Risk retention groups remain financially stable: Report

Risk retention groups remain financially stable and have adequate capital, says an analysis of 239 RRGs released Monday.

The risk retention groups reported a 92.6% combined ratio for the first half of 2017 vs. 97.3% for the comparable period a year ago, according to the analysis by Douglas A. Powell, senior financial analyst at Dublin, Ohio-based financial analysis firm Demotech Inc.

The first half’s combined ratio reflects a 73.5% loss ratio and a 19.1% expense ratio, says the report.

The groups also reported $1.1 billion of net premiums written for the first half of this year, a 7.1% decrease from the comparable period in 2016.

Risk retention groups “have a great deal of financial stability and remain committed to maintaining adequate capital to handle losses,” says the report.