717.761.7171

IRS Releases 2024 Loss Reserve Discount Factors for Insurers

IRS Releases 2024 Loss Reserve Discount Factors for Insurers

On February 13, 2025, the Internal Revenue Service (IRS) released Revenue Procedure 2025-15, which applies to all insurance companies that are required to discount unpaid losses under Internal Revenue Code (IRC) Section 846 and estimated salvage recoverable under IRC Section 832. The Revenue Procedure provides insurance companies the discount factors for losses incurred in the 2024 accident year to compute discounted unpaid losses and estimated salvage recoverable. The discount factors are determined using a corporate bond yield curve methodology, with the interest rate for 2024 set at 3.18%, calculated using semiannual compounding. Tables 3 and 4 in Section 4 (starting on page 9 of the Revenue Procedure) present the discount factors by each line of business for losses incurred in 2024 and earlier accident years.

Access Our Loss Reserve Discount Template

The Brown Plus Insurance Practice has created a 2024 Discounted Unpaid Losses and Estimated Salvage Recoverable template to assist our insurance clients with their calculations. This template includes instructions on entering your data, the 2024 discount factors from the Revenue Procedure, Schedule P inputs and a summary of data.

Access our template today by downloading it

Disclaimer: This resource is intended for illustrative purposes only. Although our Firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. This document is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

Posted In: Insurance | Downloadable Resources

About the Author - Carrie Small, CPA, MST

Carrie is a Tax Principal at Brown Plus. She has over 20 years of experience providing tax compliance and consulting services to privately held and public companies, with a specialization in insurance taxation.

Carrie is a leader within the Brown Plus Insurance Practice, which provides a full range of audit, tax and advisory services to insurance companies across the country. The Brown Plus Insurance Practice is one of the nation’s largest audit practices as ranked by AM Best. Within the practice, Carrie specializes in providing tax compliance, tax provision and tax consulting services to insurance entities.

Disclaimer: Information provided by Brown Plus as part of this blog post is intended for reference and information only. As the information is designed solely to provide guidance and is not intended to be a substitute for someone seeking personalized professional advice based on specific factual situations, responding to such inquiries does NOT create a professional relationship between Brown Plus and the reader and should not be interpreted as such. Although Brown Plus has made every reasonable effort to ensure that the information provided is accurate, Brown Plus makes no warranties, expressed or implied, on the information provided. The reader accepts the information as is and assumes all responsibility for the use of such information.