Wealth Management

Creating long-term equity for our dealer partners.



Controlled Foreign Corporation (CFC)

As a long-term strategy for maximizing future returns, the CFC is a 100% dealer-owned company.

  • Can’t be a single shareholder
  • Wholly owned
  • Vertically integrated business
  • Written premium deposited monthly
  • Monthly cession intervals maximize investment income
  • Dealer owns his/her own insurance company
  • Receives all investment income and underwriting profit
  • Strong actuary, risk and process disciplines to drive increased profits
  • Potential tax deferral
  • Qualifying dividends taxed at favorable rates

Non-Controlled Foreign Corporation (NCFC)

A Non-Controlled Foreign Corporation may be a great option for our dealer partners as a long-term strategy for maximizing underwriting profit and investment income. The structure has multiple shareholder-owners and provides a superior dividend feature as well as a defined redemption formula. Qualifying stock redemptions are taxed at favorable rates.

Program Highlights:

  • 100% owned by shareholders
  • No single shareholder owns more than 10 percent
  • Defined exit strategy for redemption of shares and dividends
  • Maximized investment income because of shorter ceding intervals

Profit Generation:

  • Premium ceded (net of claims and expenses) monthly
  • Net premium deposits begin to generate investment income immediately
  • Lower loss ratio equals greater underwriting profit

Distribution of funds:

  • Dividends: Underwriting profit of a participation policy year is eligible for payment as a dividend at the end of the eighth year.
  • Stock redemption: Upon your written request, and approval by the board, shares are redeemed based on book value.

Retro

An agreement between you and AutoSolutions designed to provide long-term income with no up-front costs (Profit and Equity Bonus)

  • Profit Bonus
    • Loss ratio less than 100% allows you to receive profit on eligible policy years
    • Receive up to 100% of the profit in the account, based on your service contract production
    • Paid after just 75% of an eligible policy year’s business is earned
    • Profit bonuses paid every six-months based on eligible policy years are yours to keep
  • Equity Bonus
    • Inception-to-date loss ratio of less than 100% qualifies you to receive investment income
    • Minimum of 90 contracts every six months to receive program benefit
    • Equity bonuses paid every six months are yours to keep

    Other Services
    • Advances
    • Risk Management Portfolio Services