Reliance Global Group Reports 15% Increase in Revenue for the First Quarter of 2021 and Provides Corporate Update
May 14 2021 - 9:00AM
via 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 first
quarter ended March 31, 2021.
Ezra Beyman, CEO of Reliance Global Group, commented, “We
continue to execute on our organic growth strategy as evidenced by
a 15% increase in revenue for the first quarter of 2021 over the
same period last year. I am also pleased to report that we
continue to increase the cash flow from our insurance
operations. We ended the quarter with over $10 million
of cash and restricted cash, which provides us a solid balance
sheet to execute on our near and long-term growth objectives.
At the same time, we are accelerating our M&A strategy by
targeting additional growing, cash flow positive agencies we can
acquire at attractive multiples, as illustrated by our recently
announced acquisition of J.P. Kush and Associates, Inc., a premier
healthcare insurance agency with over one hundred independent
agents across 10 states. Importantly, this acquisition is
consistent with our strategy of targeting companies that we believe
will expand our national footprint, add additional carrier
relationships, provide opportunities for meaningful operating
synergies and are expected to be accretive to earnings. We are
currently evaluating additional acquisition opportunities that we
believe may be highly synergistic and in line with our core
strategy.”
“We are also making progress towards rolling out our
new 5minuteinsure.com platform, which we continue to
believe will be transformative for our Company. After a successful
initial Beta program, 5Minuteinsure.com gathered valuable
information on the online insurance consumer’s ideal experience.
Through extensive research, we have determined the key factors
required to most efficiently convert a prospect into a client,
using the online interactive platform. Consumers are demanding
online tools to compare live quotes for home and auto insurance
between multiple carriers, which at the same time, enable the
consumer to instantly purchase the coverage they desire, on a
single platform. This is a major differentiating factor from lead
generator comparison sites that compare non-binding quotes and sell
your information as a lead. We believe Reliance is in a strong
position to fill the personal insurance needs of the online
consumer through 5MinuteInsure.com. Our R&D team has been
working aggressively at fine tuning the user experience to align
with the needs and growing demand of consumers.”
“As previously discussed, this state-of-the-art platform is
designed to utilize artificial intelligence (AI) to 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. The list of carriers offered on the
platform continues to grow rapidly. We now have 11 carriers on the
platform and have licenses in 46 states. These carriers have
been impressed by Reliance Global Group Inc.’s investment in the
user experience by using AI to bring accurate and adequately
underwritten quotes to clients faster. Our initial plan is to
focus on home and auto insurance, with plans to expand to
additional types of insurance. Our recent acquisition of J.P.
Kush and Associates provides us additional capabilities and
expertise in the health insurance marketplace, which we plan to
leverage longer term through 5minuteinsure.com. Overall, we
are extremely encouraged by the outlook for the business and
believe we are poised to disrupt the insurtech industry through our
multi-channel approach utilizing both our online platform and
offline agents.”
Financial Results
The Company achieved revenues of $2,296,328 for the three months
ended March 31, 2021, as compared to $2,004,314 for the three
months ended March 31, 2020. The Company had total commission
expense of $529,472 for the three months ended March 31, 2021
compared to $425,585 for the three months ended March 31, 2020. The
Company had total general and administrative expenses of $1,004,401
for the three months ended March 31, 2021, as compared to
$1,121,120 for the three months ended March 31, 2020. Loss from
operations for the three months ending March 31, 2021 was $512,257,
compared to $807,518 for the three months ended March 31, 2020. Net
loss for the three months ended March 31, 2021 was $641,328, or
($0.09) per share, compared to $979,798, or ($0.34), the three
months ended March 31, 2020.
The complete financial results are available in the Company’s
Form 10-Q, 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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