SECTION 4. TABLES OF DISCOUNT
Internal Revenue Bulletin 2012-49 · 2026-10-03 edition · updated 2026-10-04 · United States
FACTORS
.01 The following tables present separately for each line of business the discount factors under § 832 for 2012. All the discount factors presented in this section were determined using the applicable interest rate under § 846(c) for 2012, which is 2.89 percent, and by assuming all estimated salvage is recovered in the middle of the calendar year.
.02 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. Rev. Proc. 2002–74, section 3.03, 2002–2 C.B. 980, provides that an insurance company that elects to use the composite method of Notice 88–100 must use the same method to compute discounted estimated salvage recoverable. Accordingly, the tables separately provide discount factors for taxpayers who elect to use the
composite method of section V of Notice 88–100. .02 These tables must be used by taxpayers irrespective of whether they elected to discount unpaid losses using their own experience under § 846(e).
.03 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 98.5856 percent to discount salvage recoverable with respect to losses incurred in this line of business in the 2012 accident year as of the end of the 2012 and later taxable years.
Taxpayers that use the composite method of Notice 88–100 should use 98.5856 percent to discount all salvage recoverable in this line of business as of the end of the 2012 taxable year.
Auto Physical Damage
Commercial Auto/Truck Liability/Medical
Tax Year
Discount Factors (%)
Tax Year
Discount Factors (%)
2012 97.9926 2013 97.2010
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
2014 and later years
98.5856
Taxpayers that use the composite method of Notice 88–100 should use 98.5856 percent to discount salvage recoverable as of the end of the 2014 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
2012 94.5210 2013 94.2990 2014 94.5290 2015 92.9773 2016 93.4682 2017 93.0095
Tax Year
Discount Factors (%)
December 3, 2012 657 2012–49 I.R.B.
Composite
2018 92.8551 2019 93.5193 2020 93.5262 2021 94.8250
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
2022 96.1362 2023 97.4384 2024 and later 98.5856 years
Taxpayers that use the composite method of Notice 88–100 should use 96.1362 percent to discount salvage recoverable as of the end of the 2022 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
Fidelity/Surety
Fidelity/Surety
Taxpayers that use the composite method of Notice 88–100 should use 98.5856 percent to discount salvage recoverable as of the end of the 2014 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
Financial Guaranty/Mortgage Guaranty
2014 and later years
98.5856
Tax Year
Discount Factors (%)
2012 95.0291 2013 97.2010
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
International (Composite)
2020 93.5262 2021 94.8250
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
2022 96.1362 2023 97.4384 2024 and later 98.5856 years
Taxpayers that use the composite method of Notice 88–100 should use 96.1362 percent to discount salvage recoverable as of the end of the 2022 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
Medical Malpractice — Claims-Made
Tax Year
Discount Factors (%)
Discount Factors (%)
Tax Year
2012 93.7912 2013 94.6803 2014 92.2134 2015 95.0710 2016 95.3003 2017 95.7832 2018 96.7165 2019 97.3503 2020 97.3252 2021 98.5856
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
2012 95.5378 2013 97.2010
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
Taxpayers that use the composite method of Notice 88–100 should use 98.5856 percent to discount salvage recoverable as of the end of the 2014 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
International (Composite)
Tax Year
Discount Factors (%)
2014 and later years
98.5856
2012 94.5210 2013 94.2990 2014 94.5290 2015 92.9773 2016 93.4682 2017 93.0095 2018 92.8551 2019 93.5193
2012–49 I.R.B. 658 December 3, 2012
Medical Malpractice — Claims-Made
Miscellaneous Casualty
2022 and later years
98.5856
Tax Year
Discount Factors (%)
Multiple Peril Lines (Homeown- ers/Farmowners, Commercial Multiple Peril, and Special Liability (Ocean Marine, Aircraft (All Perils), Boiler and Machinery))
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
Taxpayers that use the composite method of Notice 88–100 should use 98.5856 percent to discount salvage recoverable as of the end of the 2022 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
Medical Malpractice — Occurrence
2012 96.1880 2013 97.2010
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
2022 and later years
98.5856
2014 and later years
98.5856
Tax Year
Discount Factors (%)
2012 94.4161 2013 96.5442 2014 95.9802 2015 97.2713 2016 96.2322 2017 97.6681 2018 97.0089 2019 97.0932 2020 95.2155 2021 96.5222
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
2022 97.7949 2023 and later 98.5856 years
Taxpayers that use the composite method of Notice 88–100 should use 97.7949 percent to discount salvage recoverable as of the end of the 2022 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
Taxpayers that use the composite method of Notice 88–100 should use 98.5856 percent to discount salvage recoverable as of the end of the 2014 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
Multiple Peril Lines (Homeown- ers/Farmowners, Commercial Multiple Peril, and Special Liability (Ocean Marine, Aircraft (All Perils), Boiler and Machinery))
Taxpayers that use the composite method of Notice 88–100 should use 98.5856 percent to discount salvage recoverable as of the end of the 2022 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
Other (Including Credit)
2012 96.9381 2013 97.2010
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
Tax Year
Discount Factors (%)
Tax Year
Discount Factors (%)
2012 95.2320 2013 95.1821 2014 95.7186 2015 93.7419 2016 95.3602 2017 95.8534 2018 96.0053 2019 95.8968 2020 95.5350 2021 98.5856
Taxpayers that use the composite method of Notice 88–100 should use 98.5856 percent to discount salvage recoverable as of the end of the 2014 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
2014 and later years
98.5856
December 3, 2012 659 2012–49 I.R.B.
Private Passenger Auto Liability/Medical
Taxpayers that use the composite method of Notice 88–100 should use 98.5856 percent to discount salvage recoverable as of the end of the 2022 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
Products Liability — Claims-Made
Other Liability — Claims-Made
Tax Year
Discount Factors (%)
2012 93.5677 2013 93.9483 2014 93.9860 2015 95.1734 2016 95.2144 2017 95.3785 2018 96.5322 2019 96.4985 2020 96.7811 2021 98.0683
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
Other Liability — Occurrence
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
2022 and later years
98.5856
Taxpayers that use the composite method of Notice 88–100 should use 98.5856 percent to discount salvage recoverable as of the end of the 2022 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
Private Passenger Auto Liability/Medical
Tax Year
Discount Factors (%)
Discount Factors (%)
2022 and later years
98.5856
Tax Year
2012 89.8196 2013 91.4110 2014 89.5038 2015 95.0117 2016 92.8700 2017 98.1820 2018 96.3577 2019 85.3703 2020 98.2509 2021 98.5856
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
Taxpayers that use the composite method of Notice 88–100 should use 97.2650 percent to discount salvage recoverable as of the end of the 2022 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
Products Liability — Occurrence
Taxpayers that use the composite method of Notice 88–100 should use 98.5856 percent to discount salvage recoverable as of the end of the 2022 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
Other Liability — Occurrence
2012 96.1315 2013 95.9985 2014 95.9758 2015 95.3522 2016 95.3346 2017 95.4812 2018 95.2304 2019 95.5517 2020 96.8469 2021 98.1429
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
2022 and later years
98.5856
Tax Year
Discount Factors (%)
2012 90.3389 2013 91.4894 2014 92.7055 2015 93.3713 2016 94.1617 2017 95.2667 2018 95.4478 2019 95.3361 2020 97.2714 2021 98.5856
2022 and later years
98.5856
Tax Year
Discount Factors (%)
2012–49 I.R.B. 660 December 3, 2012
Reinsurance — Nonproportional Assumed Liability
Taxpayers that use the composite method of Notice 88–100 should use 97.9045 percent to discount salvage recoverable as of the end of the 2022 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
Reinsurance — Nonproportional Assumed Financial Lines
Products Liability — Occurrence
2012 90.7468 2013 90.8255 2014 91.6861 2015 93.0159 2016 93.6033 2017 94.5013 2018 94.4114 2019 96.6942 2020 96.0812 2021 97.3920
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
Reinsurance — Nonproportional Assumed Property
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
Taxpayers that use the composite method of Notice 88–100 should use 95.1349 percent to discount salvage recoverable as of the end of the 2022 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
Reinsurance — Nonproportional Assumed Liability
2022 and later years
98.5856
Tax Year
Discount Factors (%)
2022 and later years
98.5856
Taxpayers that use the composite method of Notice 88–100 should use 98.5856 percent to discount salvage recoverable as of the end of the 2022 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
Reinsurance — Nonproportional Assumed Property
2012 87.4545 2013 89.8069 2014 84.2710 2015 85.5707 2016 91.5781 2017 94.6877 2018 93.8198 2019 94.3842 2020 92.5740 2021 96.6295
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
2022 97.9045 2023 and later 98.5856 years
Tax Year
Discount Factors (%)
2012 88.2387 2013 89.9441 2014 93.6256 2015 93.7540 2016 95.1568 2017 93.2046 2018 95.1579 2019 95.0763 2020 98.3612 2021 98.5856
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
Tax Year
Discount Factors (%)
98.5856
2012 92.8721 2013 95.2410 2014 93.0843 2015 91.7774 2016 94.0583 2017 92.9687 2018 96.9437 2019 90.0756 2020 95.9421 2021 97.2787
2022 and later years
Taxpayers that use the composite method of Notice 88–100 should use 98.5856 percent to discount salvage recoverable as of the end of the 2022 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
December 3, 2012 661 2012–49 I.R.B.
Special Property (Fire, Allied Lines, Inland Marine, Earthquake, Glass, Burglary and Theft)
Tax Year
Discount Factors (%)
2012 96.3560 2013 97.2010
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
Warranty
2013 97.2010
Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
2014 and later years
98.5856
Workers’ Compensation
2020 93.3550 2021 94.6576
Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2012 accident year.
2022 95.9786 2023 97.3078 2024 and later 98.5856 years
Taxpayers that use the composite method of Notice 88–100 should use 96.5709 percent to discount salvage recoverable as of the end of the 2022 taxable year with respect to losses incurred in this line of business in 2012 and prior years.
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