From the 2016 September Risk Retention Reporter
UE Faces Lawsuit in Missouri
United Educators, A Reciprocal Risk Retention Group (UE) lost a decision in Missouri that affirms an earlier decision denying a motion to compel arbitration in a case where UE acted as the reinsurer. And several insurance groups are weighing into the case, in an effort to get Missouri courts to support arbitration clauses in RRG insurance contracts....
NAIC Terrorism Risk Data Call a Potential Headache for Some RRGs
In a letter sent out at the end of July, The National Association of Insurance Commissioners (NAIC) announced that all states and the District of Columbia (“Participating States”) had agreed to participate in a data call to collect information relating to terrorism risk insurance. This data call follows a similar, voluntary data call by the Federal Insurance Office regarding the Terrorism Risk Insurance Act at the end of 2015....
Cessions to Affiliated Reinsurers Bounce Back in 2015
Overall reinsurance cessions for risk retention groups increased by 11.3% in 2015. However, that growth was not evenly distributed across the different reinsurance categories. The largest gains were seen in the affiliated reinsurer category, which saw cessions increase by 29.5% to $582.1M. The unaffiliated category also experienced growth, but that growth was more modest, with cession increasing by 1.1% to $659.3M. ...
RRGs Exhibit Financial Stability in Demotech Report
Demotech, Inc. recently released their quarterly report Analysis of Risk Retention Groups for the first quarter of 2016. The report finds that RRGs collectively continued to exhibit strong financials through the first quarter of 2016, despite some adverse trends in a few key ratios....
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