—Along with the end of the millennium, 1999 saw the founding of Palo Verde Insurance Co., Ltd. Since its formation 20 years ago, the dealer-owned NCFC (non-controlled foreign corporation) has achieved nearly $300 million in total assets, which includes the doubling of that number since 2014.
“We are gratified to celebrate the anniversary of this successful company,” said Joe Becker, CNA National president and CEO. “Palo Verde has delivered consistent returns to its shareholders these past 20 years and surpassed expectations. Thanks to its leadership and managers, this NCFC remains a reliable and effective strategy for dealers looking to generate long-term income.”
CNA National’s philosophy for participation programs is to help each dealer find the right fit for them, whether it’s an NCFC, CFC, retro program or other option. The company takes a very proactive approach to looking after its dealers’ best interests, rather than directing them to a one-size-fits-all solution that really serves the provider instead.
“We want to offer our dealers the best option for them,” said Todd Sands, vice president of sales and reinsurance for CNA National. “Some providers try to steer their dealers into a certain structure because it’s the only offering for that company. We have a range of choices and work closely with our dealers to determine what will serve their needs. If the fit is becoming a shareholder with Palo Verde, we can facilitate that; if not, we offer other solutions for the dealer’s consideration.”
Over the past 20 years, Palo Verde shareholders have reaped the benefits of its exceptional rates of return. From day one, dealers’ premiums become part of a professionally managed portfolio of funds that are invested across a wide range of both national and international opportunities. There are no limitations or holds on their investments as with other structures.
“When we began our research back in the 1990s, we spent several years working with attorneys who are experts in the securities, insurance and tax fields to ensure that Palo Verde would match the high standards our dealers have come to expect from our services,” stated Sands. “While not all NCFCs are created equal, this one was formed as a solid, long-term structure for dealers and has successfully adapted to the new regulations facing these companies.”
Domiciled in Bermuda, Palo Verde is owned entirely by dealers and managed by independent financial experts along with a board of directors composed primarily of shareholders. Regardless of market conditions, it offers a viable reinsurance option for dealers who work with CNA National.
About CNA National Warranty Corporation
Founded in 1982 and headquartered in Scottsdale, Arizona, CNA National is recognized as a leader in the vehicle service contract industry. The company offers a choice of reinsurance structures (both CFC and NCFC) as well as GAP coverage and tire-and-wheel protection. It has been named “Best Provider” in Auto Dealer Today’s Dealers’ Choice Awards for 14 consecutive years (2005-2010, 2012-2018 for service contracts, and 2011-2013 and 2017 for reinsurance). In addition, CNAN was the first and one of only two service contract companies recognized for “Highest Overall Dealer Satisfaction” by J.D. Power and Associates.* The company’s service contract program has had the exclusive endorsement of the American International Automobile Dealers Association (AIADA) since 1995. It is a wholly owned subsidiary of CNA, one of the nation’s oldest and largest insurers with over $55 billion in assets. Learn more at CNANational.com.
*J.D. Power and Associates 2003 Dealer Service Contract Satisfaction StudySM based on 5,053 dealer evaluations, www.jdpower.com
For further info, contact:
Todd Sands, x769