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.