South Carolina Leads In 2004 RRG Formations
Following publication of last months column (Dec. 13, page 30), a state insurance department regulator e-mailed, asking if the Risk Retention Reporter had any numbers about the states of domicile for any of the 54 risk retention groups that formed last year”specifically, which states are the most attractive for RRG formation?”
Of the 54 risk retention groups formed in 2004, South Carolina was the domicile of choice for more than a dozen RRGs. Vermont came in second, and the District of Columbia third. Fourteen RRGs (26 percent) were domiciled in South Carolina during 2004, while 11 (20 percent) were domiciled in Vermont, and nine (16 percent) in D.C.
Arizona accounted for eight RRG formations, Nevada for seven, and Hawaii for two. Other states in which RRGs became domiciled last year were Georgia, Kentucky and Montana.
The domicile with the most diversity in RRGs was D.C., with RRGs formed in six business areas. Vermont came in second with five, and South Carolina was next with four. Diversity in business areas can be significant, as domiciles tend to attract RRGs in particular business areas.
The accompanying table shows the number of RRGs formed in 2004 by domicile as well as the business area.
Karen Cutts is editor and publisher of the Risk Retention Reporter in Pasadena, Calif. Visit www.rrr.com for information on risk retention groups and purchasing groups.
Reproduced from National Underwriter Edition, January 20, 2005. Copyright 2005 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.