SEC. 4. TABLES — Internal Revenue Bulletin 2008-3

FACTORS

.01 The following tables present separately for each line of business the discount factors under § 846 for accident year 2007. All the discount factors presented in this section were determined using the applicable interest rate under § 846(c) for 2007, 3.97 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 2007 annual statement. .03 Tables

nual statement for fire and casualty companies approved by the National Association of Insurance Commissioners (NAIC), except that the multiple peril lines shall be treated as a single line of business. Section 846(f)(5) states that the term “multiple peril lines” means the lines of business relating to farmowners multiple peril, homeowners multiple peril, commercial multiple peril, ocean marine, aircraft (all perils) and boiler and machinery.

.02 Pursuant to § 846(d), the Secretary has determined a loss payment pattern for each property and casualty line of business for the 2007 determination year that, pursuant to § 846(d)(1), must be applied through the 2011 accident year.

.03 The loss payment patterns for the 2007 determination year are based on the aggregate loss payment information reported on the 2005 annual statements of property and casualty insurance companies and compiled by A.M. Best and Co. The tables are arranged in alphabetical order. Following is an additional explanation of some of the tables and changes to the tables.

(1) Lines of Business . The lines of business for the 2007 determination year are the same as the lines of business for the

2002 determination year. See Rev. Proc. 2003–17, 2003–1 C.B. 427 (2) Format of the Tables . To simplify the tables, the columns entitled Tax Year provide the actual tax years, rather than AY+0, AY+1, and so on.

(3) Accident Years Not Separately Re- ported on the NAIC Annual Statement . 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. (4) Smoothing Data . In Rev. Proc. 2003–17, section 2.03(4), comments were requested 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 revenue procedure does not adopt such a methodology with respect to the 2007 determination year.

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 98.0722 percent to discount unpaid losses incurred in this line of business in the 2007 accident year and that are outstanding at the end of the 2007 and later taxable years.

Taxpayers that use the composite method of Notice 88–100 should use 98.0722 percent to discount all unpaid losses in this line of business that are outstanding at the end of the 2007 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

(%)

2007 89.4096 89.4096 10.5904 10.3687 97.9072 2008 99.6848 10.2752 0.3152 0.3032 96.1998

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 2007 accident year and that are outstanding at the end of the tax year shown.

2009 and later years 0.1576 0.1576 0.1546 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 98.0722 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2009 taxable year.

2008–3 I.R.B. 291 January 22, 2008

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

(%)

2007 23.6718 23.6718 76.3282 70.3185 92.1265 2008 47.5425 23.8708 52.4575 48.7701 92.9709 2009 66.6847 19.1421 33.3153 31.1879 93.6143 2010 81.5105 14.8258 18.4895 17.3088 93.6143 2011 90.0548 8.5443 9.9452 9.2837 93.3488 2012 94.7311 4.6763 5.2689 4.8841 92.6963 2013 97.0602 2.3292 2.9398 2.7031 91.9480 2014 98.1174 1.0572 1.8826 1.7324 92.0225 2015 98.8692 0.7518 1.1308 1.0346 91.4939 2016 99.1160 0.2467 0.8840 0.8241 93.2174

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.

2017 0.2467 0.6373 0.6052 94.9641 2018 0.2467 0.3906 0.3777 96.6929 2019 and later years 0.2467 0.1439 0.1411 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 95.5650 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2017 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

(%)

2007 34.7004 34.7004 65.2996 59.3989 90.9638 2008 58.6076 23.9072 41.3924 37.3799 90.3063 2009 71.7608 13.1532 28.2392 25.4522 90.1307 2010 81.4987 9.7379 18.5013 16.5333 89.3631 2011 87.8488 6.3501 12.1512 10.7148 88.1789 2012 91.4226 3.5739 8.5774 7.4961 87.3938 2013 93.4057 1.9831 6.5943 5.7716 87.5245 2014 94.2280 0.8222 5.7720 5.1623 89.4370 2015 95.4875 1.2595 4.5125 4.0830 90.4817 2016 96.3560 0.8685 3.6440 3.3595 92.1928

2017 0.8685 2.7754 2.6072 93.9399 2018 0.8685 1.9069 1.8251 95.7124 2019 0.8685 1.0383 1.0120 97.4599 2020 and later years 0.8685 0.1698 0.1665 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 91.0440 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2017 taxable year.

January 22, 2008 292 2008–3 I.R.B.

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

(%)

2007 25.2328 25.2328 74.7672 71.1687 95.1871 2008 61.1025 35.8698 38.8975 37.4193 96.1998

2009 and later years 19.4487 19.4487 19.0738 98.0722

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

(%)

2007 7.7824 7.7824 92.2175 88.3402 95.7954 2008 62.1390 54.3565 37.8610 36.4222 96.1998

2009 and later years 18.9305 18.9305 18.5656 98.0722

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

(%)

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 2007 accident year and that are outstanding at the end of the tax year shown.

2008–3 I.R.B. 293 January 22, 2008

International (Composite)

2017 0.8685 2.7754 2.6072 93.9399 2018 0.8685 1.9069 1.8251 95.7124 2019 0.8685 1.0383 1.0120 97.4599 2020 and later years 0.8685 0.1698 0.1665 98.0722

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

(%)

2007 4.9425 4.9425 95.0575 85.2278 89.6591 2008 19.9369 14.9944 80.0631 73.3222 91.5804 2009 44.3489 24.4120 55.6511 51.3411 92.2554 2010 64.8374 20.4885 35.1626 32.4882 92.3941 2011 80.2530 15.4156 19.7470 18.0593 91.4535 2012 85.7907 5.5377 14.2093 13.1297 92.4024 2013 91.2722 5.4815 8.7278 8.0618 92.3685 2014 93.3314 2.0593 6.6686 6.2821 94.2043 2015 96.1257 2.7942 3.8743 3.6823 95.0438 2016 97.6538 1.5281 2.3462 2.2704 96.7663

2017 and later years 1.5281 0.8182 0.8024 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 97.4255 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2017 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

(%)

2007 1.5878 1.5878 98.4122 82.4895 83.8204 2008 4.4720 2.8842 95.5280 82.8234 86.7006 2009 17.7738 13.3018 82.2262 72.5482 88.2300 2010 35.8814 18.1076 64.1186 56.9648 88.8429 2011 52.9447 17.0633 47.0553 41.8276 88.8904 2012 68.4348 15.4901 31.5652 27.6936 87.7346 2013 79.5616 11.1268 20.4384 17.4475 85.3663 2014 85.8198 6.2582 14.1802 11.7590 82.9253 2015 90.1267 4.3069 9.8733 7.8342 79.3476 2016 90.3701 0.2434 9.6299 7.8971 82.0057

January 22, 2008 294 2008–3 I.R.B.

Medical Malpractice — Occurrence

2017 0.2434 9.3865 7.9624 84.8282 2018 0.2434 9.1431 8.0304 87.8294 2019 0.2434 8.8998 8.1010 91.0250 2020 0.2434 8.6564 8.1745 94.4327 2021 and later years 0.2434 8.4130 8.2508 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 84.8282 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2017 taxable year.

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

(%)

2007 72.9064 72.9064 27.0936 26.2154 96.7589 2008 93.5836 20.6771 6.4164 6.1726 96.1998

2009 and later years 3.2082 3.2082 3.1464 98.0722

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

(%)

2007 52.5880 52.5880 47.4120 44.3168 93.4716 2008 80.0449 27.4570 19.9551 18.0795 90.6009 2009 86.1625 6.1175 13.8375 12.5595 90.7636 2010 90.7452 4.5827 9.2548 8.3853 90.6043 2011 93.9006 3.1555 6.0994 5.5007 90.1844 2012 95.7613 1.8607 4.2387 3.8218 90.1647 2013 96.8755 1.1141 3.1245 2.8375 90.8127 2014 97.6715 0.7960 2.3285 2.1385 91.8377 2015 98.0329 0.3615 1.9671 1.8548 94.2925 2016 98.6810 0.6481 1.3190 1.2676 96.1051

2017 0.6481 0.6709 0.6571 97.9448 2018 and later years 0.6481 0.0228 0.0224 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 97.9855 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2017 taxable year.

2008–3 I.R.B. 295 January 22, 2008

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

(%)

2007 67.9528 67.9528 32.0472 30.8449 96.2484 2008 89.4609 21.5081 10.5391 10.1386 96.1998

2009 and later years 5.2695 5.2695 5.1680 98.0722

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

(%)

2007 5.8796 5.8796 94.1204 83.4520 88.6652 2008 18.8735 12.9938 81.1265 73.5158 90.6186 2009 41.6840 22.8105 58.3160 53.1755 91.1850 2010 62.5322 20.8483 37.4678 34.0284 90.8206 2011 73.5207 10.9885 26.4793 24.1749 91.2974 2012 82.0036 8.4829 17.9964 16.4850 91.6017 2013 88.6279 6.6244 11.3721 10.3849 91.3196 2014 90.7107 2.0828 9.2893 8.6735 93.3708 2015 94.8439 4.1332 5.1561 4.8034 93.1593 2016 96.2689 1.4249 3.7311 3.5411 94.9069

2017 1.4249 2.3062 2.2287 96.6413 2018 and later years 1.4249 0.8812 0.8642 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 96.1717 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2017 taxable year.

January 22, 2008 296 2008–3 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

(%)

2007 13.6594 13.6594 86.3406 74.7852 86.6165 2008 24.8389 11.1795 75.1611 66.3549 88.2836 2009 41.7792 16.9403 58.2208 51.7160 88.8273 2010 58.4995 16.7203 41.5005 36.7201 88.4811 2011 69.5197 11.0203 30.4803 26.9411 88.3885 2012 77.7513 8.2316 22.2487 19.6172 88.1725 2013 84.2243 6.4730 15.7757 13.7958 87.4497 2014 83.2275 -0.9968 16.7725 15.3599 91.5778 2015 88.8524 5.6249 11.1476 10.2342 91.8064 2016 91.3852 2.5328 8.6148 8.0579 93.5358

2017 2.5328 6.0820 5.7952 95.2850 2018 2.5328 3.5492 3.4427 96.9998 2019 and later years 2.5328 1.0164 0.9968 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 92.8572 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2017 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

(%)

2007 42.6108 42.6108 57.3892 54.1196 94.3029 2008 71.5827 28.9719 28.4173 26.7268 94.0513 2009 84.6947 13.1120 15.3053 14.4182 94.2036 2010 92.3556 7.6610 7.6444 7.1790 93.9125 2011 96.2369 3.8812 3.7631 3.5065 93.1803 2012 97.9275 1.6907 2.0725 1.9218 92.7305 2013 98.7719 0.8444 1.2281 1.1371 92.5934 2014 99.2692 0.4973 0.7308 0.6752 92.3927 2015 99.5053 0.2361 0.4947 0.4613 93.2429 2016 99.6440 0.1387 0.3560 0.3382 94.9893

2017 0.1387 0.2174 0.2102 96.7159 2018 and later years 0.1387 0.0787 0.0772 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 97.0832 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2017 taxable year.

2008–3 I.R.B. 297 January 22, 2008

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

(%)

2007 1.0259 1.0259 98.9741 84.0703 84.9417 2008 11.7927 10.7667 88.2073 76.4295 86.6475 2009 29.3642 17.5716 70.6358 61.5467 87.1325 2010 55.1655 25.8012 44.8345 37.6817 84.0462 2011 83.4171 28.2516 16.5829 10.3708 62.5388 2012 64.8933 -18.5238 35.1067 29.6704 84.5149 2013 82.3346 17.4414 17.6654 13.0641 73.9533 2014 86.3986 4.0640 13.6014 9.4389 69.3965 2015 76.3310 -10.0676 23.6690 20.0791 84.8330 2016 78.7910 2.4600 21.2090 18.3679 86.6043

2017 2.4600 18.7490 16.5888 88.4781 2018 2.4600 16.2890 14.7390 90.4843 2019 2.4600 13.8290 12.8158 92.6732 2020 2.4600 11.3691 10.8163 95.1377 2021 and later years 2.4600 8.9091 8.7373 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 88.4781 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2017 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

(%)

2007 5.0466 5.0466 94.9534 80.4479 84.7236 2008 13.6935 8.6469 86.3065 74.8249 86.6967 2009 28.2541 14.5606 71.7459 62.9486 87.7383 2010 41.3083 13.0542 58.6917 52.1369 88.8318 2011 59.3693 18.0610 40.6307 35.7907 88.0878 2012 73.0717 13.7024 26.9283 23.2398 86.3026 2013 74.6612 1.5895 25.3388 22.5417 88.9612 2014 78.9833 4.3221 21.0167 19.0296 90.5449 2015 86.1231 7.1398 13.8769 12.5049 90.1129 2016 88.6931 2.5700 11.3069 10.3808 91.8095

January 22, 2008 298 2008–3 I.R.B.

Products Liability — Occurrence

2017 2.5700 8.7369 8.1724 93.5389 2018 2.5700 6.1669 5.8763 95.2882 2019 2.5700 3.5969 3.4891 97.0031 2020 and later years 2.5700 1.0269 1.0071 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 92.1824 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2017 taxable year.

Reinsurance — 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

(%)

2007 12.9458 12.9458 87.0542 80.9635 93.0035 2008 60.1796 47.2338 39.8204 36.0155 90.4447 2009 80.8225 20.6429 19.1775 16.3966 85.4991 2010 84.9430 4.1205 15.0570 12.8460 85.3161 2011 85.6680 0.7250 14.3320 12.6167 88.0322 2012 80.0452 -5.6229 19.9548 18.8510 94.4685 2013 86.7013 6.6561 13.2987 12.8124 96.3436 2014 97.2533 10.5520 2.7467 2.5617 93.2640 2015 97.6721 0.4188 2.3279 2.2363 96.0671 2016 98.8078 1.1357 1.1922 1.1671 97.8949

2017 and later years 1.1357 0.0564 0.0553 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 92.7876 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2017 taxable year.

Reinsurance — 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

(%)

2007 32.5917 32.5917 67.4083 54.7592 81.2352 2008 33.3995 0.8078 66.6005 56.1095 84.2479 2009 35.4948 2.0953 64.5052 56.2006 87.1256 2010 44.0321 8.5373 55.9679 49.7267 88.8485 2011 64.8299 20.7979 35.1701 30.4941 86.7047 2012 66.4358 1.6059 33.5642 30.0673 89.5814 2013 77.8097 11.3738 22.1903 19.6635 88.6130 2014 82.4438 4.6341 17.5562 15.7190 89.5350 2015 84.1944 1.7507 15.8056 14.5579 92.1064 2016 87.9223 3.7279 12.0777 11.3347 93.8485

2008–3 I.R.B. 299 January 22, 2008

Reinsurance — Nonproportional Assumed Liability

2017 3.7279 8.3498 7.9835 95.6137 2018 3.7279 4.6219 4.4993 97.3478 2019 and later years 3.7279 0.8940 0.8768 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 92.6803 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2017 taxable year.

Reinsurance — 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

(%)

2007 8.4783 8.4783 91.5217 82.8118 90.4832 2008 28.0475 19.5693 71.9525 66.1455 91.9295 2009 60.4351 32.3875 39.5649 35.7473 90.3510 2010 82.4448 22.0097 17.5552 14.7241 83.8733 2011 90.2720 7.8271 9.7280 7.3277 75.3251 2012 85.3168 -4.9551 14.6831 12.6710 86.2966 2013 88.3777 3.0608 11.6223 10.0531 86.4983 2014 89.9934 1.6157 10.0066 8.8048 87.9894 2015 81.6664 -8.3269 18.3336 17.6449 96.2439 2016 91.0491 9.3827 8.9509 8.7783 98.0722

2017 and later years - - - 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 92.7966 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2017 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

(%)

2007 44.5756 44.5756 55.4244 53.6032 96.7140 2008 88.4263 41.8507 13.5737 13.0579 96.1998

2009 and later years 6.7869 6.7869 6.6560 98.0722

January 22, 2008 300 2008–3 I.R.B.

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

(%)

2007 19.0410 19.0410 80.9590 69.8486 86.2765 2008 40.2442 21.2032 59.7558 51.0015 85.3500 2009 57.1497 16.9055 42.8503 35.7885 83.5198 2010 67.8601 10.7104 32.1399 26.2883 81.7936 2011 75.5399 7.6797 24.4601 19.5013 79.7269 2012 80.1157 4.5758 19.8843 15.6098 78.5028 2013 82.1828 2.0672 17.8172 14.1216 79.2587 2014 84.4045 2.2217 15.5955 12.4169 79.6188 2015 85.5195 1.1150 14.4805 11.7730 81.3024 2016 86.2855 0.7661 13.7145 11.4593 83.5562

2017 0.7661 12.9484 11.1331 85.9805 2018 0.7661 12.1823 10.7940 88.6033 2019 0.7661 11.4163 10.4414 91.4603 2020 0.7661 10.6502 10.0748 94.5968 2021 and later years 0.7661 9.8842 9.6936 98.0722

Taxpayers that use the composite method of Notice 88–100 should use 89.5536 percent to discount unpaid losses incurred in this line of business in 2007 and prior years and that are outstanding at the end of the 2017 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).

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

Rev. Proc. 2008–11