One Size Does Not Fit All When It Comes To Your Business

By: Jeff Hatch

April 20, 2016

Selling your customers something straight off the shelf can be fast and convenient. But it can also mean that you’re running the risk of offering a run-of-the-mill product that wasn’t necessarily designed for them or for your business. The best way to differentiate yourself and drive business growth is to offer something that no one else has — something that everyone will want. 

In concert with your team, Warrantech can build a truly unique set of protection offerings for your customers that provide value and drive loyalty. Our mission is to provide our clients’ customers with the flexibility to purchase service contracts and obtain service on their terms and on their timelines, while reinforcing the long-term relationship between our clients and their customers. 

Warrantech offers a full-stop solution for the various aspects of a successful program and can also utilize a “menu-style” approach where you pick and choose what functions we would provide — at the outset of a program or during its life cycle. Moreover, Warrantech can tailor a program with benefits and terms that meet the unique needs of your customer base. Alternatively, or in parallel, we can leverage our existing programs to ensure speed-to-market for the program. 

Lastly, and unlike many competitors in the service contract administration industry, we are able to provide protection solutions beyond the standard extended service plan solution, including, but not limited to: 

Missed point-of-sale/renewal programs
Loyalty/membership programs
Concierge services 
Price/return guarantee programs
Monthly payment/subscription plans 
International coverage and service
Deductible and no-deductible options
OEM programs 
Value pack options (multiple products under one service plan)
Identity protection and fraud resolution
Employee benefit packages 

Warrantech offers unmatched flexibility, complete administrative support and a holistic approach to service contract programs. So whether you’re a retailer, dealer, distributor, or manufacturer in the consumer or automotive market, we have a customized solution that will work specifically for you.

To learn more, visit warrantech.com or give us a call at 800.833.8801.

Filed Under: customized, flexibility, plans, service, solutions, unique, warrantech

Why Should You Consider An Extended Service Plan?

By: Jeff Hatch

April 11, 2016

1. Financial Strain

If you feel that having to purchase an entirely new item or making costly repairs would drain your bank account or leave you with a mountain of credit card debt, then you should definitely look into an extended service plan (ESP). It can actually enhance the value of your product as opposed to being a financial burden in the event that something does go wrong. With an extended service plan, you’re essentially transferring risk to the company that sold it to you and trading it in for peace of mind. Regardless of the product’s cost, having a smaller monthly ESP payment instead of an unexpected, large repair bill is a wise investment that can help keep you from breaking the bank.

2. Time Constraint

Another key consideration is time. An extended service plan can help: 1) Take the guesswork out of searching for a quality repair company to fix your damaged merchandise on short notice. 2) Find a replacement product and have it shipped to you in a timely manner if repair is not an option. 3) Provide you with on-site repair in many instances.

In short, a good extended service plan is designed to provide you with immediate assistance. If you are having trouble with a product, you’ll have instant access to an authorized service professional, via a toll-free number, who can diagnose the problem and help you get on with your day – right away.

3. Product Reliability

No matter how well designed a product is, nothing lasts forever. Failure is inevitable. That’s why it’s always a good idea to go online and research the potential shortcomings of the particular product you intend to purchase. Check into the long-term durability of that brand to determine its reliability and what type of coverage would be most beneficial to you.

Also, think about the implications of being without your favorite consumer appliance – whether it’s a refrigerator, television, dishwasher, washer/dryer or other durable good. If you feel that being without this specific item would be a burden to you, then an extended service plan serves as a good complement.

4. Accidents Happen

Consumer electronics have become more mobile over the years, which means that they are more susceptible to accidental damage from typical everyday use. Keep your habits and behaviors in mind as to how you use products like these. If you travel a lot or are constantly on the go, then your mobile devices could be at greater risk. And if you depend on a smartphone, computer tablet or laptop for important things like work or college assignments, just imagine how difficult it would be if you didn’t have coverage and had to spend a lengthy amount of time without them.

5. Long-Term Investment

It is human nature that we would treat a car that we intend to purchase and drive for a long period of time differently than we would a car with a short-term lease. If it belongs to us we’re more likely to keep it cleaner, buy higher-grade gasoline and go out of our way to avoid bad roads. The same can be said of any product. If you view something as a long-term investment more than simply a fleeting purchase, you’ll want to keep it operating at its very best for as long as possible.

An extended service plan is a must-have in situations like this and can be useful for items that depend on steadfast service. As always, be sure to read the coverage terms of your extended service plan to be certain that it meets your needs, and make sure that it includes a reliable repair plan to help keep your most important appliances working longer and to the best of their abilities.

For more information regarding extended service plans, visit warrantech.com or contact us today at 800.833.8801. 

Filed Under: consumer, electronics, extended, finance, investments, plan, reliability, service, time

Warrantech Featured In The March Issue of Dealerscope Magazine

By: Jeff Hatch

March 28, 2016

Guy Koenig, Chief Strategic Officer for Warrantech, recently took part in Dealerscope magazine’s roundtable discussion regarding companies that sell extended service plan programs to consumers through retailers. Here is what he had to say in response to the following question:  

"What major initiatives/strategies has your company planned to help CE and appliance dealers make more money from warranty sales in 2016?"

Warrantech continues to develop unique products and solutions that meet the changing needs and demands of our retail partners and their customers. Most recently, significant focus has been placed on launching our Connected Life program to provide coverage and services for multiple devices under a single protection plan. This customizable program encapsulates everything from automotive, mobile devices, consumer electronics, and consumer appliances. The flexibility of our solutions gives CE and Appliance dealers an opportunity to expand their markets and reach new profit levels, while providing their customers with added value on their most important purchases.

Visit dealerscope.com to read the article in its entirety and for more industry insight. 

And be sure to follow Warrantech on Facebook, Twitter and LinkedIn so you can keep up to date on company initiatives as they happen. 

Filed Under: automotive, connected, Dealerscope, devices, life, mobile, products, solutions, Warrantech

Vehicle Service Contracts Remain A Popular Choice Thanks To Their Flexibility

By: Jeff Hatch

February 23, 2016

Having a vehicle service contract (VSC) gives you added peace of mind while taking away the risk of an expensive and unexpected repair bill. But as vehicle design starts to evolve even further, the appeal of a VSC continues to change as well.  

More dealerships are finding that consumers are less worried about mechanical failure and are more focused on in-vehicle technology. That’s not to say that there’s not a need for component coverage on items such as the transmission and engine — far from it. It’s just that as cars are being built with more electronics and connectivity features, items like navigation systems and Bluetooth technology are becoming more of a focus for customers interested in a VSC.     

In a 2014 study by the Consumer Electronics Association (CEA), in-vehicle technology was cited as an important factor when purchasing a new vehicle for more than half (59 percent) of U.S. drivers. The same study also found that two in five consumers (42 percent) stated that they intended to buy an in-vehicle technology device or accessory within a year. 

Fast forwarding to the present day, another study was just released that helps provide even further insight into VSC/automotive purchasing habits. According to a recent DealerRater survey question supplied by Automotive News, 30 percent of consumers said that they bought a service contract on their most recent vehicle purchase. Taking a deeper dive, here are some additional findings from the survey:

26 percent of new-vehicle buyers purchased service contracts 
40 percent of used-vehicle buyers purchased service contracts
33 percent of consumers who visited a dealership for service bought a service contract 
21 percent of all respondents purchased GAP protection, which was the next best-selling F&I product 
12 percent or less of all respondents purchased F&I products such as tire and wheel, prepaid maintenance, paint protection and coverage for alarm systems 

Advanced features and safety systems cost more to replace if they malfunction, so a VSC makes good sense if your vehicle features the latest state-of-the-art technology. And even if it doesn’t, a service contract is still a great option for covering the major components of your vehicle. Plus, a VSC gives your vehicle greater resale value. If you plan on selling your car or truck after a few years, keep in mind that you can get a higher price for it if it’s backed by a VSC. 

So, yes, car design has evolved and will continue to do so. But on the flipside, so have VSCs. Service plans have become more flexible, which allows every consumer to find the perfect fit for their budget and the way they drive. And this key advantage in how VSCs are designed allows consumers to stay out of the red and on the road a lot longer.  

Filed Under: automotive, consumer, contract, resale, service, technology, value, vehicle, VSC

AmTrust Announces Continued Growth of Operated Earnings For The Fourth Quarter 2015

By: Jeff Hatch

February 10, 2016

AmTrust today announced continued growth of operating earnings and strong operating return on equity for the fourth quarter and full year of 2015.

For the fourth quarter of 2015, operating earnings were $123.9 million, or $0.72 per diluted share compared to $118.5 million, or $0.73 per diluted share, in the fourth quarter of 2014. Fourth quarter 2015 net income attributable to common stockholders was $63.9 million, or $0.37 per diluted share, compared to $71.6 million, or $0.44 per diluted share, in the fourth quarter 2014. Annualized return on common equity was 11.2% for the fourth quarter of 2015 compared to 16.7% for the fourth quarter of 2014. For 2015, operating earnings were $526.7 million, or $3.13 per diluted share, an increase of 15%, compared to $458.4 million, or $2.87 per diluted share, in 2014. During 2015, net income attributable to common stockholders grew to $472.0 million, or $2.80 per diluted share, an increase of 9% from $434.3 million, or $2.72 per diluted share, in 2014. Operating return on common equity for 2015 was 25.3% compared to 29.9% from 2014. Return on common equity for 2015 was 22.7% compared to 28.4% for 2014.

Fourth Quarter 2015 Results

Total revenue was $1.21 billion, an increase of $0.16 billion, or 16%, from $1.05 billion in the fourth quarter 2014. Gross written premium was $1.61 billion, an increase of $0.15 billion, or 10%, from $1.46 billion in the fourth quarter of 2014. Fourth quarter 2015 gross written premium was negatively impacted by $49.3 million due to declines in European currencies compared to a $12.0 million negative impact to gross written premium in the fourth quarter 2014. Net written premium was $1.07 billion, an increase of $166.7 million, or 19%, compared to $898.5 million in the fourth quarter 2014. Net earned premium was $1.06 billion, an increase of $149.8 million, or 16%, from $908.2 million in the fourth quarter 2014. The combined ratio was 91.9% compared to 90.8% in fourth quarter 2014.

A summary of Q4 results is listed below along with a link to the earnings release. 

Financial Highlights

Fourth Quarter 2015

Gross written premium of $1.61 billion, up 10% (14% excluding the impact of European currency fluctuations) compared to $1.46 billion in the fourth quarter of 2014
Net earned premium of $1.06 billion, up 16% from $908.2 million in the fourth quarter 2014
Operating diluted EPS of $0.72 compared to $0.73 in the fourth quarter 2014
Diluted EPS of $0.37 compared with $0.44 in the fourth quarter 2014
Annualized operating return on common equity of 21.7% and annualized return on common equity of 11.2%
Service and fee income of $131.4 million, up 29% from $101.7 million in the fourth quarter 2014
Operating earnings of $123.9 million compared to $118.5 million in the fourth quarter 2014
Net income attributable to common stockholders of $63.9 million compared to $71.6 million in the fourth quarter 2014
Combined ratio of 91.9% compared to 90.8% in the fourth quarter 2014
Weighted average diluted shares outstanding of 172.0 million, up 6% compared to 162.1 million in the fourth quarter 2014

Full Year 2015

Gross written premium of $6.80 billion, up 12% (14% excluding the impact of European currency fluctuations) compared to $6.09 billion in 2014
Net earned premium of $4.02 billion, up 14% from $3.53 billion in 2014
Operating diluted EPS of $3.13 compared to $2.87 in 2014
Diluted EPS of $2.80 compared with $2.72 in 2014
Operating return on common equity of 25.3% and return on common equity of 22.7% 
Service and fee income of $478.2 million, up 17% from $409.7 million in 2014
Operating earnings of $526.7 million, up 15% compared to $458.4 million in 2014 
Net income attributable to common stockholders of $472.0 million compared to $434.3 million in 2014
Combined ratio of 91.0% compared to 90.7% in 2014
Book value per common share of $13.81, up 24% from $11.17 at December 31, 2014
AmTrust's stockholders’ equity was $2.91 billion as of December 31, 2015, up 43% compared to $2.04 billion as of December 31, 2014
Weighted average diluted shares outstanding of 168.4 million, up 6% compared to 159.0 million in 2014

Filed Under: 2015, currency, earnings, financial, fourth, growth, investor, quarter, results, shares

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