Reinsurance programs that amplify returns
Whether you’re looking for a long-term investment strategy or need cash flow now, Assurant Resource Automotive has the income-development expertise and wealth-building structures you’re looking for. Our participation options will help you meet your immediate needs and reach long term goals.
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Participation Options
- Long-term business strategy for dealers seeking the highest potential return
- Multiple owners provide risk sharing and risk distribution
- Capability to reinsure major product lines
- Exotic stock structure segregates profits by producer
- Larger asset-base yields larger investment options
- Long-term business strategy for dealers seeking more control in directing their investment strategy
- Offers more control in directing investment strategy but restrictions apply for CFCs seeking 831(b) treatment such as maximum annual premium
- Dealer is normally a single producer
- Capability to reinsure major product lines
- A risk model that's best for dealers who desire more control over their investments
- Control of any unearned reserves, so you have more investment options
- Coverage in the event the dealer is unable to perform
- The ultimate cash-flow vehicle: the dealer can control funds immediately
- Dealer decides how to use the cash
- Dealer is responsible for any future claims liability
- Resource Automotive acts as the administrator
- Immediate tax consequences
- Tax due on cash flow, not on profits
- Potential for additional profit with little or no additional risk
- Admin Obligor (also known as Third-Party Obligor)
- Program risk completely separate from dealer's balance sheet
- Potential underwriting revenue
- Potential investment income
- Dealer receives a quarterly activity statement
- Profit distribution is paid annually
- Delivers a simple, up-front commission with no risk
- Potentially lower cost
- Usually higher commission
Description of tax treatment is based on client feedback and should not be construed as tax advice. Participants should retain competent professional advisors to validate any expected tax treatment.