Risk Retention Group Benchmarking Study

2018 Risk Retention Group Benchmarking Study Greg Fears, Erich Brandt, Rob Walling

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Pinnacle Actuarial Resources, Inc. (Pinnacle) is pleased to present our first Risk Retention Group (RRG) Benchmarking Study. Its purpose is to examine publicly-available RRG financial statement data and provide analysis of key financial metrics and industry trends.

Product Details

File Type: .PDF
File Size: 1.34 MB
Number of Pages: 55
Language: English

Product Description

Click Here to view/download 2018 Risk Retention Group Benchmarking Study  *Sign-in required to view/download*

RRGs have been increasing in number over the past 10 years, with 5 states having 10 ormore RRGs domiciled in them. Vermont, South Carolina and the District of Columbialead the states with the most domiciled RRGs. New York, Pennsylvania and Californiarank highest in terms of written premium. The business mix is focused on medicalprofessional liability (MPL), other liability (OL) and commercial auto liability (CAL).

Overall, the ratio of net written premium (NWP) to surplus has been decreasing for bothinsurers and RRGs over the past several years. The ratio for RRGs is substantially smallerwhen compared to the insurance industry. The ratio of adjusted capital to authorizedcontrol level risk-based capital (RBC ratio) has been between 4.00 and 5.00 for CAL, OLand MPL writers for the past two calendar years. Prior to that, the CAL writers haveexperienced the most volatility. For the most part, leverage ratios have been decreasing,with the insurance

Gregory W. Fears Jr.
ACAS, MAAA, ARM Consulting Actuary
GFears@pinnacleactuaries.com

Erich A. Brandt
FCAS, MAAA Senior Consulting Actuary
EBrandt@pinnacleactuaries.com

Robert J. Walling III
FCAS, MAAA, CERA Principal and Consulting Actuary
rwalling@pinnacleactuaries.com

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