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 investor@wyncrestinc.com http://www.wyncrestgroupinc.com/
Wyncrest Group, Inc.
CONTACT: Wyncrest Group, Inc. Investor Relations, +1-630-215-5171,
investor@wyncrestinc.com
Web Site: http://www.wyncrestgroupinc.com/
