Reliance Global Group Announces Formation of New Real Estate Division Aimed at Expanding Operations

Rhea-AI Summary

Reliance Global Group (Nasdaq: RELI) has announced the formation of a new Real Estate division. This new division aims to expand the company’s operations in the multi-family and commercial real estate sectors.

Abe Miller, a successful real estate investor and M&A executive, joins Reliance to oversee the division without a fixed salary, being compensated entirely on a success-based model. The division will complement the company's existing focus on acquiring profitable insurance agencies.

CEO Ezra Beyman emphasized the potential of the new division to enhance shareholder value and leverage non-dilutive financing sources. This initiative aligns with Reliance's strategy of accretive, cash flow-positive acquisitions and aims to diversify the company's asset portfolio.

Positive

• Formation of a new Real Estate division to expand operations in multi-family and commercial properties.
• Abe Miller joining Reliance to oversee the division, compensated on a success-based model, indicating a performance-driven approach.
• The initiative aligns with the company's strategy of accretive, cash flow-positive acquisitions, enhancing shareholder value.
• Potential to leverage non-dilutive financing sources, supported by intrinsic asset value and operational cash flows.
• Diversification of the company's portfolio into multiple business lines and asset categories.

Negative

• None.

Financial Analyst

Reliance Global Group's creation of a new real estate division signifies a strategic diversification beyond its core insurance brokerage business. This move provides potential benefits such as expanded revenue streams and risk diversification. By leveraging CEO Ezra Beyman's extensive real estate background and Abe Miller’s proven expertise, Reliance aims to enhance shareholder value and drive sustainable profitability.

Abe Miller's compensation structure, which is entirely success-based, aligns his interests with shareholders, motivating performance-driven outcomes. However, investors should consider the inherent risks involved in entering a new market sector, such as the initial costs of establishing the division and potential market volatility.

Given the existing strong performance in acquiring cash flow positive insurance agencies, the success of this initiative will depend on Miller's ability to replicate past successes in a new, potentially more complex, operational environment. The upcoming launch, contingent on the Spetner acquisition, indicates the company's current reliance on successful deal closures to fuel strategic initiatives.

Market Research Analyst

Diversification into real estate could significantly impact Reliance’s market position. The company aims to leverage its existing operational cash flows and non-dilutive financing options to support this growth. This approach is prudent as it minimizes shareholder dilution while potentially increasing asset value.

However, real estate markets are subject to cyclical fluctuations influenced by economic conditions, interest rates and regulatory changes. The success of this division will hinge on management's ability to navigate these dynamics effectively. Investors should monitor how the company manages these external factors and integrates real estate operations with its existing portfolio.

The strategic vision of expanding into multi-family and commercial properties, which typically offer stable income streams and appreciation potential, aligns with Reliance’s objective of sustainable profitability. Diversification into real estate assets might also provide a hedge against insurance industry-specific risks, further stabilizing overall company performance.

Abe Miller, Successful Real Estate Investor and M&A Executive, Joins Reliance to Oversee New Division and Advise on Future Real Estate Transactions

LAKEWOOD, N.J., July 01, 2024 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI; RELIW) (“Reliance”, “we” or the “Company”) today announced the formation of a new Real Estate division drawing on Ezra Beyman's extensive background in building the third-largest mortgage brokerage in the nation and accumulating a multi-billion-dollar portfolio of multi-family properties. Furthermore, Abe Miller, successful real estate investor and M&A executive, has agreed to join Reliance to oversee this new division and advise on future real estate transactions. Mr. Miller will receive no fixed salary for his services; rather, he will be compensated entirely on a success-based model. The new division is intended to supplement, and not replace, the Company’s focus on acquiring accretive and cash flow positive insurance agencies.

Ezra Beyman, CEO of Reliance, commented, “We are excited to launch a significant initiative—a new division within Reliance dedicated to the acquisition and development of multi-family and commercial real estate properties. We are also pleased to announce that Abe Miller will be joining the Company to head this division and provide strategic guidance on our future real estate endeavors. Abe's remarkable track record, including his successful creation of a $3 billion real estate portfolio through strategic acquisitions, not only showcases his ability to enhance asset value but also his skill in navigating complex market dynamics to generate substantial investment returns. Having previously worked with Abe, I have firsthand experience of the immense value his insights contribute. We look forward to him leading this latest endeavor as we continue to drive Reliance forward as a leading, technology-focused firm committed to sustainable profitability and increasing shareholder value. With Abe’s extensive experience and strategic visions, we are confident this initiative will accelerate our progress toward achieving our objectives.”

“We anticipate that the new real estate division, set to launch following the closing of the Spetner acquisition, will align perfectly with our ongoing strategy focused on accretive and cash flow positive acquisitions—a realm where we have a proven track record of successful integration, particularly in the insurance brokerage sector. Additionally, we expect that this division will broaden our Company's portfolio by diversifying into multiple business lines and asset categories. Through this expansion into real estate, Reliance will be positioned to leverage non-dilutive financing sources, supported by both the intrinsic value of the assets and our operational cash flows. We are confident that this strategy will not only contribute significantly to our growth but also greatly enhance shareholder value.”

About Reliance Global Group, Inc.

Reliance Global Group, Inc. (NASDAQ: RELI; RELIW) 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 an entire suite of business development tools, enabling them to effectively compete with large-scale 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. In addition, the Company operates its own portfolio of select retail “brick and mortar” insurance agencies which are leaders and pioneers in their respective regions throughout the United States, offering a wide variety of insurance products. Further information about the Company can be found at https://www.relianceglobalgroup.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions and include statements such as the Company having built a best-in-class InsurTech platform, making RELI Exchange an even more compelling value proposition and further accelerating growth of the platform, rolling out several other services in the near future to RELI Exchange agency partners, building RELI Exchange into the largest agency partner network in the U.S., the Company moving in the right direction and the Company’s highly scalable business model driving significant shareholder value. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere and risk as and uncertainties related to: the Company’s ability to generate the revenue anticipated and the ability to build the RELI Exchange into the largest agency partner network in the U.S., and the other factors described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, the Company’s Quarterly Reports on Form 10-Q, the Company’s recent Current Reports on Form 8-K and subsequent filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Contact:

Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: RELI@crescendo-ir.com

FAQ

What new division did Reliance Global Group announce on July 1, 2024?

Reliance Global Group announced the formation of a new Real Estate division aimed at expanding operations in multi-family and commercial real estate sectors.

Who will oversee the new Real Estate division at Reliance Global Group?

Abe Miller, a successful real estate investor and M&A executive, will oversee the new Real Estate division at Reliance Global Group.

How will Abe Miller be compensated for overseeing Reliance Global Group's new Real Estate division?

Abe Miller will be compensated entirely on a success-based model without a fixed salary.

What is the strategic aim of Reliance Global Group's new Real Estate division?

The strategic aim is to enhance shareholder value and diversify the company's portfolio into multi-family and commercial real estate properties.

How does the new Real Estate division fit into Reliance Global Group's overall strategy?

The new division complements Reliance's focus on accretive, cash flow-positive acquisitions and aims to diversify the company’s asset portfolio.