Strong Growth Takes RRG Premium Past $4 Billion: An Analysis by Business Sector

Risk retention groups reported strong premium growth of 13.6% in 2021 that took collective RRG premium to $4,343.3 million—an increase of $519.3 million over the $3,824.0 reported in 2020. The first time RRG premium has surpassed $4 billion. It was the second largest RRG premium increase on record, behind the $527.0 million in 2003.

2021 marks the eleventh consecutive year of premium growth for the risk retention group industry. Overall, 164 risk retention groups posted premium gains—with 18 risk retention groups reporting premium increases of more than $10 million—while 56 reported premium declines. Premium was flat at 17 risk retention groups.

As in 2020 and 2019, premium growth in 2021 was well distributed across business sectors. Six sectors posted premium gains and three reported declines. The largest increase was in the Transportation sector which saw premium increase by 31.1% to $405.4 million. The Transportation sector was the only sector that saw continued growth in the number of operational RRGs during the soft market of the 2010s. Though premium growth in the sector was marginal in 2020, the sector saw several new formations over the past year. Those new groups drove growth in the sector.

Growth was also strong in the Government & Institutions sector, with premium increasing by 19.3% to $604.0 million in 2021 from $506.3 million in 2020. All the active risk retention groups in the sector reported increases in premium.

This is an excerpt , for the complete article subscribe to the Risk Retention Reporter.