5MinuteInsure.com, through its Reliance Insurtech division,
now licensed to sell home and auto insurance in 43 states
LAKEWOOD, N.J., March 24, 2021 (NewMediaWire) -- Reliance Global Group,
Inc. (Nasdaq:
RELI;
RELIW), which combines AI and cloud-based technologies
with the personalized experience of a traditional insurance agency,
today provided a business update and reported financial results for
the year-ended December 31, 2020.
Ezra Beyman, CEO of Reliance Global Group, commented, “2020 was
a transformative year for the Company. First, we continued
our acquisition strategy with the purchase and successful
integration of UIS Agency, LLC, a regional insurance agency serving
the commercial transportation industry. We now operate through
seven wholly owned agencies with plans to continue our M&A
strategy. Specifically, we are targeting growing and
profitable businesses that we can buy at attractive multiples and
with the ability to leverage both technology and economies of scale
to gain significant efficiencies.”
“In early 2020, we made a strategic investment in Nsure.com and,
more recently, we launched our own platform, 5minuteinsure.com.
The goal of 5minuteinsure.com is to tap into the growing number of
online shoppers. Utilizing artificial intelligence, in many cases
we can provide competitive insurance quotes online within five
minutes, with minimal data input by the customer. 5minuteinsure.com
combines the best of a traditional insurance agency, including the
option for direct agent interaction with the ability to bind a
policy either online or offline. I am especially pleased to report
that 5MinuteInsure.com, through our affiliated Reliance Insurtech
division, has received access to sales capabilities through
licenses granted to Reliance Insurtech to sell home and auto
insurance in 43 states, with near-term plans to add additional
states and carriers, as well as expand into additional types of
insurance. We believe this state-of-the-art Insurtech
platform has the potential to truly disrupt the industry.”
“We continue to enhance our infrastructure and expand our
internal resources. Heading into 2021, we are accelerating our
sales and marketing initiatives targeting large enterprises and
employee organizations. We have also hired senior insurance
industry executives to assist in both the rollout of our online
offering, as well as accelerate our acquisition strategy. In
addition, we significantly enhanced our balance sheet through the
recent public offering for gross proceeds of $12.4 million
concurrent with our listing on the Nasdaq. The combination of
these events provides us a much stronger platform to execute our
organic growth and acquisition strategies.”
“In 2020, revenue increased 63%, reflecting our continued growth
and execution of our business model. Importantly, we incurred
significant company expenses in 2020 related to preparations for
our Nasdaq listing, while at the same time, we invested heavily in
our infrastructure and operations to support our continued
expansion. As a result, we believe we have built a highly
scalable operation with the potential for high recurring revenue
and operating margins.”
Financial Results
The Company achieved revenues of $7,279,530 for the year ended
December 31, 2020, as compared to $4,450,785 for the year ended
December 31, 2019. The increase of $2,828,745 was primarily due to
the insurance agencies acquired in 2019 reporting revenue for the
full twelve months of 2020 compared to partial year of revenue for
the agencies acquired in 2019. The Company had total commission
expense of $1,569,752 for the year ending December 31, 2020
compared to $705,714 for the year ending December 31, 2019. The
Company had total general and administrative expenses of $4,205,797
for the year ending December 31, 2020, as compared to $3,638,896
for the year ending December 31, 2019 due to additional stock
option expense and professional fees, as well as additional public
and other reporting expenses as the Company prepared to list on
Nasdaq. Loss from operations for the year ending December 31, 2020
was $3,644,418, compared to $3,103,911 for 2019. Net loss for 2020
was $3,699,005, or ($0.88) per share, compared to $3,495,481, or
($1.21), in 2019.
The complete financial results are available in the Company’s
Form 10-K, which has been filed with the U.S. Securities &
Exchange Commission and is available on the
Company’s website.
About Reliance Global Group, Inc.
Reliance Global Group, Inc. (NASDAQ:
RELI, RELIW)
is combining advanced technologies, with the personalized
experience of a traditional insurance agency model. Reliance Global
Group’s growth strategy includes both an organic expansion,
including through 5minuteinsure.com, as well as acquiring well
managed, undervalued and cash flow positive insurance
agencies. Additional information about the Company is
available 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. 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. 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
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