Rev. Proc. 2009-55
Rev. Proc. 2009-55
SECTION 1. PURPOSE
This revenue procedure prescribes the loss payment patterns and discount factors for the 2009 accident year. These factors will be used for computing discounted unpaid losses under § 846 of the Internal Revenue Code. See Rev. Proc. 2008-10, 2008-3 I.R.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 2009. All the discount factors presented in this section were determined using the applicable interest rate under § 846(c) for 2009, which is 4.06 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 2009 |
|---|
| --- |
| (Interest rate: 4.06 percent) |
| 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 98.0298 percent to discount unpaid losses incurred in this line of business in the 2009 accident year and that are outstanding at the end of the 2009 and later taxable years. |
| Taxpayers that use the composite method of Notice 88-100 should use 98.0298 percent to discount all unpaid losses in this line of business that are outstanding at the end of the 2009 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 89.4096 | 89.4096 | 10.5904 | 10.3639 | 97.8613 |
| 2010 | 99.6848 | 10.2752 | 0.3152 | 0.3030 | 96.1174 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2011 and later years | 0.1576 | 0.1576 | 0.1545 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.0298 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2011 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 23.6718 | 23.6718 | 76.3282 | 70.1942 | 91.9637 |
| 2010 | 47.5425 | 23.8708 | 52.4575 | 48.6936 | 92.8249 |
| 2011 | 66.6847 | 19.1421 | 33.3153 | 31.1437 | 93.4816 |
| 2012 | 81.5105 | 14.8258 | 18.4895 | 17.2843 | 93.4819 |
| 2013 | 90.0548 | 8.5443 | 9.9452 | 9.2701 | 93.2115 |
| 2014 | 94.7311 | 4.6763 | 5.2689 | 4.8762 | 92.5459 |
| 2015 | 97.0602 | 2.3292 | 2.9398 | 2.6982 | 91.7820 |
| 2016 | 98.1174 | 1.0572 | 1.8826 | 1.7293 | 91.8572 |
| 2017 | 98.8692 | 0.7518 | 1.1308 | 1.0326 | 91.3161 |
| 2018 | 99.1160 | 0.2467 | 0.8840 | 0.8228 | 93.0737 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 | 0.2467 | 0.6373 | 0.6045 | 94.8560 | |
| 2020 | 0.2467 | 0.3906 | 0.3774 | 96.6210 | |
| 2021 and later years | 0.2467 | 0.1439 | 0.1410 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 95.8392 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 34.7004 | 34.7004 | 65.2996 | 59.2808 | 90.7829 |
| 2010 | 58.6076 | 23.9072 | 41.3924 | 37.2999 | 90.1131 |
| 2011 | 71.7608 | 13.1532 | 28.2392 | 25.3968 | 89.9346 |
| 2012 | 81.4987 | 9.7379 | 18.5013 | 16.4943 | 89.1521 |
| 2013 | 87.8488 | 6.3501 | 12.1512 | 10.6863 | 87.9440 |
| 2014 | 91.4226 | 3.5739 | 8.5774 | 7.4744 | 87.1415 |
| 2015 | 93.4057 | 1.9831 | 6.5943 | 5.7549 | 87.2720 |
| 2016 | 94.2280 | 0.8222 | 5.7720 | 5.1498 | 89.2206 |
| 2017 | 95.4875 | 1.2595 | 4.5125 | 4.0741 | 90.2843 |
| 2018 | 96.3560 | 0.8685 | 3.6440 | 3.3535 | 92.0287 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 | 0.8685 | 2.7754 | 2.6036 | 93.8109 | |
| 2020 | 0.8685 | 1.9069 | 1.8233 | 95.6199 | |
| 2021 | 0.8685 | 1.0383 | 1.0114 | 97.4044 | |
| 2022 and later years | 0.8685 | 0.1698 | 0.1664 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 95.6075 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 25.2328 | 25.2328 | 74.7672 | 71.0916 | 95.0839 |
| 2010 | 61.1025 | 35.8698 | 38.8975 | 37.3872 | 96.1174 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2011 and later years | 19.4487 | 19.4487 | 19.0655 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.0298 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2011 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 7.7824 | 7.7824 | 92.2176 | 88.2568 | 95.7050 |
| 2010 | 62.1390 | 54.3565 | 37.8610 | 36.3911 | 96.1174 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2011 and later years | 18.9305 | 18.9305 | 18.5575 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.0298 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2011 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 34.7004 | 34.7004 | 65.2996 | 59.2808 | 90.7829 |
| 2010 | 58.6076 | 23.9072 | 41.3924 | 37.2999 | 90.1131 |
| 2011 | 71.7608 | 13.1532 | 28.2392 | 25.3968 | 89.9346 |
| 2012 | 81.4987 | 9.7379 | 18.5013 | 16.4943 | 89.1521 |
| 2013 | 87.8488 | 6.3501 | 12.1512 | 10.6863 | 87.9440 |
| 2014 | 91.4226 | 3.5739 | 8.5774 | 7.4744 | 87.1415 |
| 2015 | 93.4057 | 1.9831 | 6.5943 | 5.7549 | 87.2720 |
| 2016 | 94.2280 | 0.8222 | 5.7720 | 5.1498 | 89.2206 |
| 2017 | 95.4875 | 1.2595 | 4.5125 | 4.0741 | 90.2843 |
| 2018 | 96.3560 | 0.8685 | 3.6440 | 3.3535 | 92.0287 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 | 0.8685 | 2.7754 | 2.6036 | 93.8109 | |
| 2020 | 0.8685 | 1.9069 | 1.8233 | 95.6199 | |
| 2021 | 0.8685 | 1.0383 | 1.0114 | 97.4044 | |
| 2022 and later years | 0.8685 | 0.1698 | 0.1664 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 95.6075 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 4.9425 | 4.9425 | 95.0575 | 85.0276 | 89.4485 |
| 2010 | 19.9369 | 14.9944 | 80.0631 | 73.1839 | 91.4078 |
| 2011 | 44.3489 | 24.4120 | 55.6511 | 51.2525 | 92.0962 |
| 2012 | 64.8374 | 20.4885 | 35.1626 | 32.4331 | 92.2375 |
| 2013 | 80.2530 | 15.4156 | 19.7470 | 18.0245 | 91.2770 |
| 2014 | 85.7907 | 5.5377 | 14.2093 | 13.1072 | 92.2442 |
| 2015 | 91.2722 | 5.4815 | 8.7278 | 8.0478 | 92.2082 |
| 2016 | 93.3314 | 2.0593 | 6.6686 | 6.2739 | 94.0812 |
| 2017 | 96.1257 | 2.7942 | 3.8743 | 3.6782 | 94.9374 |
| 2018 | 97.6538 | 1.5281 | 2.3462 | 2.2687 | 96.6961 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 and later years | 1.5281 | 0.8182 | 0.8021 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.0298 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 1.5878 | 1.5878 | 98.4122 | 82.1817 | 83.5076 |
| 2010 | 4.4720 | 2.8842 | 95.5280 | 82.5760 | 86.4417 |
| 2011 | 17.7738 | 13.3018 | 82.2262 | 72.3595 | 88.0005 |
| 2012 | 35.8814 | 18.1076 | 64.1186 | 56.8257 | 88.6260 |
| 2013 | 52.9447 | 17.0633 | 47.0553 | 41.7266 | 88.6757 |
| 2014 | 68.4348 | 15.4901 | 31.5652 | 27.6193 | 87.4993 |
| 2015 | 79.5616 | 11.1268 | 20.4384 | 17.3902 | 85.0861 |
| 2016 | 85.8198 | 6.2582 | 14.1802 | 11.7123 | 82.5961 |
| 2017 | 90.1267 | 4.3069 | 9.8733 | 7.7943 | 78.9437 |
| 2018 | 90.3701 | 0.2434 | 9.6299 | 7.8625 | 81.6469 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 | 0.2434 | 9.3865 | 7.9335 | 84.5197 | |
| 2020 | 0.2434 | 9.1431 | 8.0073 | 87.5770 | |
| 2021 | 0.2434 | 8.8998 | 8.0841 | 90.8352 | |
| 2022 | 0.2434 | 8.6564 | 8.1641 | 94.3126 | |
| 2023 and later years | 0.2434 | 8.4130 | 8.2473 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 87.6495 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 72.9064 | 72.9064 | 27.0936 | 26.1964 | 96.6888 |
| 2010 | 93.5836 | 20.6771 | 6.4164 | 6.1673 | 96.1174 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2011 and later years | 3.2082 | 3.2082 | 3.1450 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.0298 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2011 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 52.5880 | 52.5880 | 47.4120 | 44.2537 | 93.3385 |
| 2010 | 80.0449 | 27.4570 | 19.9551 | 18.0416 | 90.4110 |
| 2011 | 86.1625 | 6.1175 | 13.8375 | 12.5336 | 90.5767 |
| 2012 | 90.7452 | 4.5827 | 9.2548 | 8.3676 | 90.4137 |
| 2013 | 93.9006 | 3.1555 | 6.0994 | 5.4885 | 89.9844 |
| 2014 | 95.7613 | 1.8607 | 4.2387 | 3.8132 | 89.9627 |
| 2015 | 96.8755 | 1.1141 | 3.1245 | 2.8315 | 90.6219 |
| 2016 | 97.6715 | 0.7960 | 2.3285 | 2.1345 | 91.6659 |
| 2017 | 98.0329 | 0.3615 | 1.9671 | 1.8524 | 94.1706 |
| 2018 | 98.6810 | 0.6481 | 1.3190 | 1.2665 | 96.0207 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 | 0.6481 | 0.6709 | 0.6568 | 97.8997 | |
| 2020 and later years | 0.6481 | 0.0228 | 0.0224 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 97.9040 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 67.9528 | 67.9528 | 32.0472 | 30.8190 | 96.1676 |
| 2010 | 89.4609 | 21.5081 | 10.5391 | 10.1299 | 96.1174 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2011 and later years | 5.2695 | 5.2695 | 5.1657 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.0298 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2011 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 5.8796 | 5.8796 | 94.1204 | 83.2369 | 88.4367 |
| 2010 | 18.8735 | 12.9938 | 81.1265 | 73.3613 | 90.4283 |
| 2011 | 41.6840 | 22.8105 | 58.3160 | 53.0709 | 91.0056 |
| 2012 | 62.5322 | 20.8483 | 37.4678 | 33.9583 | 90.6333 |
| 2013 | 73.5207 | 10.9885 | 26.4793 | 24.1277 | 91.1189 |
| 2014 | 82.0036 | 8.4829 | 17.9964 | 16.4539 | 91.4286 |
| 2015 | 88.6279 | 6.6244 | 11.3721 | 10.3644 | 91.1391 |
| 2016 | 90.7107 | 2.0828 | 9.2893 | 8.6605 | 93.2317 |
| 2017 | 94.8439 | 4.1332 | 5.1561 | 4.7959 | 93.0145 |
| 2018 | 96.2689 | 1.4249 | 3.7311 | 3.5370 | 94.7977 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 | 1.4249 | 2.3062 | 2.2270 | 96.5683 | |
| 2020 and later years | 1.4249 | 0.8812 | 0.8639 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 97.1192 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 13.6594 | 13.6594 | 86.3406 | 74.5578 | 86.3531 |
| 2010 | 24.8389 | 11.1795 | 75.1611 | 66.1806 | 88.0517 |
| 2011 | 41.7792 | 16.9403 | 58.2208 | 51.5868 | 88.6055 |
| 2012 | 58.4995 | 16.7203 | 41.5005 | 36.6249 | 88.2518 |
| 2013 | 69.5197 | 11.0203 | 30.4803 | 26.8702 | 88.1560 |
| 2014 | 77.7513 | 8.2316 | 22.2487 | 19.5641 | 87.9336 |
| 2015 | 84.2243 | 6.4730 | 15.7757 | 13.7553 | 87.1929 |
| 2016 | 83.2275 | \-0.9968 | 16.7725 | 15.3306 | 91.4032 |
| 2017 | 88.8524 | 5.6249 | 11.1476 | 10.2151 | 91.6347 |
| 2018 | 91.3852 | 2.5328 | 8.6148 | 8.0461 | 93.3986 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 | 2.5328 | 6.0820 | 5.7891 | 95.1836 | |
| 2020 | 2.5328 | 3.5492 | 3.4404 | 96.9345 | |
| 2021 and later years | 2.5328 | 1.0164 | 0.9964 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 96.1213 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 42.6108 | 42.6108 | 57.3892 | 54.0511 | 94.1835 |
| 2010 | 71.5827 | 28.9719 | 28.4173 | 26.6915 | 93.9269 |
| 2011 | 84.6947 | 13.1120 | 15.3053 | 14.3997 | 94.0826 |
| 2012 | 92.3556 | 7.6610 | 7.6444 | 7.1693 | 93.7860 |
| 2013 | 96.2369 | 3.8812 | 3.7631 | 3.5012 | 93.0391 |
| 2014 | 97.9275 | 1.6907 | 2.0725 | 1.9187 | 92.5799 |
| 2015 | 98.7719 | 0.8444 | 1.2281 | 1.1352 | 92.4394 |
| 2016 | 99.2692 | 0.4973 | 0.7308 | 0.6740 | 92.2334 |
| 2017 | 99.5053 | 0.2361 | 0.4947 | 0.4606 | 93.0998 |
| 2018 | 99.6440 | 0.1387 | 0.3560 | 0.3378 | 94.8818 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 | 0.1387 | 0.2174 | 0.2101 | 96.6446 | |
| 2020 and later years | 0.1387 | 0.0787 | 0.0772 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 97.0129 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 1.0259 | 1.0259 | 98.9741 | 84.7900 | 84.6586 |
| 2010 | 11.7927 | 10.7667 | 88.2073 | 76.2088 | 86.3973 |
| 2011 | 29.3642 | 17.5716 | 70.6358 | 61.3781 | 86.8939 |
| 2012 | 55.1655 | 25.8012 | 44.8345 | 37.5503 | 83.7531 |
| 2013 | 83.4171 | 28.2516 | 16.5829 | 10.2554 | 61.8434 |
| 2014 | 64.8933 | \-18.5238 | 35.1067 | 29.5679 | 84.2229 |
| 2015 | 82.3346 | 17.4414 | 17.6654 | 12.9765 | 73.4571 |
| 2016 | 86.3986 | 4.0640 | 13.6014 | 9.3576 | 68.7991 |
| 2017 | 76.3310 | \-10.0676 | 23.6690 | 20.0075 | 84.5305 |
| 2018 | 78.7910 | 2.4600 | 21.2090 | 18.3104 | 86.3331 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 | 2.4600 | 18.7490 | 16.5444 | 88.2412 | |
| 2020 | 2.4600 | 16.2890 | 14.7066 | 90.2855 | |
| 2021 | 2.4600 | 13.8290 | 12.7943 | 92.5176 | |
| 2022 | 2.4600 | 11.3691 | 10.8043 | 95.0326 | |
| 2023 and later years | 2.4600 | 8.9091 | 8.7336 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 90.1769 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 5.0466 | 5.0466 | 94.9534 | 80.1653 | 84.4260 |
| 2010 | 13.6935 | 8.6469 | 86.3065 | 74.5994 | 86.4354 |
| 2011 | 28.2541 | 14.5606 | 71.7459 | 62.7748 | 87.4961 |
| 2012 | 41.3083 | 13.0542 | 58.6917 | 52.0070 | 88.6104 |
| 2013 | 59.3693 | 18.0610 | 40.6307 | 35.6944 | 87.8509 |
| 2014 | 73.0717 | 13.7024 | 26.9283 | 23.1659 | 86.0279 |
| 2015 | 74.6612 | 1.5895 | 25.3388 | 22.4849 | 88.7371 |
| 2016 | 78.9833 | 4.3221 | 21.0167 | 18.9889 | 90.3513 |
| 2017 | 86.1231 | 7.1398 | 13.8769 | 12.4765 | 89.9085 |
| 2018 | 88.6931 | 2.5700 | 11.3069 | 10.3614 | 91.6379 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 | 2.5700 | 8.7369 | 8.1604 | 93.4018 | |
| 2020 | 2.5700 | 6.1669 | 5.8701 | 95.1869 | |
| 2021 | 2.5700 | 3.5969 | 3.4868 | 96.9378 | |
| 2022 and later years | 2.5700 | 1.0269 | 1.0067 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 95.5262 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 taxable year. |
| Reinsurance — Nonproportional Assumed Property | |||||
|---|---|---|---|---|---|
| Tax Year | Estimated Cumulative Losses Paid (%) | Estimated Losses Paid Each Year (%) | Unpaid Losses at Year End (%) | Discounted Unpaid Losses at Year End (%) | Discount Factors (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 12.9458 | 12.9458 | 87.0542 | 80.8403 | 92.8620 |
| 2010 | 60.1796 | 47.2338 | 39.8204 | 35.9393 | 90.2535 |
| 2011 | 80.8225 | 20.6429 | 19.1775 | 16.3406 | 85.2075 |
| 2012 | 84.9430 | 4.1205 | 15.0570 | 12.8008 | 85.0155 |
| 2013 | 85.6680 | 0.7250 | 14.3320 | 12.5809 | 87.7821 |
| 2014 | 80.0452 | \-5.6229 | 19.9548 | 18.8276 | 94.3509 |
| 2015 | 86.7013 | 6.6561 | 13.2987 | 12.8020 | 96.2654 |
| 2016 | 97.2533 | 10.5520 | 2.7467 | 2.5578 | 93.1205 |
| 2017 | 97.6721 | 0.4188 | 2.3279 | 2.2344 | 95.9820 |
| 2018 | 98.8078 | 1.1357 | 1.1922 | 1.1665 | 97.8487 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 and later years | 1.1357 | 0.0564 | 0.0553 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 94.3133 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 32.5917 | 32.5917 | 67.4083 | 54.5146 | 80.8723 |
| 2010 | 33.3995 | 0.8078 | 66.6005 | 55.9039 | 83.9392 |
| 2011 | 35.4948 | 2.0953 | 64.5052 | 56.0362 | 86.8708 |
| 2012 | 44.0321 | 8.5373 | 55.9679 | 49.6024 | 88.6265 |
| 2013 | 64.8299 | 20.7979 | 35.1701 | 30.4004 | 86.4383 |
| 2014 | 66.4358 | 1.6059 | 33.5642 | 29.9965 | 89.3706 |
| 2015 | 77.8097 | 11.3738 | 22.1903 | 19.6119 | 88.3805 |
| 2016 | 82.4438 | 4.6341 | 17.5562 | 15.6809 | 89.3183 |
| 2017 | 84.1944 | 1.7507 | 15.8056 | 14.5317 | 91.9406 |
| 2018 | 87.9223 | 3.7279 | 12.0777 | 11.3189 | 93.7176 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 | 3.7279 | 8.3498 | 7.9757 | 95.5191 | |
| 2020 | 3.7279 | 4.6219 | 4.4967 | 97.2900 | |
| 2021 and later years | 3.7279 | 0.8940 | 0.8764 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 96.1991 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 8.4783 | 8.4783 | 91.5217 | 82.6377 | 90.2930 |
| 2010 | 28.0475 | 19.5693 | 71.9525 | 66.0302 | 91.7692 |
| 2011 | 60.4351 | 32.3875 | 39.5649 | 35.6726 | 90.1622 |
| 2012 | 82.4448 | 22.0097 | 17.5552 | 14.6688 | 83.5583 |
| 2013 | 90.2720 | 7.8271 | 9.7280 | 7.2799 | 74.8343 |
| 2014 | 85.3168 | \-4.9551 | 14.6831 | 12.6301 | 86.0181 |
| 2015 | 88.3777 | 3.0608 | 11.6223 | 10.0206 | 86.2186 |
| 2016 | 89.9934 | 1.6157 | 10.0066 | 8.7793 | 87.7346 |
| 2017 | 81.6664 | \-8.3269 | 18.3336 | 17.6300 | 96.1625 |
| 2018 | 91.0491 | 9.3827 | 8.9509 | 8.7745 | 98.0298 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 and later years | — | — | — | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 96.2888 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 taxable year. |
| Special Property (Fire, Allied Lines, Inland Marine, Earthquake, 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 44.5756 | 44.5756 | 55.4244 | 53.5639 | 96.6430 |
| 2010 | 88.4263 | 41.8507 | 13.5737 | 13.0467 | 96.1174 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2011 and later years | 6.7869 | 6.7869 | 6.6531 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 98.0298 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2011 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 (%) |
| --- | --- | --- | --- | --- | --- |
| 2009 | 19.0410 | 19.0410 | 80.9590 | 69.6415 | 86.0207 |
| 2010 | 40.2442 | 21.2032 | 59.7558 | 50.8396 | 85.0789 |
| 2011 | 57.1497 | 16.9055 | 42.8503 | 35.6584 | 83.2162 |
| 2012 | 67.8601 | 10.7104 | 32.1399 | 26.1804 | 81.4579 |
| 2013 | 75.5399 | 7.6797 | 24.4601 | 19.4093 | 79.3507 |
| 2014 | 80.1157 | 4.5758 | 19.8843 | 15.5296 | 78.0994 |
| 2015 | 82.1828 | 2.0672 | 17.8172 | 14.0513 | 78.8640 |
| 2016 | 84.4045 | 2.2217 | 15.5955 | 12.3555 | 79.2248 |
| 2017 | 85.5195 | 1.1150 | 14.4805 | 11.7198 | 80.9346 |
| 2018 | 86.2855 | 0.7661 | 13.7145 | 11.4141 | 83.2269 |
| 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 2009 accident year and that are outstanding at the end of the tax year shown. | |||||
| 2019 | 0.7661 | 12.9484 | 11.0961 | 85.6945 | |
| 2020 | 0.7661 | 12.1823 | 10.7651 | 88.3666 | |
| 2021 | 0.7661 | 11.4163 | 10.4207 | 91.2795 | |
| 2022 | 0.7661 | 10.6502 | 10.0624 | 94.4802 | |
| 2023 and later years | 0.7661 | 9.8842 | 9.6894 | 98.0298 | |
| Taxpayers that use the composite method of Notice 88-100 should use 88.4259 percent to discount unpaid losses incurred in this line of business in 2009 and prior years and that are outstanding at the end of the 2019 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).
Disclaimer. This may not be the most current version of this information. Users should consult official sources to verify information on this site is recent and current. Marble does not warrant or represent the accuracy, completeness or reliability of the information contained on this site.