Auto and RV dealers have the opportunity to create a new revenue stream by participating in our reinsurance or retro programs on selected products. Protective brings with it years of experience facilitating the formation of offshore producer-affiliated reinsurance companies.

In general, these programs offer underwriting profits and earn investment income on reserves that are held to pay claims. We currently have agreements with over 500 reinsurance and other risk-bearing companies and support over 175 dealers with financial statement preparation.  This volume also demonstrates our strength, leadership and skill in helping build a new revenue source for your dealership by creating a participation program that is right for you.

Reinsurance Programs

Protective’s reinsurance program can help increase profits from the Protective products you sell. Forming your own reinsurance company is an ideal way to boost profits without requiring a huge level of effort. Claims are administered by the ceding insurance company or its affiliates—all of which have experience administering and supporting claims. Should you elect to have Protective produce your financial statements we generate quarterly or annual financial statements to keep you up to date on all aspects of your reinsurance company’s performance. You may invest the reserves and any surplus in your reinsurance company in a variety of different investment vehicles. The money is held in trust in a U.S. bank, so you don’t have to worry about currency conversion or timing fluctuations.

We offer support to help you keep track of your reinsurance account and investments, ultimately helping you increase profits. Protective participates in relationships with controlled foreign corporations (one dealer is in control of its own reinsurance company) and non-controlled foreign corporations (a pool of dealers forms their own reinsurance company or a single dealer joins an existing pool).

Retro Programs

Protective’s retro programs are another way that dealerships can participate in the business they produce. A dealer is paid a portion of underwriting profits that exceed a threshold as business earns out. Payments are made directly to the dealership. The payments on the underwriting are made once a year, 90 days after year end.