Navigating dealer profit participation can be overwhelming, with opaque fees and a limited understanding of reinsurance options. On this episode of Training Camp, Ryan Hanlon, Vice President of Distribution at Protective Asset Protection, following Protective’s acquisition of Portfolio, outlines how the combined entity is positioned to reshape dealer profit participation programs and expand its national reach.
According to Hanlon, Portfolio, historically a leader in reinsurance management, was acquired by Protective’s Asset Protection Division, officially announced on January 5, 2026. Hanlon transitions from Chief Sales Officer at Portfolio to VP of Distribution at Protective.
The acquisition creates what Hanlon describes as a “marriage of strengths,” combining Portfolio’s reinsurance expertise with Protective’s leadership in DOWC (Deductible-Over-Write Captive) programs. The acquisition positions the company as a true national player, with Portfolio’s strong presence on the East and West Coasts complementing Protective’s footprint in the Midwest and Southeast.
Dealer offerings
Hanlon accentuates that the combined organization can offer dealers best-in-class structures for profit participation. Key offerings include:
“I believe you should begin with the end in mind… whether you get five years of deferral or seven or 10, it’s coming. You’ve got to have a plan.”
- Hybrid 831A ARC / Reinsurance X (DOWC RE)
- Provides tax advantages similar to traditional DOWC structures.
- Lower operating and formation costs than conventional ARC or CFC setups.
- Access to a broader range of products not available in traditional DOWCs.
- A turnkey setup minimizes the administrative burden for dealers.
- Traditional CFC or multi-CFC structures
- Durable arrangements that remain viable for certain dealer profiles.
- Indexed to inflation and designed for long-term accumulation.
- Signature retro programs
- Operates like an ARC with flexibility to invest in equities and cash.
- No tax advantage, but can maximize cash flow for larger dealers.
- Consultative dealer approach
- Programs are customized to the dealer’s needs, size, and goals.
- Education on the pros and cons of each structure is central to strategy.
Fee transparency
Hanlon stressed the importance of understanding all fees upfront, including administration, seed, investment, and loss adjustment expenses. He noted that timely funding of premiums, typically weekly, maximizes investment returns, while strategic investment allocations can increase profit per service contract by hundreds of dollars.
He discouraged back-end or hidden fees, emphasizing the importance of clear reporting so dealers can control their accounts and optimize returns.
Commitment to dealers
Hanlon’s career spans building and selling Portfolio and years of experience in aftermarket reinsurance. Despite achieving financial independence, he remains deeply committed to the industry. He described his work as helping dealers achieve wealth-building and cash-flow success through profit participation programs.
Hanlon regularly consults with dealers, offering confidential, data-driven guidance to optimize programs and maximize returns while minimizing fees.
2026 outlook
Looking ahead, Hanlon said the post-COVID rate of change has accelerated. Dealers face rising labor costs, part shortages, and increasingly complex claims, such as ADAS-calibrated windshields.
He advised dealers to critically evaluate all aspects of their operations, including:
- Sales efficiency
- F&I products per deal (PVR)
- Training, development, and compliance
- Innovative processes and stress testing new ideas
Hanlon also stresses that proactive planning and attention to emerging risks are critical to maintaining profitability.
While Protective Asset Protection and Portfolio together offer dealers a combination of national reach, hybrid reinsurance structures, and transparent, consultative support, Hanlon urges dealers to leverage these resources to optimize profitability, minimize fees, and build long-term wealth.
