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RRGs have been increasing in number over the past 10 years, with 5 states having 10 ormore RRGs domiciled in them. Vermont, South Carolina and the District of Columbialead the states with the most domiciled RRGs. New York, Pennsylvania and Californiarank highest in terms of written premium. The business mix is focused on medicalprofessional liability (MPL), other liability (OL) and commercial auto liability (CAL).
Overall, the ratio of net written premium (NWP) to surplus has been decreasing for bothinsurers and RRGs over the past several years. The ratio for RRGs is substantially smallerwhen compared to the insurance industry. The ratio of adjusted capital to authorizedcontrol level risk-based capital (RBC ratio) has been between 4.00 and 5.00 for CAL, OLand MPL writers for the past two calendar years. Prior to that, the CAL writers haveexperienced the most volatility. For the most part, leverage ratios have been decreasing,with the insurance
Gregory W. Fears Jr.
ACAS, MAAA, ARM Consulting Actuary
Erich A. Brandt
FCAS, MAAA Senior Consulting Actuary
Robert J. Walling III
FCAS, MAAA, CERA Principal and Consulting Actuary
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