TWFG (TWFG) Registration Filing summary

Company overview and business model

• Operates a high-growth, independent distribution platform for personal and commercial insurance in the U.S., with a flexible agency model and proprietary technology, serving over 2,400 agencies nationwide.

• Offers all lines of insurance, multiple contract options, M&A services, and support tools, with a focus on agent autonomy and entrepreneurial opportunity.

• Maintains relationships with over 300 insurance carriers and operates through Insurance Services (81% of 2023 revenue) and TWFG MGA (18% of 2023 revenue).

• Distribution platform includes over 400 Branches in 17 states and 2,000+ MGA Agencies in 41 states.

• Business model emphasizes organic growth, agent recruitment, and strategic acquisitions.

Financial performance and metrics

• 2023 revenue: $172.9 million, up 12.4% year-over-year; Q1 2024 revenue: $46.3 million, up 16.2% quarter-over-quarter.

• 2023 net income: $26.1 million; Adjusted Net Income: $25.5 million; Adjusted EBITDA: $31.3 million.

• Compound annual growth rate (CAGR) from 2019–2023: 19.5% for revenue, 19.4% for Total Written Premium.

• 2023 Total Written Premium: $1.25 billion; Q1 2024: $321.3 million.

• Adjusted EBITDA margin for 2023: 18.1%; Adjusted Free Cash Flow for 2023: $19.7 million.

Use of proceeds and capital allocation

• Net proceeds from the IPO will be used to acquire newly issued LLC Units, repay $41 million in outstanding debt, fund strategic acquisitions, and for general corporate purposes.

• No current agreements for acquisitions, but maintains a robust M&A pipeline and tracks approximately 36 potential targets.