CHICAGO, Nov. 9 /PRNewswire-FirstCall/ -- The Wyncrest Group (Pink Sheets: WNCG), a leader in niche insurance and financial products and services, is pleased to announce its subsidiary Southwest Financial Group, has recently signed a new agreement with American General Life Companies. Wyncrest's wholly owned subsidiary, Southwest Financial Group finalized the commitment in October 2009, to direct $0.5 million in life insurance premiums to American General Life over the next twelve months. This is expected to increase sales revenue for Southwest Financial Group by an additional $700,000.
Wholly owned Southwest Financial Group has been in business for 21 years, has 22,000 clients, and sells through 250 representatives nationwide. During 2008, approximately $22 million in total insurance policy sales were generated resulting in $1.1 million of commission revenues. With over 4,000 employees and offices and service centers across the country, American General is one of the largest insurance providers in North America.
Chris Zaal, President of Southwest Financial Group commented that, "We are excited to step up and deliver a firm commitment to American General. This is reflective of the strong relationship we have built during the previous three years, and rewards shareholder value for both of our companies."
WNCG plans to continue to grow Southwest Financial Group 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.
About The Wyncrest Group, Inc. (WNCG.PK)
The Wyncrest Group, Inc. is a publicly traded company based in Chicago, Illinois, which provides insurance products and services through its Southwest Financial Group subsidiary. 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. 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.
Contact: Investor Relations +1-630-215-5171 investor@wyncrestinc.com The Wyncrest Group, Inc. 9654 West 131st Street, Suite 215 Palos Park, IL 60464 http://www.wyncrestgroupinc.com/
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.
The Wyncrest Group
CONTACT: Investor Relations of The Wyncrest Group, +1-630-215-5171,
investor@wyncrestinc.com
Web Site: http://www.wyncrestgroupinc.com/
