SouthwestRe's history of innovation and foresight began in 1985, when founder Jim Smith established a nationwide reinsurance program offering limited capitalization Producer-Owned Reinsurance Companies. These companies operated autonomously and were able to realize the same underwriting profits and investment income as fully capitalized insurance companies.
Smith also created SouthwestRe to provide independent third party administration of reinsurance and direct insurance products. With extensive expertise in small life and property and casualty insurance taxation, Statutory and GAAP Accounting and policy administration, SouthwestRe has created customized reinsurance programs for insurance producers in many industries. In addition, we provide consulting to insurance companies, including financial performance analysis, company valuations, reinsurance treaty negotiations, taxation and revenue accounting, and product development.
In 1999, SouthwestRe launched its First Automotive program, offering vehicle service contracts, theft protection, appearance protection, tire and wheel protection and limited warranties. The program has grown dramatically, from 21 contracts in 1999 to more than 160,000 in 2004.
As an industry pioneer, we are also extremely proud of our role in facilitating these industry firsts:
In 1998, we launched one of the industry's first Risk Retention programs, an initiative that is still economically viable.
In 1996, we accurately anticipated widespread adoption of Administrator Obligor legislation and developed our own AO program.
In 1988, SouthwestRe was one of the first to reinsure Dealer Obligor business into a PORC, but only after a favorable tax court decision.
This company philosophy of offering a full line of services to insurance producers has been the key to consistent, continued growth in both production volume and product line for the past two decades. Today, SouthwestRe's staff of 160 employees in Albuquerque, New Mexico, Dallas, Texas, and Columbus, Ohio, handles formation and management of more than 600 active producer-owned reinsurance and insurance companies. Our proven track record combined with broad expertise has given us a reputation for being one of the most knowledgeable organizations in the reinsurance arena.