SEC. 3. TABLES — Internal Revenue Bulletin 2005-49

FACTORS

.01 The following tables present separately for each line of business the discount factors under § 846 for accident year 2005. All the discount factors presented in this section were determined using the applicable interest rate under § 846(c) for 2005, which is 4.44 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 2000 annual statement. See Rev. Proc. 2003–17, 2003–1 C.B. 427, section 2, for additional background on discounting under section 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 Section 2.03(4) of Rev. Proc. 2003–17 requested comments as to whether a methodology should be adopted to smooth the raw payment data and thus produce a more stable pattern of discount factors. This issue will be addressed in the new determination year, which is 2007. Accordingly, taxpayers may still submit comments that should include a reference to Rev. Proc. 2005–72 on this issue to the following address:

CC:PA:LPD:PR ( Rev. Proc. 2005–72 ), room 5203, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. Comments may be hand delivered between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD ( Rev. Proc. 2005–72 ), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC 20224. Alternatively, e-mail comments to Notice.Comments@irscounsel.treas.gov. All comments will be available for public inspection and copying.

.05 Tables.

2005–49 I.R.B. 1078 December 5, 2005

Tables of Factors to be Used to Discount

Unpaid Losses Incurred in

Accident Year 2005

( Interest rate: 4.44 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 97.8513 percent to discount unpaid losses incurred in this line of business in the 2005 accident year and that are outstanding at the end of the 2005 and later taxable years.

Taxpayers that use the composite method of Notice 88–100 should use 97.8513 percent to discount all unpaid losses in this line of business that are outstanding at the end of the 2005 taxable year.

Auto Physical Damage

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 89.6468 89.6468 10.3532 10.1113 97.6638 2006 99.6845 10.0377 0.3155 0.3022 95.7713

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 2005 accident year and that are outstanding at the end of the tax year shown.

2007 and later years 0.1578 0.1578 0.1544 97.8513

Taxpayers that use the composite method of Notice 88–100 should use 97.8513 percent to discount unpaid losses incurred in this line of business in 2005 and prior years and that are outstanding at the end of the 2007 taxable year.

Commercial Auto/Truck Liability/Medical

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 28.8244 28.8244 71.1756 65.3965 91.8806 2006 54.9871 26.1626 45.0129 41.5630 92.3357 2007 72.8039 17.8168 27.1961 25.2004 92.6616 2008 85.0572 12.2533 14.9428 13.7969 92.3312 2009 91.6276 6.5704 8.3724 7.6948 91.9064 2010 94.9514 3.3239 5.0486 4.6396 91.8992 2011 97.0453 2.0938 2.9547 2.7058 91.5744 2012 98.1574 1.1121 1.8426 1.6894 91.6838 2013 98.7370 0.5796 1.2630 1.1721 92.7985 2014 99.1070 0.3700 0.8930 0.8460 94.7324

December 5, 2005 1079 2005–49 I.R.B.

Commercial Auto/Truck Liability/Medical

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 2005 accident year and that are outstanding at the end of the tax year shown.

2015 0.3700 0.5230 0.5054 96.6342 2016 and later years 0.3700 0.1530 0.1497 97.8513

Taxpayers that use the composite method of Notice 88–100 should use 96.8695 percent to discount unpaid losses incurred in this line of business in 2005 and prior years and that are outstanding at the end of the 2015 taxable year.

Composite

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 40.9985 40.9985 59.0015 53.2420 90.2384 2006 65.8439 24.8454 34.1561 30.2149 88.4613 2007 77.5023 11.6583 22.4977 19.6421 87.3071 2008 84.6221 7.1198 15.3779 13.2380 86.0849 2009 90.2455 5.6234 9.7545 8.0789 82.8227 2010 92.2780 2.0325 7.7220 6.3605 82.3688 2011 94.3974 2.1195 5.6026 4.4769 79.9089 2012 95.2526 0.8552 4.7474 3.8017 80.0811 2013 96.2792 1.0266 3.7208 2.9214 78.5162 2014 96.4323 0.1531 3.5677 2.8946 81.1355

2015 0.1531 3.4145 2.8667 83.9550 2016 0.1531 3.2614 2.8374 87.0012 2017 0.1531 3.1083 2.8069 90.3057 2018 0.1531 2.9551 2.7751 93.9070 2019 and later years 0.1531 2.8020 2.7418 97.8513

Taxpayers that use the composite method of Notice 88–100 should use 88.8907 percent to discount unpaid losses incurred in this line of business in 2005 and prior years and that are outstanding at the end of the 2015 taxable year.

Fidelity/Surety

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 38.3328 38.3328 61.6672 57.8107 93.7463 2006 58.8485 20.5156 41.1515 39.4114 95.7713

2007 and later years 20.5758 20.5758 20.1336 97.8513

2005–49 I.R.B. 1080 December 5, 2005

Financial Guaranty/Mortgage Guaranty

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 4.0723 4.0723 95.9277 90.2226 94.0527 2006 40.7639 36.6916 59.2361 56.7312 95.7713

2007 and later years 29.6180 29.6180 28.9816 97.8513

International (Composite)

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2015 0.1531 3.4145 2.8667 83.9550 2016 0.1531 3.2614 2.8374 87.0012 2017 0.1531 3.1083 2.8069 90.3057 2018 0.1531 2.9551 2.7751 93.9070 2019 and later 0.1531 2.8020 2.7418 97.8513

December 5, 2005 1081 2005–49 I.R.B.

Medical Malpractice — Claims-Made

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 7.3447 7.3447 92.6553 82.5239 89.0655 2006 29.0191 21.6744 70.9809 64.0376 90.2180 2007 53.3108 24.2917 46.6892 42.0557 90.0759 2008 69.1517 15.8409 30.8483 27.7343 89.9053 2009 82.0981 12.9464 17.9019 15.7350 87.8955 2010 86.3995 4.3014 13.6005 12.0377 88.5095 2011 89.7111 3.3116 10.2889 9.1879 89.2991 2012 92.4688 2.7577 7.5312 6.7776 89.9934 2013 94.5163 2.0475 5.4837 4.9860 90.9248 2014 95.7635 1.2471 4.2365 3.9329 92.8323

2015 1.2471 2.9894 2.8330 94.7672 2016 1.2471 1.7422 1.6842 96.6692 2017 and later years 1.2471 0.4951 0.4845 97.8513

Taxpayers that use the composite method of Notice 88–100 should use 95.5661 percent to discount unpaid losses incurred in this line of business in 2005 and prior years and that are outstanding at the end of the 2015 taxable year.

Medical Malpractice — Occurrence

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 0.8316 0.8316 99.1684 83.1082 83.8051 2006 7.4573 6.6257 92.5427 80.0270 86.4758 2007 23.5575 16.1002 76.4425 67.1265 87.8130 2008 41.0062 17.4487 58.9938 52.2751 88.6111 2009 55.5832 14.5770 44.4168 39.6990 89.3782 2010 68.9413 13.3581 31.0587 27.8102 89.5407 2011 78.2095 9.2682 21.7905 19.5732 89.8245 2012 82.8727 4.6632 17.1273 15.6766 91.5303 2013 86.3178 3.4451 13.6822 12.8519 93.9319 2014 91.0834 4.7656 8.9166 8.5523 95.9147

2015 and later years 4.7656 4.1510 4.0618 97.8513

2005–49 I.R.B. 1082 December 5, 2005

Miscellaneous Casualty

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 79.7790 79.7790 20.2210 19.4754 96.3125 2006 94.9417 15.1627 5.0583 4.8444 95.7713

2007 and later years 2.5292 2.5292 2.4748 97.8513

Multiple Peril Lines (Homeowners/Farmowners, Commercial Multiple Peril, and Special Liability

(Ocean Marine, Aircraft (All Perils), Boiler and Machinery))

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 59.7445 59.7445 40.2555 37.1445 92.2719 2006 81.0347 21.2902 18.9653 17.0360 89.8274 2007 87.3325 6.2978 12.6675 11.3563 89.6494 2008 91.0659 3.7334 8.9341 8.0452 90.0503 2009 95.1781 4.1122 4.8219 4.1999 87.1002 2010 95.7605 0.5824 4.2395 3.7911 89.4249 2011 97.0539 1.2933 2.9461 2.6377 89.5320 2012 97.6441 0.5903 2.3559 2.1516 91.3303 2013 98.7037 1.0596 1.2963 1.1643 89.8184 2014 98.6217 -0.0821 1.3783 1.2999 94.3059

2015 0.5226 0.8558 0.8235 96.2318 2016 and later years 0.5226 0.3332 0.3260 97.8513

Taxpayers that use the composite method of Notice 88–100 should use 96.6358 percent to discount unpaid losses incurred in this line of business in 2005 and prior years and that are outstanding at the end of the 2015 taxable year.

December 5, 2005 1083 2005–49 I.R.B.

Other (Including Credit)

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 69.1729 69.1729 30.8271 29.6244 96.0986 2006 91.2168 22.0439 8.7832 8.4118 95.7713

2007 and later years 4.3916 4.3916 4.2973 97.8513

Other Liability — Claims-Made

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 14.9618 14.9618 85.0382 74.3656 87.4496 2006 36.2113 21.2494 63.7887 55.9513 87.7135 2007 54.2876 18.0763 45.7124 39.9623 87.4211 2008 64.2163 9.9288 35.7837 31.5899 88.2801 2009 73.2732 9.0569 26.7268 23.7367 88.8123 2010 80.5748 7.3016 19.4252 17.3286 89.2072 2011 87.6200 7.0452 12.3800 10.8982 88.0304 2012 89.9155 2.2955 10.0845 9.0361 89.6042 2013 93.3946 3.4791 6.6054 5.8818 89.0459 2014 94.6170 1.2223 5.3830 4.8938 90.9113

2015 1.2223 4.1607 3.8619 92.8183 2016 1.2223 2.9383 2.7841 94.7528 2017 1.2223 1.7160 1.6586 96.6546 2018 and later years 1.2223 0.4936 0.4830 97.8513

Taxpayers that use the composite method of Notice 88–100 should use 94.1292 percent to discount unpaid losses incurred in this line of business in 2005 and prior years and that are outstanding at the end of the 2015 taxable year.

2005–49 I.R.B. 1084 December 5, 2005

Other Liability — Occurrence

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 19.1133 19.1133 80.8867 68.6311 84.8484 2006 36.4434 17.3301 63.5566 53.9677 84.9128 2007 52.1648 15.7215 47.8352 40.2972 84.2417 2008 63.2383 11.0734 36.7617 30.7698 83.7006 2009 72.0780 8.8397 27.9220 23.1021 82.7380 2010 75.9021 3.8241 24.0979 20.2198 83.9068 2011 82.9305 7.0284 17.0695 13.9348 81.6357 2012 85.1441 2.2136 14.8559 12.2913 82.7368 2013 89.3006 4.1565 10.6994 8.5893 80.2780 2014 89.9898 0.6892 10.0102 8.2663 82.5786

2015 0.6892 9.3210 7.9290 85.0657 2016 0.6892 8.6318 7.5767 87.7764 2017 0.6892 7.9426 7.2087 90.7606 2018 0.6892 7.2533 6.8244 94.0867 2019 and later years 0.6892 6.5641 6.4231 97.8513

Taxpayers that use the composite method of Notice 88–100 should use 88.8152 percent to discount unpaid losses incurred in this line of business in 2005 and prior years and that are outstanding at the end of the 2015 taxable year.

Private Passenger Auto Liability/Medical

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 43.1926 43.1926 56.8074 53.1786 93.6121 2006 72.2008 29.0082 27.7992 25.8946 93.1486 2007 84.5632 12.3625 15.4368 14.4104 93.3510 2008 91.9316 7.3684 8.0684 7.5200 93.2034 2009 95.8729 3.9413 4.1271 3.8261 92.7060 2010 97.7804 1.9075 2.2196 2.0465 92.2040 2011 98.7957 1.0153 1.2043 1.0999 91.3257 2012 99.2491 0.4535 0.7509 0.6853 91.2646 2013 99.5195 0.2703 0.4805 0.4394 91.4469 2014 99.6353 0.1159 0.3647 0.3405 93.3821

December 5, 2005 1085 2005–49 I.R.B.

Private Passenger Auto Liability/Medical

2015 0.1159 0.2488 0.2373 95.3548 2016 0.1159 0.1330 0.1294 97.3165 2017 and later years 0.1159 0.0171 0.0167 97.8513

Taxpayers that use the composite method of Notice 88–100 should use 96.0257 percent to discount unpaid losses incurred in this line of business in 2005 and prior years and that are outstanding at the end of the 2015 taxable year.

Products Liability — Claims-Made

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 6.5804 6.5804 93.4196 79.0050 84.5700 2006 26.7183 20.1379 73.2817 61.9327 84.5131 2007 43.1834 16.4652 56.8166 47.8558 84.2286 2008 43.9209 0.7375 56.0791 49.2269 87.7812 2009 54.3806 10.4597 45.6194 40.7232 89.2673 2010 78.3630 23.9824 21.6370 18.0223 83.2938 2011 82.8643 4.5013 17.1357 14.2223 82.9982 2012 68.2184 -14.6459 31.7816 29.8213 93.8320 2013 79.1582 10.9399 20.8418 19.9653 95.7947 2014 89.6963 10.5381 10.3037 10.0823 97.8513

2015 and later years 97.8513

Taxpayers that use the composite method of Notice 88–100 should use 97.1286 percent to discount unpaid losses incurred in this line of business in 2005 and prior years and that are outstanding at the end of the 2015 taxable year.

Products Liability — Occurrence

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 9.4198 9.4198 90.5802 75.2456 83.0707 2006 20.5845 11.1647 79.4155 67.1766 84.5888 2007 36.7807 16.1962 63.2193 53.6074 84.7959 2008 55.5974 18.8167 44.4026 36.7576 82.7827 2009 66.6238 11.0263 33.3762 27.1212 81.2591 2010 77.2636 10.6399 22.7364 17.4519 76.7576 2011 79.1888 1.9251 20.8112 16.2593 78.1278 2012 83.6816 4.4928 16.3184 12.3898 75.9253 2013 85.5507 1.8691 14.4493 11.0297 76.3341 2014 85.7291 0.1784 14.2709 11.3371 79.4424

2005–49 I.R.B. 1086 December 5, 2005

Products Liability — Occurrence

2015 0.1784 14.0925 11.6582 82.7263 2016 0.1784 13.9141 11.9935 86.1968 2017 0.1784 13.7357 12.3437 89.8658 2018 0.1784 13.5573 12.7094 93.7461 2019 and later years 0.1784 13.3789 13.0914 97.8513

Taxpayers that use the composite method of Notice 88–100 should use 86.9679 percent to discount unpaid losses incurred in this line of business in 2005 and prior years and that are outstanding at the end of the 2015 taxable year.

Reinsurance A (Nonproportional Assumed Property)

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 25.0571 25.0571 74.9429 68.9700 92.0300 2006 52.0402 26.9831 47.9598 44.4567 92.6956 2007 82.4709 30.4307 17.5291 15.3316 87.4636 2008 85.6387 3.1678 14.3613 12.7749 88.9539 2009 92.7228 7.0840 7.2772 6.1025 83.8577 2010 91.8604 -0.8624 8.1396 7.2548 89.1294 2011 96.5016 4.6412 3.4984 2.8338 81.0020 2012 96.1872 -0.3143 3.8128 3.2809 86.0493 2013 97.6206 1.4333 2.3794 1.9617 82.4450 2014 97.8419 0.2214 2.1581 1.8226 84.4552

2015 0.2214 1.9367 1.6773 86.6060 2016 0.2214 1.7154 1.5256 88.9357 2017 0.2214 1.4940 1.3671 91.5049 2018 0.2214 1.2727 1.2016 94.4149 2019 and later years 0.2214 1.0513 1.0287 97.8513

Taxpayers that use the composite method of Notice 88–100 should use 89.0524 percent to discount unpaid losses incurred in this line of business in 2005 and prior years and that are outstanding at the end of the 2015 taxable year.

Reinsurance B (Nonproportional Assumed Liability)

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 8.9223 8.9223 91.0777 75.0085 82.3566 2006 27.3618 18.4395 72.6382 59.4945 81.9052 2007 44.5758 17.2140 55.4242 44.5440 80.3692 2008 53.8781 9.3023 46.1219 37.0152 80.2551 2009 60.8896 7.0115 39.1104 31.4932 80.5238 2010 69.7327 8.8430 30.2673 23.8542 78.8118

December 5, 2005 1087 2005–49 I.R.B.

Reinsurance B (Nonproportional Assumed Liability)

2011 76.6292 6.8965 23.3708 17.8654 76.4433 2012 79.4030 2.7738 20.5970 15.8239 76.8263 2013 83.8936 4.4906 16.1064 11.9373 74.1151 2014 80.1707 -3.7229 19.8293 16.2719 82.0601

2015 1.1805 18.6487 15.7879 84.6595 2016 1.1805 17.4682 15.2825 87.4873 2017 1.1805 16.2877 14.7546 90.5872 2018 1.1805 15.1072 14.2032 94.0165 2019 and later years 1.1805 13.9266 13.6274 97.8513

Taxpayers that use the composite method of Notice 88–100 should use 87.9189 percent to discount unpaid losses incurred in this line of business in 2005 and prior years and that are outstanding at the end of the 2015 taxable year.

Reinsurance C (Nonproportional Assumed Financial Lines)

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

Unpaid Losses at Year End

(%)

2005 17.1195 17.1195 82.8805 73.7197 88.9470 2006 46.6590 29.5395 53.3410 46.8047 87.7462 2007 67.7135 21.0545 32.2865 27.3660 84.7599 2008 78.1379 10.4244 21.8621 17.9277 82.0037 2009 89.7346 11.5967 10.2654 6.8723 66.9470 2010 92.1268 2.3921 7.8732 4.7328 60.1128 2011 89.7323 -2.3945 10.2677 7.3900 71.9733 2012 90.0460 0.3137 9.9540 7.3975 74.3171 2013 94.8867 4.8407 5.1133 2.7790 54.3481 2014 86.7041 -8.1827 13.2959 11.2647 84.7228

2015 1.4277 11.8683 10.3058 86.8351 2016 1.4277 10.4406 9.3044 89.1173 2017 1.4277 9.0129 8.2584 91.6292 2018 1.4277 7.5852 7.1661 94.4744 2019 and later years 1.4277 6.1575 6.0252 97.8513

Taxpayers that use the composite method of Notice 88–100 should use 89.1998 percent to discount unpaid losses incurred in this line of business in 2005 and prior years and that are outstanding at the end of the 2015 taxable year.

2005–49 I.R.B. 1088 December 5, 2005

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

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 62.9320 62.9320 37.0680 35.5638 95.9420 2006 88.4950 25.5631 11.5050 11.0185 95.7713

2007 and later years 5.7525 5.7525 5.6289 97.8513

Workers’ Compensation

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2005 28.2489 28.2489 71.7511 63.4995 88.4998 2006 57.8739 29.6249 42.1261 36.0435 85.5608 2007 71.2999 13.4260 28.7001 23.9229 83.3549 2008 77.7584 6.4585 22.2416 18.3848 82.6595 2009 81.9301 4.1717 18.0699 14.9378 82.6666 2010 83.7739 1.8437 16.2261 13.7168 84.5350 2011 86.5350 2.7611 13.4650 11.5040 85.4365 2012 88.4367 1.9017 11.5633 10.0714 87.0975 2013 89.5926 1.1559 10.4074 9.3372 89.7172 2014 91.6441 2.0515 8.3559 7.6553 91.6150

2015 2.0515 6.3045 5.8987 93.5633 2016 2.0515 4.2530 4.0641 95.5573 2017 2.0515 2.2016 2.1480 97.5677 2018 and later years 2.0515 0.1501 0.1469 97.8513

Taxpayers that use the composite method of Notice 88–100 should use 95.7822 percent to discount unpaid losses incurred in this line of business in 2005 and prior years and that are outstanding at the end of the 2015 taxable year.

DRAFTING INFORMATION

The principal author of this revenue procedure is Katherine A. Hossofsky of

the Office of Associate Chief Counsel (Financial Institutions & Products). For further information regarding this revenue

procedure, contact Ms. Hossofsky at (202) 622–8435 (not a toll-free call).

December 5, 2005 1089 2005–49 I.R.B.

26 CFR 601.201: Rulings and determination letters. (Also Part I, Sections 832, 846; 1.832–4, 1.846–1.)

Rev. Proc. 2005–73