5MinuteInsure.com, through its Reliance Insurtech division, now licensed to sell home and auto insurance in 43 states
LAKEWOOD, N.J., March 24, 2021 (GLOBE NEWSWIRE) -- 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 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."
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.
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/.
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.