Protective Asset Protection Unveils Innovative DOWC Re Program

ST. LOUIS (March 6, 2025) – Protective Asset Protection is unveiling another wealth-building program option with its groundbreaking Protective DOWC Re Program. This innovative solution merges the best of traditional reinsurance with the benefits of a Protective Dealer Owned Warranty Company (DOWC), giving auto dealers a powerful new tool to supercharge their wealth-building strategies. Click here to learn more about the new program.

The Protective DOWC Re Program stands out with its simple setup process, similar to a traditional reinsurance program, while offering tax advantages akin to a Protective DOWC. With the flexibility of Protective DOWC Re, this program will benefit a wide range of our customers, making it an effective option for our wealth-building product offerings. Protective acts as the obligor for all products offered under this program.

Available in all states except Florida, Washington, and Puerto Rico, the Protective DOWC Re Program supports a variety of products, including Vehicle Service Contracts, Roadside Assistance, Ancillary products, Maintenance, and Limited Warranties. Protective is currently seeking additional product options to enhance the Protective DOWC Re offering.

Key advantages of the Protective DOWC Re Program include its low capitalization requirement, the ability to leverage third-party investment advisors, and the availability of quota shares. While it shares some similarities with the traditional Protective DOWC, such as taxation structure and commission handling, it differs in aspects like domicile, contract obligor, and earnings patterns.

“The Protective DOWC Re Program is a game-changer for auto dealers looking to optimize their wealth-building strategies,” said Tim Blochowiak, VP-Sales, Client Wealth, Financial Institutions, and Training for Protective Asset Protection. “It combines the simplicity of traditional reinsurance setup with the tax advantages of a Dealer Owned Warranty Company, all while requiring minimal initial capital. This innovative hybrid solution allows dealers to maximize their financial potential, offering flexibility in investment allocations and supporting a wide range of products. In today’s competitive market, the Protective DOWC Re Program provides dealers with a powerful tool to enhance their long-term financial success while maintaining the ease of operation they need to focus on their core business.”

For over five decades, Protective Asset Protection has been at the forefront of helping auto dealers optimize their wealth-building strategies through innovative reinsurance and participation programs. Since 1975, the company has been a trusted partner for thousands of dealerships across the United States, offering a wide range of F&I solutions tailored to meet the evolving needs of the automotive industry.

Protective’s commitment to dealer success is evident in its comprehensive portfolio of participation options, including retros, Controlled Foreign Corporations (CFCs), Non-Controlled Foreign Corporations (NCFCs), and the groundbreaking Protective DOWC program. This long-standing expertise has allowed Protective to distribute hundreds of millions to shareholders through its various reinsurance programs, demonstrating the company’s ability to create substantial value for its dealer partners. By consistently adapting to market changes and leveraging its deep industry knowledge, Protective Asset Protection has established itself as a leader in providing dealers with robust financial tools to enhance profitability and build long-term wealth.

Dealers interested in the Protective DOWC Re Program are encouraged to click here or consult with their Protective representative to determine if this wealth-building program aligns with their financial goals.