CNA’s Participation Plans Distribute More Than $38 Million in 2014
February 17, 2015
SCOTTSDALE, Ariz. — CNA National Warranty Corp. announced this week that more than $38 million was returned to automobile dealers across the United States in 2014 through its various participation plans, bringing its inception-to-date total to more than $329 million.
“2014 was a stellar year for our participation programs,” said Joe Becker, president and CEO. “The distribution amount significantly exceeds our highest return since the inception of these plans. This level of growth demonstrates the dependability our dealers expect and deserve from our reinsurance options.”
CNAN reinsures warranties, GAP and tire-and-wheel protection in addition to vehicle service contracts. The company has earned multiple awards as “Best Reinsurance Provider” in the Dealers’ Choice Awards, including top honors in 2011, 2012 and 2013.
“For dealers interested in reinsurance, we offer a choice of CFC (controlled foreign corporation) and NCFC (non-controlled foreign corporation) structures,” explains Alan Miller, senior vice president of sales. “Our NCFC — Palo Verde Holdings — is managed by a board of directors made up of dealer shareholders and is nearing $155 million in assets, making it an excellent choice for dealers wanting to maximize investment returns while minimizing risk.
“Dealers prefer CNA National because they can select the participation program that best serves both their business and individual financial goals,” Miller added. “Our business model for dealers has proven to be a success, regardless of the economic climate, and we will continue to work with them to prove our value to their long-term success.”