Fridays news after the close: The Wyncrest Group and McKinley Financial Services Extend Relationship
The Wyncrest Group, Inc. (Pink Sheets: WNCG), a leader in niche insurance and financial products and services, today announced that it has further solidified its relationship with McKinley Financial Services. Affiliated since 2003, Wyncrest's subsidiary, Southwest Financial Group, will write all of McKinley's life insurance policies going forward. This is projected to generate nearly $2 million in additional revenue for Wyncrest.
McKinley Financial, based in Fort Lauderdale, Florida, was founded in 1987, and has grown to sales of over $125 million. Its team is comprised of over 50 agents, brokers, and employees selling insurance products in over 30 states; and coordinates benefits to more than 100 insurance companies. Keith Lanzara, President of the Wyncrest Group, commented, "We are extremely pleased to deepen our ties with McKinley. This is a tremendous validation of our strategy and hard work, and we look forward to continuing to deliver the type of insurance solutions that have benefited our clients and our companies."
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.
