New RRG Formations at Highest Level Since 2007

At the end of 2020 there were 215 active risk retention groups, the lowest number of operational RRGs since 2005. All the while, other types of captive formations were booming. It seemed that hard market that had begun in 2019 had left the risk retention group industry behind. That doesn’t appear to be the case anymore.

There have been 24 new risk retention group formations through November 2021, the largest number of new RRG formations since 2007. There was also one RRG reactivation, and just four RRG retirements, for a net increase of 21 operational risk retention groups in 2021. Although the industry got off to a slow start, the risk retention group industry now seems poised to recover from a difficult decade in the 2010s.

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