Why SouthwestRe for reinsurance


Two of the most common options that allow you to participate in the profits of the F&I products you sell are Retrospective Commission and Reinsurance.

Advantages of Retrospective Commission:

  • Fast cash
  • You participate in actual underwriting results
  • It's a one-way street (you take profits, but there's no risk for losses)
Disadvantages of Retrospective Commission:
  • High taxation
  • Immediate taxation
  • No investment income
  • No wealth building
  • No estate planning
Advantages of Reinsurance:
  • You participate in actual underwriting results
  • The lowest income tax option (both corporate and personal)
  • Investment income
  • Wealth building
  • Unique opportunity for estate planning
  • Management incentive plans
Disadvantages of Reinsurance:
  • There's additional work involved to set up the reinsurer and manage
    (don't worry, we do all of this for you)
  • The release of cash is regulated, and thus not immediately available
    (in our opinion, it's well worth the wait)

Clearly, the reinsurance option is the most profitable option.
 For that reason, it's the only one SouthwestRe offers its clients.