September 24, 2024 Reinsurance

EFG Wealth Builder Portfolio Provides Guarantee to Offset Sales Volume Declines

Business Wire

Company Says Now is the Time for Dealers to Reassess Their Underwriting Profit Strategy

DALLAS--(BUSINESS WIRE)--
Retail automotive inventory availability has improved across the US, but total vehicle sales are still lower than in 2022 and 2023. While the Federal Reserve cut its benchmark interest rate by 0.50 percentage points and inflation shows signs of slowing, EFG Companies says that now is the perfect time for dealers to reassess their personal wealth creation strategies. EFG’s Wealth Builder Profit Participation Suite delivers on the company’s GUARANTEED, PROVEN, PROFIT premise: a guaranteed PRU increase, coupled with proven training that empirically delivers an F&I profit increase of $206,400 per producer per year equaling more revenue ceded into the dealer’s reinsurance position. For more information, visit https://bit.ly/3XW3WpT

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240924182991/en/

EFG Companies Wealth Builder Profit Participation Suite provides retail automotive dealership principals with a guaranteed set of tools to offset sales volume declines. (Graphic: Business Wire)

“Our clients are facing a gauntlet of issues impacting their ability to meet profitability goals,” said Jennifer Rappaport, President and Chief Executive Officer at EFG Companies. “We’ve all seen the tendency for providers to promote the reinsurance model that seems most exciting or the latest-and-greatest option as a means of closing new business. At EFG, we don’t push one model over another. We are agnostic, focusing on the business needs and goals of the dealer and recommending the most efficient and appropriate model to best manage their personal wealth creation. We offer something that no other provider does - a profit per unit guarantee regardless of sales volume and market conditions. Under our PRU Guarantee for eligible clients, if revenue goals are not met, EFG will reimburse the difference, ensuring a risk-free path to financial growth.”

Reinsurance suite rooted in profit

The often-murky reinsurance market can seem complex to even the most experienced dealer principal. EFG’s Wealth Builder Profit Participation Suite is the only reinsurance program backed by a nationally-award winning field engagement model, training, technology, and claims administration.

The following reinsurance options from EFG include premiums ceded as written (versus earned), plus a dedicated team of experts, compliance management, training, and incentives to increase revenue.

Retrospective Commission Program
Controlled Foreign Corporation (CFC)
Non-controlled Foreign Corporation (NCFC)
Power Controlled Foreign Corporation (Power CFC)
Dealer-owned Obligor Company (DOOC)

Managing risk with increased clarity

“EFG is more than just a product administrator or reinsurance provider,” said Jim Hardick, Managing Partner of Moritz Dealerships, a five-rooftop retailer in the North Texas area. “Outside of the basics of finance and insurance, we utilize EFG’s road to the sale and finance training to hone our skills and continuously boost our performance benchmarks. Their team is constantly in our stores providing one-on-one coaching with our finance teams. Because of their in-depth reporting and quarterly reinsurance reviews, we were able to make product adjustments with significant payoffs to our long-term wealth management goals. And, just recently, EFG provided monetary participation in a contest within all our locations to increase our product penetration and profit per unit sold. This has not only increased our up-front profit, but also has downstream profitability potential in our reinsurance mix. EFG puts their skin in the game with us, making them a strategic partner in our profit.”

Transparency in reporting is critical for a successful reinsurance portfolio. “We see a wide spectrum of reinsurance reporting packages,” said Greg Petrowski, Senior Vice President GPW & Associates, Inc. “From our perspective, the reinsurance reporting package provided by EFG Companies is transparent and comprehensive, and hands down one of the best in the industry.”

With almost five decades of industry insight, EFG is a leader in creating and managing profit participation programs, based on the unique goals of each dealer owner and their reinsurance position.

About EFG Companies

For almost 50 years, EFG Companies has provided consumer protection programs for vehicles and residences across seven market channels. The company’s strategic intent is to build sustainable market differentiation and profitability for its clients and partners, including dealers, lenders, manufacturers, independent marketers, and agents. EFG’s award-winning engagement model is built upon the belief that the company serves as an extension of its clients’ management teams, providing ongoing F&I development, training, product development, compliance, and nationally recognized product administration with an ASE-certified claims team. Learn more about EFG at: www.efgcompanies.com