SEC. 3. TABLES — Internal Revenue Bulletin 2007-3

FACTORS

.01 The following tables present separately for each line of business the discount factors under § 846 for accident year 2006. All the discount factors presented in this section were determined using the applicable interest rate under § 846(c) for 2006, which is 3.98 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 state

ment 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. 2007–9 on this issue to the following address:

CC:PA:LPD:PR ( Rev. Proc. 2007–9 ), 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. 2007–9 ), 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.

January 16, 2007 278 2007–3 I.R.B.

Tables of Factors to be Used to Discount

Unpaid Losses Incurred in

Accident Year 2006

(Interest rate: 3.98 percent)

Accident and Health (Other Than Disability Income or Credit Disability Insurance)

Taxpayers that do not use the composite method of Notice 88–100 should use 98.0675 percent to discount unpaid losses incurred in this line of business in the 2006 accident year and that are outstanding at the end of the 2006 and later taxable years.

Taxpayers that use the composite method of Notice 88–100 should use 98.0675 percent to discount all unpaid losses in this line of business that are outstanding at the end of the 2006 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

(%)

2006 89.6468 89.6468 10.3532 10.1356 97.8981 2007 99.6845 10.0377 0.3155 0.3035 96.1907

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 2006 accident year and that are outstanding at the end of the tax year shown.

2008 and later years 0.1578 0.1578 0.1547 98.0675

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 2006 and prior years and that are outstanding at the end of the 2008 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

(%)

2006 28.8244 28.8244 71.1756 65.9439 92.6497 2007 54.9871 26.1626 45.0129 41.8903 93.0628 2008 72.8039 17.8168 27.1961 25.3896 93.3575 2009 85.0572 12.2533 14.9428 13.9054 93.0572 2010 91.6276 6.5704 8.3724 7.7589 92.6725 2011 94.9514 3.3239 5.0486 4.6784 92.6676 2012 97.0453 2.0938 2.9547 2.7295 92.3768 2013 98.1574 1.1121 1.8426 1.7041 92.4822 2014 98.7370 0.5796 1.2630 1.1809 93.4978 2015 99.1070 0.3700 0.8930 0.8506 95.2504

2007–3 I.R.B. 279 January 16, 2007

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 2006 accident year and that are outstanding at the end of the tax year shown.

2016 0.3700 0.5230 0.5072 96.9692 2017 and later years 0.3700 0.1530 0.1501 98.0675

Taxpayers that use the composite method of Notice 88–100 should use 97.1689 percent to discount unpaid losses incurred in this line of business in 2006 and prior years and that are outstanding at the end of the 2016 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

(%)

2006 40.9985 40.9985 59.0015 53.7593 91.1153 2007 65.8439 24.8454 34.1561 30.5639 89.4832 2008 77.5023 11.6583 22.4977 19.8923 88.4193 2009 84.6221 7.1198 15.3779 13.4239 87.2935 2010 90.2455 5.6234 9.7545 8.2239 84.3094 2011 92.2780 2.0325 7.7220 6.4788 83.8997 2012 94.3974 2.1195 5.6026 4.5754 81.6658 2013 95.2526 0.8552 4.7474 3.8854 81.8439 2014 96.2792 1.0266 3.7208 2.9933 80.4470 2015 96.4323 0.1531 3.5677 2.9562 82.8624

2016 0.1531 3.4145 2.9177 85.4512 2017 0.1531 3.2614 2.8777 88.2363 2018 0.1531 3.1083 2.8361 91.2444 2019 0.1531 2.9551 2.7928 94.5083 2020 and later years 0.1531 2.8020 2.7478 98.0675

Taxpayers that use the composite method of Notice 88–100 should use 88.1508 percent to discount unpaid losses incurred in this line of business in 2006 and prior years and that are outstanding at the end of the 2016 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

(%)

2006 38.3328 38.3328 61.6672 58.1879 94.3581 2007 58.8485 20.5156 41.1515 39.5839 96.1907

2008 and later years 20.5758 20.5758 20.1781 98.0675

January 16, 2007 280 2007–3 I.R.B.

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

(%)

2006 4.0723 4.0723 95.9277 90.7812 94.6350 2007 40.7639 36.6916 59.2361 56.9796 96.1907

2008 and later years 29.6180 29.6180 29.0457 98.0675

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

(%)

2016 0.1531 3.4145 2.9177 85.4512 2017 0.1531 3.2614 2.8777 88.2363 2018 0.1531 3.1083 2.8361 91.2444 2019 0.1531 2.9551 2.7928 94.5083 2020 and later years 0.1531 2.8020 2.7478 98.0675

2007–3 I.R.B. 281 January 16, 2007

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

(%)

2006 7.3447 7.3447 92.6553 83.4596 90.0754 2007 29.0191 21.6744 70.9809 64.6798 91.1228 2008 53.3108 24.2917 46.6892 42.4836 90.9925 2009 69.1517 15.8409 30.8483 28.0215 90.8363 2010 82.0981 12.9464 17.9019 15.9352 89.0139 2011 86.3995 4.3014 13.6005 12.1832 89.5793 2012 89.7111 3.3116 10.2889 9.2913 90.3038 2013 92.4688 2.7577 7.5312 6.8490 90.9420 2014 94.5163 2.0475 5.4837 5.0337 91.7950 2015 95.7635 1.2471 4.2365 3.9624 93.5285

2016 1.2471 2.9894 2.8483 95.2819 2017 1.2471 1.7422 1.6900 97.0008 2018 and later years 1.2471 0.4951 0.4855 98.0675

Taxpayers that use the composite method of Notice 88–100 should use 95.9709 percent to discount unpaid losses incurred in this line of business in 2006 and prior years and that are outstanding at the end of the 2016 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

(%)

2006 0.8316 0.8316 99.1684 84.5630 85.2721 2007 7.4573 6.6257 92.5427 81.1723 87.7134 2008 23.5575 16.1002 76.4425 67.9856 88.9369 2009 41.0062 17.4487 58.9938 52.8989 89.6685 2010 55.5832 14.5770 44.4168 40.1400 90.3712 2011 68.9413 13.3581 31.0587 28.1163 90.5261 2012 78.2095 9.2682 21.7905 19.7844 90.7937 2013 82.8727 4.6632 17.1273 15.8167 92.3480 2014 86.3178 3.4451 13.6822 12.9332 94.5260 2015 91.0834 4.7656 8.9166 8.5884 96.3200 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 2006 accident year and that are outstanding at the end of the tax year shown.

2016 and later years 4.7656 4.1510 4.0708 98.0675

January 16, 2007 282 2007–3 I.R.B.

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

(%)

2006 79.7790 79.7790 20.2210 19.5491 96.6770 2007 94.9417 15.1627 5.0583 4.8656 96.1907

2008 and later years 2.5292 2.5292 2.4803 98.0675

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

(%)

2006 59.7445 59.7445 40.2555 37.4341 92.9914 2007 81.0347 21.2902 18.9653 17.2142 90.7672 2008 87.3325 6.2978 12.6675 11.4775 90.6059 2009 91.0659 3.7334 8.9341 8.1273 90.9698 2010 95.1781 4.1122 4.8219 4.2575 88.2964 2011 95.7605 0.5824 4.2395 3.8331 90.4149 2012 97.0539 1.2933 2.9461 2.6668 90.5202 2013 97.6441 0.5903 2.3559 2.1711 92.1567 2014 98.7037 1.0596 1.2963 1.1770 90.8007 2015 98.6217 -0.0821 1.3783 1.3076 94.8644

2016 0.5226 0.8558 0.8267 96.6061 2017 and later years 0.5226 0.3332 0.3267 98.0675

Taxpayers that use the composite method of Notice 88–100 should use 96.9550 percent to discount unpaid losses incurred in this line of business in 2006 and prior years and that are outstanding at the end of the 2016 taxable year.

2007–3 I.R.B. 283 January 16, 2007

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

(%)

2006 69.1729 69.1729 30.8271 29.7431 96.4837 2007 91.2168 22.0439 8.7832 8.4487 96.1907

2008 and later years 4.3916 4.3916 4.3068 98.0675

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

(%)

2006 14.9618 14.9618 85.0382 75.3352 88.5898 2007 36.2113 21.2494 63.7887 56.6653 88.8328 2008 54.2876 18.0763 45.7124 40.4881 88.5713 2009 64.2163 9.9288 35.7837 31.9751 89.3567 2010 73.2732 9.0569 26.7268 24.0123 89.8438 2011 80.5748 7.3016 19.4252 17.5225 90.2054 2012 87.6200 7.0452 12.3800 11.0359 89.1433 2013 89.9155 2.2955 10.0845 9.1344 90.5790 2014 93.3946 3.4791 6.6054 5.9503 90.0827 2015 94.6170 1.2223 5.3830 4.9407 91.7827

2016 1.2223 4.1607 3.8909 93.5158 2017 1.2223 2.9383 2.7993 95.2689 2018 1.2223 1.7160 1.6643 96.9877 2019 and later years 1.2223 0.4936 0.4841 98.0675

Taxpayers that use the composite method of Notice 88–100 should use 94.6440 percent to discount unpaid losses incurred in this line of business in 2006 and prior years and that are outstanding at the end of the 2016 taxable year.

January 16, 2007 284 2007–3 I.R.B.

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

(%)

2006 19.1133 19.1133 80.8867 69.7012 86.1714 2007 36.4434 17.3301 63.5566 54.8037 86.2281 2008 52.1648 15.7215 47.8352 40.9536 85.6140 2009 63.2383 11.0734 36.7617 31.2919 85.1209 2010 72.0780 8.8397 27.9220 23.5235 84.2469 2011 75.9021 3.8241 24.0979 20.5602 85.3195 2012 82.9305 7.0284 17.0695 14.2116 83.2573 2013 85.1441 2.2136 14.8559 12.5200 84.2763 2014 89.3006 4.1565 10.6994 8.7799 82.0597 2015 89.9898 0.6892 10.0102 8.4266 84.1796

2016 0.6892 9.3210 8.0591 86.4622 2017 0.6892 8.6318 7.6771 88.9398 2018 0.6892 7.9426 7.2798 91.6560 2019 0.6892 7.2533 6.8668 94.6705 2020 and later years 0.6892 6.5641 6.4373 98.0675

Taxpayers that use the composite method of Notice 88–100 should use 90.4497 percent to discount unpaid losses incurred in this line of business in 2006 and prior years and that are outstanding at the end of the 2016 taxable year.

Private Passenger Auto Liability/Medical

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

Unpaid Losses at Year End

(%)

2006 43.1926 43.1926 56.8074 53.5261 94.2237 2007 72.2008 29.0082 27.7992 26.0766 93.8032 2008 84.5632 12.3625 15.4368 14.5083 93.9856 2009 91.9316 7.3684 8.0684 7.5722 93.8501 2010 95.8729 3.9413 4.1271 3.8546 93.3975 2011 97.7804 1.9075 2.2196 2.0629 92.9415 2012 98.7957 1.0153 1.2043 1.1098 92.1473 2013 99.2491 0.4535 0.7509 0.6915 92.0971 2014 99.5195 0.2703 0.4805 0.4434 92.2703 2015 99.6353 0.1159 0.3647 0.3429 94.0275

2016 0.1159 0.2488 0.2384 95.8137 2017 0.1159 0.1330 0.1297 97.5849 2018 and later years 0.1159 0.0171 0.0168 98.0675

Taxpayers that use the composite method of Notice 88–100 should use 96.3943 percent to discount unpaid losses incurred in this line of business in 2006 and prior years and that are outstanding at the end of the 2016 taxable year.

2007–3 I.R.B. 285 January 16, 2007

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

(%)

2006 6.5804 6.5804 93.4196 80.2960 85.9520 2007 26.7183 20.1379 73.2817 62.9570 85.9110 2008 43.1834 16.4652 56.8166 48.6731 85.6671 2009 43.9209 0.7375 56.0791 49.8583 88.9071 2010 54.3806 10.4597 45.6194 41.1768 90.2617 2011 78.3630 23.9824 21.6370 18.3607 84.8579 2012 82.8643 4.5013 17.1357 14.5014 84.6271 2013 68.2184 -14.6459 31.7816 30.0132 94.4355 2014 79.1582 10.9399 20.8418 20.0522 96.2118 2015 89.6963 10.5381 10.3037 10.1045 98.0675

2016 and later years 98.0675

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

(%)

2006 9.4198 9.4198 90.5802 76.5659 84.5283 2007 20.5845 11.1647 79.4155 68.2285 85.9133 2008 36.7807 16.1962 63.2193 54.4286 86.0950 2009 55.5974 18.8167 44.4026 37.4074 84.2460 2010 66.6238 11.0263 33.3762 27.6526 82.8511 2011 77.2636 10.6399 22.7364 17.9036 78.7443 2012 79.1888 1.9251 20.8112 16.6531 80.0197 2013 83.6816 4.4928 16.3184 12.7345 78.0378 2014 85.5507 1.8691 14.4493 11.3354 78.4496 2015 85.7291 0.1784 14.2709 11.6047 81.3169

2016 0.1784 14.0925 11.8846 84.3329 2017 0.1784 13.9141 12.1757 87.5062 2018 0.1784 13.7357 12.4784 90.8463 2019 0.1784 13.5573 12.7931 94.3632 2020 and later years 0.1784 13.3789 13.1204 98.0675

Taxpayers that use the composite method of Notice 88–100 should use 89.8177 percent to discount unpaid losses incurred in this line of business in 2006 and prior years and that are outstanding at the end of the 2016 taxable year.

January 16, 2007 286 2007–3 I.R.B.

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

(%)

2006 25.0571 25.0571 74.9429 69.5252 92.7708 2007 52.0402 26.9831 47.9598 44.7775 93.3645 2008 82.4709 30.4307 17.5291 15.5292 88.5910 2009 85.6387 3.1678 14.3613 12.9170 89.9434 2010 92.7228 7.0840 7.2772 6.2075 85.3001 2011 91.8604 -0.8624 8.1396 7.3339 90.1015 2012 96.5016 4.6412 3.4984 2.8932 82.6989 2013 96.1872 -0.3143 3.8128 3.3288 87.3078 2014 97.6206 1.4333 2.3794 1.9998 84.0432 2015 97.8419 0.2214 2.1581 1.8536 85.8925

2016 0.2214 1.9367 1.7017 87.8641 2017 0.2214 1.7154 1.5437 89.9920 2018 0.2214 1.4940 1.3794 92.3296 2019 0.2214 1.2727 1.2086 94.9667 2020 and later years 0.2214 1.0513 1.0310 98.0675

Taxpayers that use the composite method of Notice 88–100 should use 90.9754 percent to discount unpaid losses incurred in this line of business in 2006 and prior years and that are outstanding at the end of the 2016 taxable year.

Reinsurance B (Nonproportional Assumed Liability)

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

Unpaid Losses at Year End

(%)

2006 8.9223 8.9223 91.0777 76.3687 83.8500 2007 27.3618 18.4395 72.6382 60.6053 83.4344 2008 44.5758 17.2140 55.4242 45.4641 82.0294 2009 53.8781 9.3023 46.1219 37.7880 81.9307 2010 60.8896 7.0115 39.1104 32.1422 82.1834 2011 69.7327 8.8430 30.2673 24.4042 80.6288 2012 76.6292 6.8965 23.3708 18.3431 78.4871 2013 79.4030 2.7738 20.5970 16.2447 78.8690 2014 83.8936 4.4906 16.1064 12.3121 76.4422 2015 80.1707 -3.7229 19.8293 16.5983 83.7063

2007–3 I.R.B. 287 January 16, 2007

Reinsurance B (Nonproportional Assumed Liability)

2016 1.1805 18.6487 16.0552 86.0925 2017 1.1805 17.4682 15.4904 88.6775 2018 1.1805 16.2877 14.9031 91.4992 2019 1.1805 15.1072 14.2924 94.6071 2020 and later years 1.1805 13.9266 13.6575 98.0675

Taxpayers that use the composite method of Notice 88–100 should use 90.3273 percent to discount unpaid losses incurred in this line of business in 2006 and prior years and that are outstanding at the end of the 2016 taxable year.

Reinsurance C (Nonproportional Assumed Financial Lines)

Discount

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Unpaid Losses at Year End

(%)

Tax Year

Estimated Cumulative

Losses

Paid

(%)

Estimated Losses Paid

Each Year

(%)

2006 17.1195 17.1195 82.8805 74.5159 89.9077 2007 46.6590 29.5395 53.3410 47.3601 88.7874 2008 67.7135 21.0545 32.2865 27.7757 86.0287 2009 78.1379 10.4244 21.8621 18.2513 83.4837 2010 89.7346 11.5967 10.2654 7.1524 69.6754 2011 92.1268 2.3921 7.8732 4.9978 63.4788 2012 89.7323 -2.3945 10.2677 7.6384 74.3925 2013 90.0460 0.3137 9.9540 7.6225 76.5774 2014 94.8867 4.8407 5.1133 2.9898 58.4711 2015 86.7041 -8.1827 13.2959 11.4527 86.1367

2016 1.4277 11.8683 10.4527 88.0727 2017 1.4277 10.4406 9.4129 90.1568 2018 1.4277 9.0129 8.3317 92.4421 2019 1.4277 7.5852 7.2075 95.0203 2020 and later years 1.4277 6.1575 6.0385 98.0675

Taxpayers that use the composite method of Notice 88–100 should use 91.0632 percent to discount unpaid losses incurred in this line of business in 2006 and prior years and that are outstanding at the end of the 2016 taxable year.

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

(%)

2006 62.9320 62.9320 37.0680 35.7122 96.3422 2007 88.4950 25.5631 11.5050 11.0667 96.1907

January 16, 2007 288 2007–3 I.R.B.

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

2008 and later years 5.7525 5.7525 5.6413 98.0675

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

(%)

2006 28.2489 28.2489 71.7511 64.2325 89.5214 2007 57.8739 29.6249 42.1261 36.5803 86.8351 2008 71.2999 13.4260 28.7001 24.3455 84.8274 2009 77.7584 6.4585 22.2416 18.7287 84.2059 2010 81.9301 4.1717 18.0699 15.2202 84.2298 2011 83.7739 1.8437 16.2261 13.9459 85.9472 2012 86.5350 2.7611 13.4650 11.6854 86.7836 2013 88.4367 1.9017 11.5633 10.2113 88.3080 2014 89.5926 1.1559 10.4074 9.4390 90.6955 2015 91.6441 2.0515 8.3559 7.7228 92.4232

2016 2.0515 6.3045 5.9383 94.1919 2017 2.0515 4.2530 4.0828 95.9970 2018 2.0515 2.2016 2.1534 97.8116 2019 and later years 2.0515 0.1501 0.1472 98.0675

Taxpayers that use the composite method of Notice 88–100 should use 95.2214 percent to discount unpaid losses incurred in this line of business in 2006 and prior years and that are outstanding at the end of the 2016 taxable year.

Pursuant to § 832(b), the amount of estimated salvage is determined on a discounted basis in accordance with procedures established by the Secretary.