Risk retention group premium growth slowed in 2023, with RRG premium increasing by 2.3% to $4,981.4 million, up from $4869.2 million in 2022. 2023 marks the thirteenth consecutive year of premium growth for the risk retention group industry. Overall, 149 risk retention groups posted premium gains—with 14 risk retention groups reporting premium increases of more than $10 million—while 76 reported premium declines. Premium was flat at 22 risk retention groups.
It is worth noting that one risk retention group, Pace RRG, Inc., received an extension on annual filings from the State of Vermont. Pace RRG had reported premiums of $22 million in 2022 and is still active. Once those annual filings come in, it is possible that risk retention group premium will surpass $5 billion for the first time. The Risk Retention Reporter will provide an update to RRG premium for 2023 when the data becomes available.
As in prior years, premium growth in 2023 was well distributed across business sectors, though more modest. The Property Development sector was the only sector to see a premium decline in 2023, with premium declining by 12.5 percent to $244.1 million. The largest premium increase in dollar terms was in the Government & Institutions sector which saw premium increase by $37.2 million to $703.1 million.
The Financial sector saw the largest premium growth in percentage terms with premium increasing by 24.3 percent to $103.5 million. The Financial sector was the only business sector to see premium growth of more than 10 percent.
The Healthcare sector held back premium growth in 2023. Premium in the sector was flat in 2023, increasing by 0.7 percent to $2,903.3 million. This is a significant drop off from the 14.5 percent premium growth the sector reported in 2022.
While new RRG formations slowed in 2023, retirements also fell slightly, leading to a net gain of five operational risk retention groups for the second year in a row.
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