THE WOODLANDS, Texas, May 01, 2025 (GLOBE NEWSWIRE) -- TWFG, Inc. (“TWFG”, the “Company”), a high-growth insurance distribution company, announced today the acquisition of two agencies, one in Texas and one in North Carolina, and the hiring of Denise Davis as Vice President of Retail Operations. Denise Davis Insurance, located in Tomball, Texas, converted to a TWFG Corporate Branch on April 1, 2025, after nearly 23 years as an independent TWFG Branch. This move allows Denise to take on the role of Vice Pres ...

Financial Performance - For the year ended December 31, 2024, the company generated revenue of $203.8 million, representing year-over-year growth of 18.4%[27] - Adjusted EBITDA for the year ended December 31, 2024, was $45.3 million, with an Adjusted Net Income of $33.0 million[27] - The compound annual growth rate (CAGR) in Total Written Premium and total revenue from January 1, 2019, through December 31, 2024, was 19.2%[27] - Organic Revenue Growth was 14.5% year-over-year, driven by the success in attracting productive agents and retaining renewal business[27] - The company has successfully exceeded $1 billion in Total Written Premium for each of the last three years[30] Market Position and Operations - The company's Total Written Premium in the United States was approximately $968.7 billion as of 2023, making it the eighth largest personal lines agency and the 27th largest agency across all lines of business[26] - The company operates over 500 Branches and more than 2,100 MGA Agencies across 42 states, enhancing its distribution capabilities[30] - The company has a significant geographic presence, with 52.5% of Total Written Premiums concentrated in Texas, 16.2% in California, and 13.9% in Louisiana[55] - The company operates through two primary offerings: Insurance Services (82% of 2024 Revenue) and TWFG MGA (17% of 2024 Revenue)[43][53] M&A Strategy - The company aims to be a preferred partner for M&A targets in a fragmented industry with approximately 39,000 independent agencies and brokerages as of 2024[76] - The company’s M&A strategy focuses on acquiring high-quality targets that enhance capabilities and can be integrated into its ecosystem[76] - The company offers upfront payment structures in its M&A deals, providing sellers with certainty while limiting contingent liabilities[77] - The company enables its branches to expand their books of business through M&A support, allowing them to acquire smaller agencies and enhance service offerings[75] Growth and Development - The company supports organic growth for its branches by providing training, centralized resources, and automated marketing tools to maintain and grow client relationships[74] - The distribution platform is designed to support TWFG Agencies with resources, technology, and training, enhancing their ability to grow and serve clients[31] - The company aims to attract experienced agents to its platform, enhancing growth and expertise while facilitating succession planning[71] - The company is strategically expanding its product portfolio through specialty distribution channels, enhancing its offerings beyond personal lines products[73] Financial Position and Cash Management - As of December 31, 2024, the company had $195.8 million in cash and cash equivalents, earning interest income of $4.8 million for the year[475] - The company had approximately $5.9 million under its Term Loan Credit Agreement as of December 31, 2024, with previous borrowings of $8.4 million and $41.0 million under the Term Loan Credit Agreement and Revolving Facility, respectively, as of December 31, 2023[476] - The company repaid the outstanding balances of its Term Loan B and Revolving Facility in full as of December 31, 2024[476] - The fair values of cash and cash equivalents as of December 31, 2024 and 2023 approximated their respective carrying values due to their short-term duration, indicating minimal market risk[474] Regulatory and Compliance - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to take advantage of specified exemptions from certain regulatory requirements[102] - The company is classified as an emerging growth company and has elected to use the extended transition period for complying with new or revised accounting standards[104] - The company may cease to be an emerging growth company upon reaching $1.235 billion in annual revenue or issuing more than $1.0 billion of non-convertible debt over a three-year period[103] Employee and Management - As of December 31, 2024, the company employed approximately 293 people in the U.S. and 68 in the Philippines, with no union representation[95] - The company’s management team has an average of over 25 years of insurance industry experience, supporting its growth strategy[70] Industry Insights - Insurance premium pricing within the P&C insurance industry is cyclical, influenced by underwriting capacity and economic conditions, with terms "soft market" and "hard market" used to describe these cycles[473] - The company has experienced industry premium growth of 14.3% in personal lines and 7.2% in commercial lines in 2023[41] IPO and Market Activity - The company completed an IPO on July 19, 2024, issuing 11,000,000 shares of Class A Common Stock at an initial price of $17.00 per share[98] - The SEC maintains an internet site that contains reports and information regarding issuers that file electronically, which can be accessed for further details[106]

– Adjusted EBITDA* increased 91.7% for the quarter over the prior year period to $13.8 million – THE WOODLANDS, Texas, March 19, 2025 (GLOBE NEWSWIRE) -- TWFG, Inc. ("TWFG", the "Company" or "we") (NASDAQ: TWFG), a high-growth insurance distribution company, today announced results for the fourth quarter and the full year ended December 31, 2024. Fourth Quarter 2024 Highlights – Total Revenues increased 30.8% for the quarter over the prior year period to $51.7 million – – Total Written Premium increased 20. ...

Core Viewpoint - TWFG, Inc. is set to release its fourth quarter and full-year 2024 financial results on March 19, 2025, after market close, followed by a conference call on March 20, 2025, at 9:00 AM Central Time [1] Company Overview - TWFG is a leading independent distribution platform for personal and commercial insurance in the United States, representing hundreds of insurance carriers [2] - The company provides innovative insurance solutions through a network of agents, carriers, and technology-driven distribution models [2] Conference Call Details - The conference call will be accessible via a live webcast on TWFG's Investor Relations website, with a replay available for a limited time after the event [1][3] - Participants can register for phone access to the call through a provided link to receive dial-in details [3]

Financial Performance - Preliminary unaudited financial highlights for FY 2024 indicate a total written premium of approximately $1,476 million, reflecting a growth of 16.5% to 18.2% compared to the previous year[33] - Adjusted EBITDA for Q3 2024 is projected to be $31.5 million, with an adjusted EBITDA margin of 20.4%, showing consistent margin expansion[35] - The company has achieved a total revenue growth of 21.5% in Q3 2024, with adjusted free cash flow reaching $11.7 million[33] - Organic revenue growth for the three months ended September 30, 2024, was reported at 20.2%, with total revenue growth rate at 23.8%[67] - Total written premium for the nine months ended September 30, 2024, reached $1,115 million, compared to $946.6 million for the same period in 2023, reflecting a significant increase[66] - Total revenues for Q3 2024 reached $54.640 billion, a 14.0% increase from $47.710 billion in Q3 2023[69] - Net income for Q3 2024 was $6.893 billion, down 9.4% from $7.608 billion in Q3 2023, resulting in a net income margin of 12.6%[69] - Adjusted EBITDA for Q3 2024 was $11.738 billion, compared to $9.048 billion in Q3 2023, reflecting a margin increase to 21.5% from 19.0%[69] - Commission income for Q3 2024 was $48.240 billion, up from $43.993 billion in Q3 2023, contributing significantly to total revenues[72] - Operating income for Q3 2024 was $7.745 billion, slightly down from $7.902 billion in Q3 2023[72] - Adjusted free cash flow for Q3 2024 was $13.440 billion, indicating strong cash generation capabilities[70] - Interest expense increased to $411 million in Q3 2024 from $295 million in Q3 2023, reflecting higher borrowing costs[72] - Total operating expenses for Q3 2024 were $46.895 billion, compared to $39.808 billion in Q3 2023, primarily driven by increased commission and salary expenses[72] - The company reported a basic earnings per share of $0.08 for Q3 2024, consistent with Q3 2023[72] - The weighted average shares of common stock outstanding were 14,722,685 for Q3 2024, unchanged from the previous year[72] Business Model and Strategy - The business model is designed to capture a significant shift towards independent distribution channels, with independent agencies increasing their market share from 26% to 38% over the past decade[10] - The product mix comprises approximately 78% personal lines and 22% commercial lines as of December 31, 2023, indicating a strong focus on personal insurance products[24] - TWFG serves over 2,000 agencies across 40+ states, providing access to more than 300 national, regional, and local insurance carriers, MGAs, and programs[21] - TWFG's diversified revenue model includes approximately 80% of total revenue coming from insurance services, highlighting the importance of this segment[29] - The company addresses key pain points for agencies by offering a comprehensive suite of products and services, enhancing agency autonomy and operational efficiency[13] - TWFG's strategic focus on technology and M&A opportunities aims to further strengthen its market position and drive future growth[8] - The business model is designed to capture a secular shift from captive distribution, with a focus on independent agencies and differentiated solutions[57] Acquisition and Growth Opportunities - The company deployed $40.8 million in acquisitions year-to-date in 2024, following $19.4 million in 2023 and $7.9 million in 2022, indicating a robust acquisition strategy[46] - Approximately 35% of the 40,000 independent U.S. agencies are expected to be sold in the next five years, creating significant acquisition opportunities[42] - The company maintains a strong balance sheet and a disciplined approach to acquisitions, focusing on cultural compatibility and attractive loss ratios[45] - The company has a proven track record of successful acquisitions across various specialties and geographies, enhancing its capabilities and geographic diversification[46] Revenue Sources - The agency-in-a-box model generated $261.6 million in revenue for the three months ended September 30, 2024, accounting for 65% of total insurance services revenue[66] - The total revenue from TWFG MGA for the nine months ended September 30, 2024, was $164.6 million, up from $150.2 million in 2023[66] Market Trends - The P&C insurance market has exhibited a consistent growth rate, with a CAGR of 5.8% from 2013 to 2023[16] - The retention rate for insurance services was reported at 89% for the three months ended September 30, 2024, compared to 98% for the same period in 2023[66]

THE WOODLANDS, Texas, Feb. 28, 2025 (GLOBE NEWSWIRE) -- TWFG, Inc. (“TWFG”, the “Company” or “we”) (NASDAQ: TWFG), a high-growth insurance distribution company, today announced preliminary unaudited financial highlights for the fourth quarter and full year ended December 31, 2024. The following results are preliminary, unaudited estimates and are subject to change. The Company is currently finalizing its fourth quarter and year end 2024 results, and as a result, these preliminary estimates are based solely ...

Company Overview - TWFG, Inc. is a high-growth, independent distribution platform for personal and commercial insurance, licensed in all 50 states [2] - The company represents hundreds of insurance carriers that underwrite personal lines and commercial lines risks [2] Leadership Change - Eugene "Gene" Padgett has joined TWFG's Leadership Team as Chief Accounting Officer [1] - Padgett has over 30 years of experience in accounting and financial management across diverse industries [1] - He has a strong track record of enhancing organizational performance through strategic financial planning, SEC reporting, and compliance [1] - Padgett will report to Janice Zwinggi, Chief Financial Officer [1]

Financial Performance - Net income for the three months ended September 30, 2024, was $6.893 million, a decrease of 9.4% compared to $7.608 million in the same period of 2023[10]. - Comprehensive income attributable to TWFG, Inc. for the three months ended September 30, 2024, was $1.121 million, down from $7.573 million in the same period of 2023[10]. - Net income from continuing operations for the nine months ended September 30, 2024, was $20,440,000, compared to $20,047,000 for the same period in 2023, reflecting an increase of approximately 2%[21]. - Adjusted Net Income for the three months ended September 30, 2024, was $8,343 million, compared to $8,686 million in the same period of 2023[178]. - Adjusted Net Income Margin for the three months ended September 30, 2024, was 15.3%, down from 18.2% in the same period of 2023[178]. - Net income for the three months ended September 30, 2024, was $6.89 million, a decrease from $7.61 million in the same period of 2023, representing a decline of 9.4%[184]. Revenue Growth - Total revenues for the three months ended September 30, 2024, were $54.64 million, an increase of 14.1% from $47.71 million for the same period in 2023[68]. - Total revenues for the nine months ended September 30, 2024, were $154.22 million, up from $132.94 million in the same period of 2023[126]. - Commission income for the nine months ended September 30, 2024, was $139.45 million, up 13.9% from $122.45 million in the prior year[68]. - Total revenues for the three months ended September 30, 2024, increased by $6.9 million, or 14.5%, compared to the same period in the prior year, primarily driven by a $4.2 million, or 9.7%, increase in commission income[130]. - Fee income for Q3 2024 was $2.89 million, representing 5% of total revenues, consistent with the 5% in Q3 2023[126]. Assets and Liabilities - Total current assets increased significantly to $234.127 million as of September 30, 2024, compared to $75.108 million at December 31, 2023[13]. - Total liabilities decreased to $44.959 million as of September 30, 2024, from $84.386 million at December 31, 2023[13]. - Total assets increased to $313.093 million as of September 30, 2024, from $115.437 million at December 31, 2023[13]. - The balance at September 30, 2024, included total stockholders' equity of $268,134,000, reflecting a strong financial position[18]. Cash Flow and Financing - Cash provided by operating activities from continuing operations increased to $28,879,000 for the nine months ended September 30, 2024, up from $23,264,000 in the prior year, representing a growth of about 24%[21]. - The company reported a net cash provided by financing activities from continuing operations of $147,147,000 for the nine months ended September 30, 2024, compared to a net cash used of $6,086,000 in the prior year[21]. - The company repaid the outstanding balance of the Revolving Facility amounting to $41.0 million on August 5, 2024, using a portion of the net proceeds from the IPO[189]. - As of September 30, 2024, cash and cash equivalents were $191.2 million, significantly up from $39.3 million as of December 31, 2023[188]. IPO and Capital Structure - TWFG, Inc. completed an IPO on July 19, 2024, issuing 11,000,000 shares of Class A common stock at an initial price of $17.00 per share, raising significant capital for the company[25]. - The company used approximately $41.0 million of the IPO proceeds to repay outstanding debt under the Revolving Credit Agreement, enhancing its financial stability[30]. - The company issued 11,000,000 shares of Class A Common Stock at $17.00 per share during its IPO, resulting in net proceeds of approximately $192.9 million after deducting underwriting discounts and commissions[88][90]. Expenses and Cost Management - Total operating expenses for the three months ended September 30, 2024, were $46,895,000, compared to $39,808,000 in the same period in the prior year[130]. - Salaries and employee benefits increased by $4.9 million, or 145.8%, to $8.3 million for the three months ended September 30, 2024, driven by branch conversions and asset acquisitions[142]. - Other administrative expenses rose by $2.0 million, or 71.2%, to $4.8 million for the three months ended September 30, 2024, mainly due to increased consultant fees and IT costs[143]. Strategic Acquisitions - The company completed five asset acquisitions in 2023 with an annual revenue exceeding $0.5 million for a total purchase price of $19.4 million[118]. - In January 2024, the company acquired assets of nine independent branches for $40.8 million and remaining interests in partially owned branches for $5.2 million[119]. - The company purchased the assets of Wade for a total consideration of $4.3 million, with $3.0 million paid in cash and $1.3 million settled through an interest-bearing note[102]. Tax and Regulatory Matters - The estimated effective tax rate for the three months ended September 30, 2024, was 5.96%, significantly lower than the statutory rate of 21%[64]. - The company anticipates tax benefits from LLC Unit exchanges could aggregate to approximately $182.4 million over the next 15 years, with $155.1 million payable to Continuing Pre-IPO LLC Members[205]. Market Position and Future Outlook - TWFG Holding is positioned as an independent distribution platform for personal and commercial insurance in the U.S., with a focus on expanding its market presence[25]. - The company has plans for future market expansion and product development, leveraging its strong financial position post-IPO[25]. - The company expects to have sufficient financial resources to meet its business requirements in the next 12 months, including servicing debt and financing capital expenditures[204].

Core Insights - TWFG, Inc. completed its IPO in July 2024, raising $192.9 million through the issuance of 12,650,000 shares at $17.00 per share [1] - The company reported a total written premium of $400.1 million for Q3 2024, reflecting a 13.0% increase year-over-year [2][7] - Total revenue for the quarter was $54.6 million, up 14.5% from the previous year [2][7] - The organic revenue growth rate was 7.6% for the quarter [2][7] - Net income for Q3 2024 was $6.9 million, with diluted earnings per share of $0.08 [2][9] - Adjusted EBITDA increased by 29.7% year-over-year to $11.7 million, with an adjusted EBITDA margin of 21.5% [2][10] Financial Performance - Total written premium for Q3 2024 was $400.1 million, compared to $354.1 million in Q3 2023 [2] - Total revenues increased to $54.6 million from $47.7 million in the same period last year [2] - Organic revenue for Q3 2024 was $47.3 million, up from $42.8 million in Q3 2023 [7] - Adjusted net income for the quarter was $8.3 million, down 4.0% from the prior year [2][9] - Adjusted net income margin for Q3 2024 was 15.3%, compared to 18.2% in the same period last year [9] Operational Highlights - The company opened 86 new TWFG locations in Q3 2024, expanding into 13 new states [5] - The recruiting efforts have outpaced historical growth trends, indicating potential for future growth [5][6] - The company experienced a 5.2% decrease in total commission expense despite a 9.7% growth in commission income due to branch conversions [8] Cash Flow and Liquidity - Cash flow from operating activities for Q3 2024 was $11.7 million, compared to $7.4 million in the same period last year [10] - Adjusted free cash flow for the quarter was $11.5 million, significantly up from $4.6 million in Q3 2023 [10] - As of September 30, 2024, the company had cash and cash equivalents of $191.2 million and $50.0 million unused capacity on its revolving credit facility [11] Market Context - The company operates as a high-growth insurance distribution platform in the U.S., representing hundreds of insurance carriers [15] - The results reflect the resilience of the company's business model amid challenges such as multiple hurricanes [4][3]