Florida Bill 516 (the Bill) was unanimously approved by the Committee on Banking and Insurance (Committee) of the Florida Senate at hearing held on March 22, 2023. The Bill would require risk retention groups writing commercial auto liability in Florida to carry a Financial Strength Rating of “A” or higher and be of a Financial Size Category (FSC) of VIII …
2022 Actuary & Auditor Rankings: Milliman, Johnson Lambert Lead
The Risk Retention Reporter has complied the risk retention group actuary and auditor rankings for 2022. Milliman and Willis Towers Watson led the rankings for actuaries, while Johnson Lambert, LLP and Crowe, LLP top the rankings for auditors. This the most complete ranking for actuary and auditors complied by the Risk Retention Reporter, with just 21 active RRGs missing an …
NRRA Chair Sullivan on the Leaders Summit and the RRG Industry
The NRRA Leaders Summit (The Summit) will be held on March 14 at the Sofitel Los Angeles at Beverly Hills in Los Angeles, California. The Summit is a one day conference tailored specifically to the leadership teams at risk retention groups. The Risk Retention Reporter spoke with NRRA Chair Tim Sullivan on his priorities for NRRA in the coming years, …
Arsenal Insurance Management, LLC Files for Bankruptcy
Alabama-based Arsenal Insurance Management, LLC (Arsenal) has filed for bankruptcy in United States Bankruptcy Court for the District of Delaware on January 23, 2023. It’s affiliated companies Arsenal Health LLC and Arsenal Intermediate Holdings LLC also filed for bankruptcy on the same day. While much of the reporting on the Arsenal has focused on the firm’s large portfolio of captives …
Vermont See Strong Growth, Holds Trade Mission in Mexico
Vermont—the largest domestic captive and risk retention group domicile—reported another strong year of growth in 2022. Vermont licensed 41 new captive insurance companies in 2022, taking the total number of captives in the state up to 639. It was the sixth best year for captive formations in the over 40 years that Vermont has operated as a captive domicile. “While …
2022 Risk Retention Group Directory & Guide Available
The 2022 Risk Retention Group Directory & Guide (Directory) is available. The Directory includes profiles of 237 risk retention groups, including a description of the RRG, five-year historical data, contact information, and lines of coverage. This is an increase over the 224 risk retention groups included in the 2021 edition of the Directory & Guide as the number of operational …
Ten Year Review of RRG Activity
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 …
Vermont District Court Denies Crowe’s Motion to Dismiss
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 Release 2022 RRG Study
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 …
NRRA Conference Recap—Provost Receives Karen Cutts Award
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 …