Dealer Reinsurance Pro Forma
Enter your contract volume, premium and costs, and program fees to project a dealer reinsurance program’s underwriting gain, investment income, and pretax result over a five-year writing period plus runoff. Every figure updates immediately. This is an educational illustration, not a proposal, guarantee, or tax analysis.
| Y1 | Y2 | Y3 | Y4 | Y5 | Runoff | Total | |
|---|---|---|---|---|---|---|---|
| Underwriting gain | $42,250 | $120,250 | $198,250 | $234,000 | $234,000 | $341,250 | $1,170,000 |
| Investment income | $5,070 | $14,430 | $23,790 | $28,080 | $28,080 | $40,950 | $140,400 |
| General expenses | $8,500 | $4,500 | $4,500 | $4,500 | $4,500 | $22,500 | $49,000 |
| Pretax gain | $38,820 | $130,180 | $217,540 | $257,580 | $257,580 | $359,700 | $1,261,400 |
Share of every dollar the reinsurance company takes in (net premium plus investment income). Your pretax gain is what is left after claims and expenses.
Less $49,000 general expenses.
How the projected pretax gain shifts with claims and volume. The higher case is not the expected case.
How this result was calculated
Net premium = gross premium − admin fee. Annual contracts = contracts per month × 12.
Premium is earned over the average term (mid-year pro-rata), so a five-year writing period keeps earning through the runoff years.
Underwriting gain = earned premium − premium tax − ceding fee − incurred losses (loss ratio × earned premium).
Investment income = earned premium × investment income rate. General expenses = formation fee (year 1) plus annual fees each writing and runoff year.
Pretax gain = underwriting gain + investment income − general expenses.
This is a modeled illustration, not a proposal, guarantee, or tax, legal, or accounting advice.
Assumptions used
- Gross premium per contract
- $1,500
- Admin fee per contract
- $200
- Net premium per contract
- $1,300
- Contracts per month
- 30
- Annual contracts
- 360
- Loss ratio
- 50%
- Average term
- 36 months
- Investment income rate
- 6%
- Premium tax rate
- 0%
- Ceding fee
- 0%
- Annual fees
- $4,500
- Formation fee
- $4,000
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This reinsurance pro forma is a modeled illustration based only on the assumptions you entered. Real results depend on actual remittance, claims development, fees, reserve requirements, program agreements, and qualified professional guidance. It is not a proposal, guarantee, tax analysis, or accounting statement.
Reinsurance pro forma questions
What is a dealer reinsurance pro forma?
An educational projection of how a dealer-owned reinsurance program might perform on the assumptions you enter: contract volume, premium and costs, expected claims, term, and fees. It is not a proposal, guarantee, tax analysis, or prediction of actual results.
What is the net premium per contract?
The gross premium the customer pays minus the administration fee per contract. It is the amount the reinsurance company actually earns premium on, so underwriting profit, claims, and investment income are all calculated from it.
Why is there a runoff column?
Premium is earned over the contract term, so a book written over five years keeps earning (and paying claims) after writing stops. The runoff column captures those trailing years until the book fully earns out.
Does this predict my actual results?
No. It shows a modeled outcome from the numbers you enter. Actual results depend on real remittance, claims development, fees, reserve requirements, program agreements, and professional guidance.