RRG captive managers saw increased competition in 2021—with some large accounts moving to new captive managers—and several new captive managers entering the RRG space. This competition follows a strong 2021 for the RRG industry.
The risk retention group industry saw the second largest premium increase on record in 2021—behind only 2003—with RRG premium increasing by 13.6% to $4343.2 million. In addition, the number of operational RRGs increased to 237, with the largest number of new RRG formations since 2007.
Aon maintained its status as the leading captive manager for risk retention groups. Premium for Aon-managed risk retention groups increased by 15.6% to $1,439.8 million—no other captive managers saw collective RRG premium of more than $400 million in 2021. The number of RRGs managed by Aon also increased to 37 in 2021 from 35 in 2020.
Although Aon made big gains, it also saw one of its managed RRGs move on. Cassatt RRG, Inc., which had been managed by Aon, moved to self-management.
Aon is the captive manager for many of the largest risk retention groups in terms of gross written premium including MCIC Vermont (A Reciprocal RRG) ($401.0 million); United Educators Insurance, A Reciprocal RRG ($340.2 million); and Controlled Risk Ins. Co. of Vermont, Inc. (A RRG) ($185.1 million).
The Aon-managed Emergency Capital Management (Vermont), LLC RRG also reactivated and wrote $86.5 million in premium in 2021.
This is an excerpt, for the complete article subscribe to the Risk Retention Reporter.