Writing D&O Insurance Through a Risk Retention Group Structure

By Gary Osborne, Vice President, Risk Partners D&O insurance rates continued to rise in 2021. Many believe this result is due to the Supreme Court decision Badgerow v. Walters, which allowed Section 11 suits (Section 11 suits under the Securities Act of 1933 are one of the more common types of litigation against new public companies. In these suits, shareholder …

Top 100 RRGs by Premium

This month’s special report is a ranking of the top 100 RRGs by gross written premium. Risk retention groups collectively saw the second largest premium increase on record in 2021 and there was significant movement in the rankings, particularly among Healthcare RRGs. See the top ten RRGs below. Emergency Capital Management (Vermont), LLC RRG made its debut among the top …

NRRA Launches NRRA-In-Vision
Content Development Initiative

The National Risk Retention Association (NRRA) has launched a new content development initiative—NRRA-In-Vision. The In-Vision platform will play a role in all NRRA content, from the annual NRRA conference to judicial and regulatory advocacy on behalf of the risk retention group and purchasing group industries. A key component of new the platform will be a series of NRRA-In-Vision webcasts on …

RRGs Carrying More, and Better,
Ratings in 2022

More risk retention groups are carrying ratings from AM Best or Demotech, Inc. as of June 2022 than were carrying ratings in June 2021. The overall quality of the ratings is also higher than in prior years. The number of risk retention groups carrying an A.M. Best rating increased to 43 from 41, while the number of risk retention group …

Strong Growth Takes RRG Premium Past $4 Billion: An Analysis by Business Sector

Risk retention groups reported strong premium growth of 13.6% in 2021 that took collective RRG premium to $4,343.3 million—an increase of $519.3 million over the $3,824.0 reported in 2020. The first time RRG premium has surpassed $4 billion. It was the second largest RRG premium increase on record, behind the $527.0 million in 2003. 2021 marks the eleventh consecutive year …

2021 Domicile Rankings: Vermont Leads and Alabama Moves Up

All established risk retention group domiciles saw strong premium growth in 2021, with declines occurring only in those domiciles with a single risk retention group. Though the top of the rankings remained unchanged, both Alabama and North Carolina make significant jumps in the rankings. Vermont continues to dominate the domicile rankings with 80 risk retention groups reporting $2615.9 million in …

Demotech Report: RRGs Report Favorable Results in 2021

Demotech Inc. has released its Analysis of Risk Retention Groups—Year-End 2021. The report finds that risk retention groups continue to exhibit a “great deal of financial stability.” The risk retention group industry saw its strongest premium growth since 2003 in 2021 with premium increasing by $519.3 million. According to the report, risk retention groups have maintained an appropriate balance sheet …

Risk Retention Roundup

This month four new risk retention groups were added to the Risk Retention Reporter listings and three RRGs were deleted, taking the total number of RRGs up to 238. No new purchasing groups were added to the Risk Retention Reporter listings, and no PGs were deleted, leaving the total number of PGs at 1030. Three of this month’s new risk …

Strong Growth Takes RRG Premium Past $4 Billion

Risk retention group premium increased by a strong 13.5% in 2021 to $4,352.6 million, an increase of $516.8 million over the $3,835.8 million reported in 2020. It was the strongest year for RRG premium growth in dollar terms since 2003. Premium growth was dispersed across a range of business sectors. The largest growth was at the recently reactivated Healthcare RRG …

The Challenges of Prosecuting Insurance Fraud: A Conversation with Butler Snow’s Benjamin Whitehouse

On February 18, 2022, the insolvency proceedings regarding Spirit Commercial Auto Risk Retention Group (Spirit) moved to arbitration after an appeal to the Nevada Supreme Court by Nevada Insurance Commissioner Barbara Richardson was denied. Nevada regulators allege that over $40 million is missing from Spirit. In the appeal, Richardson argued that arbitration agreements that Spirit made with its service providers …