Reliance Global Group to Divest Non-Core Units, Focus on InsurTech Growth

Reliance Global Group, Inc. has announced its plan to sell two non-core subsidiaries, U.S. Benefits Alliance, LLC and Employee Benefits Solutions, LLC, both based in Cadillac, Michigan. This strategic decision aligns with the company's goal to monetize non-core assets and concentrate resources on technology-driven growth initiatives. The sale is expected to close within 30 days, contingent upon a definitive purchase agreement and standard closing conditions. The proceeds from this transaction are earmarked to reduce the company's debt by 50%, which will strengthen its financial foundation and capital structure, enhancing its capability for future growth opportunities. The remaining funds will be invested in business development, particularly supporting the growth of Reliance's core platforms: RELI Exchange and 5minuteinsure.com. RELI Exchange functions as a business-to-business InsurTech platform providing a comprehensive suite of tools for independent insurance agencies to compete effectively with larger national firms while reducing operational costs and administrative burdens. The 5minuteinsure.com platform leverages artificial intelligence to offer rapid, personalized insurance comparisons to consumers, enhancing the buying experience for auto, home, and life insurance products. Reliance Global Group positions itself as a technology-first wholesale insurance organization, utilizing AI and cloud-based technologies to transform agency and brokerage efficiencies. The divestiture is viewed as a critical step in shifting focus toward segments with greater long-term potential for scale, profitability, and market differentiation. Insider activity data reflects six sales of Reliance stock over the past six months with no reported insider purchases, and a split in institutional holdings with some investors increasing and others decreasing their positions. The company's financial performance shows significant growth, with a 68.58% revenue increase in Q3 2025 compared to the prior year. Forward-looking statements in the announcement highlight expectations of strategic benefits from the transaction, planned use of proceeds, and market forecasts, while noting typical risks such as execution challenges, market conditions, and regulatory factors. Overall, the sale of these subsidiaries is a strategic maneuver to reinforce Reliance's commitment to innovation in the InsurTech space and to secure financial stability for ongoing development efforts.