Rev. Proc. 2010-49

in: Rev. Proc. 2010-49

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Rev. Proc. 2010-49

SECTION 1. PURPOSE

This revenue procedure prescribes the loss payment patterns and discount factors for the 2010 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 2010. All the discount factors presented in this section were determined using the applicable interest rate under § 846(c) for 2010, which is 3.81 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 2010

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(Interest rate: 3.81 percent)

*Lines of Business*
Accident and Health (Other Than Disability Income or Credit Disability Insurance)
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Taxpayers that do not use the composite method of Notice 88-100 should use 98.1478 percent to discount unpaid losses incurred in this line of business in the 2010 accident year and that are outstanding at the end of the 2010 and later taxable years.
Taxpayers that use the composite method of Notice 88-100 should use 98.1478 percent to discount all unpaid losses in this line of business that are outstanding at the end of the 2010 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 (%)
2010	89.4096	89.4096	10.5904	10.3774	97.9889
2011	99.6848	10.2752	0.3152	0.3037	96.3467
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 2010 accident year and that are outstanding at the end of the tax year shown.
2012 and later years		0.1576	0.1576	0.1547	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 98.1478 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2012 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 (%)
---	---	---	---	---	---
2010	23.6718	23.6718	76.3282	70.5406	92.4174
2011	47.5425	23.8708	52.4575	48.9069	93.2316
2012	66.6847	19.1421	33.3153	31.2669	93.8514
2013	81.5105	14.8258	18.4895	17.3526	93.8509
2014	90.0548	8.5443	9.9452	9.3062	93.5944
2015	94.7311	4.6763	5.2689	4.8983	92.9653
2016	97.0602	2.3292	2.9398	2.7118	92.2448
2017	98.1174	1.0572	1.8826	1.7379	92.3179
2018	98.8692	0.7518	1.1308	1.0382	91.8115
2019	99.1160	0.2467	0.8840	0.8263	93.4738
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020		0.2467	0.6373	0.6064	95.1568
2021		0.2467	0.3906	0.3782	96.8210
2022 and later years		0.2467	0.1439	0.1412	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 95.9976 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2020 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 (%)
---	---	---	---	---	---
2010	34.7004	34.7004	65.2996	59.6104	91.2876
2011	58.6076	23.9072	41.3924	37.5232	90.6525
2012	71.7608	13.1532	28.2392	25.5514	90.4822
2013	81.4987	9.7379	18.5013	16.6033	89.7412
2014	87.8488	6.3501	12.1512	10.7660	88.5998
2015	91.4226	3.5739	8.5774	7.5348	87.8456
2016	93.4057	1.9831	6.5943	5.8014	87.9763
2017	94.2280	0.8222	5.7720	5.1847	89.8241
2018	95.4875	1.2595	4.5125	4.0989	90.8346
2019	96.3560	0.8685	3.6440	3.3702	92.4859
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020		0.8685	2.7754	2.6136	94.1702
2021		0.8685	1.9069	1.8283	95.8774
2022		0.8685	1.0383	1.0130	97.5588
2023 and later years		0.8685	0.1698	0.1666	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 96.2071 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2020 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 (%)
---	---	---	---	---	---
2010	25.2328	25.2328	74.7672	71.3063	95.3711
2011	61.1025	35.8698	38.8975	37.4764	96.3467
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 2010 accident year and that are outstanding at the end of the tax year shown.
2012 and later years		19.4487	19.4487	19.0885	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 98.1478 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2012 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 (%)
---	---	---	---	---	---
2010	7.7824	7.7824	92.2176	88.4888	95.9565
2011	62.1390	54.3565	37.8610	36.4778	96.3467
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 2010 accident year and that are outstanding at the end of the tax year shown.
2012 and later years		18.9305	18.9305	18.5799	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 98.1478 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2012 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 (%)
---	---	---	---	---	---
2010	34.7004	34.7004	65.2996	59.6104	91.2876
2011	58.6076	23.9072	41.3924	37.5232	90.6525
2012	71.7608	13.1532	28.2392	25.5514	90.4822
2013	81.4987	9.7379	18.5013	16.6033	89.7412
2014	87.8488	6.3501	12.1512	10.7660	88.5998
2015	91.4226	3.5739	8.5774	7.5348	87.8456
2016	93.4057	1.9831	6.5943	5.8014	87.9763
2017	94.2280	0.8222	5.7720	5.1847	89.8241
2018	95.4875	1.2595	4.5125	4.0989	90.8346
2019	96.3560	0.8685	3.6440	3.3702	92.4859
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020		0.8685	2.7754	2.6136	94.1702
2021		0.8685	1.9069	1.8283	95.8774
2022		0.8685	1.0383	1.0130	97.5588
2023 and later years		0.8685	0.1698	0.1666	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 96.2071 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2020 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 (%)
---	---	---	---	---	---
2010	4.9425	4.9425	95.0575	85.5860	90.0359
2011	19.9369	14.9944	80.0631	73.5694	91.8892
2012	44.3489	24.4120	55.6511	51.4996	92.5402
2013	64.8374	20.4885	35.1626	32.5867	92.6741
2014	80.2530	15.4156	19.7470	18.1217	91.7692
2015	85.7907	5.5377	14.2093	13.1699	92.6850
2016	91.2722	5.4815	8.7278	8.0867	92.6547
2017	93.3314	2.0593	6.6686	6.2967	94.4240
2018	96.1257	2.7942	3.8743	3.6897	95.2335
2019	97.6538	1.5281	2.3462	2.2733	96.8916
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020 and later years		1.5281	0.8182	0.8030	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 98.1478 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2020 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 (%)
---	---	---	---	---	---
2010	1.5878	1.5878	98.4122	83.0418	84.3816
2011	4.4720	2.8842	95.5280	82.2670	87.1650
2012	17.7738	13.3018	82.2262	72.8866	88.6416
2013	35.8814	18.1076	64.1186	57.2143	89.2320
2014	52.9447	17.0633	47.0553	42.0088	89.2755
2015	68.4348	15.4901	31.5652	27.8270	88.1571
2016	79.5616	11.1268	20.4384	17.5503	85.8696
2017	85.8198	6.2582	14.1802	11.8427	83.5160
2018	90.1267	4.3069	9.8733	7.9057	80.0721
2019	90.3701	0.2434	9.6299	7.9590	82.6486
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020		0.2434	9.3865	8.0142	85.3803
2021		0.2434	9.1431	8.0716	88.2805
2022		0.2434	8.8998	8.1312	91.3639
2023		0.2434	8.6564	8.1930	94.6469
2024 and later years		0.2434	8.4130	8.2572	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 89.4537 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2020 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 (%)
---	---	---	---	---	---
2010	72.9064	72.9064	27.0936	26.2493	96.8838
2011	93.5836	20.6771	6.4164	6.1820	96.3467
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 2010 accident year and that are outstanding at the end of the tax year shown.
2012 and later years		3.2082	3.2082	3.1488	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 98.1478 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2012 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 (%)
---	---	---	---	---	---
2010	52.5880	52.5880	47.4120	44.4297	93.7097
2011	80.0449	27.4570	19.9551	18.1473	90.9409
2012	86.1625	6.1175	13.8375	12.6057	91.0982
2013	90.7452	4.5827	9.2548	8.4168	90.9453
2014	93.9006	3.1555	6.0994	5.5225	90.5422
2015	95.7613	1.8607	4.2387	3.8371	90.5259
2016	96.8755	1.1141	3.1245	2.8481	91.1536
2017	97.6715	0.7960	2.3285	2.1456	92.1445
2018	98.0329	0.3615	1.9671	1.8591	94.5101
2019	98.6810	0.6481	1.3190	1.2696	96.2555
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020		0.6481	0.6709	0.6577	98.0252
2021 and later years		0.6481	0.0228	0.0224	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 98.0254 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2020 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 (%)
---	---	---	---	---	---
2010	67.9528	67.9528	32.0472	30.8911	96.3926
2011	89.4609	21.5081	10.5391	10.1541	96.3467
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 2010 accident year and that are outstanding at the end of the tax year shown.
2012 and later years		5.2695	5.2695	5.1719	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 98.1478 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2012 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 (%)
---	---	---	---	---	---
2010	5.8796	5.8796	94.1204	83.8370	89.0742
2011	18.8735	12.9938	81.1265	73.7921	90.9593
2012	41.6840	22.8105	58.3160	53.3626	91.5059
2013	62.5322	20.8483	37.4678	34.1540	91.1557
2014	73.5207	10.9885	26.4793	24.2594	91.6166
2015	82.0036	8.4829	17.9964	16.5408	91.9114
2016	88.6279	6.6244	11.3721	10.4216	91.6420
2017	90.7107	2.0828	9.2893	8.6965	93.6193
2018	94.8439	4.1332	5.1561	4.8167	93.4178
2019	96.2689	1.4249	3.7311	3.5484	95.1017
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020		1.4249	2.3062	2.2317	96.7713
2021 and later years		1.4249	0.8812	0.8649	98.1478
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 2010 and prior years and that are outstanding at the end of the 2020 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 (%)
---	---	---	---	---	---
2010	13.6594	13.6594	86.3406	75.1929	87.0887
2011	24.8389	11.1795	75.1611	66.6672	88.6992
2012	41.7792	16.9403	58.2208	51.9473	89.2247
2013	58.4995	16.7203	41.5005	36.8907	88.8921
2014	69.5197	11.0203	30.4803	27.0680	88.8049
2015	77.7513	8.2316	22.2487	19.7123	88.6000
2016	84.2243	6.4730	15.7757	13.8682	87.9089
2017	83.2275	\-0.9968	16.7725	15.4122	91.8899
2018	88.8524	5.6249	11.1476	10.2684	92.1130
2019	91.3852	2.5328	8.6148	8.0790	93.7807
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020		2.5328	6.0820	5.8062	95.4658
2021		2.5328	3.5492	3.4468	97.1162
2022 and later years		2.5328	1.0164	0.9976	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 96.9123 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2020 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 (%)
---	---	---	---	---	---
2010	42.6108	42.6108	57.3892	54.2420	94.5161
2011	71.5827	28.9719	28.4173	26.7900	94.2735
2012	84.6947	13.1120	15.3053	14.4512	94.4197
2013	92.3556	7.6610	7.6444	7.1963	94.1386
2014	96.2369	3.8812	3.7631	3.5160	93.4328
2015	97.9275	1.6907	2.0725	1.9274	92.9997
2016	98.7719	0.8444	1.2281	1.1405	92.8686
2017	99.2692	0.4973	0.7308	0.6773	92.6773
2018	99.5053	0.2361	0.4947	0.4625	93.4984
2019	99.6440	0.1387	0.3560	0.3389	95.1810
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020		0.1387	0.2174	0.2105	96.8431
2021 and later years		0.1387	0.0787	0.0773	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 97.1586 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2020 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 (%)
---	---	---	---	---	---
2010	1.0259	1.0259	98.9741	84.5737	85.4504
2011	11.7927	10.7667	88.2073	76.8261	87.0971
2012	29.3642	17.5716	70.6358	61.8499	87.5618
2013	55.1655	25.8012	44.8345	37.9183	84.5738
2014	83.4171	28.2516	16.5829	10.5782	63.7897
2015	64.8933	\-18.5238	35.1067	29.8546	85.0396
2016	82.3346	17.4414	17.6654	13.2216	74.8445
2017	86.3986	4.0640	13.6014	9.5846	70.4680
2018	76.3310	\-10.0676	23.6690	20.2074	85.3750
2019	78.7910	2.4600	21.2090	18.4709	87.0899
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020		2.4600	18.7490	16.6682	88.9018
2021		2.4600	16.2890	14.7969	90.8395
2022		2.4600	13.8290	12.8542	92.9509
2023		2.4600	11.3691	10.8376	95.3250
2024 and later years		2.4600	8.9091	8.7441	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 91.2831 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2020 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 (%)
---	---	---	---	---	---
2010	5.0466	5.0466	94.9534	80.9549	85.2575
2011	13.6935	8.6469	86.3065	75.2292	87.1651
2012	28.2541	14.5606	71.7459	63.2600	88.1723
2013	41.3083	13.0542	58.6917	52.3697	89.2284
2014	59.3693	18.0610	40.6307	35.9631	88.5121
2015	73.0717	13.7024	26.9283	23.3723	86.7946
2016	74.6612	1.5895	25.3388	22.6433	89.3621
2017	78.9833	4.3221	21.0167	19.1024	90.8912
2018	86.1231	7.1398	13.8769	12.5556	90.4784
2019	88.6931	2.5700	11.3069	10.4155	92.1160
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020		2.5700	8.7369	8.1938	93.7837
2021		2.5700	6.1669	5.8875	95.4689
2022		2.5700	3.5969	3.4933	97.1193
2023 and later years		2.5700	1.0269	1.0079	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 96.2670 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2020 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 (%)
---	---	---	---	---	---
2010	12.9458	12.9458	87.0542	81.1839	93.2567
2011	60.1796	47.2338	39.8204	36.1518	90.7872
2012	80.8225	20.6429	19.1775	16.4967	86.0213
2013	84.9430	4.1205	15.0570	12.9270	85.8537
2014	85.6680	0.7250	14.3320	12.6808	88.4791
2015	80.0452	\-5.6229	19.9548	18.8929	94.6784
2016	86.7013	6.6561	13.2987	12.8310	96.4830
2017	97.2533	10.5520	2.7467	2.5688	93.5201
2018	97.6721	0.4188	2.3279	2.2399	96.2189
2019	98.8078	1.1357	1.1922	1.1680	97.9772
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020 and later years		1.1357	0.0564	0.0554	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 98.0716 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2020 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 (%)
---	---	---	---	---	---
2010	32.5917	32.5917	67.4083	55.1981	81.8862
2011	33.3995	0.8078	66.6005	56.4781	84.8014
2012	35.4948	2.0953	64.5052	56.4951	87.5823
2013	44.0321	8.5373	55.9679	49.9492	89.2461
2014	64.8299	20.7979	35.1701	30.6619	87.1818
2015	66.4358	1.6059	33.5642	30.1939	89.9588
2016	77.8097	11.3738	22.1903	19.7558	89.0289
2017	82.4438	4.6341	17.5562	15.7869	89.9222
2018	84.1944	1.7507	15.8056	14.6047	92.4025
2019	87.9223	3.7279	12.0777	11.3629	94.0821
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020		3.7279	8.3498	7.9976	95.7823
2021		3.7279	4.6219	4.5041	97.4510
2022 and later years		3.7279	0.8940	0.8775	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 97.2504 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2020 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 (%)
---	---	---	---	---	---
2010	8.4783	8.4783	91.5217	83.1236	90.8239
2011	28.0475	19.5693	71.9525	66.3521	92.2165
2012	60.4351	32.3875	39.5649	35.8813	90.6897
2013	82.4448	22.0097	17.5552	14.8233	84.4382
2014	90.2720	7.8271	9.7280	7.4132	76.2044
2015	85.3168	\-4.9551	14.6831	12.7442	86.7951
2016	88.3777	3.0608	11.6223	10.1112	86.9983
2017	89.9934	1.6157	10.0066	8.8503	88.4442
2018	81.6664	\-8.3269	18.3336	17.6716	96.3891
2019	91.0491	9.3827	8.9509	8.7851	98.1478
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020 and later years		—	—	—	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 98.0675 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2020 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 (%)
---	---	---	---	---	---
2010	44.5756	44.5756	55.4244	53.6764	96.8407
2011	88.4263	41.8507	13.5737	13.0778	96.3467
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 2010 accident year and that are outstanding at the end of the tax year shown.
2012 and later years		6.7869	6.7869	6.6612	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 98.1478 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2012 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 (%)
---	---	---	---	---	---
2010	19.0410	19.0410	80.9590	70.2208	86.7362
2011	40.2442	21.2032	59.7558	51.2928	85.8374
2012	57.1497	16.9055	42.8503	36.0225	84.0661
2013	67.8601	10.7104	32.1399	26.4825	82.3975
2014	75.5399	7.6797	24.4601	19.6668	80.4034
2015	80.1157	4.5758	19.8843	15.7539	79.2278
2016	82.1828	2.0672	17.8172	14.2480	79.9677
2017	84.4045	2.2217	15.5955	12.5272	80.3259
2018	85.5195	1.1150	14.4805	11.8685	81.9618
2019	86.2855	0.7661	13.7145	11.5402	84.1460
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 2010 accident year and that are outstanding at the end of the tax year shown.
2020		0.7661	12.9484	11.1993	86.4920
2021		0.7661	12.1823	10.8455	89.0265
2022		0.7661	11.4163	10.4782	91.7830
2023		0.7661	10.6502	10.0969	94.8047
2024 and later years		0.7661	9.8842	9.7011	98.1478
Taxpayers that use the composite method of Notice 88-100 should use 89.9627 percent to discount unpaid losses incurred in this line of business in 2010 and prior years and that are outstanding at the end of the 2020 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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