Profit Participation Models

F&I Profit Participation that meets your goals

All 5 Dealer Participation Models Backed by Reputation and Expertise

Whether you’re looking for a long-term investment strategy or need cash flow now, Assurant has the income-development expertise and wealth-building structures you’re looking for. We invented F&I. And we’ve been reinventing it since the beginning. That’s why we understand - and offer - all five participation models. And should your needs or goals change, you can switch without fees or loss of productivity. So regardless of your preference or needs, Assurant Dealer Services has the right profit participation model for you.

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Flexible, Customizable Participation Models Based on Evolving Needs

Times change and so do your goals. We make sure our dealer clients can change their participation position with them. It’s important for dealers to take a well-rounded view when evaluating participation structures. Each participation structure offers unique benefits to dealers, which is why Assurant Dealer Services doesn’t promote one option over another. Instead, we offer a variety of participation vehicles and are flexible and transparent in how we partner with dealers to find the best one that meets their needs.

As their needs change, we help dealers adjust their participation position without any switching costs or loss of productivity at the dealership.

Match your model to your primary objectives. With the flexibility to change with your strategy.

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Talk to an expert to see which model is right for you.

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Article
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Automotive

Dealers: Are You in the Right Profit Participation Model?

Benefits of dealer participation programs in automotive industry, reinsurance to dealer obligor.

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Understanding Your Participation Options

Choose from 5 participation models to meet your financial goals.

Non-Controlled Foreign Corporation (NCFC)

  • 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

Dealer Owned Obligor Company

  • A risk model that's best for dealers who desire more control over their investments
  • Provides potential tax deferrals as well as free cash availability above anticipated claims.
  • Insured by Virginia Surety Company in the event DOOC is unable to fulfill its obligations.

Dealer Obligor

  • 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
  • Assurant Dealer Services acts as the administrator
  • Immediate tax consequences
  • Tax due on cash flow, not on profits
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Retrospective (Retro)

  • 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

Small Property & Casualty/Controlled Foreign Corporation (Small P&C/CFC)

  • Long-term business strategy for dealers seeking the highest potential return: follows traditional CFC/831(b) model
  • Capability to reinsure major product lines (excluding GAP and limited warranty)
  • All contracts backed by an insurer rated A+; Assurant must be the obligor
  • Enhanced flexibility in trust investments, including the ability to leverage loans
  • Trustee must be able to manage investment flexibility and loans

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.

Assurant Dealer Services forms, manages and cedes to a variety of profit participation vehicles.  Historically, our NCFCs have returned over $1 billion to dealer partners in the form of redemptions and dividends. And owing to recent organizational enhancements, we expect these plans to begin paying qualified dividends to shareholders this year. And you can choose from six NCFCs with aggregate invested assets exceeding $1 billion.
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Learn how you can generate immediate cash flow with our Dealer Obligor Program.

Explore Dealer Obligor Program

Forward thinking digital tools. Real time performance insights. Faster access to your surplus funds.

Secure, self-service tools designed to improve your day-to-day with more insights, more convenience and more support when you need it. From one centralized location. So you have better visibility, faster delivery and more overall efficiency.

Participation Portal

Assurant Dealer Services participation portal gives you in-depth knowledge and insights into the health of your participation performance in real time. Access statements, analyze trends and monitor your performance.

  • Quarterly reinsurance reviews
  • Cession statements
  • Dealer experience reports
  • Dealer loss control report
  • Monthly claim detail reports
  • Loyalty reports

Surplus Now

Access your surplus funds digitally with an experience more like online banking, where you can swiftly review your dashboards, automate fund transfers, and more.

  • Self-managed money transfers
  • Faster access to funds
  • On-demand transaction history
  • Transfer request tracking
  • Modern data security measures
  • Automatic statement collection
  • Batch downloading
  • Audit support

Schedule a simple pro forma consultation to see if you are getting the most value out of your current program.

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Insights from the Automotive Industry

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Today, the EV market is in flux as demand falls short of ambitious industry expectations. But dealership inventory — and revenue opportunities — are still growing. Those that prepare now stand to gain significant profits.

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2024 Assurant Inflation and F&I Profitability Report

The Assurant team is working to keep dealers updated on these and other important trends that affect profitability.

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