Management and Regulators Contribute to Spirit Commercial RRG's Mounting Troubles.
From the 2019 June Risk Retention Reporter
CTC May Owe SCARRG $30M According to Insolvency Status Report
The first status report was filed for the receivership of Spirit Commercial Auto Risk Retention Group, Inc. (Spirit Commercial or the Company) in the Eighth Judicial Court of the State of Nevada on May 31, 2019. The report—filed by Nevada Insurance Commissioner Barbara D. Richardson and a team of lawyers headed by Special Deputy Receiver Mark F. Bennet of Cantilo & Bennett, L.L.P.—states that Spirit Commercial is owed a large sum, estimated at more than $30 million, by former program administrator CTC Transportation Insurance Services, LLC (CTC)...
South Carolina Continues to Pursue Captive, RRG Growth
A high level of professionalism and industry knowledge is key to what makes South Carolina a successful captive and risk retention group domicile, according to W. Jay Branum, director of captives for the South Carolina Department of Insurance...
Lancet Fails to Avoid $1M Judgment Despite Receivership Status
Lancet Indemnity Risk Retention Group, Inc. (Lancet), currently in receivership with negative surplus of $8 million, has been ordered by a three-person panel of judges to pay $1 million in a medical malpractice case in which the doctor fled the country. In May the Nevada-domiciled RRG asked the Fourth Circuit to reconsider its ruling and have a hearing with the full court, claiming the panel did not follow Maryland law when it made its decision, but that request was denied...
RRG Net Income and Surplus Down in 2018
Risk retention groups reported net income of $167.3 million in 2018, down from $296.4 million in 2017—a decline of 43.6%. Surplus for risk retention groups also declined in 2018, falling 5.4% to $4.8 billion from $5.1 billion ...
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