Wyncrest Sights Rapid Growth in Its Wholly Owned Subsidiary, Southwest Financial, Rapid Increase in Sales, and Announces LOI and
July 27 2009 - 11:17PM
PR Newswire (US)
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. Wyncrest Group, Inc. 9654 West 131st Street, Suite 215
Palos Park, IL 60464 http://www.wyncrestgroupinc.com/ Investor
Relations: 630-215-5171 DATASOURCE: Wyncrest Group, Inc. CONTACT:
Investor Relations of Wyncrest Group, Inc., +1-630-215-5171, Web
Site: http://www.wyncrestgroupinc.com/
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