SECTION 4. DISCOUNT FACTORS

FOR TAXABLE YEARS BEGINNING IN 2025

.01 The tables in this section 4 present separately for each line of business discount factors for losses incurred in the 2025 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 2025. .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 “Short-Tail Composite” (in Table 3, part B) and “Long-Tail Composite” (in Table 4, part B). The “Miscellaneous Casualty” discount factors referenced in § 1.846-1(b)(2) are not set forth in tables but are equivalent to the “ShortTail Composite” discount factors.

February 23, 2026 568 Bulletin No. 2026–9

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

For Taxable Years Beginning in 2025

Short-Tail Lines of Business

Financial Guaranty/

Mortgage Guaranty International Other*

Accident Year

Auto Physical

Damage Fidelity/Surety

2025 98.0171 94.8069 94.2020 94.9732 96.3288

2024 96.9063 96.9063 96.9063 96.9063 96.9063

Taxpayer Not Using Composite Method

2023 98.5707 98.5707 98.5707 98.5707 98.5707

2022 98.6826 98.6826 98.6826 98.6826 98.6826

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 2024 98.5707 98.5707 98.5707 98.5707 98.5707

*** For the Accident and Health line of business (other than disability income or credit disability insurance), the discount** factor for taxable year 2025 is 98.2463 percent.

Bulletin No. 2026–9 569 February 23, 2026

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

For Taxable Years Beginning in 2025

Short-Tail Lines of Business

Reinsurance - Nonproportional

Liability

Reinsurance - Nonproportional

Assumed Property

Earthquake, Burglary, Theft, Pet) Warranty

Special Property (Fire, Allied Lines,

Inland Marine,

Accident

Year

Reinsurance - Nonproportional

Assumed Financial Lines

Assumed

Short-Tail Composite

2025 94.9406 93.8058 95.3714 97.0553 98.0069 96.6054

2024 96.9063 96.9063 96.9063 96.9063 96.9063 96.9063

Taxpayer Not Using Composite Method

2023 98.5707 98.5707 98.5707 98.5707 98.5707 98.5707

2022 98.6826 98.6826 98.6826 98.6826 98.6826 98.6826

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

2024 98.5707 98.5707 98.5707 98.5707 98.5707 98.5707

February 23, 2026 570 Bulletin No. 2026–9

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

For Taxable Year(s) Beginning in 2025

Long-Tail Lines of Business

Medical Professional

Liability - Occurrence

Multiple Peril

Lines

Other Liability - Occurrence

Medical Professional

Liability - Claims-Made

Other Liability -

Claims-

Made

Accident Year

Commercial

Auto/Truck Liability/Medical

2025 92.7912 89.9549 84.2073 94.4611 89.6344 87.9606

2024 94.1807 92.1360 87.8094 93.3234 91.6872 90.0762

2023 95.2185 93.1025 90.1803 93.9066 92.4061 91.5784

2022 95.8620 94.4096 92.1748 94.3016 93.1601 92.5186

2021 95.3575 93.4953 92.9976 91.6759 92.3482 90.9746

2020 94.8262 93.0034 93.2158 91.2360 92.2753 90.3502

2019 95.0988 93.9636 94.0439 90.9051 92.7450 90.3437

2018 94.9804 95.1291 94.9993 91.0177 93.8378 91.9830

2017 96.4102 96.0160 96.1220 93.5200 94.9264 92.6228

2016 98.3585 97.7503 97.7902 94.8530 96.6876 94.4974

Taxpayer Not Using the Composite Method

2015 98.5513 98.5513 98.5513 96.1895 98.0033 95.8511

2014 98.5513 98.5513 98.5513 97.5045 98.5513 97.2176

Years before

2014 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513

Taxpayer Using the Composite Method

Years before

2016 98.5513 98.5513 98.5513 96.9185 98.0920 96.7300

Bulletin No. 2026–9 571 February 23, 2026

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

For Taxable Year(s) Beginning in 2025

Long-Tail Lines of Business

Products Liability - Claims-Made

Products Liability - Occurrence

Workers' Compensation

Long-Tail Composite

Accident Year

Private Passenger Auto Liability/

Medical

2025 94.9556 86.9550 86.1793 86.7823 92.0262

2024 95.1115 89.6632 89.0194 86.4322 92.0595

2023 95.6012 90.7369 91.0112 86.8945 92.4617

2022 95.8576 90.5530 92.2079 87.3806 92.4240

2021 94.4178 85.5424 90.1962 83.9002 89.0997

2020 94.0255 85.8393 89.4917 82.1898 88.1551

2019 94.2553 87.2412 90.4215 82.5155 88.0992

2018 95.0550 89.0388 91.8072 84.1036 89.1661

2017 95.6473 90.2969 92.1992 84.7150 90.3858

2016 97.7282 91.5785 94.4133 86.5946 92.1457

Taxpayer Not Using the Composite Method

2015 98.5513 92.8838 95.7739 87.8065 93.4541

2014 98.5513 94.2124 97.1571 89.0414 94.7812

2013 98.5513 95.5629 98.5513 90.2995 96.1195

2012 98.5513 96.9299 98.5513 91.5813 97.4421

2011 98.5513 98.2868 98.5513 92.8867 98.5513

2010 98.5513 98.5513 98.5513 94.2154 98.5513

2009 98.5513 98.5513 98.5513 95.5661 98.5513

2008 98.5513 98.5513 98.5513 96.9334 98.5513

2007 98.5513 98.5513 98.5513 98.2913 98.5513

Years before 2007 98.5513 98.5513 98.5513 98.5513 98.5513

Taxpayer Using the Composite Method

Years before 2016 98.5513 94.7288 96.6903 91.2579 95.0968

February 23, 2026 572 Bulletin No. 2026–9