Palo Verde Holdings Celebrates 15th Anniversary
June 11, 2014
SCOTTSDALE, Ariz. — This year, CNA National Warranty Corporation (CNAN) is celebrating the 15-year anniversary of its noncontrolled foreign corporation (NCFC), Palo Verde Holdings Ltd. It was established in 1999.
Since inception, Palo Verde’s investment portfolio has grown to nearly $150 million, with an annualized inception-to-date combined return of 5.05%.
“On behalf of the dealer shareholders, who own 100% of our NCFC, we are very pleased with Palo Verde’s success,” said Joe Becker, president and CEO. “As with all of our products, we spent a significant amount of time researching NCFCs to ensure we would be providing our dealers the best possible reinsurance program. Through our management and investment partners, Palo Verde has remained consistent and dependable regardless of market fluctuations.”
CNA reinsures warranties, GAP and tire-and-wheel protection in addition to vehicle service contracts. The company has earned Auto Dealer Monthly’s Dealers’ Choice Award as “Best Reinsurance Provider” for the past three years (2011-2013).
“NCFCs have many benefits for dealers. Palo Verde in particular has a simple start-up process, a defined exit strategy, flexible investment options, low management fees, and regulations that are to a dealer’s advantage,” said Alan Miller, senior vice president of sales.
“A common misconception is that NCFCs are only for dealers who exceed $1.2 million in written premium per year. This is not the case,” he added. “In fact, the production requirements for Palo Verde are the same for our dealers’ controlled foreign corporations. Dealers should consider Palo Verde if they are interested in long-term, tax-deferred wealth building.”