Dealer Incentive Owned Reinsurance

What is the advantage of owning a Reinsurance Company for your dealership?

Ownership of a Reinsurance Company is a way to keep a greater share of the profits that vehicle service contract business produces. The dealer cost of a service contract, without a Reinsurance Company, is an expense to the Dealer. With a Reinsurance Company, a large portion of the premium is placed into your Reinsurance Company. With claims cost averaging 50%, this will leave your Reinsurance Company a substantial underwriting profit, as well as investment income potential and additional tax savings.

Our representatives are highly experienced in working hand-in-hand with auto dealers to establish their own Dealership Reinsurance Companies. Doing so will help you keep additional extended service contract profits, with no burden of additional liability.

In unprecedentedly tough times in the auto industry, you will rest easy knowing you have built up significant value in your Reinsurance Company. We offer complete formation, renewal, tax preparation, and risk management for both Controlled Foreign Corporations (CFC’s) and Non-Controlled Foreign Corporations (NCFC’s).