717.761.7171

IRS Releases 2025 Loss Reserve Discount Factors for Insurers

IRS Releases 2025 Loss Reserve Discount Factors for Insurers

On February 9, 2026, the Internal Revenue Service (IRS) released Revenue Procedure 2026-13. This Revenue Procedure 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 2025 accident year to compute discounted unpaid losses and estimated salvage recoverable.

The discount factors are calculated using a corporate bond yield curve methodology. The interest rate for 2025 is 3.57%, determined using semiannual compounding. Tables 3 and 4 in Section 4 of the Revenue Procedure present the discount factors by each line of business for losses incurred in the 2025 and earlier accident years.

Insurance companies may click here or use the button below to download a copy of Brown Plus’ 2025 Discounted Unpaid Losses and Estimated Salvage Recoverable Excel template.

Download the 2025 Loss Reserve Discount Factors Template

If you have any questions regarding the Revenue Procedure or the Firm’s template, please contact your Brown Plus advisor today.

Posted In: Insights | Downloadable Resources

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.