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.
The premium slump was the greatest in the contractors sector, with 2007 premiums plummeting 35.2 percent to $1.6 billion. The next largest decrease arose from the homebuilders sector, where premium fell 30.8 percent to $41.65 million.
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