Dealer Wealth Programs

Products To Match Your Dealership & Customers Needs

Built On Top Of Tax Friendly Profit Sharing Programs 

Hybrid DOWC

The Hybrid Model Program is 100% domestic with no offshore component.

The fully domestic HMP structure offers the key features of a CFC and the best features of a Dealer Owned Service Contract Provider combined into a new Hybrid program. This means:


  • no premium tax

  • no ceding fee

  • significantly higher investment income

… and a borrowing process against a reasonable percentage of the unearned reserves based on overall performance. The HMP is the perfect structure for dealer groups selling 30 to 250 Service Contracts per month.



These participation programs are commonly referred to in our industry as CFCs. Simply put, the dealer or producer forms an offshore reinsurance company that makes both an 831(b) and 953(d) tax election. These companies will pay regular U.S. C-corporation tax on investment income generated. 831(b) companies are subject to a $1.2 million premium production cap.

In situations where the dealer or dealer group writes in excess of 1.2 million in premium, we sometimes see multiple 831(b) companies used to reinsure the business. While in some cases this may be acceptable, there are complex attribution and control group rules that need to be reviewed and followed. It is important to use a well-known and respected captive manager to ensure compliance with these and other items to avoid any potential problems.

Although they are an industry standard, a common objection to CFCs is that they offer little investment return potential, particularly in today’s market. Traditional reinsurance programs use a very conservative investment approach. Many programs utilize money markets and fixed income securities as their investment vehicle. For some dealer participants, this extremely conservative approach is acceptable; for many others, it is not, and there is a need to seek a more lucrative option.

Retro Profit Sharing Program

These are profit-sharing agreements between you and the administrator in relation to the sale of F&I products. Profits are paid at defined intervals based upon how well your portfolio is performing.

Retro Programs allow you to participate in the underwriting profits on the business you write. Typically, the percentage of shared profits will increase as the volume of your dealership business increases.

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