Profit Participation Models

Get F&I profit participation tailored to your goals.

Generate dealership profit and wealth with more flexibility and expert guidance.

Don’t settle for one-size-fits-all options when it comes to profit participation for your dealership. Instead, get the power to align with your exact dealership needs, whether that’s supporting short-term cash flow, long-term investment strategies, or anything in between.  
 
Assurant Dealer Services makes it possible with a full range of all available participation models, the freedom to change models without changing products, no switching costs or loss of productivity, and expert guidance to help you determine which model best suits your current goals.


Empower your strategy with the right profit participation model for your dealership’s exact needs.

person using laptop showing metrics in car dealership

Get more certainty from the whole profit participation process with an expert consultation designed to match your dealership with the model that best suits your:

  • Dealership goals
  • Ownership dynamics
  • Risk tolerance

You’ll gain more insight into the specifics of each model as it relates to your business, including tax benefits/consequences, level of control over claims, and the nuances of offshore vs. U.S. investment. Armed with that complete analysis, you’ll then be able to choose from all available profit participation models and start getting real-time performance metrics and faster access to surplus funds with Assurant’s participation portal.

Get more flexibility without changing products.

Connect with Assurant’s reinsurance experts to see if you’re getting the most value out of your current program.

Know you’ve chosen the profit participation model that best suits your needs by reviewing the pros and cons specific to your situation, even if it changes in the future. Take more control over your dealership wealth and growth plans with a knowledgeable advisor to walk you through every available profit participation option.

View a client success story on Assurant’s approach to profit participation.

Article
a white object with a black background

Dealers: Are You in the Right Profit Participation Model?

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

Read More

Understanding Your Participation Options

Choose from all 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
  • Tax due on cash flow, not on profits

Retrospective (Retro) Profit Share

  • Potential for additional profit with little or no additional risk
  • Program risk completely separate from dealer's balance sheet
  • Potential underwriting revenue
  • 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
  • All contracts backed by an Assurant owned insurer rated A+
  • May provide enhanced flexibility in trust investments, including the ability to leverage 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, facilitates and supports a variety of profit participation vehicles. Historically, our NCFCs have returned over $1 billion to dealer partners in the form of redemptions and dividends.

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
Auto dealer F&I manager using Assurant dealer performance strategies to explain products to customer.

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

Insights from the Automotive Industry

Article
a few people sitting at a table

Understanding the impact of automotive tariffs on the auto industry in 2025

Discover how automotive tariffs will affect OEMs, dealerships, and consumers in 2025. Learn strategies to protect profits and prepare your dealership for success.

Read This
Article
a man in a car smiling

Celebrating F&I performance: One millionth Assurant Vehicle Care contract sold

Assurant Vehicle Care suite of protection products surpassed one million in contract sales after just 12 months on the market.

Read This
Article
Close-up of a car wheel with Assurant's NADA tagline 'All In. Always On.' in the foreground

Talk of the Town: Driving the discussion at NADA 2025

The 2025 National Automobile Dealers Association (NADA) annual conference is just days away, and the Assurant team is looking forward to what we’ll see there. Here's his thoughts on what the buzz will be about on the show floor.

Read This
Read More Auto Insights