Demotech releases latest RRG report

Demotech has released its latest report on risk retention groups (RRGs), which covers activity in the RRG market in the first quarter of this year.

The analysis is entitled: “Analysis of Risk Retention Groups – First Quarter 2023” and was written by senior financial analyst Douglas Powell.

It says that a review of the reported financial results of risk retention groups (RRGs) reveals insurers that continue to collectively provide specialised coverage to their insureds are still remaining to be financially stable.

“Based on reported financial information, RRGs have a great deal of financial stability and remain committed to maintaining adequate capital to handle losses.”

The Demotech analysis concludes that: “The financial ratios calculated based on the reported results of RRGs appear to be reasonable, keeping in mind that it is typical and expected that insurers’ financial ratios tend to fluctuate over time. It is important to note again that while RRGs have reported net income, they have also continued to maintain adequate loss reserves while increasing premium written and increasing policyholders’ surplus year over year. The results of RRGs indicate that these specialty insurers continue to exhibit financial stability.”

To get a copy of the analysis contact Demotech.