Reliance Global Group Reports First Quarter 2024 Results and Provides Business Update
Reliance Global Group (Nasdaq: RELI) reported financial results for Q1 2024, revealing significant development. The company achieved consistent organic growth, driven by its 'OneFirm' approach integrating nine agencies across the U.S. Reliance announced a definitive agreement to acquire Spetner Associates, expected to double annual revenue to $28 million and boost EBITDA. Spetner's advanced technologies and voluntary benefits programs align with Reliance's strategy to expand personal insurance lines via the RELI Exchange platform. The acquisition aims to enhance shareholder value and position Reliance as a leading technology-enabled enterprise within the $463 billion global insurance market. A conference call to discuss these updates is scheduled for May 20, 2024, at 4:30 PM ET.
- Definitive agreement to acquire Spetner Associates expected to more than double annual revenue to $28 million.
- Expected significant boost to EBITDA from Spetner acquisition.
- Consistent organic growth, highlighting the success of the 'OneFirm' strategy.
- Spetner's advanced technologies and voluntary benefits programs offer significant synergies with Reliance's current operations.
- Acquisition aligns with Reliance's goal to become a profitable, multi-billion-dollar enterprise.
- Enhanced market reach and strengthened insurance distribution through the RELI Exchange platform.
- No specific financial figures provided for Q1 2024 performance.
- Potential integration risks associated with the acquisition of Spetner Associates.
- No detailed information on existing revenue or EBITDA performance without the acquisition impact.
- Reliance's future financial performance heavily dependent on successful integration of Spetner Associates.
Insights
Reliance Global Group's acquisition of Spetner Associates represents a strong growth opportunity. The projected doubling of revenues to approximately
The integration of Spetner, known for its advanced technologies and unique voluntary benefits programs, offers substantial synergistic potential. Synergies, in this context, refer to the benefits that Reliance can achieve by integrating Spetner's operations, such as cost savings, increased revenue streams and enhanced market reach.
In the short term, this acquisition could lead to increased revenue and improved margins, depending on how seamlessly the integration process progresses. However, investors should also consider potential integration risks, such as cultural mismatches or operational disruptions. Long-term, leveraging Spetner’s technologies and market reach can help Reliance to establish a more formidable presence in the insurance industry, especially within the
Overall, this acquisition aligns well with Reliance’s strategy and growth objectives, though careful execution will be key to realizing the anticipated benefits.
The strategic move to acquire Spetner Associates also offers significant market implications. Spetner's strength in voluntary benefits programs provides Reliance with an expanded portfolio that could attract new customer segments. Voluntary benefits are additional insurance products offered to employees, often at a reduced group rate, which can be a lucrative market due to its recurring nature and potential for high margins.
This acquisition enhances Reliance's competitive positioning, particularly through Spetner's established market reach and innovative solutions. By integrating these assets, Reliance can diversify its offerings and cross-sell to an expanded customer base, potentially increasing its market share.
Moreover, the ‘OneFirm’ strategy, which unifies Reliance's nine agencies, is expected to create a more efficient and cohesive operational framework. This operational synergy can lead to improved service delivery and customer satisfaction, further strengthening Reliance’s market position.
Nonetheless, the success of this acquisition hinges on effective integration and the ability to leverage Spetner’s assets to drive growth. Investors should watch for updates on the integration process and any financial performance metrics that indicate whether the anticipated synergies are being realized.
From a technology perspective, the acquisition of Spetner Associates is particularly notable. Spetner's advanced technologies could enhance Reliance’s existing operations, especially in terms of tech-enabled insurance solutions. These technologies can streamline processes, reduce operational costs and improve customer engagement through more efficient and effective service offerings.
The integration of these technologies into Reliance’s platform, particularly the RELI Exchange, can significantly bolster its capabilities. The RELI Exchange platform already serves as a hub for personal insurance lines and Spetner's tech could enhance its scalability and functionality, making it more attractive to both customers and insurance partners.
In the long term, leveraging advanced technology can provide Reliance with a competitive edge through improved data analytics, better risk management and more personalized insurance products. This technological integration is important for driving sustainable growth and profitability in an increasingly digital and data-driven industry.
However, the key challenge will be the seamless integration of Spetner’s tech solutions with Reliance’s existing systems. Any technological hiccups during this process could affect service delivery and customer satisfaction.
Definitive agreement to acquire Spetner Associates marks significant milestone in Company’s evolution
Expected to more than double current revenue to approximately
Company to Host Conference Call Today at 4:30 PM Eastern Time
LAKEWOOD, N.J., May 20, 2024 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI; RELIW) (“Reliance”, “we” or the “Company”) today provided a business update and reported financial results for the three months ended March 31, 2024.
Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group, commented, "We achieved another solid quarter with continued organic growth. During the first quarter of 2024, we focused heavily on our new ‘OneFirm’ approach, which brings together our nine owned and operated agencies across the United States to function as one cohesive unit. As these initiatives take hold, we anticipate significantly enhanced top and bottom-line performance.”
“We are also excited about our recently announced definitive agreement to acquire Spetner Associates, which we believe will be a transformational event for our Company. We expect that the integration of Spetner will more than double our annual revenues to roughly
Moshe Fishman, Director of Insurtech and Operation of Reliance Global Group, added, "We are very pleased with how the RELI Exchange OneFirm vision is materializing, further strengthening our insurance distribution and company as a whole. The recently announced acquisition of Spetner Associates including the BenManage voluntary benefit insurance business providing insurance to over 75,000 employee lives, is the ideal acquisition target that we look for at Reliance. Some of the key points that we are very excited about are a strong management team, excellent revenue with a high EBIDTA to revenue ratio, residual commission income, and highly synergistic with our current core businesses.”
Mr. Beyman concluded, “Overall, our goal is to develop a profitable, multi-billion-dollar enterprise that drives meaningful shareholder returns. Toward this end, we believe this acquisition will unlock significant opportunities that fit well with our 'OneFirm' go-to-market strategy. This strategic integration is not about simply increasing our market footprint within the
Conference Call
Reliance Global Group will host a conference call today at 4:30 PM Eastern Time to discuss the Company’s financial results for the quarter ended March 31, 2024, as well as the Company’s corporate progress and other developments.
The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 512517. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2381/50621 or on the investor relations section of the Company’s website, https://relianceglobalgroup.com/events-and-presentations/.
A webcast replay will be available on the investor relations section of the Company’s website at https://relianceglobalgroup.com/events-and-presentations/ through May 20, 2025. A telephone replay of the call will be available approximately one hour following the call, through June 4, 2024, and can be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 50621.
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 risks 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, as the same may be updated from time to time. 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 Current Reports on Form 8-K and other 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
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