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Wyncrest Group Inc. (WNCG.PK)

The Wyncrest Group Inc. (WNCG.PK)

The Wyncrest Group Inc., (WYCT) is a growing public holding company expert at designing insurance products customized to provide risk management solutions to carefully selected specialty markets where conventional lines don’t exist. These contracts are offered through our separate subsidiaries or in some cases patented and licensed.

Their focus on the specialty aviation market is served with products delivered thru their wholly owned Wyncrest Offshore Services domiciled in Panama where an advantageous regulatory environment is the key to controlling costs and making this protection available where nothing existed in the market before.

The Wyncrest Groups specialty construction liability solutions are typically structured as a captive insurance company hosted in tax friendly country like Panama so the insured can enjoy certain tax benefits and Wyncrest offers reinsurance that they subsequently syndicate or reinsure themselves. This product offers a solution to difficult problems like asbestos liability coverage required by governments for drywall contractors while controlling greatly controlling claim risk.

Wyncrest warranty products are sold directly through their wholly owned domestic Southwest Financial Group subsidiary. They started in 1992 and today have over 22,000 clients and 285 reps around the US. SFG has penetrated valuable market segments in certain ethnic communities and state teachers unions. Wyncrest is currently designing insurance products customized for these groups and plans on delivering them through a negotiated acquisition financed with Wyncrest stock.

Wyncrest’s financial plan is to minimize reserves dedicated to offshore operations while directing excess premiums from those business units toward expanding the market reach of our SFG sales force. They expect to enlist more independent agents by committing to cooperative marketing agreements. Along with this organic growth, acquisition targets identified may offer lower cost additions to the sales force depending on stock market valuation.

Wyncrest As A Parent Company

With their acquisition approach, they pride themselves on selecting the right company to join their team with the common goals of long term viability, growth and the desire to increase their stock price, thus increasing shareholder values.

The current management team is comprised of several members with strong financial backgrounds, coupled with past experience in sales and marketing. This management team is supported by experienced, skilled and dedicated personnel at all business units.

Wyncrest expects to retain the strong management teams in each business unit, capitalizing on their local knowledge of competitors and operating climate, along with their loyal customer relationships. By providing access to financial markets and expanded marketing opportunities, Wyncrest becomes the facilitator for future growth and higher long-term profits. Wyncrest’s success is simple. As the Company grows through sound acquisitions, the ability to effectively attract and redirect additional capital increases.

Shareholder wealth is increased by Wyncrest finding undervalued companies with good management in a specific industry or market, acquiring that company at a reasonable price and then providing the means for future growth that would not have otherwise been possible. In the process, new synergies will develop between the various business units. While each business unit has their own individual financial and business strengths, these synergies when coordinated effectively, will allow for greater cost effectiveness and strategic gains overall. The ability for Wyncrest to redirect capital to create a well-balanced conglomerate results in increased profitability and consistency in any economic climate.

Offshore Insurance Services

Insurance companies of the offshore type belong, together with offshore bank and trust companies among the most up-to-date tools in the field of tax planning and tax optimization. Like offshore banks insurance companies formed in offshore jurisdictions also enjoy the liberal environment of the offshore system and legislation.

There exist a number of types of offshore insurance licenses, beginning with the full international license, through a number of limited licenses to a license for additional insurance or underwriter or insurance broker licenses. Every jurisdiction has its own laws and classes of individual licenses which offer some of the below listed forms of licenses.

General Unrestricted Offshore License

This is a full international offshore insurance license, which usually does not have any restriction of activities, which means that on the basis of this license it is possible to insure, secure insurance or reinsure without limitation, including providing life policies or policies for other insurance companies from offshore or onshore jurisdictions.

Restricted Offshore License

Basically this concerns a full international insurance license which, however, has specific restrictions, such as an upper limit for the maximum amount of insurance policies, not providing life policies, foreign exchange restrictions, etc.

Restricted In-house License

The Restricted In-house License is a license which enables its holders to provide insurance services exclusively to a group of natural persons or legal entities who are the subject matter of the license or to the proprietor of the insurance company. This type of insurance company is intensively used by international holdings, banks, insurance companies and tax optimization funds. The most frequented seat of these insurance companies are the Bermuda Islands, where at present about 3,000 internal insurance companies are registered, which administer insurance policies amounting to several billions of USD.

Re-Insurance License

This is a company, which itself cannot insure but which can only accept an insurance policy and subsequently secure it at another commercial onshore or offshore insurance company, often at a wholesale price. The home country of the re-insurance companies is the Caribbean island Nevis, where you can get a re-insurance company at a price about USD 2,000. A re-insurance company is an extremely excellent tool for tax planning intended de facto for any business, consulting or investment company.

Another chapter could be formed by licensed underwriters, brokers or trustees who can get licenses for international offshore activities in a number of offshore jurisdictions for international offshore activities at relatively advantageous conditions.

A major part of the insurance companies of the Offshore type, like ordinary business offshore companies, are not subject to taxation of their profits, but they often pay a certain type of lump-sum tax only or appropriate license fees. These fees are an important aspect while deciding about the extension of a license or its cancellation on the part of authorities.

Main characteristics of offshore insurance licenses can be defined as follows:

Low interventions on the part of authorities and institutions
Lower capital requirements than in the case of other jurisdictions
Tax aspects, they are often exempted from all forms of direct taxes
Tax on profits are replaced with lump-sum taxes
Low establishment fees
Low license fees
Liberal requirements connected with the operation of the insurance company
Offshore insurance companies are often not subject to foreign exchange restrictions
Licenses are easily available in a number of offshore jurisdictions
In a number of countries no obligation of capital adequacy maintenance
Possibility of concluding all types of insurance policies, including life policies

Offshore insurance companies can be used for two basic types of activities:

For proper insurance, security, reinsurance or other similar activities or tax planning purposes
Using an offshore insurance company for insurance activities

Many offshore insurance companies provide their clients with insurance services which can include various types of insurance coverage of a high risk - for example against events of negligence and misuse of official authority, corporate liability, against a possible strike as well as insurance of other risks which would be very expensive if agreed upon with ordinary onshore insurance companies.

The ability to make profits by providing these services depends to a significant extent on competition on the market and on the price of the insurance policy when purchased from standard providers in an onshore jurisdiction.

Indeed, insurance business activities have become a highly profitable matter for many private international offshore insurance companies, and it is no exception that an offshore branch office of an insurance company is more profitable than its parent onshore company.

Since in many cases the onshore insurers charged an unacceptable premium or refused to conclude an insurance policy at all, the parties, which were exposed to a high risk, did not have any other possibility but contacting offshore institutions which were glad to meet their requirements, often even with a discount.
Some of them only contacted the renowned foreign insurance companies, which were willing to take over the coverage of the risks at more acceptable premium than onshore insurance companies.

Other, mostly professional groups, holdings or individuals with common risks tended to establish co-operation insurance pools, operating either in offshore locations or in such states as Vermont (USA) or Colorado (also USA), which had more tolerating insurance regulations, and which in turn provided insurance to all members of the interest group.

Offshore insurance company can conclude coverage for:

Risks connected with foreign activities
Export, import and all foreign activities
Insurance of persons in foreign countries (for example on business trips)
Insurance against loss from business risks
Risks connected with loans, guarantees, purchase of securities
Risks connected with professional liability

Understanding Variable Insurance Policies

Variable insurance products were developed by insurance companies primarily to meet competition from mutual fund type investments. If nothing else, the insurance industry is very creative and extraordinarily competitive. Essentially, variable life insurance is a whole life insurance policy, which allows the policy owner to direct the investment of the cash values within a selection of pre-set investment vehicles. These are usually mutual funds operated by the insurance company.

Most variable life policies allow policy owners to switch their investments in the underlying funds several times a year. Generally, there is no charge for the transfer of funds between the underlying investments, and the transfers are tax-free. The income earned by these investments underlying the policies' cash values may be accumulated tax-free or on a tax-deferred basis. The tax treatment depends on whether or not the gains are distributed during the policy owner's life or are funded at death.

Many professional planners and business advisors recognize that variable life insurance and, in particular, variable universal life insurance are important in solving business problems. The attractive features of these policies include their flexibility, their growth of cash values and the resulting death benefits. When used as a non-qualified deferred compensation plan, for example, a variable policy can potentially provide higher tax deferred cash value accumulations than a traditional whole life policy or even a universal life policy.

Variable policies also have variable tax consequences. With a variable insurance product, capital appreciation loses its character as capital gain. Where there are distributions because of a withdrawal or a surrender of the policy, the amount received becomes taxable as ordinary income. While the maximum or marginal tax rate is 39.6%, it is well known that the effective rate can be much higher due to certain computational complexities within the operations of the Internal Revenue Code. However, if the policy is not drawn down, the increase in value will clearly increase the available death benefit, which can be structured to be received by the beneficiaries free of any income or estate tax.

Catastrophic Insurance Division

Offshore Services is Wyncrest Group's new-dedicated Offshore Division and is positioned to grow with a growing offshore exploration and development trend. Insurance as a financial product is in a unique position to meet real life financial needs. When using offshore insurance in offshore holding vehicles this important financial product becomes an even more powerful planning tool.

Wyncrest Group's Offshore Services Division provides offshore insurance companies, offshore bank and trust companies and command the most up-to-date tools in the field of tax planning and tax optimization. Like offshore banks, insurance companies formed in offshore jurisdictions also enjoy the liberal environment of the offshore system and legislation.


Wyncrest Group's offshore Catastrophic insurance Division provides their clients with insurance services which can include various types of Catastrophic insurance coverage of a high risk - for example against events of negligence and misuse of official authority, corporate liability, against a possible strike as well as insurance of other risks which would be very expensive if agreed upon with ordinary onshore insurance companies. An offshore insurance company, usually referred to as a 'captive' insurance company, is usually a subsidiary of a large company or group of companies, and its purpose is to offer insurance within the parent company or group, thus saving

external costs and generating profits in a low tax jurisdiction. The fiscal benefits are not necessarily the driving factor, but they can be significant. Direct accessed to reinsurance is another important advantage of a captivate. The considerable advantages of captives have led to the development of a major worldwide captives industry, and IOFCs have vied with each other to establish attractive regimes for captives. For income purposes, the build-up of income under an insurance product through compound interest is not subject to tax.