2018 July Risk Retention Reporter Headlines and Article Excerpts

Updated Version of 2015 Bill Amending LRRA Introduced in Congress

A bill amending the Liability Risk Retention Act—H.R. 6292 or the Nonprofit Property Protection Act—was introduced in the U.S. House of Representatives on June 28, 2018. The bill was introduced by Congressman Dennis Ross (R) of Florida and was cosponsored by Congressman Bill Posey (R) of Florida, Congressman Tom MacArthur (R) of New Jersey, Congresswomen Mia Love (R) of Utah, and Congressman Lee Zeldin (R) of New York...

Special Report: Risk Retention Groups by State of Domicile

This month’s special feature is a complete listing of active risk retention groups by domicile. Since 2012, the number of operational risk retention groups has fallen from 261 down to 223 this month. Over that time frame certain domiciles, such as Vermont, South Carolina, and D.C. have emerged as the go to domiciles for new risk retention group formations. As a result, those domiciles have maintained their number of operational RRGs. Other domiciles such as Delaware and Montana have seen their number of operational RRGs fall off...

HUB, Insurers, Launch New RPG for Real Estate Industry

Hub International Limited (HUB) the Chicago, Illinois-based insurance brokerage, has launched a new risk purchasing group designed to serve the umbrella liability insurance needs of the real estate industry, in particular owners and operators of mixed use real estate portfolios...

Cession Rate for RRGs Increased in 2017

Risk retention groups ceded a larger portion of gross premium to reinsurers in 2017, with the cessions rate increasing to 44.1% up from 41.3% in 2016. Reinsurance cessions for RRGs increased to $1,429.1M in 2017 up from $1,278.1M, an increase of 11.8% that outpaced premium growth of 4.8%. This marks the third consecutive year that risk retention groups have increased their cession...

APIC Provides Coverage Through RRG, RPG, and Brokerage Arm

Allied Professionals Insurance Co., a Risk Retention Group (APIC) reported that 2017 premium decreased while the number of members rose—the result of some deliberate choices the group made in the wake of ongoing marketing success, says Michael J. Schroeder, chairman and general counsel of the Arizona-domiciled RRG...

Captive Managers by RRG Premium in 2017, Aon Approaching $1 Billion

In 2017, there were significant changes to the top captive managers by premium. The top managers widened their lead over smaller managers and although no new captive managers broke into the top ten, some captive managers, such as WillisTowersWatson, saw their number of managed RRGs fall off...

Risk Retention Roundup

This month no new risk retention groups were added to the Risk Retention Reporter listings and one RRG was deleted taking the total number of RRGs down to 223. One new purchasing group was added to the Risk Retention Reporter listings and no PGs were deleted, taking the total number of PGs up to 1,001...

RRG Ratings Update: Outlook Upgrade for Transportation RRG

A.M. Best has upgraded the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” assigned to National Independent Truckers Insurance Company RRG (NITIC). The outlook for the FSR remains stable...