Risk retention group premium surpassed $5 billion for the first time in 2024, with premium for risk retention groups increasing by 8.7 percent to $5,450.3 million from $5013.7 million in 2023. This is the fourteenth consecutive year of risk retention group premium growth.
Overall, 166 risk retention groups posted premium gains—with 17 risk retention groups reporting premium increases of more than $10 million—while 71 reported premium declines. Premium was flat at eight risk retention groups.
Premium growth in 2024 was well distributed across business sectors, with most business sectors reporting strong growth. The Environmental sector was the only sector to see a premium decline in 2024, though premium for Environmental RRGs was essentially flat, falling by 0.1 percent to $19.6 million.
The Transportation sector saw the largest premium growth in percentage terms, with premium increasing by 31.3 percent to $569.9 million. Growth was also strong in the Financial sector, where risk retention groups collectively saw premium increase by 25.0 percent to $120.4 million.
The Healthcare sector saw the largest amount of premium growth in dollar terms, with premium increasing by $223.4 million, or 7.6 percent. Premium for the Healthcare sector was flat in 2023, which held back premium growth last year.
New risk retention group formations continued to slow in 2024, with six new risk retention groups forming. Retirements increased to ten, taking the total number of RRGs down to 244.
Risk retention group premium growth is increasingly driven by the largest risk retention groups. Premium for the 100 largest risk retention groups (on a premium basis) increased by 18.1 percent, while premium for risk retention groups outside of the top 100 fell by 17.8 percent.
Retired risk retention groups had a minor impact on RRG premium. The retirement of Bedford Physicians RRG, Inc. had the largest impact, with reported premium of $31.1 million in 2023. The other retired RRGs had little to no reported premium. The largest RRG to retire was Controlled Risk Ins. Co. of Vermont, Inc. (A RRG), which reorganized as CRICO, a Reciprocal RRG. Controlled Risk Ins. Co. of Vermont, Inc. (A RRG) reported premium of $203.6 million in 2023, and CRICO, a Reciprocal RRG, reported premium of $246.5 million in 2024, leading to a net increase of $42.9 million in RRG premium.
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