Risk retention group premium surpassed $6 billion for the first time in 2025, with premium for risk retention groups increasing by 11.7 percent to $6,011.0 million from $5380.3 million in 2024. This is the fifteenth consecutive year of risk retention group premium growth.
Overall, 154 risk retention groups posted premium gains—with 21 risk retention groups reporting premium increases of more than $10 million—while 72 reported premium declines. Nine risk retention groups reported flat premium.
Risk retention groups saw well distributed premium growth with most business sectors reporting strong growth, though the Financial (-21.8 percent), Leisure (-0.6 percent), and Manufacturing & Commerce (-7.8 percent) sectors reported premium declines.
The Transportation and Property Development sectors reported the strongest premium growth in percentage terms with premium growing by 39.6 percent and 34.2 percent, respectively.
The Healthcare sector saw the largest amount of premium growth in dollar terms, with premium increasing by $292.9 million, or 9.4 percent. The Healthcare sector has seen two consecutive years of strong premium growth, which contributed to strong premium growth for risk retention groups collectively over the past two years.
Risk retention group formations were strong in 2025, with eleven new formations. However, the pace of retirements also increased with eighteen groups retiring, leading to a net loss of seven risk retention groups.
While the largest premium growth occurred at the larger, more established risk retention groups, ten Transportation risk retention groups formed in the last decade reported premium growth of more than $10 million. Due to this growth the Transportation sector surpassed the Government & Institutions sector as the second largest business sector for risk retention groups.
Retired risk retention groups had a minor impact on RRG premium. The only retiring risk retention group to contribute to a premium decline was Graph Insurance Company, A Risk Retention Group, LLC (Graph). The Vermont Department of Financial Regulation put Graph into rehabilitation on March 18, 2025, leading to a premium decline of $6.4 million.
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