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 2016. All the discount factors presented in this section were determined using the applicable interest rate under § 846(c) for 2016, which is 1.56 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 99.2290 percent to discount unpaid losses incurred in this line of business in the 2016 accident year and that are outstanding at the end of the 2016 and later taxable years.

Taxpayers that use the composite method of Notice 88–100 should use 99.2290 percent to discount all unpaid losses in this line of business that are outstanding at the end of the 2016 taxable year.

Estimated Losses Paid Each Year (%)

Unpaid Losses at Year End (%)

Discounted Unpaid Losses at Year End (%)

Cumulative Losses Paid Losses at Unpaid Losses Discount

Year Losses Paid (%) Each Year (%) Year End (%) at Year End (%) Factors (%)

2016 90.2657 90.2657 9.7343 9.6535 99.1701

2017 99.7478 9.4822 0.2522 0.2483 98.4669

Tax Year

Estimated Cumulative Losses Paid (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2018 and later years 0.1261 0.1261 0.1251 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 99.2290 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2018 taxable year.

Commercial Auto/Truck Liability/Medical

Estimated Cumulative Losses

Estimated Losses Paid Each Year (%)

Unpaid Losses at Year End (%)

Cumulative Losses Losses Paid Unpaid Losses Unpaid Losses at Discount

Year Paid (%) Each Year (%) at Year End (%) Year End (%) Factors (%)

2016 25.7034 25.7034 74.2966 71.8363 96.6886

2017 48.2664 22.5629 51.7336 50.2188 97.0718

2018 67.8834 19.6171 32.1166 31.2327 97.2479

2019 82.0630 14.1795 17.9370 17.4302 97.1744

2020 90.4161 8.3532 9.5839 9.2840 96.8715

2021 94.6293 4.2132 5.3707 5.1830 96.5045

2022 97.0203 2.3910 2.9797 2.8543 95.7897

2023 98.2283 1.2081 1.7717 1.6814 94.9023

Discounted Unpaid Losses at

Year End (%)

Tax Year

Paid (%)

Bulletin No. 2016–51 839 December 19, 2016

Estimated Cumulative Losses

Estimated Losses Paid Each Year (%)

Unpaid Losses at Year End (%)

Cumulative Losses Losses Paid Unpaid Losses Unpaid Losses at Discount

Year Paid (%) Each Year (%) at Year End (%) Year End (%) Factors (%)

2024 98.6653 0.4370 1.3347 1.2672 94.9441

2025 98.8635 0.1982 1.1365 1.0872 95.6662

Discounted Unpaid Losses at

Year End (%)

Tax Year

Paid (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 0.1982 0.9382 0.9044 96.3940

2027 0.1982 0.7400 0.7187 97.1264

2028 0.1982 0.5417 0.5302 97.8602

2029 0.1982 0.3435 0.3386 98.5845

2030 and later years 0.1982 0.1453 0.1441 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 97.0950 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.

Composite

Estimated Cumulative Losses

Estimated Losses Paid Each Year (%)

Unpaid Losses at Year End (%)

Cumulative Losses Losses Paid Unpaid Losses Unpaid Losses at Discount

Year Paid (%) Each Year (%) at Year End (%) Year End (%) Factors (%)

2016 39.5281 39.5281 60.4719 57.8180 95.6113

2017 62.0267 22.4986 37.9733 36.0465 94.9259

2018 73.7017 11.6750 26.2983 24.8432 94.4666

2019 80.0846 6.3830 19.9154 18.7981 94.3901

2020 85.7818 5.6971 14.2182 13.3500 93.8935

2021 90.2809 4.4992 9.7191 9.0241 92.8498

2022 91.9588 1.6778 8.0412 7.4740 92.9464

2023 92.9722 1.0134 7.0278 6.5693 93.4763

2024 94.0835 1.1113 5.9165 5.5519 93.8371

2025 94.7469 0.6634 5.2531 4.9700 94.6094

Discounted Unpaid Losses at

Year End (%)

Tax Year

Paid (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 0.6634 4.5898 4.3790 95.4073

2027 0.6634 3.9264 3.7788 96.2399

2028 0.6634 3.2631 3.1692 97.1241

2029 0.6634 2.5997 2.5502 98.0937

2030 and later years 0.6634 1.9364 1.9214 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 96.4927 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.

Fidelity/Surety

Estimated Cumulative Losses

Estimated Losses Paid Each

Unpaid Losses at Year End (%)

Cumulative Losses Losses Paid Each Unpaid Losses Unpaid Losses at Discount

Year Paid (%) Year (%) at Year End (%) Year End (%) Factors (%)

2016 22.8449 22.8449 77.1551 75.5562 97.9277

2017 55.8585 33.0137 44.1415 43.4648 98.4669

Discounted Unpaid Losses at

Year End (%)

Tax Year

Paid (%)

Year (%)

December 19, 2016 840 Bulletin No. 2016–51

Estimated Losses Paid Each

Year (%)

Unpaid Losses at Year End (%)

Discount Factors (%)

Discounted Unpaid Losses at

Year End (%)

Tax Year

Estimated Cumulative Losses

Paid (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2018 and later years 22.0707 22.0707 21.9006 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 99.2290 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2018 taxable year.

Financial Guaranty/Mortgage Guaranty

Estimated Cumulative Losses

Estimated Losses

Paid Each

Year (%)

Cumulative Losses Paid Each Unpaid Losses Unpaid Losses at Discount

Year Paid (%) Year (%) at Year End (%) Year End (%) Factors (%)

2016 6.2515 6.2515 93.7485 91.7295 97.8464

2017 43.0154 36.7639 56.9846 56.1110 98.4669

Unpaid Losses at Year End (%)

Discounted Unpaid Losses at

Year End (%)

Tax Year

Paid (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2018 and later years 28.4923 28.4923 28.2726 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 99.2290 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2018 taxable year.

International (Composite)

Estimated Cumulative Losses

Estimated Losses

Paid Each

Year (%)

Cumulative Losses Paid Each Unpaid Losses Unpaid Losses at Discount

Year Paid (%) Year (%) at Year End (%) Year End (%) Factors (%)

2016 39.5281 39.5281 60.4719 57.8180 95.6113

2017 62.0267 22.4986 37.9733 36.0465 94.9259

2018 73.7017 11.6750 26.2983 24.8432 94.4666

2019 80.0846 6.3830 19.9154 18.7981 94.3901

2020 85.7818 5.6971 14.2182 13.3500 93.8935

2021 90.2809 4.4992 9.7191 9.0241 92.8498

2022 91.9588 1.6778 8.0412 7.4740 92.9464

2023 92.9722 1.0134 7.0278 6.5693 93.4763

2024 94.0835 1.1113 5.9165 5.5519 93.8371

2025 94.7469 0.6634 5.2531 4.9700 94.6094

Unpaid Losses at Year End (%)

Discounted Unpaid Losses at

Year End (%)

Tax Year

Paid (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 0.6634 4.5898 4.3790 95.4073

2027 0.6634 3.9264 3.7788 96.2399

2028 0.6634 3.2631 3.1692 97.1241

2029 0.6634 2.5997 2.5502 98.0937

2030 and later years 0.6634 1.9364 1.9214 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 96.4927 percent to discount unpaid losses incurred in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.

Bulletin No. 2016–51 841 December 19, 2016

Medical Professional Liability — Claims-Made

Estimated Cumulative Losses

Estimated Losses

Paid Each

Year (%)

Cumulative Losses Paid Each Unpaid Losses Unpaid Losses at Discount

Year Paid (%) Year (%) at Year End (%) Year End (%) Factors (%)

2016 6.3462 6.3462 93.6538 89.1520 95.1953

2017 23.0958 16.7496 76.9042 73.6651 95.7881

2018 41.6827 18.5868 58.3173 56.0830 96.1686

2019 56.5267 14.8440 43.4733 41.9985 96.6076

2020 71.2882 14.7615 28.7118 27.7775 96.7458

2021 82.3023 11.0141 17.6977 17.1111 96.6856

2022 86.5143 4.2120 13.4857 13.1334 97.3871

2023 91.1422 4.6279 8.8578 8.6744 97.9290

2024 94.8664 3.7242 5.1336 5.0566 98.4989

2025 97.5408 2.6745 2.4592 2.4402 99.2290

Unpaid Losses at Year End (%)

Discounted Unpaid Losses at

Year End (%)

Tax Year

Paid (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 and later years 2.4592 - - 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 99.2290 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.

Medical Professional Liability — Occurrence

Estimated Cumulative Losses

Estimated Losses

Paid Each

Year (%)

Cumulative Losses Paid Each Unpaid Losses Unpaid Losses at Discount

Year Paid (%) Year (%) at Year End (%) Year End (%) Factors (%)

2016 1.2044 1.2044 98.7956 91.6674 92.7849

2017 4.3376 3.1332 95.6624 89.9398 94.0180

2018 11.8161 7.4785 88.1839 83.8063 95.0358

2019 24.7088 12.8928 75.2912 72.1207 95.7891

2020 42.3863 17.6774 57.6137 55.4311 96.2115

2021 57.1600 14.7738 42.8400 41.4072 96.6556

2022 68.9797 11.8196 31.0203 30.1417 97.1676

2023 82.4247 13.4450 17.5753 17.0624 97.0618

2024 86.7084 4.2837 13.2916 13.0116 97.8935

2025 91.6701 4.9617 8.3299 8.2144 98.6127

Unpaid Losses at Year End (%)

Discounted Unpaid Losses at

Year End (%)

Tax Year

Paid (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 and later years 4.9617 3.3683 3.3423 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 99.2290 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.

December 19, 2016 842 Bulletin No. 2016–51

Miscellaneous Casualty

Estimated Cumulative Losses

Estimated Losses

Paid Each

Cumulative Losses Paid Each Unpaid Losses Unpaid Losses at Discount

Year Paid (%) Year (%) at Year End (%) Year End (%) Factors (%)

2016 69.0731 69.0731 30.9269 30.3590 98.1638

2017 85.5169 16.4438 14.4831 14.2610 98.4669

Discounted Unpaid Losses at

Year End (%)

Tax Year

Paid (%)

Year (%)

Unpaid Losses at Year End (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2018 and later years 7.2415 7.2415 7.1857 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 99.2290 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2018 taxable year.

Multiple Peril Lines (Homeowners/Farmowners, Commercial Multiple Peril, and Special Liability (Ocean Marine, Aircraft (All Perils), Boiler and Machinery))

Estimated Cumulative Losses

Estimated Losses

Paid Each

Discounted Unpaid

Cumulative Losses Paid Each Unpaid Losses Losses at Year Discount

Year Paid (%) Year (%) at Year End (%) End (%) Factors (%)

2016 60.9719 60.9719 39.0281 37.9001 97.1096

2017 82.9059 21.9341 17.0941 16.3869 95.8627

2018 89.2783 6.3724 10.7217 10.2205 95.3261

2019 91.5605 2.2822 8.4395 8.0800 95.7413

2020 94.4255 2.8649 5.5745 5.3189 95.4145

2021 96.5899 2.1644 3.4101 3.2206 94.4441

2022 97.6023 1.0124 2.3977 2.2506 93.8655

2023 98.0034 0.4011 1.9966 1.8815 94.2357

2024 98.3410 0.3376 1.6590 1.5706 94.6737

2025 98.5727 0.2317 1.4273 1.3617 95.3998

Losses at Year

End (%)

Tax Year

Paid (%)

Year (%)

Unpaid Losses at Year End (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 0.2317 1.1957 1.1495 96.1346

2027 0.2317 0.9640 0.9340 96.8791

2028 0.2317 0.7324 0.7151 97.6355

2029 0.2317 0.5007 0.4928 98.4099

2030 and later years 0.2317 0.2691 0.2670 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 96.9112 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.

Other (Including Credit)

Estimated Cumulative Losses

Estimated Losses

Paid Each

Discounted Unpaid

Cumulative Losses Paid Each Unpaid Losses Losses at Year Discount

Year Paid (%) Year (%) at Year End (%) End (%) Factors (%)

2016 54.6589 54.6589 45.3411 44.6328 98.4380

2017 84.2314 29.5725 15.7686 15.5268 98.4669

Unpaid Losses at Year End (%)

Losses at Year

End (%)

Tax Year

Paid (%)

Year (%)

Bulletin No. 2016–51 843 December 19, 2016

Estimated Losses

Paid Each

Year (%)

Unpaid Losses at Year End (%)

Discount Factors (%)

Discounted Unpaid

Losses at Year

End (%)

Tax Year

Estimated Cumulative Losses

Paid (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2018 and later years 7.8843 7.8843 7.8235 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 99.2290 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2018 taxable year.

Other Liability — Claims-Made

Estimated Cumulative Losses

Estimated Losses

Paid Each

Discounted Unpaid

Cumulative Losses Paid Each Unpaid Losses Losses at Year Discount

Year Paid (%) Year (%) at Year End (%) End (%) Factors (%)

2016 7.4270 7.4270 92.5730 87.8256 94.8717

2017 25.2808 17.8538 74.7192 71.2032 95.2943

2018 44.2108 18.9301 55.7892 53.2368 95.4250

2019 56.4956 12.2848 43.5044 41.6871 95.8227

2020 69.2838 12.7883 30.7162 29.4498 95.8772

2021 77.6662 8.3823 22.3338 21.4618 96.0953

2022 83.1572 5.4910 16.8428 16.2629 96.5568

2023 88.1777 5.0205 11.8223 11.4571 96.9106

2024 93.1315 4.9539 6.8685 6.6435 96.7242

2025 92.9490 –0.1826 7.0510 6.9311 98.2990

Losses at Year

End (%)

Tax Year

Paid (%)

Year (%)

Unpaid Losses at Year End (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 3.2639 3.7871 3.7499 99.0184

2027 and later years 3.2639 0.5232 0.5192 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 99.0369 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.

Other Liability — Occurrence

Estimated Cumulative Losses

Estimated Losses

Paid Each

Discounted Unpaid

Cumulative Losses Paid Each Unpaid Losses Losses at Year Discount

Year Paid (%) Year (%) at Year End (%) End (%) Factors (%)

2016 10.0721 10.0721 89.9279 84.0612 93.4762

2017 24.3995 14.3274 75.6005 70.9339 93.8272

2018 37.3366 12.9372 62.6634 59.0027 94.1583

2019 52.4142 15.0776 47.5858 44.7284 93.9954

2020 64.3437 11.9295 35.6563 33.4040 93.6834

2021 73.7950 9.4512 26.2050 24.4004 93.1136

2022 79.7756 5.9807 20.2244 18.7539 92.7295

2023 84.0963 4.3206 15.9037 14.6923 92.3828

2024 85.6878 1.5915 14.3122 13.3176 93.0508

2025 86.9224 1.2346 13.0776 12.2812 93.9100

Unpaid Losses at Year End (%)

Losses at Year

End (%)

Tax Year

Paid (%)

Year (%)

December 19, 2016 844 Bulletin No. 2016–51

Estimated Losses

Paid Each

Year (%)

Unpaid Losses at Year End (%)

Discount Factors (%)

Discounted Unpaid

Losses at Year

End (%)

Tax Year

Estimated Cumulative Losses

Paid (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 1.2346 11.8431 11.2286 94.8119

2027 1.2346 10.6085 10.1597 95.7689

2028 1.2346 9.3740 9.0740 96.8001

2029 1.2346 8.1394 7.9714 97.9360

2030 and later years 1.2346 6.9048 6.8516 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 96.2276 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.

Private Passenger Auto Liability/Medical

Estimated Cumulative Losses

Estimated Losses

Paid Each

Discounted Unpaid

Cumulative Losses Paid Each Unpaid Losses Losses at Year Discount

Year Paid (%) Year (%) at Year End (%) End (%) Factors (%)

2016 42.9881 42.9881 57.0119 55.6793 97.6626

2017 71.9931 29.0051 28.0069 27.3175 97.5386

2018 84.8250 12.8318 15.1750 14.8121 97.6085

2019 92.3500 7.5251 7.6500 7.4597 97.5123

2020 96.2665 3.9165 3.7335 3.6291 97.2044

2021 97.9880 1.7214 2.0120 1.9509 96.9616

2022 98.7958 0.8078 1.2042 1.1672 96.9294

2023 99.2445 0.4487 0.7555 0.7332 97.0542

2024 99.4543 0.2097 0.5457 0.5333 97.7195

2025 99.6370 0.1827 0.3630 0.3575 98.4721

Losses at Year

End (%)

Tax Year

Paid (%)

Year (%)

Unpaid Losses at Year End (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 and later years 0.1827 0.1803 0.1789 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 99.2290 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.

Products Liability — Claims-Made

Estimated Cumulative Losses

Estimated Losses

Paid Each

Discounted Unpaid

Cumulative Losses Paid Each Unpaid Losses Losses at Year Discount

Year Paid (%) Year (%) at Year End (%) End (%) Factors (%)

2016 4.5270 4.5270 95.4730 88.8146 93.0259

2017 16.0134 11.4865 83.9866 78.6245 93.6155

2018 45.1313 29.1179 54.8687 50.5069 92.0504

2019 39.2459 –5.8854 60.7541 57.2259 94.1927

2020 44.8357 5.5898 55.1643 52.4854 95.1438

2021 72.1615 27.3258 27.8385 25.7661 92.5555

2022 80.4448 8.2834 19.5552 17.8203 91.1284

2023 73.2957 –7.1491 26.7043 25.3029 94.7525

Unpaid Losses at Year End (%)

Losses at Year

End (%)

Tax Year

Paid (%)

Year (%)

Bulletin No. 2016–51 845 December 19, 2016

Estimated Cumulative Losses

Estimated Losses

Paid Each

Year (%)

Discounted Unpaid

Cumulative Losses Paid Each Unpaid Losses Losses at Year Discount

Year Paid (%) Year (%) at Year End (%) End (%) Factors (%)

2024 87.4824 14.1866 12.5176 11.4008 91.0781

2025 87.7500 0.2677 12.2500 11.3089 92.3180

Unpaid Losses at Year End (%)

Losses at Year

End (%)

Tax Year

Paid (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 0.2677 11.9823 11.2156 93.6014

2027 0.2677 11.7147 11.1208 94.9310

2028 0.2677 11.4470 11.0246 96.3099

2029 0.2677 11.1793 10.9268 97.7413

2030 and later years 0.2677 10.9117 10.8275 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 95.8264 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.

Products Liability – Occurrence

Estimated Cumulative Losses

Estimated Losses

Paid Each

Discounted Unpaid

Cumulative Losses Paid Each Unpaid Losses Losses at Year Discount

Year Paid (%) Year (%) at Year End (%) End (%) Factors (%)

2016 7.1936 7.1936 92.8064 86.0592 92.7297

2017 16.9555 9.7619 83.0445 77.5639 93.4004

2018 28.3624 11.4069 71.6376 67.2784 93.9149

2019 39.7945 11.4321 60.2055 56.8070 94.3552

2020 54.3906 14.5961 45.6094 42.9837 94.2430

2021 60.9060 6.5154 39.0940 37.0882 94.8693

2022 67.7760 6.8700 32.2240 30.7434 95.4053

2023 75.7119 7.9359 24.2881 23.2254 95.6247

2024 79.5966 3.8847 20.4034 19.6728 96.4195

2025 83.9430 4.3464 16.0570 15.5996 97.1513

Losses at Year

End (%)

Tax Year

Paid (%)

Year (%)

Unpaid Losses at Year End (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 4.3464 11.7107 11.4628 97.8837

2027 4.3464 7.3643 7.2615 98.6044

2028 and later years 4.3464 3.0179 2.9947 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 98.2573 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.

Reinsurance — Nonproportional Assumed Property

Estimated Cumulative Losses

Estimated Losses

Paid Each

Year (%)

Discounted Unpaid

Cumulative Losses Paid Each Unpaid Losses Losses at Year Discount

Year Paid (%) Year (%) at Year End (%) End (%) Factors (%)

2016 20.1003 20.1003 79.8997 77.4053 96.8780

2017 59.2833 39.1830 40.7167 39.1254 96.0916

2018 73.0867 13.8034 26.9133 25.8251 95.9565

2019 80.3675 7.2808 19.6325 18.8905 96.2208

Unpaid Losses at Year End (%)

Losses at Year

End (%)

Tax Year

Paid (%)

December 19, 2016 846 Bulletin No. 2016–51

Estimated Cumulative Losses

Estimated Losses

Paid Each

Year (%)

Discounted Unpaid

Cumulative Losses Paid Each Unpaid Losses Losses at Year Discount

Year Paid (%) Year (%) at Year End (%) End (%) Factors (%)

2020 87.7278 7.3603 12.2722 11.7677 95.8895

2021 94.4454 6.7175 5.5546 5.1816 93.2838

2022 96.5143 2.0689 3.4857 3.1774 91.1552

2023 97.9468 1.4326 2.0532 1.7833 86.8559

2024 97.4560 –0.4909 2.5440 2.3058 90.6356

2025 97.0652 –0.3908 2.9348 2.7356 93.2116

Unpaid Losses at Year End (%)

Losses at Year

End (%)

Tax Year

Paid (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 0.1836 2.7512 2.5932 94.2578

2027 0.1836 2.5675 2.4486 95.3671

2028 0.1836 2.3839 2.3017 96.5527

2029 0.1836 2.2003 2.1526 97.8320

2030 and later years 0.1836 2.0166 2.0011 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 96.0251 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.

Reinsurance — Nonproportional Assumed Liability

Estimated Cumulative Losses

Estimated Losses

Paid Each

Discounted Unpaid

Cumulative Losses Paid Each Unpaid Losses Losses at Year Discount

Year Paid (%) Year (%) at Year End (%) End (%) Factors (%)

2016 3.4987 3.4987 96.5013 89.5392 92.7855

2017 23.2170 19.7183 76.7830 71.0645 92.5524

2018 43.7483 20.5313 56.2517 51.4823 91.5213

2019 38.9131 –4.8352 61.0869 57.1582 93.5686

2020 47.9298 9.0167 52.0702 48.9631 94.0328

2021 80.0315 32.1017 19.9685 17.3758 87.0160

2022 76.5053 –3.5292 23.4947 21.2005 90.2350

2023 78.1701 1.6649 21.8299 19.8534 90.9460

2024 80.0717 1.9015 19.9283 18.2468 91.5621

2025 79.8791 –0.1926 20.1209 18.7255 93.0650

Losses at Year

End (%)

Tax Year

Paid (%)

Year (%)

Unpaid Losses at Year End (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 1.1246 18.9963 17.8843 94.1462

2027 1.1246 17.8717 17.0300 95.2901

2028 1.1246 16.7471 16.1623 96.5079

2029 1.1246 15.6225 15.2811 97.8145

2030 and later years 1.1246 14.4979 14.3861 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 95.9885 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.

Bulletin No. 2016–51 847 December 19, 2016

Reinsurance — Nonproportional Assumed Financial Lines

Estimated Losses

Discounted Unpaid

Estimated Paid Each Unpaid Losses at Losses at Year Discount

Year Cumulative Losses Paid (%) Year (%) Year End (%) End (%) Factors (%)

2016 1.5423 1.5423 98.4577 93.0298 94.4871

2017 20.9273 19.3850 79.0727 74.9455 94.7805

2018 30.4705 9.5433 69.5295 66.4972 95.6390

2019 46.3043 15.8337 53.6957 51.5778 96.0558

2020 51.8464 5.5421 48.1536 46.7973 97.1834

2021 72.7869 20.9405 27.2131 26.4241 97.1007

2022 82.0967 9.3097 17.9033 17.4542 97.4915

2023 89.2630 7.1664 10.7370 10.5045 97.8346

2024 95.3692 6.1062 4.6308 4.5147 97.4934

2025 96.7995 1.4303 3.2005 3.1437 98.2266

Paid Each

Year (%)

Unpaid Losses at

Year End (%)

Losses at Year

Tax Year

Estimated Cumulative Losses Paid (%)

End (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 1.4303 1.7702 1.7513 98.9364

2027 and later years 1.4303 0.3399 0.3372 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 98.9741 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.

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

Estimated Cumulative Losses

Estimated Losses

Paid Each

Year (%)

Discounted Unpaid

Cumulative Losses Paid Each Unpaid Losses Losses at Year Discount

Year Paid (%) Year (%) at Year End (%) End (%) Factors (%)

2016 55.6145 55.6145 44.3855 43.8006 98.6824

2017 89.3328 33.7182 10.6672 10.5037 98.4669

Unpaid Losses at Year End (%)

Losses at Year

End (%)

Tax Year

Paid (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2018 and later years 5.3336 5.3336 5.2925 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 99.2290 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2018 taxable year.

Warranty

Estimated Cumulative Losses

Estimated Losses

Paid Each

Year (%)

Discounted Unpaid

Cumulative Losses Paid Each Unpaid Losses at Losses at Year Discount

Year Paid (%) Year (%) Year End (%) End (%) Factors (%)

2016 85.4101 85.4101 14.5899 14.4669 99.1571

2017 99.5388 14.1287 0.4612 0.4541 98.4669

Unpaid Losses at

Year End (%)

Losses at Year

Tax Year

Paid (%)

End (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2018 and later years 0.2306 0.2306 0.2288 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 99.2290 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2018 taxable year.

December 19, 2016 848 Bulletin No. 2016–51

Workers’ Compensation

Estimated Cumulative Losses

Estimated Losses

Paid Each

Year (%)

Discounted Unpaid

Cumulative Losses Paid Each Unpaid Losses at Losses at Year Discount

Year Paid (%) Year (%) Year End (%) End (%) Factors (%)

2016 21.8973 21.8973 78.1027 72.4793 92.8001

2017 43.4962 21.5989 56.5038 51.8433 91.7519

2018 56.0061 12.5099 43.9939 40.0450 91.0240

2019 63.5544 7.5482 36.4456 33.0628 90.7181

2020 68.9880 5.4337 31.0120 28.1027 90.6188

2021 73.9567 4.9687 26.0433 23.5338 90.3641

2022 76.0580 2.1013 23.9420 21.7833 90.9836

2023 77.6365 1.5785 22.3635 20.5323 91.8119

2024 80.1194 2.4828 19.8806 18.3505 92.3034

2025 81.3456 1.2262 18.6544 17.4010 93.2810

Unpaid Losses at

Year End (%)

Losses at Year

Tax Year

Paid (%)

End (%)

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 2016 accident year and that are outstanding at the end of the tax year shown.

2026 1.2262 17.4281 16.4367 94.3111

2027 1.2262 16.2019 15.4573 95.4044

2028 1.2262 14.9757 14.4627 96.5746

2029 1.2262 13.7494 13.4525 97.8408

2030 and later years 1.2262 12.5232 12.4266 99.2290

Taxpayers that use the composite method of Notice 88–100 should use 96.0431 percent to discount unpaid losses incurred

in this line of business in 2016 and prior years and that are outstanding at the end of the 2026 taxable year.