LAKEWOOD, N.J., May 13, 2021 -- 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 5MnuteInsure.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."
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.
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.
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