Risk Retention Groups Saw Premium Volume Increase through Q2
October 27, 2023
Risk retention groups (RRGs) reported increases in premium volume for the second quarter of 2023, according to a new report.
The report by Demotech, Inc., found that RRGs reported $3.0 billion direct premium written through the second quarter of 2023, an increase of 2.3 percent from the same period in 2022. In addition, RRGs' net premium written through this year's second quarter was $1.9 billion, an increase of 5.1 percent from the same period in 2022.
In addition, from the second quarter of 2022 to the second quarter of 2023, RRGs' cash and invested assets increased 6.1 percent, and total admitted assets increased 5.9 percent.
RRGs are a specialized type of group captive that Congress first authorized under legislation passed in 1981. Under that law, RRGs, which were allowed to operate in any state after meeting the licensing requirements of the state in which they were domiciled, could only write product liability coverages for their policyholder owners.
In 1986, federal lawmakers, responding to a major rise in premiums in the traditional market, expanded the law to allow RRGs to write all casualty coverages except workers compensation.
Currently, there are 243 RRGs, according to the Risk Retention Reporter, up from 240 RRGs in December of 2022.
October 27, 2023
