William Blair initiated research coverage of TWFG, Inc. (TWFG $26.30), an independent distributor of personal and commercial insurance.
Analyst Adam Klauber estimated that the company would generate total revenue of $200 million in 2024, up from $173 million in 2023, and increasing to a projected $242 million in 2025 and $295 million in 2026.
“TWFG’s primary offering, agency-in-a-box, provides a turnkey solution for insurance agents to launch an independent insurance agency,” said Klauber. “In return for providing carrier access, technology, administrative support, and optional client service support, TWFG receives a 20% revenue share of commissions generated by agency-in-a-box branches. In contrast to franchise models, TWFG provides a greater level of autonomy for branch principals.
“TWFG stands to benefit from distribution mix shift toward independent agents and market share gains enabled by its scale and differentiated technology,” added Klauber. “This should result in low- to midteens organic growth longer term. With tuck-in M&A activity, we expect growth for revenue can compound in the high teens and EPS growth in the low-20% range.”
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Current Ratings Distribution (as of 8/21/24)
Coverage Universe
Outperform (Buy): 71%
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