DealerRE is Your Best Reinsurance Choice


How Does APAP Work?

After over 20 years serving dealers, DealerRE is launching a vastly improved car dealer reinsurance model whereby dealers can access their underwriting profit YEARS earlier and still maintain the integrity of their reinsurance program. This safe, but liberal APAP program uses a proprietary formula which allows dealers Accelerated Access to those funds, to finance their most important projects.

Historically, dealers who set up a producer-owned reinsurance company are the MOST profitable. The only problem, if you ask most dealers, is they  pump hundreds of thousands of dollars into their reinsurance company, but it takes several years to earn a significant amount of underwriting profit. Here’s why…

The premium collected from the consumer for a warranty or vehicle service contract are placed into a trust. There it remains, inaccessible to the dealer until those funds “earn out” or are no longer subject to claims. This very conservative formula, although very profitable, is restrictive in its access to those funds prior to earn out.  Administrator obligor reinsurance programs have always been that way, until now.

For example, a dealer writing $1 million in premium in year one and experiencing a 40% loss ratio, could traditionally expect access to only about $70,000 in the 5th quarter from inception. However, with APAP, with the same loss ratio experience the dealer would have access to $600,000 instead of $70,000!   Also, if that dealer wrote an additional $1 million in premium the second year, the old formula would earn access to only about $250,000. But with APAP, that dealer’s same performance could provide them access to $1.2 million instead of $250,000!

Listening to our dealers’ wants, coupled with 20+ years of mastering the reinsurance business AND the automobile sales business, has allowed DealerRE to offer this breakthrough program to dealers all across the country. When you succeed, we succeed. Contact us today!

Reinsurance Accelerated Profit Access Program