Advanced Solutions to Maximize Dealer Reinsurance Investments
At Darnall Sikes Wealth Partners, we provide tax-aware reinsurance solutions for automotive and furniture dealers. Our extensive experience in doing business with reinsurance companies allows us to provide dealers with institutional-quality, tax-optimized solutions for managing wealth within their reinsurance companies. We see reinsurance solutions as a natural extension of the comprehensive wealth management strategies and solutions we offer business owners.
Our Reinsurance Solutions Include Securities-Backed Lines of Credit
If you need funding for business or personal purposes, here’s one of our best reinsurance solutions: a Line of Credit that uses your dealership’s Reinsurance Surplus account as collateral. Loans can be in either your or your dealership’s name, feature great SOFR-based rates (currently near all-time lows), and even include options for making interest-only payments. Get the funding you need – without affecting your long-term investment strategy.
Automotive Dealers
Our specialized reinsurance program allows automotive dealers a solution to their diversification dilemma on income earned through the sale of warranties and other ancillary products at the point of sale. In addition, we offer our clients flexibility in creating surplus accounts where owners’ premiums can be transferred after they are earned out. This provides the dealer greater control over how their warranty income is invested.
Furniture Dealers
We offer furniture dealers a powerful, flexible solution to help them reduce the amount of taxes they pay on revenue from customers’ warranty premiums. Thanks to our specialized experience in helping reinsurance companies plan and manage their wealth, we can create tax-aware solutions that allow furniture dealers to manage the premium income received from product warranties.
RV Dealers
An RV dealer’s reinsurance company can become a significant component of his or her wealth. We develop tax-sensitive solutions that help RV dealers keep more of the premiums they earn from the sale of warranties and other ancillary products. Through our reinsurance program, dealers can invest required reserves in a diversified portfolio of securities. After premiums are earned out, they can transfer premiums into surplus accounts, which provide broader investment options and greater control over this important asset.