TWFG Announces Second Quarter 2024 Results

– Total Written Premium increased 20.3% over the prior year period to $393.6 million
– Total Revenue increased 17.4% over the prior year period to $53.3 million
– Organic Revenue Growth Rate* of 13.8% –
– Net Income of $6.9 million
– Adjusted Net Income* increased 18.1% over the prior year period to $9.8 million
– Adjusted EBITDA* increased 25.8% over the prior year period to $10.8 million
– Completed Initial Public Offering in July 2024

THE WOODLANDS, Texas , Aug. 27, 2024 /PRNewswire/ -- TWFG, Inc. ("TWFG" or the "Company") (NASDAQ: TWFG), a high-growth insurance distribution company, today announced results for the second quarter ended June 30, 2024.

Second Quarter 2024 Highlights

  • Total Written Premium for the quarter increased 20.3% to $393.6 million, compared to $327.2 million in the same period in the prior year
  • Total revenues for the quarter increased 17.4% to $53.3 million, compared to $45.4 million in the same period in the prior year
  • Organic Revenue Growth Rate* for the quarter was 13.8%
  • Net income for the quarter was $6.9 million, compared to $7.1 million in the same period in the prior year
  • Adjusted Net Income* for the quarter increased 18.1% over the prior year period to $9.8 million, and Adjusted Net Income Margin* for the quarter was 18.4%
  • Adjusted EBITDA* for the quarter increased 25.8% over the prior year period to $10.8 million, and Adjusted EBITDA Margin* for the quarter was 20.2%
  • Cash flow from operating activities for the quarter was $7.4 million, compared to $6.9 million in the same period in the prior year
  • Adjusted Free Cash Flow* for the quarter was $3.7 million, compared to $1.9 million in the same period in the prior year

*Organic Revenue Growth Rate, Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Free Cash Flow are non-GAAP measures. Reconciliations of Organic Revenue Growth Rate to total revenue growth rate, Adjusted Net income and Adjusted EBITDA to net income, and Adjusted Free Cash Flow to cash flow from operating activities, the most directly comparable financial measures presented in accordance with GAAP, are outlined in the reconciliation table accompanying this release.

"We delivered a strong second quarter and our value proposition to independent and captive agents continues to resonate in the marketplace" stated Gordy Bunch, Founder, Chairman, and CEO. "In the second quarter, total revenues increased 17.4% over the prior year period and we generated 13.8% organic growth. Over the past couple of years, we have seen unprecedented disruption in the personal lines market, impacting thousands of our clients and highlighting the value our local agents and their staff bring to policyholders as we navigate a recalibration of carrier risk appetite and product availability."  "We are seeing signs of improved underwriting margins at our carrier partners and an increase in underwriting appetite, which bodes well for new business opportunities and more orderly renewals for our agents and their customers." 

Bunch added "It has been a busy and historic year for TWFG thus far in 2024. We converted nine branches to corporate locations in January. We completed our initial public offering in July, which included significant participation by our employees, existing stockholders, and agents. In the first half of the year, we welcomed 44 experienced former captive agents to the TWFG family. This opportunistic onboarding of seasoned, client-focused agents demonstrates how TWFG is uniquely positioned to capture the ongoing shift from captive distribution to independent distribution. I want to remind our fellow stockholders that experienced agents typically take between two to three years to become productive with us as they transition from the captive model and relaunch their careers as independent agents. We do not expect this influx of talent to have a significant impact on revenues this year or next, but over the long-term we expect the agents we are onboarding in 2024 to contribute meaningfully to our organic growth."  

Second Quarter 2024 Results

For the second quarter of 2024, Total Written Premium was $393.6 million, a 20.3% increase compared to the same period in the prior year. Revenues were $53.3 million, an increase of 17.4% compared to the same period in the prior year. Organic Revenues, a non-GAAP measure that excludes contingent income, fee income, and other income, for the second quarter of 2024 were $47.4 million, a 16.6% increase from $40.7 million in the same period in the prior year. Organic Revenue Growth was driven by strong premium retention of 93% and healthy new business premium.

Total commission expenses for the second quarter of 2024 were $32.0 million, a 3.5% increase from $30.9 million in the same period in the prior year. Commission expenses grew slower than the 16.5% growth in commission income due to the conversion of nine branches to corporate branches, which transitioned our non-employee commission-based colleagues to employees. Upon conversion, these corporate branches' employees received salaries, employee benefits, and bonuses for services rendered instead of commissions. Salaries and employee benefits for the second quarter of 2024 were $6.8 million, up 102.3% from $3.4 million in the same period in the prior year. The increase was primarily due to the aforementioned branch conversions along with the growth in the business. Other administrative expenses for the second quarter of 2024 were $3.7 million, a 36.8% increase compared to the same period in the prior year. The increase was driven by branch conversions, growth in the business, and public company costs.

For the second quarter of 2024, net income was $6.9 million, and net income margin was 13.0%, compared to $7.1 million of net income and net income margin of 15.6%, in the same period in the prior year. Adjusted Net Income for the second quarter of 2024 was $9.8 million, compared to $8.3 million in the same period in the prior year. Adjusted Net Income Margin for the second quarter was 18.4%, compared to 18.3% in the same period in the prior year.

Adjusted EBITDA for the second quarter was $10.8 million, an increase of 25.8% over the prior year period. Our Adjusted EBITDA Margin was 20.2% in the second quarter of 2024 compared to 18.8% in the same period in the prior year.

Cash flow from operating activities for the second quarter was $7.4 million, compared to $6.9 million in the same period in the prior year.

Adjusted Free Cash Flow for the second quarter of 2024 was $3.7 million, compared to $1.9 million in the same period in the prior year.

Liquidity and Capital Resources

As of June 30, 2024, the Company had cash and cash equivalents of $25.8 million. We had $9.0 million unused capacity on our revolving credit facility of $50.0 million as of June 30, 2024, the outstanding balance of which was subsequently repaid in connection with the IPO. The total outstanding term notes payable balance was $7.0 million as of June 30, 2024.

Adjusted Net Income Calculation Methodology

In the second quarter of 2024, we revised the calculation of Adjusted Net Income to include amortization expenses among the add-back adjustments to our net income when calculating our Adjusted Net Income. Our legacy calculation methodology reflected the impact of intangible asset amortization as a reduction to our Adjusted Net Income. The revised calculation methodology excluded the effect of the intangible asset amortization when calculating our Adjusted Net Income by reflecting it among the add-back adjustments to our net income. We believe that the revised calculation of Adjusted Net Income is more consistent with the method and presentation used by most of our peers and will allow management to better evaluate our performance relative to our peer companies. We believe that the revised calculation more effectively represents what our stakeholders consider useful in assessing our performance.

Conference Call Information

TWFG will host a conference call and webcast tomorrow at 9:00 AM ET to discuss these results.

To access the call by phone, participants should register at this link, where they will be provided with the dial in details. A live webcast of the conference call will also be available on TWFG's investor relations website at investors.twfg.com.  A webcast replay of the call will be available at investors.twfg.com for one year following the call.

About TWFG

TWFG (NASDAQ: TWFG) is a high-growth, independent distribution platform for personal and commercial insurance in the United States and represents hundreds of insurance carriers that underwrite personal lines and commercial lines risks. For more information, please visit twfg.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this report, are forward-looking statements. Forward-looking statements give our current expectations relating to our financial condition, results of operations, plans, objectives, future performance, and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors discussed under the captions entitled "Risk factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our prospectus (the "IPO Prospectus") relating to our Registration Statement on Form S-1, as amended (Registration No. 333-280439), filed with the U.S. Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended. You should specifically consider the numerous risks outlined under "Risk factors" in the IPO Prospectus.

Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Non-GAAP Financial Measures and Key Performance Indicators

Non-GAAP Financial Measures

Organic Revenue, Organic Revenue Growth, Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow included in this release are not measures of financial performance in accordance with generally accepted accounting principles in the United States of America ("GAAP") and should not be considered substitutes for GAAP measures, including revenues (for Organic Revenue and Organic Revenue Growth), net income (for Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA and Adjusted EBITDA Margin), and cash flow from operating activities (for Adjusted Free Cash Flow) which we consider to be the most directly comparable GAAP measures. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation or as substitutes for revenues, net income, operating cash flow or other consolidated financial statement data prepared in accordance with GAAP. Other companies may calculate any or all of these non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures.

Organic Revenue. Organic Revenue is total revenue (the most directly comparable GAAP measure) for the relevant period, excluding contingent income, fee income, other income and those revenues generated from acquired businesses with over $0.5 million in annualized revenue that have not reached the twelve-month owned mark.

Organic Revenue Growth. Organic Revenue Growth is the change in Organic Revenue period-to-period, with prior period results adjusted to include revenues that were excluded in the prior period because the relevant acquired businesses had not reached the twelve-month-owned mark but have reached the twelve-month owned mark in the current period. We believe Organic Revenue Growth is an appropriate measure of operating performance because it eliminates the impact of acquisitions, which affects the comparability of results from period to period.

Adjusted Net Income.  Adjusted Net Income is a supplemental measure of our performance and is defined as net income (the most directly comparable GAAP measure) before amortization, non-recurring or non-operating income and expenses, including equity-based compensation, adjusted to assume a single class of stock (Class A) and assuming noncontrolling interests do not exist. We believe Adjusted Net Income is a useful measure because it adjusts for the after-tax impact of significant one-time, non-recurring items and eliminates the impact of any transactions that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments generally eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.

We are subject to U.S. federal income taxes, in addition to state, and local taxes, with respect to our allocable share of any net taxable income of TWFG Holding Company, LLC. Adjusted Net Income pre-IPO did not reflect adjustments for income taxes since TWFG Holding Company, LLC is a limited liability company and is classified as a partnership for U.S. federal income tax purposes. Post-IPO, the calculation will incorporate the impact of federal and state statutory tax rates on 100% of our adjusted pre-tax income as if the Company owned 100% of TWFG Holding Company, LLC.

Adjusted Net Income Margin. Adjusted Net Income Margin is Adjusted Net Income divided by total revenues. We believe that Adjusted Net Income Margin is a useful measurement of operating profitability for the same reasons we find Adjusted Net Income useful and also because it provides a period-to-period comparison of our after-tax operating performance.

Adjusted EBITDA. Adjusted EBITDA is a supplemental measure of our performance and is defined as EBITDA adjusted to exclude equity-based compensation and other non-operating items, including, certain nonrecurring or non-operating gains or losses. EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation and amortization. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it adjusts for significant one-time, non-recurring items and eliminates the ongoing accounting effects of certain capital spending and acquisitions, such as depreciation and amortization, that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments generally eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.

Adjusted EBITDA Margin. Adjusted EBITDA Margin is Adjusted EBITDA divided by total revenue. We believe that Adjusted EBITDA Margin is a useful measurement of operating profitability for the same reasons we find Adjusted EBITDA useful and also because it provides a period-to-period comparison of our operating performance.

Adjusted Free Cash Flow.  Adjusted Free Cash Flow is a supplemental measure of our performance. We define Adjusted Free Cash Flow as cash flow from operating activities (the most directly comparable GAAP measure) less cash payments for tax distributions, purchases of property, plant, and equipment and acquisition-related costs. We believe Adjusted Free Cash Flow is a useful measure of operating performance because it represents the cash flow from the business that is within our discretion to direct to activities including investments, debt repayment, and returning capital to stockholders.

The reconciliation of the above non-GAAP measures to their most comparable GAAP financial measure is outlined in the reconciliation table accompanying this release.

Key Performance Indicators

Total Written Premium. Total Written Premium represents, for any reported period, the total amount of current premium (net of cancellation) placed with insurance carriers. We utilize Total Written Premium as a key performance indicator when planning, monitoring and evaluating our performance. We believe Total Written Premium is a useful metric because it is the underlying driver of the majority of our revenue.

Contacts
Investor Contact:
Jeff Arricale for TWFG
Email: jeff.arricale@twfg.com

PR Contact:
Alex Bunch for TWFG
Email: alex@twfg.com

 

Condensed Consolidated Statements of Operations (Unaudited)

(Amounts in thousands, except unit and per unit data)



     Three Months Ended
June 30,


     Six Months Ended
June 30,


2024


2023


2024


2023

Revenues








Commission income

$         48,662


$         41,771


$         91,207


$         78,458

Contingent income

1,258


1,003


2,334


1,988

Fee income

2,689


2,208


4,921


4,236

Other income

657


394


1,117


550

Total revenues

53,266


45,376


99,579


85,232

Expenses








Commission expense

31,962


30,896


58,405


58,392

Salaries and employee benefits

6,816


3,370


13,070


6,706

Other administrative expenses

3,744


2,736


6,874


5,231

Depreciation and amortization

2,968


1,134


5,981


2,195

Total operating expenses

45,490


38,136


84,330


72,524

Operating income

7,776


7,240


15,249


12,708

Interest expense

(872)


(173)


(1,714)


(258)

Other non-operating income (expense), net

14



12


(11)

Net income from continuing operations

6,918


7,067


13,547


12,439

Net income from discontinued operation, net of tax




834

Net income

$           6,918


$           7,067


$         13,547


$         13,273

















Weighted average units used in the computation of net income per unit:








Basic

659,439


631,750


659,439


631,750

Diluted

659,439


631,750


659,439


631,750

Net income per unit:








Net income from continuing operations per unit - basic

$           10.49


$           11.19


$           20.54


$           19.69

Net income from continuing operations per unit - diluted

$           10.49


$           11.19


$           20.54


$           19.69









Net income from discontinued operation per unit - basic

$                —


$                —


$                —


$             1.32

Net income from discontinued operation per unit - diluted

$                —


$                —


$                —


$             1.32









Net income per unit - basic

$           10.49


$           11.19


$           20.54


$           21.01

Net income per unit - diluted

$           10.49


$           11.19


$           20.54


$           21.01









 

The following table presents the disaggregation of our revenues by offerings(in thousands):



     Three Months Ended
June 30,


     Six Months Ended
June 30,


2024


2023


2024


2023

Insurance Services








Agency-in-a-Box

$         34,589


$         35,145


$         66,418


$         66,644

Corporate Branches

9,351


1,568


16,627


2,504

Total Insurance Services

43,940


36,713


83,045


69,148

TWFGMGA

8,884


7,953


15,723


14,879

Other

442


710


811


1,205

Total revenues

$         53,266


$         45,376


$         99,579


$         85,232










The following table presents the disaggregation of our commission income by offerings(in thousands):



     Three Months Ended
June 30,


     Six Months Ended
June 30,


2024


2023


2024


2023

Insurance Services








Agency-in-a-Box

$         32,259


$         33,787


$         62,159


$         63,990

Corporate Branches

9,412


1,566


16,662


2,485

Total Insurance Services

41,671


35,353


78,821


66,475

TWFGMGA

6,991


6,418


12,386


11,983

Total commission income

$         48,662


$         41,771


$         91,207


$         78,458










The following table presents the disaggregation of our fee income by major sources(in thousands):



     Three Months Ended
June 30,


     Six Months Ended
June 30,


2024


2023


2024


2023

Policy fees

$              933


$              521


$           1,446


$           1,076

Branch fees

1,220


843


2,351


1,310

License fees

444


660


959


1,535

TPA fees

92


184


165


315

Total fee income

$           2,689


$           2,208


$           4,921


$           4,236










The following table presents the disaggregation of our commission expense by offerings(in thousands):



     Three Months Ended
June 30,


     Six Months Ended
June 30,


2024


2023


2024


2023

Insurance Services








Agency-in-a-Box

$         25,529


$         26,744


$         47,557


$         50,576

Corporate Branches

1,256


189


2,118


360

Total Insurance Services

26,785


26,933


49,675


50,936

TWFGMGA

5,158


3,951


8,693


7,426

Other

19


12


37


30

Total commission expense

$         31,962


$         30,896


$         58,405


$         58,392









 

Condensed Consolidated Statements of Financial Position (Unaudited)

(Amounts in thousands, except unit data)



June 30, 2024


December 31, 2023

Assets




Current assets




Cash and cash equivalents

$             25,755


$             39,297

Restricted cash

10,758


7,171

Commissions receivable, net

22,401


19,082

Accounts receivable

9,608


5,982

Deferred offering costs

5,917


2,025

Other current assets, net

911


1,551

Total current assets

75,350


75,108

Non-current assets




Intangible assets - net

77,794


36,436

Property and equipment - net

514


597

Lease right-of-use assets - net

2,760


2,459

Other non-current assets

801


837

Total assets

$            157,219


$            115,437





Liabilities and Members' Equity




Current liabilities




Commissions payable

$             15,301


$             12,487

Carrier liabilities

15,190


8,731

Operating lease liabilities, current

1,031


882

Short-term bank debt

2,030


2,437

Deferred acquisition payable, current

583


5,369

Other current liabilities

6,913


5,006

Total current liabilities

41,048


34,912

Non-current liabilities




Operating lease liabilities, net of current portion

1,639


1,518

Long-term bank debt

45,970


46,919

Deferred acquisition payable, non-current

1,050


1,037

Total liabilities

89,707


84,386

Commitment and contingencies (see Note 12)




Members' equity




Class A common units (27,689 units and 0 units issued and outstanding at June 30, 2024 and
December 31, 2023, respectively)

28


Class B common units (110,750 units issued and outstanding at both June 30, 2024 and
December 31, 2023)

111


111

Class C common units (521,000 units issued and outstanding at both June 30, 2024 and
December 31, 2023)

521


521

Additional paid-in capital

55,132


25,114

Retained earnings

11,253


4,805

Accumulated other comprehensive income

467


500

Total members' equity

67,512


31,051

Total liabilities and members' equity

$            157,219


$            115,437





 

Non-GAAP Financial Measures

 

A reconciliation of Organic Revenue and Organic Revenue Growth Rate to Total Revenue and Total Revenue Growth Rate, the most directly comparable GAAP measures, is as follows:



Three Months Ended
June 30,


Six Months Ended
June 30,


2024


2023


2024


2023

Total revenues

$          53,266


$          45,376


$          99,579


$          85,232

Acquisition adjustments(1)

(1,217)


(1,064)


(2,684)


(1,495)

Contingent income

(1,258)


(1,003)


(2,334)


(1,988)

Fee income

(2,689)


(2,208)


(4,921)


(4,236)

Other income

(657)


(394)


(1,117)


(550)

Organic Revenue

$          47,445


$          40,707


$          88,523


$          76,963

Organic Revenue Growth(2)

$            5,746


$            3,233


$          10,386


$            7,938

Total Revenue Growth Rate(3)

17.4 %


8.7 %


16.8 %


12.0 %

Organic Revenue Growth Rate(2)

13.8 %


8.6 %


13.3 %


11.5 %











(1)

Represents revenues generated from the acquired businesses during the first 12 months following an acquisition.

(2)

Organic Revenue for the three months ended June 30, 2023 and 2022, and for the six months ended June 30, 2023 and 2022, used to calculate Organic Revenue Growth for the three months ended June 30, 2024 and 2023, and for the for the six months ended June 30, 2024 and 2023, was $41.7 million, $37.5 million, $78.1 million and $69.0 million, respectively, which is adjusted to reflect revenues from acquired businesses with over $0.5 million in annualized revenue that reached the twelve-month owned mark during the year ended December 31, 2023 and 2022, respectively. Organic Revenue Growth represents the period-to-period change in Organic Revenue divided by the total adjusted Organic Revenue in the prior period.

(3)

Represents the period-to-period change in total revenues divided by the total revenues in the prior period.

 

A reconciliation of Adjusted Net Income and Adjusted Net Income Margin to Net income and Net income margin, the most directly comparable GAAP measures, is as follows:


Revised Calculation Methodology Applied to Current Period


Three Months Ended
June 30,


Six Months Ended
June 30,


2024


2023


2024


2023

Total revenues

$          53,266


$          45,376


$          99,579


$          85,232

Net income

$            6,918


$            7,067


$          13,547


$          13,273

Acquisition-related expenses


168



168

Restructuring and related expenses


10



17

Discontinued operation income




(834)

Other non-recurring items(1)



(1,477)


Amortization expense

2,904


1,070


5,851


2,065

Adjusted Net Income

$            9,822


$            8,315


$          17,921


$          14,689

Net Income Margin

13.0 %


15.6 %


13.6 %


15.6 %

Adjusted Net Income Margin

18.4 %


18.3 %


18.0 %


17.2 %









 

Legacy Calculation Methodology Applied to Current Period


Three Months Ended
June 30,


Six Months Ended
June 30,


2024


2023


2024


2023

Total revenues

$          53,266


$          45,376


$          99,579


$          85,232

Net income

$            6,918


$            7,067


$          13,547


$          13,273

Acquisition-related expenses


168



168

Restructuring and related expenses


10



17

Discontinued operation income




(834)

Other non-recurring items(1)



(1,477)


Adjusted Net Income

$            6,918


$            7,245


$          12,070


$          12,624

Net Income Margin

13.0 %


15.6 %


13.6 %


15.6 %

Adjusted Net Income Margin

13.0 %


16.0 %


12.1 %


14.8 %











(1)

Represents a one-time adjustment reducing commission expense, which resulted from the branch conversions. In January 2024, nine of our Branches converted to Corporate Branches. Upon conversion, agents of the newly converted Corporate Branches became employees and received salaries, employee benefits, and bonuses for services rendered instead of commissions. As a result, we released a portion of the unpaid commissions related to the converted branches that we no longer are required to settle.

 

A reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to Net income and Net income margin, the most directly comparable GAAP measures, is as follows:



Three Months Ended
June 30,


Six Months Ended
June 30,


2024


2023


2024


2023

Total revenues

$          53,266


$          45,376


$          99,579


$          85,232

Net income

$            6,918


$            7,067


$          13,547


$          13,273

Interest expense

872


173


1,714


258

Depreciation and amortization

2,968


1,134


5,981


2,195

EBITDA

10,758


8,374


21,242


15,726

Acquisition-related expenses


168



168

Restructuring and related expenses


10



17

Discontinued operation income




(834)

Other non-recurring items(1)



(1,477)


Adjusted EBITDA

$          10,758


$            8,552


$          19,765


$          15,077

Net Income Margin

13.0 %


15.6 %


13.6 %


15.6 %

Adjusted EBITDA Margin

20.2 %


18.8 %


19.8 %


17.7 %











(1)

Represents a one-time adjustment reducing commission expense, which resulted from the branch conversions. In January 2024, nine of our Branches converted to Corporate Branches. Upon conversion, agents of the newly converted Corporate Branches became employees and received salaries, employee benefits, and bonuses for services rendered instead of commissions. As a result, we released a portion of the unpaid commissions related to the converted branches that we no longer are required to settle.

 

A reconciliation of Adjusted Free Cash Flow to Cash Flow from Operating Activities, the most directly comparable GAAP measure, is as follows:



Three Months Ended
June 30,


Six Months Ended
June 30,


2024


2023


2024


2023

Cash Flow from Operating Activities

$               7,400


$               6,918


$             17,154


$             16,709

Purchase of property and equipment

(39)


(30)


(47)


(54)

Tax distribution to members(1)

(3,685)


(5,186)


(6,104)


(6,927)

Acquisition-related expenses


168



168

Net cash flow provided by operating activities from
discontinued operation




(839)

Adjusted Free Cash Flow

$               3,676


$               1,870


$             11,003


$               9,057











(1)

Tax distributions to members represents the amount distributed to the members of TWFG Holding Company, LLC in respect of their income tax liability related to the net income of TWFG Holding Company, LLC allocated to its members.

 

Key Performance Indicators

 

The following presents the disaggregation of Total Written Premium by offerings, business mix and line of business (in thousands):



Three Months Ended June 30,


Six Months Ended June 30,


2024


2023


2024


2023


Amount


% of Total


Amount


% of Total


Amount


% of Total


Amount


% of Total

Offerings:
















Insurance Services
















Agency-in-a-Box

$   256,203


65 %


$   263,436


80 %


$   475,139


66 %


$   476,818


80 %

Corporate Branches

78,169


20


12,482


4


136,053


19


20,870


4

Total Insurance Services

334,372


85


275,918


84


611,192


85


497,688


84

TWFGMGA

59,263


15


51,258


16


103,709


15


94,872


16

Total written premium

$   393,635


100 %


$   327,176


100 %


$   714,901


100 %


$   592,560


100 %

















Business Mix:
















Insurance Services
















Renewal business

$   260,121


66 %


$   214,964


66 %


$   474,598


66 %


$   381,515


64 %

New business

74,251


19


60,954


19


136,594


19


116,173


20

Total Insurance Services

334,372


85


275,918


85


611,192


85


497,688


84

TWFGMGA
















Renewal business

43,825


11


43,672


13


79,289


11


79,734


13

New business

15,438


4


7,586


2


24,420


4


15,138


3

Total TWFG MGA

59,263


15


51,258


15


103,709


15


94,872


16

Total written premium

$   393,635


100 %


$   327,176


100 %


$   714,901


100 %


$   592,560


100 %

















Written Premium Retention:
















Insurance Services



94 %




96 %




95 %




95 %

TWFG MGA



85




87




84




90

Consolidated



93




94




93




94

















Line of Business:
















Personal lines

$   322,349


82 %


$   262,695


80 %


$   577,213


81 %


$   469,265


79 %

Commercial lines

71,286


18


64,481


20


137,688


19


123,295


21

Total written premium

$   393,635


100 %


$   327,176


100 %


$   714,901


100 %


$   592,560


100 %

















 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/twfg-announces-second-quarter-2024-results-302232130.html

SOURCE TWFG, Inc.