3 Tax Strategies to Maximize Reinsurance Profits Now

Historically, dealer participation programs (DPPs), commonly referred to as “reinsurance” programs, executed with appropriate substance, sustain favorable tax treatment for the company and shareholders level. With the 2020 tax filing season underway, now is the perfect time to think about and plan for looming tax policy changes that might impact on your current reinsurance structure in coming years.

Regardless of whether you are currently participating in a CFC, NCFC, DOWC, or even a Retro program, it’s vitally important at this time to talk proactively with your reinsurance advisor about your current situation, what opportunities can be realized now, and how such changes may impact the future of your strategy.

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