RRGs Report Worst Surplus Decline on Record

Risk retention groups reported a surplus decline of $613.3 million in 2022, the largest surplus decline on record. The decline in surplus accompanied a record year for risk retention group premium growth, with premium increasing by $558.1 million in 2022. The risk retention group industry rarely sees declines in surplus, with declines occurring in only six years—2022, 2018, 2015, 1999, 1994, and 1993. In 2022, 125 risk retention groups reported declines in surplus, while 95 reported surplus gains.

In percentage terms, risk retention groups saw a 12.1% decline in surplus in 2022, the third highest behind the 29.0% decline in 1994 and the 48.1% decline in 1993.

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