Report: Trump Tax Cuts Affect Reinsurance Profits
A new report from Portfolio details the effects of the Tax Cuts and Jobs Act on the six most common reinsurance program types and explains why at least one is now no longer advisable for most dealers.

LAKE FOREST, Calif. — Portfolio has released “Opportunity at Risk: Reinsurance Meets Tax Reform,” a new report detailing the effects of the Trump administration’s Tax Cuts and Jobs Act on each of the six common reinsurance models. The report is now available to dealers, agents, and other industry members as a free download.

Authors Ryan Hanlon and Don Ray, who serve, respectively, as Portfolio’s managing director and reinsurance consultant, said the report is intended to serve as a guide for dealers who are active in reinsurance or considering profit participation for the first time. The report avoids finance and accounting jargon to present a straightforward, accessible, easy-to-follow guide for those who are not already well-versed in finance or taxation.
“The demand for reinsurance education among dealers and agents has been steadily increasing, before and since tax reform became law,” Hanlon said. “We wrote ‘Opportunity at Risk’ to help introduce the concepts to those who aren’t well-versed in reinsurance and as a refresher for those who may already have some familiarity with reinsurance. Our goal was to help dealers avoid costly mistakes in today’s new taxation landscape.”
To download your free copy of “Opportunity at Risk: Reinsurance Meets Tax Reform,” click here.
Originally posted on F&I and Showroom
More Dealer Ops

Dealership Profits Decline
While new and used retail sales stagnated, dealerships have been particularly supported by fixed operations and finance-and-insurance profits, according to a new report.
Read More →
Dealer Debrief: Defection Data & EV Updates
In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.
Read More →
How Defection Data is Bridging the Dealership Conversion Gap
Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.
Read More →
Dealer Debrief: Where are you losing customers?
In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.
Read More →
Dealer Debrief: Improving Your Inventory Management
In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.
Read More →
Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
What Market Timing Mistakes Mean for Your Reinsurance Program
When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →