Attorneys' Liability Assurance Society Inc. remains the largest premium-generating RRG of the 151 operational entities listed in the “Risk Retention Group Directory & Guide, 2004,” with 2003 annual gross premium of $308.3 million, compared with $264.3 million in 2002 and $191.6 million in 2001.

MCIC Vermont Inc. again came in second with $248.5 million, compared with $162.3 million in 2002 and $67.6 million in 2001. United Educators Insurance (a reciprocal RRG) was third, writing $120 million in annual premium in 2003 compared with $90.1 million in 2002 and $63.7 million in 2001.

Mountain Laurel RRG Inc. (formerly JHS, A Risk Retention Group Inc.)a Vermont-domiciled RRG insuring hospitals and health care systems that began operating in 2003came in as the fourth-largest premium producer, with 2003 premium of $78.7 million.

Other RRGs that showed significant premium gains were ProBuilders Specialty Insurance Co. RRG (formerly Builders & Contractors Insurance Company RRG), which almost tripled its 2003 premiumto $35.5 million from $12.2 million in 2002, and National Home Insurance Company, an RRG whose premium rose almost 45 percent in 2003 to $27.9 million from $19.3 million in 2002.

For the first time, RRGs providing liability coverages for contractors and homebuilders were among the top premium producing facilities. Another RRG showing significant gains was Ophthalmic Mutual Insurance Company RRG, whose premium rose 37 percent in 2003 to $38.0 million from $27.7 million in 2002.

Only a few RRGs showed premium declines, including Community Hospital Alternative for Risk Transfer, a reciprocal whose 2003 premium declined to $24.5 million from $29.2 million in 2002, and Western Pacific Mutual Insurance Company, an RRG whose 2003 premium declined to $7.5 million from $8.9 million in 2002.

Even with the loss of two RRGs which generated more than $100 million in 2002 annual premiumNational Warranty Insurance Risk Retention Group (which was declared insolvent) and Podiatry Insurance Company of America (RRG), A Mutual Co., (which reorganized as a domestic insurer)total 2003 RRG premiums exceeded the Risk Retention Reporters annual survey estimate of $1.725 billion.

Karen Cutts is managing editor and publisher of the “Risk Retention Reporter,” a monthly newsletter based in Pasadena, Calif., that she founded shortly after passage of the 1986 Liability Risk Retention Act.

Reproduced from National Underwriter Edition, June 4, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.