Publicly traded Reliance Global Group Inc., based out of Lakewood, said Dec. 29 that it has finalized the sale of two of its subsidiaries, Employee Benefits Solutions and U.S and Benefits Alliance, what the company considers as two non-core agencies located in Cadillac, Mich.
The transaction is part of what Reliance calls “a balance sheet rationalization program,” intended to enhance the company’s ability to execute on new initiatives. Financial details were not disclosed.
Reliance is focusing on areas that it believes will produce better outcomes. Since acquiring U.S. Benefits Alliance and Employee Benefits Solutions in 2019, Reliance has selectively integrated portions of the businesses that aligned with its long-term, technology-forward strategy into its core RELI Exchange platform.
The transaction reflects the sale of only the remaining non-core components of those businesses, while the strategic elements previously integrated into Reliance’s core operations remain part of the company’s ongoing growth initiatives. The company will use 50% of the net proceeds to reduce debt and the balance will be reinvested in strategic business initiatives.
“Successfully completing this transaction is an important step in our overall strategy to focus capital and efforts toward the areas that the company has identified to potentially produce the best return on investment,” said Ezra Beyman, CEO of Reliance Global Group.
“While EBS has been a reliable asset, the company has identified opportunities in areas that it believes to potentially hold greater returns for shareholders. The result, which is a strengthening of our balance sheet, increases our investment capacity and ability to act on higher return opportunities that present themselves to the company.”
Reliance Global Group is an InsurTech pioneer, leveraging artificial intelligence (AI), and cloud-based technologies, to transform and improve efficiencies in the insurance agency/brokerage industry. The company’s business-to-business InsurTech platform, RELI Exchange, provides independent insurance agencies a suite of business development tools, enabling them to compete with larger national insurance agencies, whilst reducing back-office cost and burden.
The company’s business-to-consumer platform, 5minuteinsure.com, utilizes AI and data mining, to provide competitive online insurance quotes within minutes to everyday consumers seeking to purchase auto, home, and life insurance.
Joel Markovits, the company’s CFO added, “Combined with the debt reduction from this transaction, during 2025, we’ve been able to reduce our long-term debt by approximately $6 million, or more than 50%, and with the balance of the proceeds after debt reduction going toward reinvestment in our core platforms, RELI Exchange and 5minuteinsure.com, the company anticipates greater scaling and an enhancement in our competitive position.”
