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Wyncrest Sights Rapid Growth in Its Wholly Owne...

Wyncrest Sights Rapid Growth in Its Wholly Owned Subsidiary, Southwest Financial, Rapid Increase in Sales, and Announces LOI and Shareholder Update

PR Newswire




CHICAGO, July 27 /PRNewswire-FirstCall/ -- The Wyncrest Group, Inc., (Pink Sheets: WNCG) a niche insurance consortium, releases shareholder update on core business strategy, preliminary estimate numbers, and announces the company is moving forward the acquisition of Florida Insurance Consulting and has signed an LOI.


Wyncrest is the parent company of Southwest Financial Group.  Southwest Financial Group did approximately $22 million in premium sales in 2008. With the business climate starting to regain itself that same figure could be reached in 2009 as well. Florida Insurance Consulting, Wyncrest’s (WNCG.PK) new targeted acquisition, has indicated that initial estimates should be around $10 to $15 million in premium sales. Furthermore the company’s 2009 Sales are also getting back on track to do about the same.  Chris Zaal President of SWFG has talked with Insurance and Financial Services Company in Broward County, Florida that is doing $120 million in premium sales that is trying to find an exit plan and would like to discuss a possible merger or acquisition. This is great news for Wyncrest (WNCG.PK) and should add significant shareholder value. Based on our talks with Cleverbiz in regards to the possible acquisition and based on the number of sales associates in the field we estimate the number to be around $25 to $30 million in premium sales. They have mentioned that they have continued to grow every year. So they could top possibly $30 million in 2009.


Bill McFarland, CEO of Wyncrest, states, “Wyncrest Group, Inc. wholly owned subsidiary, Southwest Financial Group, an Insurance and Financial Services company is a commission and fee revenue company. It sells intangible products requiring no inventories and no risk which is really great news. Wyncrest does not need brick and mortar. We have no inventories or inventory related expenses and really don’t have the personnel expenses that are associated with most other companies. This is very positive news for Wyncrest and its shareholders. Most sales associates are commissioned salespeople. They also do most of our marketing and prospecting, which is our largest cost. The end result is we have little to no risk.”


“When Wyncrest produces a sale of an insurance product, produced by another company, we receive a commission income from the sale of that product. The total sales number can be recorded as a sale but not as revenue because it does not pass through our hands. Therefore, Wyncrest is looking to acquire an Insurance Cell so that the company can not only claim all the sales and revenues from their subsidiaries but also so grow profit margins that would be extremely higher than they are currently.”  


Wyncrest is currently in the process of purchasing an Insurance Cell that could reduce or eliminate all of the expenses that would be required to form its own offshore insurance company. The cost is significantly less. The cost of purchasing the company along with the set up cost and the personnel are all but eliminated. The addition of a Wyncrest Group, Inc. owned insurance company is extremely important to our future as well. Obviously our main focus of the insurance company will be to offer great insurance products and a better price. Wyncrest Core Insurance products could offer more variety or make the products easier to customize because of its size and ability to react fast. This would help give both the Insurance agent and affiliate a great opportunity to react to the needs of his client. The Insurance markets that exist now require the client and the agent or affiliate to shop many different Insurance companies for products that are required by the client according to their needs and/or price.


Wyncrest’s revenues from producing and selling its own insurance products to Southwest Financial Group’s Client base without any acquisitions could easily produce a Wyncrest owned Insurance Company doing well over $10 million dollars in revenue next year. From the looks of the recent merger and acquisition interest in Wyncrest increasing in the recent months we believe that the company could put together a minimum of three acquisitions by the end of the fourth quarter. With those new acquisitions and the additions of their existing client bases, the newly formed insurance company could conceivably produce $30 to $40 million in revenue next year, obviously, the more acquisitions the more revenue.


Through our months of prospecting Wyncrest has found that there are many Insurance and financial service companies or agencies that would like to merge or become an affiliate of a public company. This would allow them to share what little expenses that we have, which is marketing and prospecting new customers and following up and retaining current customers.


Wyncrest is in a position to acquire a great number of insurance and financial services companies quickly because they do not require a lot of capital. This would also rapidly increase Wyncrest’s real revenues. Concentrating on acquisitions is where we believe, as a company, that our focus has to be in the coming months.


This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. WNCG has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends", "potential" and similar expressions. These statements reflect the WNCG's current beliefs and are based upon information currently available to it. Accordingly, such forward looking statements involve known and unknown risks, uncertainties and other factors which could cause the WNCG's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. WNCG undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this Press Release including such forward-looking statements.





SOURCE Wyncrest Group, Inc.