2021 Domicile Rankings: Vermont leads and Alabama moves up

Risk Retention Reporter releases their 2021 Domicile Rankings

Author: Risk and Insurance

All established risk retention group domiciles saw strong premium growth in 2021, with declines occurring only in those domiciles with a single risk retention group. Though the top of the rankings remained unchanged, both Alabama and North Carolina make significant jumps in the rankings.

Vermont continues to dominate the domicile rankings with 80 risk retention groups reporting $2615.9 million in premium in 2021—60% of all risk retention group premium. Overall, Vermont-domiciled risk retention groups saw premium increase by 10.0% in 2021.

Vermont is the home of many of the largest risk retention groups in terms of gross written premium including Attorneys’ Liability Assurance Society, A Risk Retention Group ($373.0 million), United Educators Insurance, A Reciprocal Risk Retention Group ($340.2 million), and MCIC Vermont (A Reciprocal Risk Retention Group) ($401.0 million).

Premium Growth was strong for risk retention groups domiciled in the District of Columbia, with premium in- creasing by 17.7% to $569.1 million. Much of that growth can be attributed to MedPro RRG Risk Retention Group, which saw premium increase by 29.6% to $204.4 million. Growth was also strong at The Doctors Company RRG, a Reciprocal Exchange (59.8%) and Caring Communities, A Reciprocal RRG (26.1%).

Growth trends continued in South Carolina, with pre- mium for its RRGs increasing by 20.7% to $241.8 million. South Carolina also saw its number of operational RRGs increase to 41, making it the clear number two in count of domiciled RRGs. The most significant growth in South Carolina was at Small Fleet Advantage Risk Retention Group, Inc. which saw premium increase by 289.8% to $19.9 million.

Hawaii-domiciled risk retention groups saw premium increase by 19.9% to $217.2 million. The most significant growth was at National Guardian Risk Retention Group, Inc.—an RRG providing coverage to physicians— which saw premium increase by 169.7% to $20.8 million. Premium growth for Arizona-domiciled RRGs was more modest, with a premium increase of 4.9%.

Growth for Montana-domiciled RRGs was robust, with a 18.0% increase. The largest increase was at American Trucking and Transportation Ins. Co., RRG, which saw premium increase 46.8% to $40.8 million.

The largest premium gain in percentage terms was in Alabama. Premium for Alabama-domiciled RRGs increased by 328.8%. Alabama also saw the largest increase in operational RRGs, with a net increase of six risk retention groups.

Much of the premium growth can be attributed to New York Healthcare Ins. Co., Inc., A RRG redomicil- ing to Alabama from the District of Columbia. New York Healthcare RRG wrote $21.6 million in premium in 2021. Trailblazers Insurance Company, Inc., A RRG also contributed to the growth, writing $10.5 million in its first year underwriting. Overall, Alabama moved up seven spots in the domicile rankings.

North Carolina also moved up the rankings to position eight from the tenth spot last year. Premium growth for North Carolina-domiciled RRGs was strong, increasing by 69.4% to $75.4 million. Healthcare Professional Long Term Care RRG, Inc. reported premium of $10.2 million in its first year underwriting. Growth was also strong at American Transportation Group Insurance Risk Retention Group, Inc., which saw premium increase by $10.1 million. ATGI RRG has begun writing again after a protracted court battle with its former MGA (see October 2021 Risk Retention Reporter).

Tennessee and Illinois round out the top ten. Tennessee-domiciled RRGs collectively reported strong premium growth of 17.7% that took premium up to $71.2 million. Illinois has just one domiciled risk retention group—OMS National Ins. Co. RRG. OMS National reported premium growth of 14.4% that took premium to $70.1 million.

Reprinted from the May 2022 Risk Retention Reporter — Volume 36, Number 5

This article was originally published by the Risk Retention Reporter. To see the original article visit https://rrreporter.com/2021-domicile-rankings-vermont-leads-and-alabama-moves-up/


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