Returns reach more than $50 million for 2020
Scottsdale, Ariz. January 14, 2021 —CNA National Warranty Corporation returned over $50 million to automobile dealers across the U.S. through its various participation programs for 2020. This brings the company’s inception-to-date total to $610 million and marks the first time it topped more than $50 million in annual distributions.
“As the F&I segment becomes increasingly competitive, we continue to bring greater value to dealers through personalized attention and dedication to helping them thrive,” said Joe Becker, president and CEO. “The investment returns from our participation programs last year are evidence of this commitment. Given our in-house expertise and deep line-up of external resources, dealers can be confident of our ability to consistently help them generate more income.”
CNA National professionals work closely with dealers to understand their needs and guide them to the best plan in order to meet their business and individual financial goals. The company offers reinsurance – including CFC (controlled foreign corporation) and NCFC (non-controlled foreign corporation) structures –a retro program and a DOWC. Palo Verde Holdings, the NCFC established in 1999, is managed by a board of directors composed of dealer shareholders and has accrued over $360 million in assets.
“One of the distinguishing characteristics of CNAN is that we are invested in making sure our dealers are in the right structure,” said Todd Sands, vice president of sales and reinsurance. “Casey Lytle, our assistant vice president of sales and reinsurance programs, oversees this effort, providing our dealers with the support and service they have come to expect from us. His team studies and evaluates product mix, loss ratios, cancellations and more, to help ensure dealers maximize their premiums.”
“Since our company was founded in 1982, our focus has always been to deliver top-of-the-line products and superior service to our clients,” added Jeff Weston, chief revenue officer. “These record distributions demonstrate that we are living up to our promise. It’s one of the many reasons we’ve been voted the number-one provider for 16 years in a row, including Best VSC Provider and Best Reinsurance Provider in 2020.”
CNA National reinsures warranties, GAP, tire-and-wheel protection and ancillary products in addition to vehicle service contracts. The company has earned multiple awards as “Best Reinsurance Provider” in the Dealers’ Choice Awards, including first-place honors in 2011, 2012, 2013, 2017 and 2020.
About CNA National Warranty Corporation
Founded in 1982 and headquartered in Scottsdale, Arizona, CNA National (CNAN) 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, tire-and-wheel protection and ancillary products. CNAN has been named “Best Provider” in Auto Dealer Today’s Dealers’ Choice Awards for 16 consecutive years (2005-2010, 2012-2020 for service contracts, and 2011-2013, 2017 and 2020 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.* CNAN’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