Coffeen Management is a leader in assisting with the formation and management of producer-owned reinsurance companies. Ownership of a reinsurance company allows the dealer the opportunity to increase the income opportunities from the sale of credit insurance, service contracts, and other related products through participation in the underwriting profit and investment income. Coffeen Management currently has reinsurance positions with domiciles in Nevis, Turks & Caicos and Texas. The high level of expertise given by Coffeen Management, with its team of seasoned reinsurance professionals, and investment counselors provide the dealer with proven consulting information to make confident and profitable decisions. In addition, Coffeen Management’s comprehensive reporting includes risk analysis, detailed financial statements and performance reviews for all producer-owned reinsurance programs.
Controlled Foreign Corporation (CFC) For the dealer seeking underwriting investment return as well as flexibility through control, reinsuring the vehicle service contracts, credit insurance, and other related products through an offshore Controlled Foreign Corporation (CFC) is a very good investment option. This option enables the dealer to earn a commission from the sale of the product(s) and still participate in the underwriting experience. The distinct advantages to this method are: the ownership and control of the company, and the investment income generated by the company's assets, which reside with the dealer client/agent company.
Non-Controlled Foreign Corporation (NCFC) For the dealer producing significant volumes of credit insurance premium and/or vehicle service contracts, participation in a Non-Controlled Foreign Corporation (NCFC) offers another means of generating underwriting profit. In a NCFC, the dealer owns stock in a reinsurance company with many other dealer/agent participants. The advantage in utilizing this type of underwriting vehicle is the capacity to produce better long-term economic benefits. In addition, the NCFC offers a monthly ceding methodology that accelerates investment potential.
