SECTION 5. APPLICATION OF DIS-
Internal Revenue Bulletin 2019-2 · 2026-10-03 edition · updated 2026-10-04 · United States
COUNT FACTORS IN SUBSEQUENT YEARS
Unless revised discount factors have been published, any taxpayer using discount factors prescribed herein to compute discounted unpaid losses under § 846
in the first taxable year beginning after December 31, 2017, must use the discount factors prescribed in Tables 5 and 6 in subsequent taxable years for purposes of determining the unpaid losses and expenses unpaid (as defined in § 832(b)(5) and (6)) attributable to accident year
2018, the unpaid losses (as defined in §§ 805(a)(1) and 807(c)(2)) attributable to accident year 2018, and salvage recoverable attributable to accident year 2018.
Table 5 (part A) Factors for Discounting Unpaid Losses Under Section 846 (percent) For Losses Incurred in Accident Year 2018 in Short-Tail Lines of Business
Financial Guaranty/
Auto Physical Mortgage
Taxable Year Beginning in Damage Fidelity/Surety Guaranty International Other*
2018 98.2924 95.7528 95.5027 96.0825 96.9295
2019 96.9631 96.9631 96.9631 96.9631 96.9631
Taxpayer Not Using Composite Method
Auto Physical
Taxable Year Beginning in
Damage Fidelity/Surety
Years after 2019 98.4640 98.4640 98.4640 98.4640 98.4640
Bulletin No. 2019–02 289 January 7, 2019
Table 5 (part A) Factors for Discounting Unpaid Losses Under Section 846 (percent) For Losses Incurred in Accident Year 2018 in Short-Tail Lines of Business
Financial Guaranty/
Auto Physical Mortgage
Taxable Year Beginning in Damage Fidelity/Surety Guaranty International Other*
Composite Discount Factors
Auto Physical
Taxable Year Beginning in
Damage Fidelity/Surety
2020 98.4640 98.4640 98.4640 98.4640 98.4640
Years after 2020 Use composite discount factors published for the relevant accident year.**
***** For Accident and Health lines of business (other than disability income or credit disability insurance), the dis- count factor for taxable year 2018 is 98.4640 percent. For later years, the discount factor for losses incurred in 2018 is the discount factor published for Accident and Health lines of business for losses incurred in the accident year coinciding with the taxable year.
**The relevant accident year is the accident year that is two years prior to the specified taxable year.
Table 5 (part B) Factors for Discounting Unpaid Losses Under Section 846 (percent) For Losses Incurred in Accident Year 2018 in Short-Tail Lines of Business
Special Property (Fire, Allied Lines,
Reinsurance – Nonproportional
Assumed
Liability
Reinsurance – Nonproportional
Inland Marine,
Earthquake,
Taxable Year Assumed Assumed Assumed Burglary Short-Tail
Beginning in Financial Lines Liability Property & Theft) Warranty Composite
2018 95.3460 94.5342 96.0638 97.3657 98.0866 96.8171
2019 96.9631 96.9631 96.9631 96.9631 96.9631 96.9631
Taxpayer Not Using Composite Method
Years after 2019 98.4640 98.4640 98.4640 98.4640 98.4640 98.4640
Composite Discount Factors
Taxable Year
Beginning in
Reinsurance – Nonproportional
Assumed Financial Lines
Assumed Property
Burglary & Theft) Warranty
2020 98.4640 98.4640 98.4640 98.4640 98.4640 98.4640
Years after 2020 Use composite discount factors published for the relevant accident year.**
**The relevant accident year is the accident year that is two years prior to the specified taxable year.
Table 6 (part A) Factors for Discounting Unpaid Losses Under Section 846 (percent) For Losses Incurred in Accident Year 2018 in Long-Tail Lines of Business
Medical Professional
Medical Professional
Liability – Occurrence
Multiple Peril Lines
Other Liability –
Commercial Liability – Professional Liability – Other
Auto/Truck Claims- Liability – Multiple Claims- Liability –
Beginning in Liability/Medical Made Occurrence Peril Lines Made Occurrence
2018 93.7136 91.1847 86.1703 95.0382 90.3833 88.7841
2019 94.4581 92.2226 88.3371 93.3147 91.2289 89.6647
2020 95.0089 92.4524 89.9455 93.6251 91.7605 90.2415
2021 95.0495 92.7481 91.3552 92.8232 91.8038 90.4153
2022 94.9245 92.8961 92.3529 90.9251 91.6496 90.1639
2023 94.7625 92.9180 93.1329 91.1314 92.1818 90.2353
2024 95.0535 93.9081 93.9891 90.8234 92.6788 90.2570
2025 94.6859 94.8439 94.7064 90.5036 93.4801 91.5250
2026 96.1971 95.7805 95.8926 93.1447 94.6287 92.1970
2027 98.2598 97.6158 97.6580 94.5519 96.4911 94.1762
Commercial
Liability –
Claims-
Made
Claims-
Made
Taxable Year Beginning in
Auto/Truck Liability/Medical
January 7, 2019 290 Bulletin No. 2019–02
Table 6 (part A) Factors for Discounting Unpaid Losses Under Section 846 (percent) For Losses Incurred in Accident Year 2018 in Long-Tail Lines of Business
Medical Professional
Medical Professional
Liability – Occurrence
Multiple Peril Lines
Other Liability –
Commercial Liability – Professional Liability – Other
Auto/Truck Claims- Liability – Multiple Claims- Liability –
Taxable Year Beginning in Liability/Medical Made Occurrence Peril Lines Made Occurrence
Taxpayer Not Using Composite Method
Commercial
Liability –
Claims-
Made
Claims-
Made
Taxable Year Beginning in
Auto/Truck Liability/Medical
2028 98.4640 98.4640 98.4640 95.9642 97.8837 95.6063
2029 98.4640 98.4640 98.4640 97.3555 98.4640 97.0517
Years after 2029 98.4640 98.4640 98.4640 98.4640 98.4640 98.4640
Composite Discount Factors
2028 98.4640 98.4640 98.4640 96.7357 97.9777 96.5363
Years after 2028 Use composite discount factors published for the relevant accident year.*
**The relevant accident year is the accident year that is ten years prior to the specifed taxable year.*
Table 6 (part B) Factors for Discounting Unpaid Losses Under Section 846 (percent) For Losses Incurred in Accident Year 2018 in Long-Tail Lines of Business
Products Liability – Claims-Made
Products Liability – Occurrence
Workers’ Compensation
Passenger Auto Liability – Liability – Workers’ Long-Tail
Taxable Year Beginning in Liability/Medical Claims-Made Occurrence Compensation Composite
2018 95.4241 85.1518 87.1543 87.4184 92.3564
2019 95.0203 85.6347 88.5453 85.8424 91.2748
2020 94.9784 87.5083 89.3276 84.6991 90.9788
2021 94.5984 82.9398 90.7045 83.1346 89.7633
2022 93.9009 84.2812 89.3185 82.5478 88.1393
2023 93.9524 85.6749 89.3669 81.9913 88.0168
2024 94.2025 87.1293 90.3357 82.3684 87.9945
2025 94.7658 88.4262 91.3398 83.2518 88.5587
2026 95.3902 89.7489 91.7494 83.8871 89.8408
2027 97.5924 91.0980 94.0873 85.8606 91.6956
Taxpayer Not Using Composite Method
Taxable Year Beginning in
Private Passenger Auto Liability/Medical
2028 98.4640 92.4736 95.5247 87.1320 93.0752
2029 98.4640 93.8753 96.9877 88.4289 94.4760
2030 98.4640 95.3017 98.4640 89.7517 95.8902
2031 98.4640 96.7473 98.4640 91.1009 97.2894
2032 98.4640 98.1839 98.4640 92.4766 98.4640
2033 98.4640 98.4640 98.4640 93.8785 98.4640
2034 98.4640 98.4640 98.4640 95.3051 98.4640
2035 98.4640 98.4640 98.4640 96.7511 98.4640
2036 98.4640 98.4640 98.4640 98.1886 98.4640
Years after 2036 98.4640 98.4640 98.4640 98.4640 98.4640
Composite Discount Factors
2028 98.4640 94.4219 96.4942 90.7644 94.8105
Years after 2028 Use composite discount factors published for the relevant accident year.*
*The relevant accident year is the accident year that is ten years prior to the specified taxable year.
Bulletin No. 2019–02 291 January 7, 2019
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