Rev. Proc. 2011-53

in: Rev. Proc. 2011-53

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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 Discount Unpaid Losses Incurred in Accident Year 2011
(Interest rate: 3.46 percent)
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*Lines of Business*
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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 98.3136 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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