Reliance Global Group Closes Sale of Fortman Insurance for $5 Million in Cash

Rhea-AI Summary

Reliance Global Group (Nasdaq: RELI) has completed the sale of its subsidiary Fortman Insurance Services for $5 million in cash. The transaction represents a profitable exit, as the sale price exceeds Reliance's initial 2019 purchase price for Fortman.

The strategic divestment of this non-core asset aims to strengthen the company's balance sheet and support its long-term growth initiatives. Additionally, Reliance reaffirmed its plans to complete the acquisition of Spetner Associates, which is expected to enhance the company's OneFirm strategy and operational scale.

Positive

• Sale of Fortman Insurance for $5 million in cash strengthens balance sheet
• Sale price exceeds initial 2019 purchase price, demonstrating value creation
• Strategic alignment with company's transformation into a tech-enabled insurance organization
• Upcoming Spetner acquisition expected to provide consistent growth and healthy cash flow

Negative

• Reduction in operational scale through divestment of revenue-generating subsidiary

Insights

Financial Analyst

Reliance Global strengthens balance sheet with $5M sale of non-core asset, improving financial flexibility while pursuing strategic growth initiatives.

The $5 million cash sale of Fortman Insurance represents a strategic win for Reliance Global Group, as the company successfully divested a non-core asset at a premium over its 2019 acquisition price. This transaction materially strengthens RELI's balance sheet, providing enhanced financial flexibility at a critical juncture in the company's development. The cash infusion comes at an opportune time as the company advances its pending acquisition of Spetner Associates.

The transaction demonstrates management's disciplined capital allocation approach and portfolio optimization strategy. By monetizing Fortman after improving its operational efficiency and financial stability, RELI has effectively realized value from its investment while freeing up capital for higher-priority strategic initiatives. This exemplifies a well-executed buy-improve-sell model that can drive shareholder returns when properly executed.

The company's OneFirm strategy appears focused on creating an integrated, tech-enabled insurance platform with improved operational scale. The pending Spetner acquisition, which management reaffirmed is expected to close, would complement this strategy by adding a growth-oriented business with healthy cash flows. This systematic approach to building a streamlined insurance organization with stronger technological capabilities could potentially improve margins and competitive positioning if successfully implemented.

The $5 million cash influx significantly bolsters RELI's financial position, providing a cushion for both organic growth initiatives and potential additional strategic acquisitions. For a company trading on the Nasdaq, this balance sheet strengthening represents a meaningful step toward building the financial foundation necessary for sustainable long-term growth.

Proceeds to further solidify balance sheet as Company advances long-term growth strategy

LAKEWOOD, NJ, July 08, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI) (“Reliance,” “we,” “us,” “our” or the “Company”) today announced it has completed an asset sale of Fortman Insurance Services (“Fortman”), a wholly owned subsidiary, for $5 million in cash. The transaction marks the successful execution of a strategic initiative to monetize a non-core asset and further strengthen the Company’s financial position.

Following its acquisition by Reliance, Fortman continued to enhance its operational efficiency, financial stability, and market competitiveness. The finalized sale, at a value above the initial purchase price Reliance purchased Fortman for in 2019, reflects Reliance’s commitment to prudent capital deployment and its continued focus on maximizing shareholder returns.

The Company also reaffirmed its expectation that the acquisition of Spetner Associates, Inc. (“Spetner”) will be completed. Spetner has built significant momentum in recent years, with consistent growth and healthy cash flow contributions across its operations. The transaction is expected to complement Reliance’s existing business model and align with its OneFirm strategy, creating opportunities to expand operational scale and drive long-term value.

“Closing the Fortman transaction marks a key milestone in our strategic roadmap and reflects the disciplined approach we take to identifying, enhancing, and monetizing value within our portfolio,” commented Ezra Beyman, CEO of Reliance. “From the outset, Fortman was a compelling acquisition, and through targeted operational improvements, we positioned the business for long-term success. Selling the asset at a premium demonstrates the strength of our execution and adds meaningful capital to our balance sheet, increasing our flexibility to advance strategic priorities. This transaction reinforces our commitment to executing initiatives that strengthen our platform, support sustainable growth, and accelerate our transformation into a streamlined, tech-enabled insurance organization. I remain confident in our ability to deliver lasting value to our shareholders.”

About Reliance Global Group, Inc.

Reliance Global Group, Inc. (NASDAQ: RELI) 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 Private Securities Litigation Reform Act of 1995. You can identify these statements by terminology such as “may,” “should,” “could,” “would,” “will,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “continue,” “potential,” and similar expressions. Forward-looking statements in this press release include, without limitation, statements regarding:

• Our ability to successfully deploy the $5 million in proceeds from the Fortman sale to support our strategic and financial objectives;
• Our expectation that the acquisition of Spetner Associates, Inc. will be completed on commercially reasonable terms, including obtaining any necessary regulatory or shareholder approvals;
• The anticipated benefits of the Spetner acquisition to our business model, operational scale, and long-term value creation strategy;
• Our continued execution of initiatives to streamline operations, enhance financial flexibility, and pursue accretive growth opportunities in the InsurTech and insurance agency sectors; and
• Other statements of our plans, intentions, and expectations regarding future financial performance, operations, and strategic initiatives.

These forward-looking statements are based on numerous assumptions, including that the Spetner acquisition will proceed as expected; that projected revenue and EBITDA contributions from Spetner are achievable; that integration risks can be effectively managed; and that there will be no material adverse developments in market, economic, or regulatory conditions impacting our business. There can be no assurance that these assumptions will prove correct.

Actual results may differ materially from those expressed or implied by these forward-looking statements due to various risks and uncertainties, including but not limited to: delays or failure to complete the Spetner acquisition; unanticipated integration challenges or liabilities associated with the acquisition; our inability to achieve expected financial results or operational synergies; increased competition in the InsurTech and agency brokerage industries; adverse regulatory or market developments; and other risks described in the “Risk Factors” section of our Registration Statement on Form S-1 and our periodic reports filed with the Securities and Exchange Commission.

You should carefully review our Annual Report on Form 10-K for the year ended December 31, 2024, as amended, and our other SEC filings for a more complete discussion of these and other risks. Except as required by law, Reliance Global Group, Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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

FAQ

How much did Reliance Global Group (RELI) sell Fortman Insurance for?

Reliance Global Group sold Fortman Insurance Services for $5 million in cash.

Why did Reliance Global Group sell Fortman Insurance?

The sale was part of a strategic initiative to monetize non-core assets, strengthen the company's financial position, and support its transformation into a tech-enabled insurance organization.

What will Reliance Global Group do with the proceeds from the Fortman sale?

The proceeds will be used to strengthen the company's balance sheet and provide financial flexibility to advance strategic priorities.

What is Reliance Global Group's next strategic move after selling Fortman?

The company reaffirmed its plans to complete the acquisition of Spetner Associates, which is expected to complement their existing business model and OneFirm strategy.

Was the Fortman Insurance sale profitable for Reliance Global Group?

Yes, Reliance Global Group sold Fortman for a premium above their initial 2019 purchase price, demonstrating successful value creation.