Introduction When I began my time at the Risk Retention Reporter in February of 2013, the risk retention group industry was coming off a near record high of 261 operational risk retention groups. The 2000s had just ended, when the number of operational RRGs had surged from 65 in 2000 to 262 in 2008. The growth in the 2000s was …

Editor’s Note This is going to be a long article—quite a bit longer than I initially imagined. However, the issues raised in the case are of importance from the perspective of both regulators and service providers. Furthermore, many of the issues raised in this case are not matters of settled law. The case revolves around audit work Crowe LLP conducted …

Pinnacle Actuarial Resources (Pinnacle) has released its 2022 Risk Retention Group Benchmarking Study. The report, which provides a comprehensive breakdown of RRG financials, finds that, collectively, risk retention groups tend to be better capitalized than the overall insurance industry. The report also provides insights into RRG investment patterns and RRG activity across different non-domiciliary states. “There has been a noticeable …

The National Risk Retention Association Conference (NRRA) conference was held from November 1 to 3 at the Sofitel Hotel in Chicago, Illinois. The conference brought together the RRG industry for networking and educational sessions focused on the risk retention group industry. One of the highlights of the conference was recently retired Vermont Deputy Commissioner David Provost receiving the Karen Cutts …

AM Best has revised the outlook to stable from negative and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” for Western Pacific Mutual Insurance Company Risk Retention Group (WPMIC).WPMIC was formed in 1990 by home builders who are members of Pennsylvania-based Residential Warranty Corp. (RWC). Membership in RWC is required to the …

Vermont has been the leading risk retention group domicile since the passage of the Liability Risk Retention Act in 1987. In addition, since Vermont passed its captive law in 1981, just four individuals have headed the captive division of the Vermont Department of Financial Regulation (Vermont DFR).Ed Meehan was the first director of captive insurance in Vermont. Len Crouse took …

Demotech, Inc. has released its report “Analysis of Risk Retention Groups—Second Quarter 2022.” The report finds that while RRGs continue to exhibit “a great deal of financial stability,” difficult conditions in financial markets have contributed to a deterioration in a number of financial ratios and a decrease in policyholders’ surplus. From the period from the second quarter 2021 through second …

By Joseph Deems, NRRA Executive Director Over the course of the last decade and a half, the National Risk Retention Association (NRRA) has had eight chairs, four have been women and four have been men. In our present environment, while we all talk about diversity and inclusiveness, in doing so, we sometimes overlook the opportunity to demonstrate how some people …

The theme of the 2022 NRRA Conference is “Envisioning a Purpose Driven Future.” The Conference will be held from November 1 to November 3, 2022, at the Sofitel Magnificent Mile Hotel in Chicago, Illinois.  This year’s conference comes after one of the strongest years for RRG activity on record. At the end of 2020 there were 215 operational risk retention …

Jasbir S. Thandi and Global Century Insurance Brokers, Inc. (GBIC), defendants in the United States District Court for the District of Vermont (Vermont District Court) lawsuit regarding Global Hawk Insurance Company Risk Retention Group (Global Hawk) have defaulted. The Plaintiff, Vermont Department of Financial Regulation (Vermont DFR) Commissioner and Global Hawk Liquidator Kevin J. Gaffney, is now seeking a default …