TWFG (TWFG) 2025 Conference June 11, 2025 04:00 PM ET Speaker0 Important disclosures, please see the Morgan Stanley research disclosure website at www.morganstanley.com/researchdisclosure. The taking of photographs and the use of recording devices is also not allowed. If you have any questions, please reach out to your Morgan Stanley sales representative. Now with that said, we're very privileged to have Gordy here from the Woodland financials. It's been an incredible year. Right? Maybe if before we get sta ...

Core Insights - TWFG, Inc. is a high-growth insurance distribution company that will have its Founder and CEO, Gordy Bunch, participate in a fireside chat at the Morgan Stanley US Financials Conference on June 11, 2025 [1] - A live webcast of the conference will be available, along with a replay on the company's website [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]

TWFG (TWFG) Q1 2025 Earnings Call May 14, 2025 09:00 AM ET Company Participants Richard Bunch - Chairman, CEO & DirectorJanice Zwinggi - Chief Financial OfficerPablo Singzon - Executive DirectorTommy McJoynt - Director - Equity Research Conference Call Participants Paul Newsome - MD & Senior Research AnalystBrian Meredith - AnalystMichael Zaremski - Managing Director & Senior Equity Research Analyst Operator Good day, ladies and gentlemen. Welcome to the TWFG First Quarter twenty twenty five Earnings Confer ...

TWFG (TWFG) Q1 2025 Earnings Call May 14, 2025 09:00 AM ET Company Participants Richard Bunch - Chairman, CEO & DirectorJanice Zwinggi - Chief Financial OfficerPablo Singzon - Executive DirectorTommy McJoynt - Director - Equity Research Conference Call Participants Paul Newsome - MD & Senior Research AnalystBrian Meredith - AnalystMichael Zaremski - Managing Director & Senior Equity Research Analyst Operator Good day, ladies and gentlemen. Welcome to the TWFG First Quarter twenty twenty five Earnings Confer ...

Financial Data and Key Metrics Changes - Total revenue grew by 16.6% to $53.8 million, with organic revenue growth of 14.3% [4][13] - Adjusted EBITDA increased by 35.3% year over year to $12.2 million, with adjusted EBITDA margin expanding to 22.6% from 19.5% [16] - Net income for the quarter was $6.9 million, up 3.4% year over year, while adjusted net income rose 14.3% to $9.2 million [16] Business Line Data and Key Metrics Changes - Total written premiums rose by 15.5% to $371 million, with insurance services growing by 14.7% and TWFG MGA increasing by 20.1% [10][12] - New business growth was 26% or $18.4 million, while renewal business growth was 12.5% or $31.3 million [11] - The retention rate for written premiums decreased to 88% from 94% in the prior year period [12] Market Data and Key Metrics Changes - The personal lines market is softening, with stable carrier capacity in most regions [6] - The private passenger auto market has normalized, with expectations of moderate rate increases in 2025 [7] - Retention rates have normalized to the historic average of 88% as markets open up for growth [7] Company Strategy and Development Direction - The company is focused on expanding its national footprint, investing in agent success, and maintaining operational efficiency [19] - TWFG has a robust M&A pipeline and plans to continue investing in growth opportunities [19] - The company is adjusting its 2025 guidance upward, expecting organic revenue growth of 12% to 16% and total revenues between $240 million and $255 million [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted increased demand for insurance options [18] - The company is well-positioned to support clients through economic transitions, emphasizing the value of a trusted local adviser [18] - Future public company expenses are anticipated as the company complies with long-term obligations [21] Other Important Information - The company added 17 new branch locations during the quarter and completed two corporate acquisitions [5] - Interest income has been moved from the revenue line to other income for better comparability [9] Q&A Session Summary Question: Are the first quarter expenses fully loaded for public company costs? - Management indicated that future public company expenses will arise as compliance requirements evolve [21] Question: What gives comfort that retention has bottomed out? - Management noted that the 88% retention rate aligns with their long-term average and is supported by market conditions [24] Question: How are commission rates characterized in the quarter? - Management described commission rates as stabilizing, with potential upward skew due to new business incentives [31] Question: Was the 17 branch additions a gross or net number? - Management confirmed that the 17 additions were gross and higher than pre-disruption averages [35] Question: Is there a specific revenue or EBITDA contribution from acquisitions in the guidance? - Management stated that the guidance reflects the original analyst model, with confidence in achieving projected results from acquisitions [36] Question: Why does TWFG's agent onboarding take longer compared to others? - Management explained that agents often come from captive relationships and face non-compete clauses, requiring time to build a client base [44] Question: How significant is the addition of GEICO to the portfolio? - Management emphasized that GEICO provides favorable pricing and commission rates, enhancing retention and stability in the market [50] Question: What is the outlook for the Texas homeowners market? - Management expects favorable conditions in Texas, with improved capacity and economic conditions [70]

THE WOODLANDS, Texas, May 13, 2025 (GLOBE NEWSWIRE) -- – Total Revenues increased 16.6% for the quarter over the prior year period to $53.8 million –– Total Written Premium increased 15.5% for the quarter over the prior year period to $371.0 million –– Organic Revenue Growth Rate* of 14.3% for the quarter –– Net income of $6.9 million for the quarter –– Adjusted EBITDA* increased 35.3% for the quarter over the prior year period to $12.2 million – THE WOODLANDS, Texas, May 13, 2025 (GLOBE NEWSWIRE) – TWFG, I ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ___________________________________ OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission file number 001-42177 ___________________________________ TWFG, Inc. (Exact name of registrant as specified in its charter) ___________________________________ Delaware 99-0603906 (State or other jurisdictio ...

THE WOODLANDS, Texas, May 05, 2025 (GLOBE NEWSWIRE) -- TWFG, Inc. (NASDAQ: TWFG), a leading independent insurance distribution platform, announced today that it will release its financial results for the first quarter ended March 31, 2025, after the market closes on Tuesday, May 13, 2025. The Company will host a conference call to discuss its financial results the following morning, Wednesday, May 14, 2025, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). TO ACCESS THE CALL BY PHONE, PARTICIPANTS CAN REG ...

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]