A combination of problems arising from the subprime mortgage debacle and the soft property-casualty insurance market took a toll on 2007 annual gross written premiums for risk retention groups, which declined by 3 percent to $2.5 billion, down $100 million from 2006.

The business area accounting for most of the 2007 premium decrease was property development, where RRGs insuring homebuilders and contractors are classified.

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