What I built at Snap-on
Two captive businesses inside a company on the S&P 500. A global finance arm, and two insurance companies, both serving the same franchise network.
The finance captive
A lending business across four countries: the United States, Canada, the United Kingdom, and Australia and New Zealand. It financed franchisees carrying their vans and stock, and the technicians buying from them. Snap-on reports it as a separate segment, so every figure below is public.
| Share of group revenue | ~6% |
| Share of group operating earnings | ~22% |
| Segment operating earnings | $266m |
| Gross finance portfolio | $2,278m |
| Delinquency, 60 days and over, US | 1.3% |
What that means
A fifth of group operating profit on six per cent of revenue. The share of earnings is calculated from the reported segment figures rather than taken from a line in the accounts, and the arithmetic is in the note alongside.
The portfolio grew from $733m in 2010 to $2,278m in 2022. Delinquency held flat while it grew. Growth without deterioration is the harder half.
Gross finance portfolio and segment operating earnings across the period. Source: Snap-on published results.
The insurance captives
Two insurance companies covering franchisees across auto, inventory and product liability. This sat inside the Tools segment, so there are no separate public figures, and I do not publish any.
What I can tell you is how members behaved. Participation was voluntary throughout.
| Franchisee participation | 85% |
| Retention | ~100% |