Category Archive

Demotech, Inc. has released its report “Analysis of Risk Retention Groups—First Quarter 2022”. The report finds that risk retention groups continue to exhibit financial stability. However, a rare net loss for RRGs was reported in the first quarter of 2022. This net loss stems from weak investment performance in the first quarter of the year. According to the report, for …

Vermont Deputy Commissioner, Captive Insurance at the State of Vermont David Provost will be retiring at the end of summer 2022. Provost has led the Vermont captive division since 2008. The Risk Retention Reporter reached out to Provost to discuss his decision to step down, the current captive team in Vermont, and what’s next for Vermont and the captive industry. …

The RRG cession rate continued to hold steady in 2021, even as the hard market contributed to the second largest increase in RRG premium on record. Risk retention groups ceded 46.6% percent of premium to reinsurers in 2021, almost identical to the cession rate of 46.4% in 2020. Overall trends in RRG reinsurance have not shifted much recently. The biggest …

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 …

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 …

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 …

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 …

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 …

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 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 …