We offer the opportunity for several industries who are a fit to join established captives as well as provide captive consulting services to those entities interested in setting up a captive.
GPW Auto Reinsurance
Set up to reinsure F&I products sold through automobile dealerships or banks and financing entities. Products include Vehicle Service Contracts (VSCs), limited warranty, Guaranteed Asset Protection (GAP), etch/theft products, Credit insurance, etc.
GPW Captive Management
Offers captive consulting solutions and captive management services for a variety of industries including manufacturing, construction, automobile dealerships, and transportation.
GPW Actuarial Support
Offers actuarial services for captives domiciled both in and outside the United States.
GPW Auto Reinsurance
The GPW Auto Reinsurance program can be set up as a Producer Affiliated Reinsurance Company (PARC), which is a corporation formed either in the United States or offshore to reinsure F&I products sold through affiliated automobile dealership(s) or banks/financing entities. These F&I products typically include one or more of the following: Vehicle Service Contracts (VSCs), limited warranty, Guaranteed Asset Protection (GAP), etch/theft products, Credit insurance, etc.
GPW’s Auto Reinsurance program can also be set up as a Dealer Owned Warranty Company (DOWC), which is an administrative corporation (C Corp) designed to be the obligor for non-insurance F&I products. The company is not regulated as an insurance carrier but typically qualifies as one for federal income tax purposes. The DOWC is generally owned by a dealer or a dealer group and is administered by a third-party provider. The DOWC often purchases an excess of loss insurance provided by a third-party insurer.
Reinsurance Program Advantages & Benefits
- Maximize participation in the potential underwriting profits of the reinsured F&I products
- Maximize participation in potential investment income on reserves (both earned and unearned)
- The program is under the control of the dealer/shareholder and is completely portable
- Ability to self-direct part of the investment portfolio (earned funds)
- Offers unique opportunities for estate planning and/or retention of key employees
- The program may qualify for preferential tax benefits (i.e., small P&C company election)
- Deferral of taxation to shareholders (shareholders are not taxed until they take distributions)
- Distributions to shareholders may qualify for preferential tax treatment – may be treated as “qualified” dividends or long-term capital gains
GPW Captive Management
GPW specializes in providing cost-effective captive insurance solutions, including Single Parent Captives, for a variety of industries – from manufacturing to construction, automobile dealerships, and transportation. GPW will conduct a feasibility study to determine if a captive is right for the business. The study involves risk identification and underwriting discussion; actuarial analysis of data; a forecast of the captive’s pro forma income, cash flow, and balance sheet; domicile comparison and selection (in the United States or in a foreign jurisdiction); development of a business plan; liaison with regulators; and establishing corporate governance practices.
GPW also provides captive management services that include insurance policies, claims handling, monthly meetings, accounting services and regulatory compliance, coordination of service providers, and yearly underwriting updates.
GPW Actuarial Support
GPW’s actuaries provide consulting services for captives, domiciled both in and outside the United States, in various industries such as manufacturing, agriculture and healthcare. Actuarial services include premium calculation support and signing statements of actuarial opinion.
