SECTION 4. DISCOUNT FACTORS

FOR TAXABLE YEARS BEGINNING IN 2023

.01 The tables in this section 4 present separately for each line of business discount factors for losses incurred in the 2023 accident year and earlier accident years for use by insurance companies in computing discounted unpaid losses under § 846 and estimated salvage recoverable

under § 832 in taxable years beginning in 2023. .02 Tables 3 and 4 separately provide discount factors for insurance companies that have elected to use the composite method of Notice 88-100. See Rev. Proc. 2002-74. The discount factors computed using the composite method are unrelated to the composite discount factors referred to in § 1.846-1(b)(1)(ii) and (4), which apply to lines of business for

which the Secretary has not published discount factors. The composite discount factors for use with respect to such lines of business are labelled “ShortTail Composite” (in Table 3, part B) and “Long-Tail Composite” (in Table 4, part B). The “Miscellaneous Casualty” discount factors referenced in § 1.8461(b)(2) are not set forth in tables but are equivalent to the “Short-Tail Composite” discount factors.

December 26, 2023 1610 Bulletin No. 2023–52

Table 3 (part A) Discount Factors Under Section 846 (percent)

For Taxable Year(s) Beginning in 2023

Short-Tail Lines of Business

Financial Guaranty/

Mortgage Guaranty International Other*

Accident Year

Auto Physical

Damage Fidelity/Surety

2023 98.3826 95.7477 95.2511 95.8842 96.9968

2022 97.3911 97.3911 97.3911 97.3911 97.3911

Taxpayer Not Using Composite Method

2021 98.5999 98.5999 98.5999 98.5999 98.5999

2020 98.4834 98.4834 98.4834 98.4834 98.4834

2019 98.4785 98.4785 98.4785 98.4785 98.4785

Years before 2019 98.5513 98.5513 98.5513 98.5513 98.5513

Taxpayer Using the Composite Method

Years before 2022 98.5999 98.5999 98.5999 98.5999 98.5999

*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.

Bulletin No. 2023–52 1611 December 26, 2023

Table 3 (part B) Discount Factors Under Section 846 (percent)

For Taxable Year(s) Beginning in 2023

Short-Tail Lines of Business

Special Property

Reinsurance - Nonproportional

Liability

Reinsurance - Nonproportional

Assumed Property

(Fire, Allied Lines,

Inland Marine, Earthquake,

Burglary &

Theft) Warranty

Accident

Year

Reinsurance - Nonproportional

Assumed Financial Lines

Assumed

Short-Tail Composite

2023 95.8574 94.9260 96.2110 97.5931 98.3742 97.2238

2022 97.3911 97.3911 97.3911 97.3911 97.3911 97.3911

Taxpayer Not Using Composite Method

2021 98.5999 98.5999 98.5999 98.5999 98.5999 98.5999

2020 98.4834 98.4834 98.4834 98.4834 98.4834 98.4834

2019 98.4785 98.4785 98.4785 98.4785 98.4785 98.4785

Years before 2019 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513

Taxpayer Using the Composite Method

Years before 2022 98.5999 98.5999 98.5999 98.5999 98.5999 98.5999

December 26, 2023 1612 Bulletin No. 2023–52

Table 4 (part A) Discount Factors Under Section 846 (percent)

For Taxable Year(s) Beginning in 2023

Long-Tail Lines of Business

Medical Professional

Liability - Claims-Made

Medical Professional

Liability - Occurrence

Multiple Peril

Lines

Other Liability - Occurrence

Other Liability - Claims-Made

Accident Year

Commercial

Auto/Truck

Liability/

Medical

2023 94.0669 91.7012 86.8831 95.4382 91.4237 90.0155

2022 95.0679 93.3168 89.6041 94.3300 92.9253 91.5404

2021 95.4344 93.0842 90.7809 94.1554 92.4448 91.0405

2020 95.1096 92.8346 91.4580 92.9075 91.9007 90.5269

2019 94.9707 92.9600 92.4216 91.0050 91.7240 90.2502

2018 95.0498 93.3035 93.5069 91.6039 92.6040 90.7542

2017 95.3260 94.2423 94.3189 91.3154 93.0770 90.7788

2016 94.9804 95.1291 94.9993 91.0177 93.8378 91.9830

2015 96.4102 96.0160 96.1220 93.5200 94.9264 92.6228

2014 98.3585 97.7503 97.7902 94.8530 96.6876 94.4974

Taxpayer Not Using the Composite Method

2013 98.5513 98.5513 98.5513 96.1895 98.0033 95.8511

2012 98.5513 98.5513 98.5513 97.5045 98.5513 97.2176

Years before

2012 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513

Taxpayer Using the Composite Method

Years before

2014 98.5513 98.5513 98.5513 96.9185 98.0920 96.7300

Bulletin No. 2023–52 1613 December 26, 2023

Table 4 (part B) Discount Factors Under Section 846 (percent)

For Taxable Year(s) Beginning in 2023

Long-Tail Lines of Business

Products Liability - Claims-Made

Products Liability - Occurrence

Workers' Compensation

Long-Tail Composite

Accident Year

Private Passenger Auto Liability/

Medical

2023 95.8562 89.1780 88.5317 88.9551 93.4051

2022 95.8589 91.1883 90.6396 88.3566 93.2372

2021 95.4048 88.4963 90.1990 85.8758 91.7095

2020 94.6635 83.1315 90.8125 83.3180 89.8805

2019 93.9560 84.4151 89.4118 82.6909 88.2413

2018 94.2824 86.4184 89.9309 82.8905 88.6421

2017 94.5205 87.8040 90.8527 83.2567 88.6258

2016 95.0550 89.0388 91.8072 84.1036 89.1661

2015 95.6473 90.2969 92.1992 84.7150 90.3858

2014 97.7282 91.5785 94.4133 86.5946 92.1457

Taxpayer Not Using the Composite Method

2013 98.5513 92.8838 95.7739 87.8065 93.4541

2012 98.5513 94.2124 97.1571 89.0414 94.7812

2011 98.5513 95.5629 98.5513 90.2995 96.1195

2010 98.5513 96.9299 98.5513 91.5813 97.4421

2009 98.5513 98.2868 98.5513 92.8867 98.5513

2008 98.5513 98.5513 98.5513 94.2154 98.5513

2007 98.5513 98.5513 98.5513 95.5661 98.5513

2006 98.5513 98.5513 98.5513 96.9334 98.5513

2005 98.5513 98.5513 98.5513 98.2913 98.5513

Years before 2005 98.5513 98.5513 98.5513 98.5513 98.5513

Taxpayer Using the Composite Method

Years before 2014 98.5513 94.7288 96.6903 91.2579 95.0968