The Wyncrest Group to Build on Success of 'Cash for Clunkers' Program
October 16 2009 - 6:51PM
PR Newswire (US)
CHICAGO, Oct. 16 /PRNewswire-FirstCall/ -- The Wyncrest Group, Inc.
(Pink Sheets: WNCG), a leader in niche insurance and financial
products and services today announced that it has seized the
momentum from the successes of the "Cash for Clunkers" program by
targeting the extended warranty coverage market for automobiles and
trucks. Bill McFarland, Chairman of the Wyncrest Group, commented,
"A significant accomplishment of the program is that it took many
of the most risky vehicles off the road for good; something which
not only benefits the environment, but makes the extended warranty
market stronger. Though the program has ended, we can continue to
help America's auto industry and average car and truck owners." As
many Americans are growing smarter and more frugal when it comes to
car repair, extended warranties offer an efficient means to cost
savings for those trying to protect the longevity of their vehicles
in as environmentally and economical way as possible. To that end,
WNCG has targeted a Louisiana-based extended warranty company which
specializes in automobile and truck parts, and service and
maintenance policies with yearly sales of $3.5 million. The
acquisition is expected to close by year-end. Highlights of the
company's comparative advantages are: -- Certified representatives
-- One-on-one customer service -- Customized policy coverage --
Fast and efficient payment of claims Importantly, they take what is
often a confusing warranty-buying process and simplify it so that
the owner of a new or used vehicle receives a policy quote based
upon that owner's specific needs. Consultants review a vehicle,
system by system, to determine and recommend precise coverage
rather than just give a "blanket" policy that may include unwanted
coverage. Furthermore, this means of coverage is backed by millions
of dollars of insurance reserves rather than being linked to OEM
vehicle sales volumes. With these resources and focus, the group is
able to provide the optimal extended warranty coverage in one
place. About The 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. Investor Relations: 9654 West 131st Street, Suite 215
1-630-215-5171 Palos Park, IL 60464
http://www.wyncrestgroupinc.com/ DATASOURCE: Wyncrest Group, Inc.
CONTACT: Wyncrest Group, Inc. Investor Relations, +1-630-215-5171,
Web Site: http://www.wyncrestgroupinc.com/
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