Risk retention groups (RRGs) reported sharp increases in premium volume for the third quarter of 2022, according to a new report.
The report by Demotech, Inc., found that RRGs reported nearly $4.2 billion in direct premium written through the third quarter of 2022, up 60 percent from the same period in 2021. In addition, net premium written through this year’s third quarter was close to $2.4 billion, up 51.2 percent from the same period in 2021.
However, from the third quarter of 2021 to the third quarter of 2022, risk retention groups’ cash and invested assets decreased 4.2 percent, while total admitted assets declined 2.3 percent, Demotech reported.
In all, “RRGs remain financially stable while providing specialized coverage to their insureds,” the report said.