IRS Issues Loss Payment Patterns, Discount Factors for 2014
OCT. 29, 2014
Rev. Proc. 2014-59; 2014-47 I.R.B. 843
DOCUMENT ATTRIBUTES
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2014-25911
- Tax Analysts Electronic Citation2014 TNT 210-11
Citations: Rev. Proc. 2014-59; 2014-47 I.R.B. 843
Modified by Rev. Proc. 2015-24
Part III
Administrative, Procedural, and Miscellaneous
26 CFR 601.201: Rulings and determination letters.
(Also: Part I, Sections 846; 1.846-1.)
SECTION 1. PURPOSE
This revenue procedure prescribes the loss payment patterns and discount factors for the 2014 accident year. These factors will be used to compute discounted unpaid losses under § 846 of the Internal Revenue Code. See Rev. Proc. 2012-44, 2012-49 I.R.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 2014. All the discount factors presented in this section were determined using the applicable interest rate under § 846(c) for 2014, which is 1.79 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, 2012-49 I.R.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 99.1168 percent to discount unpaid losses incurred in this line of business in the 2014 accident year and that are outstanding at the end of the 2014 and later taxable years.
Taxpayers that use the composite method of Notice 88-100 should use 99.1168 percent to discount all unpaid losses in this line of business that are outstanding at the end of the 2014 taxable year.
Auto Physical Damage
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 90.2657 90.2657 9.7343 9.6418 99.0495
2015 99.7478 9.4822 0.2522 0.2478 98.2453
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 2014 accident year and that are outstanding at the end of the tax year shown.
2016 and later years 0.1261 0.1261 0.1250 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 99.1168 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2016 taxable year.
Commercial Auto/Truck Liability/Medical
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 25.7034 25.7034 74.2966 71.4890 96.2212
2015 48.2664 22.5629 51.7336 50.0047 96.6580
2016 67.8834 19.6171 32.1166 31.1079 96.8595
2017 82.0630 14.1795 17.9370 17.3589 96.7769
2018 90.4161 8.3532 9.5839 9.2420 96.4332
2019 94.6293 4.2132 5.3707 5.1568 96.0164
2020 97.0203 2.3910 2.9797 2.8368 95.2026
2021 98.2283 1.2081 1.7717 1.6687 94.1900
2022 98.6653 0.4370 1.3347 1.2578 94.2342
2023 98.8635 0.1982 1.1365 1.0803 95.0540
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 0.1982 0.9382 0.8996 95.8817
2025 0.1982 0.7400 0.7157 96.7157
2026 0.1982 0.5417 0.5285 97.5525
2027 0.1982 0.3435 0.3379 98.3798
2028 and later years 0.1982 0.1453 0.1440 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 95.9970 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 taxable year.
Composite
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 39.5281 39.5281 60.4719 57.4533 95.0081
2015 62.0267 22.4986 37.9733 35.7826 94.2309
2016 73.7017 11.6750 26.2983 24.6441 93.7097
2017 80.0846 6.3830 19.9154 18.6454 93.6230
2018 85.7818 5.6971 14.2182 13.2312 93.0581
2019 90.2809 4.4992 9.7191 8.9288 91.8690
2020 91.9588 1.6778 8.0412 7.3959 91.9740
2021 92.9722 1.0134 7.0278 6.5058 92.5719
2022 94.0835 1.1113 5.9165 5.5010 92.9776
2023 94.7469 0.6634 5.2531 4.9302 93.8528
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 0.6634 4.5898 4.3492 94.7583
2025 0.6634 3.9264 3.7578 95.7050
2026 0.6634 3.2631 3.1558 96.7121
2027 0.6634 2.5997 2.5430 97.8186
2028 and later years 0.6634 1.9364 1.9193 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 94.8470 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 taxable year.
Fidelity/Surety
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 22.8449 22.8449 77.1551 75.3264 97.6298
2015 55.8585 33.0137 44.1415 43.3670 98.2453
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 2014 accident year and that are outstanding at the end of the tax year shown.
2016 and later years 22.0707 22.0707 21.8758 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 99.1168 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2016 taxable year.
Financial Guaranty/Mortgage Guaranty
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 6.2515 6.2515 93.7485 91.4394 97.5370
2015 43.0154 36.7639 56.9846 55.9847 98.2453
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 2014 accident year and that are outstanding at the end of the tax year shown.
2016 and later years 28.4923 28.4923 28.2407 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 99.1168 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2016 taxable year.
International (Composite)
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 39.5281 39.5281 60.4719 57.4533 95.0081
2015 62.0267 22.4986 37.9733 35.7826 94.2309
2016 73.7017 11.6750 26.2983 24.6441 93.7097
2017 80.0846 6.3830 19.9154 18.6454 93.6230
2018 85.7818 5.6971 14.2182 13.2312 93.0581
2019 90.2809 4.4992 9.7191 8.9288 91.8690
2020 91.9588 1.6778 8.0412 7.3959 91.9740
2021 92.9722 1.0134 7.0278 6.5058 92.5719
2022 94.0835 1.1113 5.9165 5.5010 92.9776
2023 94.7469 0.6634 5.2531 4.9302 93.8528
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 0.6634 4.5898 4.3492 94.7583
2025 0.6634 3.9264 3.7578 95.7050
2026 0.6634 3.2631 3.1558 96.7121
2027 0.6634 2.5997 2.5430 97.8186
2028 and later years 0.6634 1.9364 1.9193 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 94.8470 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 taxable year.
Medical Professional Liability -- Claims-Made
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 6.3462 6.3462 93.6538 88.5243 94.5230
2015 23.0958 16.7496 76.9042 73.2101 95.1965
2016 41.6827 18.5868 58.3173 55.7681 95.6287
2017 56.5267 14.8440 43.4733 41.7901 96.1281
2018 71.2882 14.7615 28.7118 27.6451 96.2847
2019 82.3023 11.0141 17.6977 17.0277 96.2140
2020 86.5143 4.2120 13.4857 13.0830 97.0134
2021 91.1422 4.6279 8.8578 8.6480 97.6313
2022 94.8664 3.7242 5.1336 5.0454 98.2819
2023 97.5408 2.6745 2.4592 2.4375 99.1168
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 and later years 2.4592 -- -- 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 99.1168 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 taxable year.
Medical Professional Liability -- Occurrence
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 1.2044 1.2044 98.7956 90.6806 91.7861
2015 4.3376 3.1332 95.6624 89.1427 93.1846
2016 11.8161 7.4785 88.1839 83.1932 94.3405
2017 24.7088 12.8928 75.2912 71.6747 95.1967
2018 42.3863 17.6774 57.6137 55.1228 95.6764
2019 57.1600 14.7738 42.8400 41.2040 96.1813
2020 68.9797 11.8196 31.0203 30.0167 96.7644
2021 82.4247 13.4450 17.5753 16.9891 96.6647
2022 86.7084 4.2837 13.2916 12.9714 97.5906
2023 91.6701 4.9617 8.3299 8.1977 98.4120
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 and later years 4.9617 3.3683 3.3385 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 97.0243 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 taxable year.
Miscellaneous Casualty
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 69.0731 69.0731 30.9269 30.2773 97.8996
2015 85.5169 16.4438 14.4831 14.2290 98.2453
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 2014 accident year and that are outstanding at the end of the tax year shown.
2016 and later years 7.2415 7.2415 7.1776 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 99.1168 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2016 taxable year.
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
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 60.9719 60.9719 39.0281 37.7427 96.7063
2015 82.9059 21.9341 17.0941 16.2888 95.2890
2016 89.2783 6.3724 10.7217 10.1511 94.6789
2017 91.5605 2.2822 8.4395 8.0303 95.1520
2018 94.4255 2.8649 5.5745 5.2836 94.7811
2019 96.5899 2.1644 3.4101 3.1945 93.6765
2020 97.6023 1.0124 2.3977 2.2302 93.0150
2021 98.0034 0.4011 1.9966 1.8655 93.4323
2022 98.3410 0.3376 1.6590 1.5583 93.9272
2023 98.5727 0.2317 1.4273 1.3524 94.7512
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 0.2317 1.1957 1.1429 95.5863
2025 0.2317 0.9640 0.9297 96.4337
2026 0.2317 0.7324 0.7126 97.2960
2027 0.2317 0.5007 0.4916 98.1802
2028 and later years 0.2317 0.2691 0.2667 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 95.6622 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 taxable year.
Other (Including Credit)
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 54.6589 54.6589 45.3411 44.5308 98.2129
2015 84.2314 29.5725 15.7686 15.4919 98.2453
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 2014 accident year and that are outstanding at the end of the tax year shown.
2016 and later years 7.8843 7.8843 7.8146 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 99.1168 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2016 taxable year.
Other Liability -- Claims-Made
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 7.4270 7.4270 92.5730 87.1655 94.1587
2015 25.2808 17.8538 74.7192 70.7129 94.6382
2016 44.2108 18.9301 55.7892 52.8800 94.7853
2017 56.4956 12.2848 43.5044 41.4323 95.2370
2018 69.2838 12.7883 30.7162 29.2717 95.2975
2019 77.6662 8.3823 22.3338 21.3387 95.5442
2020 83.1572 5.4910 16.8428 16.1807 96.0688
2021 88.1777 5.0205 11.8223 11.4051 96.4709
2022 93.1315 4.9539 6.8685 6.6113 96.2552
2023 92.9490 -0.1826 7.0510 6.9138 98.0536
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 3.2639 3.7871 3.7446 98.8760
2025 and later years 3.2639 0.5232 0.5186 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 98.8835 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 taxable year.
Other Liability -- Occurrence
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 10.0721 10.0721 89.9279 83.2624 92.5879
2015 24.3995 14.3274 75.6005 70.2978 92.9858
2016 37.3366 12.9372 62.6634 58.5036 93.3618
2017 52.4142 15.0776 47.5858 44.3389 93.1768
2018 64.3437 11.9295 35.6563 33.0968 92.8218
2019 73.7950 9.4512 26.2050 24.1538 92.1723
2020 79.7756 5.9807 20.2244 18.5522 91.7317
2021 84.0963 4.3206 15.9037 14.5251 91.3315
2022 85.6878 1.5915 14.3122 13.1794 92.0851
2023 86.9224 1.2346 13.0776 12.1698 93.0577
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 1.2346 11.8431 11.1420 94.0805
2025 1.2346 10.6085 10.0959 95.1680
2026 1.2346 9.3740 9.0311 96.3421
2027 1.2346 8.1394 7.9472 97.6382
2028 and later years 1.2346 6.9048 6.8439 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 94.1596 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 taxable year.
Private Passenger Auto Liability/Medical
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 42.9881 42.9881 57.0119 55.4898 97.3301
2015 71.9931 29.0051 28.0069 27.2195 97.1887
2016 84.8250 12.8318 15.1750 14.7605 97.2687
2017 92.3500 7.5251 7.6500 7.4327 97.1594
2018 96.2665 3.9165 3.7335 3.6143 96.8084
2019 97.9880 1.7214 2.0120 1.9422 96.5308
2020 98.7958 0.8078 1.2042 1.1620 96.4928
2021 99.2445 0.4487 0.7555 0.7300 96.6335
2022 99.4543 0.2097 0.5457 0.5315 97.3919
2023 99.6370 0.1827 0.3630 0.3567 98.2513
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 and later years 0.1827 0.1803 0.1787 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 99.1168 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 taxable year.
Products Liability -- Claims-Made
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 4.5270 4.5270 95.4730 87.9108 92.0792
2015 16.0134 11.4865 83.9866 77.8956 92.7476
2016 45.1313 29.1179 54.8687 49.9126 90.9673
2017 39.2459 -5.8854 60.7541 56.7438 93.3992
2018 44.8357 5.5898 55.1643 52.1199 94.4813
2019 72.1615 27.3258 27.8385 25.4836 91.5409
2020 80.4448 8.2834 19.5552 17.5826 89.9130
2021 73.2957 -7.1491 26.7043 25.1102 94.0305
2022 87.4824 14.1866 12.5176 11.2466 89.8460
2023 87.7500 0.2677 12.2500 11.1779 91.2480
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 0.2677 11.9823 11.1079 92.7025
2025 0.2677 11.7147 11.0367 94.2127
2026 0.2677 11.4470 10.9642 95.7823
2027 0.2677 11.1793 10.8904 97.4156
2028 and later years 0.2677 10.9117 10.8153 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 94.4051 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 taxable year.
Products Liability -- Occurrence
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 7.1936 7.1936 92.8064 85.1351 91.7341
2015 16.9555 9.7619 83.0445 76.8101 92.4927
2016 28.3624 11.4069 71.6376 66.6765 93.0747
2017 39.7945 11.4321 60.2055 56.3360 93.5729
2018 54.3906 14.5961 45.6094 42.6183 93.4419
2019 60.9060 6.5154 39.0940 36.8077 94.1518
2020 67.7760 6.8700 32.2240 30.5353 94.7596
2021 75.7119 7.9359 24.2881 23.0753 95.0067
2022 79.5966 3.8847 20.4034 19.5690 95.9107
2023 83.9430 4.3464 16.0570 15.5342 96.7441
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 4.3464 11.7107 11.4272 97.5795
2025 4.3464 7.3643 7.2467 98.4026
2026 and later years 4.3464 3.0179 2.9913 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 97.9028 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 taxable year.
Reinsurance -- Nonproportional Assumed Property
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 20.1003 20.1003 79.8997 77.0575 96.4428
2015 59.2833 39.1830 40.7167 38.9047 95.5497
2016 73.0867 13.8034 26.9133 25.6747 95.3978
2017 80.3675 7.2808 19.6325 18.7886 95.7015
2018 87.7278 7.3603 12.2722 11.6990 95.3295
2019 94.4454 6.7175 5.5546 5.1310 92.3737
2020 96.5143 2.0689 3.4857 3.1355 89.9532
2021 97.9468 1.4326 2.0532 1.7463 85.0551
2022 97.4560 -0.4909 2.5440 2.2728 89.3394
2023 97.0652 -0.3908 2.9348 2.7078 92.2638
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 0.1836 2.7512 2.5710 93.4497
2025 0.1836 2.5675 2.4317 94.7098
2026 0.1836 2.3839 2.2900 96.0596
2027 0.1836 2.2003 2.1457 97.5193
2028 and later years 0.1836 2.0166 1.9988 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 93.6157 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 taxable year.
Reinsurance -- Nonproportional Assumed Liability
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 3.4987 3.4987 96.5013 88.6033 91.8156
2015 23.2170 19.7183 76.7830 70.2953 91.5505
2016 43.7483 20.5313 56.2517 50.8393 90.3782
2017 38.9131 -4.8352 61.0869 56.6276 92.7001
2018 47.9298 9.0167 52.0702 48.5442 93.2284
2019 80.0315 32.1017 19.9685 17.0254 85.2613
2020 76.5053 -3.5292 23.4947 20.8878 88.9042
2021 78.1701 1.6649 21.8299 19.5820 89.7028
2022 80.0717 1.9015 19.9283 18.0141 90.3941
2023 79.8791 -0.1926 20.1209 18.5308 92.0972
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 1.1246 18.9963 17.7279 93.3227
2025 1.1246 17.8717 16.9106 94.6220
2026 1.1246 16.7471 16.0787 96.0085
2027 1.1246 15.6225 15.2318 97.4993
2028 and later years 1.1246 14.4979 14.3699 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 93.5114 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 taxable year.
Reinsurance -- Nonproportional Assumed Financial Lines
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 1.5423 1.5423 98.4577 92.2737 93.7191
2015 20.9273 19.3850 79.0727 74.3677 94.0497
2016 30.4705 9.5433 69.5295 66.0705 95.0253
2017 46.3043 15.8337 53.6957 51.2784 95.4981
2018 51.8464 5.5421 48.1536 46.6047 96.7836
2019 72.7869 20.9405 27.2131 26.3119 96.6884
2020 82.0967 9.3097 17.9033 17.3902 97.1337
2021 89.2630 7.1664 10.7370 10.4712 97.5250
2022 95.3692 6.1062 4.6308 4.4981 97.1342
2023 96.7995 1.4303 3.2005 3.1355 97.9710
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 1.4303 1.7702 1.7486 98.7822
2025 and later years 1.4303 0.3399 0.3369 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 98.8072 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 taxable year.
Special Property (Fire, Allied Lines, Inland Marine,
Earthquake, Burglary and Theft)
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 55.6145 55.6145 44.3855 43.7162 98.4922
2015 89.3328 33.7182 10.6672 10.4801 98.2453
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 2014 accident year and that are outstanding at the end of the tax year shown.
2016 and later years 5.3336 5.3336 5.2865 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 99.1168 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2016 taxable year.
Warranty
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 85.4101 85.4101 14.5899 14.4490 99.0347
2015 99.5388 14.1287 0.4612 0.4531 98.2453
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 2014 accident year and that are outstanding at the end of the tax year shown.
2016 and later years 0.2306 0.2306 0.2286 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 99.1168 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2016 taxable year.
Workers' Compensation
_____________________________________________________________________
Estimated Discounted
Cumulative Estimated Unpaid Unpaid
Tax Losses Losses Paid Losses at Losses at Discount
Year Paid Each Year Year End Year End Factors
(%) (%) (%) (%) (%)
_____________________________________________________________________
2014 21.8973 21.8973 78.1027 71.7286 91.8388
2015 43.4962 21.5989 56.5038 51.2212 90.6509
2016 56.0061 12.5099 43.9939 39.5167 89.8231
2017 63.5544 7.5482 36.4456 32.6085 89.4717
2018 68.9880 5.4337 31.0120 27.7101 89.3530
2019 73.9567 4.9687 26.0433 23.1932 89.0563
2020 76.0580 2.1013 23.9420 21.4883 89.7517
2021 77.6365 1.5785 22.3635 20.2804 90.6854
2022 80.1194 2.4828 19.8806 18.1385 91.2368
2023 81.3456 1.2262 18.6544 17.2260 92.3427
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 2014 accident year and that are outstanding at the end of the tax year shown.
2024 1.2262 17.4281 16.2971 93.5104
2025 1.2262 16.2019 15.3517 94.7524
2026 1.2262 14.9757 14.3893 96.0846
2027 1.2262 13.7494 13.4097 97.5293
2028 and later years 1.2262 12.5232 12.4126 99.1168
Taxpayers that use the composite method of Notice 88-100 should use 94.5527 percent to discount unpaid losses incurred in this line of business in 2014 and prior years and that are outstanding at the end of the 2024 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) 317-6995 (not a toll free call).
DOCUMENT ATTRIBUTES
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2014-25911
- Tax Analysts Electronic Citation2014 TNT 210-11
