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 period. “The level of policyholders’ surplus becomes increasingly important in times of difficult economic conditions by allowing an insurer to remain solvent when facing uncertainty,” wrote report author and Demotech Senior Financial Analyst Douglas A. Powell.
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