SECTION 3. DISCOUNT FACTORS
Internal Revenue Bulletin 2023-52 · 2026-10-03 edition · updated 2026-10-04 · United States
FOR THE 2023 ACCIDENT YEAR
.01 The tables in this section 3 separately present for each line of business the discount factors for losses incurred in the 2023 accident year for use by insurance companies in computing discounted unpaid losses under § 846 and estimated salvage recoverable under § 832. The discount factors presented in this section are generally determined by using the applicable interest rate for 2023 under § 846(c), which is 2.90 percent, determined using semiannual compounding. The exceptions are the discount factors for long-tail lines of business determined using the composite method described in section V of Notice 88-100, 1988-2 C.B. 439. These discount factors are to be used in taxable years beginning in 2033 for losses incurred in accident years not separately reported on the annual statement for 2033. For taxable years beginning after 2033, the discount factors to be used for losses incurred in the 2023 accident year will
Table 1 (part A) Discount Factors Under Section 846 (percent) For Losses Incurred in Accident Year 2023 in Short-Tail Lines of Business
Taxable Year
Beginning in
Auto Physical
Damage Fidelity/Surety
Financial Guaranty/
Mortgage Guaranty International Other*
2023 98.3826 95.7477 95.2511 95.8842 96.9968
2024 97.1719 97.1719 97.1719 97.1719 97.1719
Taxpayer Not Using Composite Method
Years after 2024 98.5707 98.5707 98.5707 98.5707 98.5707
Taxpayer Using the Composite Method
2025 98.5707 98.5707 98.5707 98.5707 98.5707
Years after 2025 Use composite method discount factors published for the relevant accident year.**
*For the Accident and Health line of business (other than disability income or credit disability insurance), the discount factor for taxable year 2023 is 98.5707 percent. This is also the discount factor used in later taxable years for taxpayers not using the composite method. For taxpayers using the composite method, the discount factor for losses incurred in 2023 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.
Bulletin No. 2023–52 1607 December 26, 2023
Table 1 (part B) Discount Factors Under Section 846 (percent) For Losses Incurred in Accident Year 2023 in Short-Tail Lines of Business
Special Property
Taxable
Reinsurance - Nonproportional
Liability
Reinsurance - Nonproportional
Assumed Property
Earthquake, Burglary & Theft) Warranty
(Fire, Allied Lines, Inland Marine,
Year Beginning
Reinsurance - Nonproportional
Assumed Financial Lines
Assumed
Short-Tail Composite
in
2023 95.8574 94.9260 96.2110 97.5931 98.3742 97.2238
2024 97.1719 97.1719 97.1719 97.1719 97.1719 97.1719
Taxpayer Not Using Composite Method
Years after
2024 98.5707 98.5707 98.5707 98.5707 98.5707 98.5707
Taxpayer Using the Composite Method
2025 98.5707 98.5707 98.5707 98.5707 98.5707 98.5707
Years after
2025 Use composite method 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.
December 26, 2023 1608 Bulletin No. 2023–52
Table 2 (part A) Discount Factors Under Section 846 (percent) For Losses Incurred in Accident Year 2023 in Long-Tail Lines of Business
Medical Professional
Liability - Claims-Made
Medical Professional
Liability - Occurrence
Multiple Peril
Lines
Other Liability - Occurrence
Taxable Year
Beginning in
Commercial
Auto/Truck
Liability/
Medical
Other Liability - Claims-Made
2023 94.0669 91.7012 86.8831 95.4382 91.4237 90.0155
2024 94.6657 92.7807 88.7877 93.8732 92.3628 90.8746
2025 95.2185 93.1025 90.1803 93.9066 92.4061 91.5784
2026 95.5234 93.9577 91.5512 93.8414 92.6133 91.9264
2027 95.4250 93.7878 92.3543 93.6275 92.5473 92.2284
2028 94.9588 94.4205 92.7420 93.8836 92.5915 91.2169
2029 94.9803 93.9949 93.1270 93.9644 92.2397 91.1996
2030 95.4526 94.8602 92.9930 95.7120 93.9160 91.9425
2031 96.4116 96.1752 94.7992 96.5370 96.4131 92.9346
2032 98.2559 97.6318 96.4691 97.9721 96.9986 94.7538
Taxpayer Not Using Composite Method
2033 98.5707 98.5707 97.7548 98.5707 98.3447 96.0789
2034 98.5707 98.5707 98.5707 98.5707 98.5707 97.3969
Years after
2034 98.5707 98.5707 98.5707 98.5707 98.5707 98.5707
Taxpayer Using the Composite Method
2033 98.5707 98.5707 97.9643 98.5876 98.3699 97.0305
Years after
2033 Use composite method 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. 2023–52 1609 December 26, 2023
Table 2 (part B) Discount Factors Under Section 846 (percent) For Losses Incurred in Accident Year 2023 in Long-Tail Lines of Business
Products Liability - Claims-Made
Taxable Year Beginning
in
Private Passenger Auto Liability/
Medical
Products Liability - Occurrence
Workers' Compensation
Long-Tail Composite
2023 95.8562 89.1780 88.5317 88.9551 93.4051
2024 95.5202 90.4947 89.9028 87.4781 92.7019
2025 95.6012 90.7369 91.0112 86.8945 92.4617
2026 95.5203 89.7998 91.5875 86.4217 91.8247
2027 94.6286 91.2853 91.9130 86.7149 91.5295
2028 94.0135 92.8707 92.3814 86.1127 91.0702
2029 94.5794 94.5952 93.2984 86.7030 91.3120
2030 94.7253 95.0313 93.5893 88.1853 92.6078
2031 95.4710 96.2767 94.6085 89.5932 93.9475
2032 97.6138 97.9342 96.6089 90.5104 95.2242
Taxpayer Not Using Composite Method
2033 98.5707 98.5707 97.8975 91.7803 96.5456
2034 98.5707 98.5707 98.5707 93.0739 97.8319
2035 98.5707 98.5707 98.5707 94.3915 98.5707
2036 98.5707 98.5707 98.5707 95.7327 98.5707
2037 98.5707 98.5707 98.5707 97.0957 98.5707
2038 98.5707 98.5707 98.5707 98.4690 98.5707
Years after 2038 98.5707 98.5707 98.5707 98.5707 98.5707
Taxpayer Using the Composite Method
2033 98.5707 96.6888 98.2220 92.8090 96.9820
Years after 2033 Use composite method 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.
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