Wyncrest Group's Strategic Acquisition to Raise Earned Fees by $5 Million
September 21 2009 - 8:00AM
PR Newswire (US)
CHICAGO, Sept. 21 /PRNewswire-FirstCall/ -- The Wyncrest Group,
Inc. (Pink Sheets: WNCG) today announced that it expects
commissions earned from the sales of insurance and other financial
products by its Dallas-based realtor and financial services target
acquisition will be $5 million in 2009. During 2008, it generated
gross premium sales of $15 million, resulting in $100,000 of
EBITDA. Keith Lanzara, President of Wyncrest, commented, "We
believe this piece of the puzzle complements our existing business
lines well, and further helps to broaden our geographical and
product offering diversity with the addition of nearly two dozen
new sales representatives to our team." About Wyncrest Group The
Wyncrest Group is a publicly traded company based in Chicago,
Illinois, which provides insurance products and services through
its Southwest Financial Group subsidiary (SFG) and Wyncrest
Offshore Services. SFG has been in business for 21 years, has
18,000 clients, and sells through 85 representatives nationwide.
During 2008, approximately $22 million in total insurance policy
sales were generated resulting is $1.1 million of commission
revenues. WNCG plans to continue to grow SFG through discounted
acquisitions of competing agencies and applying its IT advantage
with a U.S. patent pending automated business method for managing
the acquired client books to improve policy renewal retention and
up-selling. The company expects that this strategy will reduce cost
of sales by half compared to traditional origination methods. WNCG
is also in negotiations with several acquisition targets developed
over an ongoing two-year campaign to find distressed agencies and
consolidate contract assets under one lower cost platform. Through
its Wyncrest Offshore Services Division, the Company is expanding
into the growing offshore insurance and reinsurance market by
offering a variety of services and products, including a liability
program for helicopter flight training schools and non-owner
helicopter pilots, and a line of Warranty Service Policies
operating as a controlled foreign corporation. Royalty income is
expected from licensing insurance products patented under a new
category of business methods, a strategy taken only by a few in a
new class of small innovative insurance companies leading the
industry. 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 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
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.
Wyncrest Group, Inc. 9654 West 131st Street, Suite 215 Palos Park,
IL 60464 http://www.wyncrestgroupinc.com/ Investor Relations:
1-630-215-5171 DATASOURCE: Wyncrest Group, Inc. CONTACT: Investor
Relations of Wyncrest Group, Inc., +1-630-215-5171, Web Site:
http://www.wyncrestgroupinc.com/
Copyright