Protect and Increase Your Business Profits.
Use your own Allied Re-insurance Company (A.R.C.) to:
BUILD ACCESSIBLE RESERVES
Protect Your Cash Flow From Intangible Risks:
- Brand Reputation
- Cyber Attack/Data Breach
- Natural Disaster
- Supply Chain Interruption
- Political Risk
- Food Borne Illness
- Professional Liability
- Recall
- Dispute Resolution
In today’s competitive economic climate, businesses are looking for the best ways to mitigate risk, decrease tax liability and increase revenue. We believe that owning a re-insurance company is an extremely effective way for companies to prepare for uncertainty and maximize profitability. Section 831(b) of the U.S. Tax Code provides a tax incentive for those who own a small property and casualty re-insurance company. Under the Code the first $2.4 million of ceded premium to a re-insurance company is non-taxable as a 162 tax-deduction. Business owners can effectively create a tax-advantaged fund available for use in case of losses due to covered risks. 831(b) can also be used as an effective tool to create and fund sources of new revenue such as warranty services and waivers of liability programs for rental properties and products. Fortune 500 companies have been using this strategy for many years now, which until recently has been a costly endeavor. Today with lower barriers to entry and increase competition driving costs down, small to middle market companies can now benefit from the utilization of an 831(b). A relationship with the correct insurance manager is essential. The primary role of an insurance manager is to ensure that its clients’ re-insurance company is setup up correctly, operates in compliance with federal and state guidelines and is acting under the principles of insurance. Over time, the Protected Self-Funded Plans strategy allows the employer to mitigate risk and build a substantial tax-advantaged reserve that is extremely flexible.