composite

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 39.5281 39.5281 60.4719 56.8797 94.0596
2014 62.0267 22.4986 37.9733 35.3680 93.1390
2015 73.7017 11.6750 26.2983 24.3315 92.5211
2016 80.0846 6.3830 19.9154 18.4055 92.4188
2017 85.7818 5.6971 14.2182 13.0448 91.7468
2018 90.2809 4.4992 9.7191 8.7791 90.3280
2019 91.9588 1.6778 8.0412 7.2728 90.4439
2020 92.9722 1.0134 7.0278 6.4056 91.1463
2021 94.0835 1.1113 5.9165 5.4207 91.6201
2022 94.7469 0.6634 5.2531 4.8673 92.6551

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 0.6634 4.5898 4.3020 93.7289
2024 0.6634 3.9264 3.7244 94.8545
2025 0.6634 3.2631 3.1344 96.0555
2026 0.6634 2.5997
2.5316 97.3791
2027 and later years 0.6634 1.9364 1.9158 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 94.0296
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

6
Fidelity/Surety

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 22.8449 22.8449 77.1551 74.9598 97.1547
2014 55.8585 33.0137 44.1415 43.2107 97.8913

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
2013 accident year and that are outstanding at the end of the tax year shown.

2015 and later years 22.0707 22.0707 21.8362 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 98.9372
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2015 taxable year.

Financial Guaranty/Mortgage Guaranty

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 6.2515 6.2515 93.7485 90.9767 97.0433
2014 43.0154 36.7639 56.9846 55.7829 97.8913

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
2013 accident year and that are outstanding at the end of the tax year shown.

2015 and later years 28.4923 28.4923 28.1895 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 98.9372
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2015 taxable year.

7
International (Composite)

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 39.5281 39.5281 60.4719 56.8797 94.0596
2014 62.0267 22.4986 37.9733 35.3680 93.1390
2015 73.7017 11.6750 26.2983 24.3315 92.5211
2016 80.0846 6.3830 19.9154 18.4055 92.4188
2017 85.7818 5.6971 14.2182 13.0448 91.7468
2018 90.2809 4.4992 9.7191 8.7791 90.3280
2019 91.9588 1.6778 8.0412 7.2728 90.4439
2020 92.9722 1.0134 7.0278 6.4056 91.1463
2021 94.0835 1.1113 5.9165 5.4207 91.6201
2022 94.7469 0.6634 5.2531 4.8673 92.6551

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 0.6634 4.5898 4.3020 93.7289
2024 0.6634 3.9264 3.7244 94.8545
2025 0.6634 3.2631 3.1344 96.0555
2026 0.6634 2.5997
2.5316 97.3791
2027 and later years 0.6634 1.9364 1.9158 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 94.0296
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

8
Medical Professional Liability -- Claims-Made

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 6.3462 6.3462 93.6538 87.5287 93.4599
2014 23.0958 16.7496 76.9042 72.4898 94.2599
2015 41.6827 18.5868 58.3173 55.2691 94.7729
2016 56.5267 14.8440 43.4733 41.4594 95.3674
2017 71.2882 14.7615 28.7118 27.4348 95.5524
2018 82.3023 11.0141 17.6977 16.8950 95.4643
2019 86.5143 4.2120 13.4857 13.0027 96.4182
2020 91.1422 4.6279 8.8578 8.6059 97.1564
2021 94.8664 3.7242 5.1336 5.0276 97.9351
2022 97.5408 2.6745 2.4592 2.4330 98.9372

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 and later years 2.4592 – – 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 98.9372
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

9
Medical Professional Liability -- Occurrence

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 1.2044 1.2044 98.7956 89.1257 90.2122
2014 4.3376 3.1332 95.6624 87.8839 91.8688
2015 11.8161 7.4785 88.1839 82.2234 93.2408
2016 24.7088 12.8928 75.2912 70.9681 94.2583
2017 42.3863 17.6774 57.6137 54.6337 94.8276
2018 57.1600 14.7738 42.8400 40.8813 95.4281
2019 68.9797 11.8196 31.0203 29.8178 96.1234
2020 82.4247 13.4450 17.5753 16.8724 96.0006
2021 86.7084 4.2837 13.2916 12.9071 97.1073
2022 91.6701 4.9617 8.3299 8.1709 98.0913

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 and later years 4.9617 3.3683 3.3325 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 95.3404
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

10
Miscellaneous Casualty

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 69.0731 69.0731 30.9269 30.1469 97.4781
2014 85.5169 16.4438 14.4831 14.1777 97.8913

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
2013 accident year and that are outstanding at the end of the tax year shown.

2015 and later years 7.2415 7.2415 7.1646 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 98.9372
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2015 taxable year.

11
Multiple Peril Lines (Homeowners/Farmowners, Commercial Multiple Peril, and Special
Liability (Ocean Marine, Aircraft (All Perils), Boiler and Machinery))

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 60.9719 60.9719 39.0281 37.4939 96.0690
2014 82.9059 21.9341 17.0941 16.1341 94.3843
2015 89.2783 6.3724 10.7217 10.0417 93.6585
2016 91.5605 2.2822 8.4395 7.9519 94.2233
2017 94.4255 2.8649 5.5745 5.2280 93.7836
2018 96.5899 2.1644 3.4101 3.1532 92.4675
2019 97.6023 1.0124 2.3977 2.1980 91.6740
2020 98.0034 0.4011 1.9966 1.8402 92.1637
2021 98.3410 0.3376 1.6590 1.5387 92.7462
2022 98.5727 0.2317 1.4273 1.3378 93.7231

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 0.2317 1.1957 1.1325 94.7155
2024 0.2317 0.9640 0.9228 95.7250
2025 0.2317 0.7324 0.7086 96.7547
2026 0.2317 0.5007
0.4898 97.8131
2027 and later years 0.2317 0.2691 0.2662 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 94.5541
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

12
Other (Including Credit)

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 54.6589 54.6589 45.3411 44.3679 97.8536
2014 84.2314 29.5725 15.7686 15.4360 97.8913

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
2013 accident year and that are outstanding at the end of the tax year shown.

2015 and later years 7.8843 7.8843 7.8005 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 98.9372
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2015 taxable year.

13
Other Liability -- Claims-Made

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 7.4270 7.4270 92.5730 86.1238 93.0334
2014 25.2808 17.8538 74.7192 69.9385 93.6018
2015 44.2108 18.9301 55.7892 52.3158 93.7741
2016 56.4956 12.2848 43.5044 41.0291 94.3102
2017 69.2838 12.7883 30.7162 28.9897 94.3793
2018 77.6662 8.3823 22.3338 21.1435 94.6702
2019 83.1572 5.4910 16.8428 16.0502 95.2940
2020 88.1777 5.0205 11.8223 11.3225 95.7717
2021 93.1315 4.9539 6.8685 6.5599 95.5080
2022 92.9490 -0.1826 7.0510 6.8862 97.6617

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 3.2639 3.7871 3.7359 98.6482
2024 and later years 3.2639 0.5232 0.5176 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 98.6406
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

14
Other Liability -- Occurrence

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 10.0721 10.0721 89.9279 82.0100 91.1953
2014 24.3995 14.3274 75.6005 69.3001 91.6662
2015 37.3366 12.9372 62.6634 57.7208 92.1126
2016 52.4142 15.0776 47.5858 43.7280 91.8931
2017 64.3437 11.9295 35.6563 32.6149 91.4704
2018 73.7950 9.4512 26.2050 23.7667 90.6950
2019 79.7756 5.9807 20.2244 18.2351 90.1640
2020 84.0963 4.3206 15.9037 14.2619 89.6766
2021 85.6878 1.5915 14.3122 12.9614 90.5616
2022 86.9224 1.2346 13.0776 11.9935 91.7100

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 1.2346 11.8431 11.0047 92.9213
2024 1.2346 10.6085 9.9946 94.2131
2025 1.2346 9.3740 8.9627 95.6125
2026 1.2346 8.1394
7.9085 97.1626
2027 and later years 1.2346 6.9048 6.8314 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 92.9062
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

15
Private Passenger Auto Liability/Medical

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 42.9881 42.9881 57.0119 55.1883 96.8013
2014 71.9931 29.0051 28.0069 27.0637 96.6325
2015 84.8250 12.8318 15.1750 14.6786 96.7288
2016 92.3500 7.5251 7.6500 7.3898 96.5989
2017 96.2665 3.9165 3.7335 3.5908 96.1796
2018 97.9880 1.7214 2.0120 1.9284 95.8467
2019 98.7958 0.8078 1.2042 1.1536 95.7990
2020 99.2445 0.4487 0.7555 0.7250 95.9639
2021 99.4543 0.2097 0.5457 0.5287 96.8694
2022 99.6370 0.1827 0.3630 0.3554 97.8984

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 and later years 0.1827 0.1803 0.1783 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 98.9372
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

16
Products Liability -- Claims-Made

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 4.5270 4.5270 95.4730 86.4950 90.5963
2014 16.0134 11.4865 83.9866 76.7534 91.3877
2015 45.1313 29.1179 54.8687 48.9807 89.2688
2016 39.2459 -5.8854 60.7541 55.9873 92.1539
2017 44.8357 5.5898 55.1643 51.5467 93.4422
2018 72.1615 27.3258 27.8385 25.0408 89.9502
2019 80.4448 8.2834 19.5552 17.2094 88.0042
2020 73.2957 -7.1491 26.7043 24.8070 92.8952
2021 87.4824 14.1866 12.5176 11.0038 87.9062
2022 87.7500 0.2677 12.2500 10.9709 89.5588

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 0.2677 11.9823 10.9374 91.2792
2024 0.2677 11.7147 10.9031 93.0721
2025 0.2677
11.4470 10.8680 94.9424
2026 0.2677 11.1793 10.8323 96.8954
2027 and later years 0.2677 10.9117 10.7957 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 93.5799
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

17
Products Liability – Occurrence

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 7.1936 7.1936 92.8064 83.6839 90.1704
2014 16.9555 9.7619 83.0445 75.6247 91.0653
2015 28.3624 11.4069 71.6376 65.7288 91.7518
2016 39.7945 11.4321 60.2055 55.5936 92.3397
2017 54.3906 14.5961 45.6094 42.0415 92.1773
2018 60.9060 6.5154 39.0940 36.3642 93.0174
2019 67.7760 6.8700 32.2240 30.2059 93.7373
2020 75.7119 7.9359 24.2881 22.8372 94.0263
2021 79.5966 3.8847 20.4034 19.4040 95.1021
2022 83.9430 4.3464 16.0570 15.4301 96.0957

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 4.3464 11.7107 11.3703 97.0940
2024 4.3464 7.3643 7.2229 98.0799
2025 and later years 4.3464 3.0179 2.9859 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 97.2932
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

18
Reinsurance -- Nonproportional Assumed Property

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 20.1003 20.1003 79.8997 76.5081 95.7551
2014 59.2833 39.1830 40.7167 38.5567 94.6950
2015 73.0867 13.8034 26.9133 25.4378 94.5177
2016 80.3675 7.2808 19.6325 18.6282 94.8848
2017 87.7278 7.3603 12.2722 11.5912 94.4514
2018 94.4454 6.7175 5.5546 5.0519 90.9495
2019 96.5143 2.0689 3.4857 3.0699 88.0707
2020 97.9468 1.4326 2.0532 1.6883 82.2272
2021 97.4560 -0.4909 2.5440 2.2209 87.2972
2022 97.0652 -0.3908 2.9348 2.6638 90.7662

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 0.1836 2.7512 2.5358 92.1696
2024 0.1836 2.5675 2.4049 93.6659
2025 0.1836 2.3839 2.2713 95.2743
2026 0.1836 2.2003
2.1347 97.0199
2027 and later years 0.1836 2.0166 1.9952 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 91.9206
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

19
Reinsurance -- Nonproportional Assumed Liability

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 3.4987 3.4987 96.5013 87.1418 90.3012
2014 23.2170 19.7183 76.7830 69.0940 89.9860
2015 43.7483 20.5313 56.2517 49.8346 88.5920
2016 38.9131 -4.8352 61.0869 55.7981 91.3422
2017 47.9298 9.0167 52.0702 47.8898 91.9715
2018 80.0315 32.1017 19.9685 16.4777 82.5182
2019 76.5053 -3.5292 23.4947 20.3977 86.8180
2020 78.1701 1.6649 21.8299 19.1555 87.7491
2021 80.0717 1.9015 19.9283 17.6473 88.5539
2022 79.8791 -0.1926 20.1209 18.2231 90.5681

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 1.1246 18.9963 17.4801 92.0183
2024 1.1246 17.8717 16.7210 93.5611
2025 1.1246 16.7471 15.9455 95.2132
2026 1.1246 15.6225
15.1532 96.9959
2027 and later years 1.1246 14.4979 14.3438 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 91.9297
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

20
Reinsurance -- Nonproportional Assumed Financial Lines

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 1.5423 1.5423 98.4577 91.0796 92.5063
2014 20.9273 19.3850 79.0727 73.4537 92.8939
2015 30.4705 9.5433 69.5295 65.3945 94.0530
2016 46.3043 15.8337 53.6957 50.8032 94.6132
2017 51.8464 5.5421 48.1536 46.2989 96.1484
2018 72.7869 20.9405 27.2131 26.1335 96.0328
2019 82.0967 9.3097 17.9033 17.2882 96.5643
2020 89.2630 7.1664 10.7370 10.4183 97.0321
2021 95.3692 6.1062 4.6308 4.4716 96.5616
2022 96.7995 1.4303 3.2005 3.1225 97.5627

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 1.4303 1.7702 1.7443 98.5356
2024 and later years 1.4303 0.3399 0.3363 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 98.5436
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

21
Special Property (Fire, Allied Lines, Inland Marine, Earthquake, Burglary and Theft)

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 55.6145 55.6145 44.3855 43.5814 98.1884
2014 89.3328 33.7182 10.6672 10.4423 97.8913

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
2013 accident year and that are outstanding at the end of the tax year shown.

2015 and later years 5.3336 5.3336 5.2769 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 98.9372
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2015 taxable year.

Warranty

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 85.4101 85.4101 14.5899 14.4204 98.8387
2014 99.5388 14.1287 0.4612 0.4515 97.8913

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
2013 accident year and that are outstanding at the end of the tax year shown.

2015 and later years 0.2306 0.2306 0.2281 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 98.9372
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2015 taxable year.

22
Workers' Compensation

Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Losses Losses Paid Losses at Losses at Discount
Tax Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)

2013 21.8973 21.8973 78.1027 70.5590 90.3413
2014 43.4962 21.5989 56.5038 50.2521 88.9359
2015 56.0061 12.5099 43.9939 38.6933 87.9515
2016 63.5544 7.5482 36.4456 31.8997 87.5269
2017 68.9880 5.4337 31.0120 27.0967 87.3751
2018 73.9567 4.9687 26.0433 22.6599 87.0089
2019 76.0580 2.1013 23.9420 21.0255 87.8187
2020 77.6365 1.5785 22.3635 19.8843 88.9139
2021 80.1194 2.4828 19.8806 17.8042 89.5556
2022 81.3456 1.2262 18.6544 16.9494 90.8600

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
2013 accident year and that are outstanding at the end of the tax year shown.

2023 1.2262 17.4281 16.0761 92.2420
2024 1.2262 16.2019 15.1839 93.7167
2025 1.2262 14.9757 14.2724 95.3043
2026 1.2262 13.7494
13.3413 97.0319
2027 and later years 1.2262 12.5232 12.3901 98.9372

Taxpayers that use the composite method of Notice 88-100 should use 93.4456
percent to discount unpaid losses incurred in this line of business in 2013 and prior
years and that are outstanding at the end of the 2023 taxable year.

SECTION 4. DRAFTING INFORMATION

The principal author of this revenue procedure is David Remus of the Office of Associate
Chief Counsel (Financial Institutions & Products). For further information regarding this
revenue procedure contact Mr. Remus on (202) 622-3970 (not a toll free call).