Category Archive

A.M. Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) for Community Hospital Alternative for Risk Transfer (A Reciprocal Risk Retention Group) (CHART RRG). The outlook for the ratings was revised to stable from positive. “The ratings reflect CHART RRG’s balance …

Demotech, Inc. has released its publication Analysis of Risk Retention Groups—Second Quarter 2021. The Demotech report finds that risk retention groups continue to report premium growth while exhibiting continued financial stability. From second quarter 2020 to second quarter 2021, risk retention groups collectively reported growth in cash and invested assets of 14.7%, while surplus increased by 14.3% over the same …

Maple Technologies (Maple Tech), a provider of cloud-based administration software for property and casualty (P&C) insurers, announced a new program geared towards smaller insurers including risk retention groups and captives. Maple Tech’s core software is the Aspire system and the Zero-20-20 program will waive the implementation fees for Aspire for those carriers with gross written premiums of less than $20 …

The risk retention group cession rate held steady in 2020, with RRGs collectively ceding 45.8% of premium to reinsurers in 2020, a slight increase from the 45.4% of premium ceded to reinsurers by risk retention groups in 2019. The hard market has tightened the reinsurance market, but that tightening does not appear to have had a significant impact on overall …

The rankings of captive managers by risk retention group premium largely held steady in 2020. This stability comes after a period of significant upheaval where long-term players in the risk retention group space such as USA Risk Group and JLT Towner fell from prominence or were acquired. It seemed that further shake-ups were in the cards when it was announced …

Risk Retention Reporter Managing Editor Christopher Diemel participated on a panel at the 2021 VCIA Virtual Conference entitled “Are RRGs a Mature Industry?” Other participants on the panel included Vermont Assistant Director of Captive Insurance Christine Brown, MCIC Vermont (A Reciprocal RRG) Chief Risk Officer Chris Heckman, and Recreation RRG Secretary and Risk Management Officer Tim Herr. While discussing the …

The risk retention group industry saw another strong year of premium growth in 2020, with premium increasing to $3838.3* million from $3581.5 in 2019, an increase of 7.2%. Growth in 2020 occurred in a lower number of domiciles—nine—than in 2019, when 13 domiciles reported increases in premium. 2020 premium growth was driven in part by newly formed or reactivated risk …

The Captive Insurance Companies Association (CICA) and the National Risk Retention Association (NRRA) have announced conferences for fall 2021. The two conferences will be among the first captive conferences with a national attendance to held in-person since the coronavirus pandemic abruptly halted most events in March 2020. CICA will be holding its Fall Forum from October 10 to 13, 2021, …

More risk retention groups are carrying ratings from A.M. Best or Demotech, Inc. as of July 2021 than were carrying ratings in July 2020. The number of risk retention groups carrying an A.M. Best rating held steady at 41, while the number of risk retention group carrying a Demotech rating increased from 24 to 29. Two risk retention groups—Attorneys’ Liability …