Risk Retention Groups Report Financially Stable Results for First Quarter 2014

Demotech, Inc.'s first quarter 2014 financial analysis of risk retention groups (RRGs) concludes "… RRGs have a great deal of financial stability and remain committed to maintaining adequate capital to handle losses." Douglas Powell, Demotech senior financial analyst, said that over a 5-year period since the first quarter 2010, RRGs collectively increased policyholder surplus by $1.5 billion representing growth of 58.7 percent. The RRGs' combined ratio was 98.3 percent. The breakdown of the combined ratio is an expense ratio of 16.7 percent and loss ratio of 81.6 percent. Read the entire report here.