SECTION 1. PURPOSE

This revenue procedure provides discount factors for the 2025 accident year for use by insurance companies in computing discounted unpaid losses under § 846 of the Internal Revenue Code ¹ and discounted estimated salvage recoverable under § 832. This revenue procedure also provides, for convenience, discount factors for losses incurred in the 2024 accident year and earlier accident years for use in taxable years beginning in 2025. The discount factors for accident years before 2025 were provided in earlier revenue procedures. See, e.g., Rev. Proc. 2025-15, 2025-11 I.R.B. 1090. See Rev. Proc. 202310, 2023-3 I.R.B. 411, for background concerning the loss payment patterns and application of the discount factors. This revenue procedure also requests comments relating to the composite method described in this revenue procedure and a 2024 change by the National Association of Insurance Commissioners (NAIC) to

Schedule P (Analysis of Losses and Loss Expenses) of the annual statement.