Called a Producer Owned Reinsurance Corp (PORC). This is a small Reinsurance company owned by the producer (Agent) and other stockholders. Agent keeps all underwriting profits (profits after claims are paid) and investment income. All funds are kept in a U.S. bank in the name of the agent's Reinsurance Corp.

Investments are handled by the bank's trust department. Small insurance companies have favorable tax regulations. If you qualify, premiums under $350,000 (720 contracts per year) are tax-free. With premiums from $350,000 up to $1,200,000, you can elect to be taxed on investment income only.

Yearly charges for tax preparation and bank trust department charges are less then 1%. To maximize profits, service contract volume should be 300 or more per year.

These reinsurance companies are inexpensive to set up (under $5,000) and are very valuable long term investments. For more information and/or a 5-year Sales & Claims run out projection, call Dennis at 800-428-2350.

With no tax on premiums under $350,000 and tax on Investment Income only on premiums up to $1,200,000, this can be a real estate builder.

Sample 1 Regions Bank - Asset Management statement.

Sample 2 Regions Bank - Trust and Asset Management statement.