SCOTTSDALE, Ariz. — CNA National Warranty Corp. (CNAN) announced that nearly $30 million was returned to automobile dealers across the United States through its various participation plans for 2013, bringing its inception-to-date total to more than $291 million.
“Our retro and reinsurance programs have been critical to our success for more than three decades,” said Joe Becker, president and CEO. “This marks the fourth consecutive year that we have paid out approximately $30 million to dealers, a level of consistency that demonstrates the dependability our dealers expect and deserve.”
The company reinsures warranties, GAP and tire-and-wheel protection in addition to vehicle service contracts. Last year, it earned its third-straight Dealers’ Choice Award from Auto Dealer Monthly.
“For dealers interested in reinsurance, we offer a choice of CFC (controlled foreign corporation) and NCFC (noncontrolled foreign corporation) structures,” added Alan Miller, senior vice president of sales. “Our NCFC— Palo Verde Holdings — was established in 1999 and is nearing $150 million in assets. This type of growth makes us more confident than ever that we can continue to strengthen our dealers’ business in the years ahead.
“Dealers prefer CNAN because they can select the participation program that best serves both their business and individual financial goals,” Miller continued. “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.”