1. Reliance plans to sell non-core subsidiaries U.S. Benefits Alliance and EBS. 2. The sale aims to strengthen the balance sheet and focus on growth. 3. 50% of proceeds will reduce debt; remaining for business development. 4. Investment emphasizes growth in RELI Exchange and 5minuteinsure.com platforms. 5. Transformation towards a technology-driven insurance organization is underway.
FAQ
Why Bullish?
Selling non-core assets can improve focus and financial health, similar to past successful asset divestitures boosting stock value.
How important is it?
The article outlines strategic moves that could significantly impact RELI’s operational focus and financial position.
Why Short Term?
The sale is expected to conclude within 30 days, providing immediate financial improvements.
Reliance Global Group (NASDAQ: RELI) Announces Intent to Sell Non-Core Subsidiaries
LAKEWOOD, NJ, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (NASDAQ: RELI) has officially announced its entry into a non-binding letter of intent to sell its subsidiaries, U.S. Benefits Alliance, LLC and Employee Benefits Solutions, LLC (collectively referred to as “EBS”). This strategic move is aimed at monetizing non-core assets and is expected to close within the next 30 days, pending the execution of a definitive purchase agreement and customary closing conditions.
Strategic Implications of the Transaction
The planned sale of EBS is part of Reliance's broader strategy to strengthen its financial position by divesting non-essential assets. Chairman and CEO Ezra Beyman highlighted the significance of this transaction in transitioning Reliance into a technology-driven wholesale insurance company. “This transaction will allow us to monetize a non-core asset while sharpening our focus on segments that offer the greatest long-term opportunities for scale, profitability, and differentiation,” said Beyman.
Financial Strategy and Proceeds Allocation
Reliance plans to allocate 50% of the net proceeds from this sale to reduce its existing debt, thus enhancing its capital structure and financial flexibility. The remaining proceeds will be reinvested into business development initiatives, particularly focusing on:
- RELI Exchange - an innovative platform attracting independent agents.
- 5minuteinsure.com - a consumer-focused site leveraging AI for quick insurance comparisons.
By funneling resources into these key projects, Reliance aims to enhance its competitive edge within the InsurTech sector.
About Reliance Global Group, Inc.
Reliance Global Group, Inc. (NASDAQ: RELI) is a pioneer in the InsurTech landscape, utilizing artificial intelligence (AI) and cloud technologies to streamline operations within the insurance industry. Its B2B platform, RELI Exchange, offers vital tools for independent agencies to remain competitive, while 5minuteinsure.com provides consumers with rapid online insurance quotes for auto, home, and life insurance needs.
Forward-Looking Statements
This announcement includes “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Such statements typically involve risks and uncertainties, including:
- The ability to execute a definitive agreement regarding the EBS sale.
- Realization of anticipated benefits from the divestiture.
- The capacity to effectively deploy the proceeds from the sale.
- Market conditions and competitive pressures affecting future operations.
Reliance Global Group, Inc. encourages stakeholders to review its Annual Report and other SEC filings for a detailed discussion of these factors.
Conclusion
The transaction concerning EBS represents a pivotal moment for Reliance (NASDAQ: RELI) as it continues to refine its strategic focus. By prioritizing its technology-driven initiatives, the company aims to bolster long-term shareholder value and adapt to the evolving landscape of the insurance industry.