On track to commence commercial launch of 5MinuteInsure.com this summer;
increases insurance carriers on the platform to 16
LAKEWOOD, N.J., Aug. 17, 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 second quarter ended June 30, 2021.
Ezra Beyman, CEO of Reliance Global Group, commented, “I am pleased to report that our revenue for the second quarter of 2021 increased by approximately 33.4% to $2.2 million versus $1.6 million for the same period last year. Our solid year-over-year growth reflects the continued execution of our insurance agencies. These agencies continue to generate positive cash flow on a standalone basis and serve as further validation of our strategy to acquire regional agencies at attractive multiples in order to rapidly expand our national footprint as well as the scope of our offering. Each of these agencies provide a long term, highly predictable and profitable revenue stream based on the expected life of the insurance policies. We ended the quarter with over $6.8 million of cash and restricted cash, which provides us a solid balance sheet to execute on our growth objectives, both organic and through acquisitions.”
“The growth in our ‘bricks-and-mortar’ agency business provides us a solid foundation upon which we are now rolling out our new 5MinuteInsure.com platform and we remain on track to commercially launch this summer. We also added new insurance carriers to our 5MinuteInsure.com platform and now offer insurance products from a total of 16 carriers and are approved in 46 states. We believe 5MinuteInsure.com is truly poised to disrupt the insurance industry, by providing consumers an efficient means to compare and bind policies within minutes from the convenience of home or with the assistance of one of our registered agents. This is an exciting time for our company, and we look forward to providing further updates.”
Financial Results
The Company achieved revenues of $2,190,847 for the three months ended June 30, 2021, as compared to $1,642,018 for the three months ended June 30, 2020. The Company had total commission expense of $558,271 for the three months ended June 30, 2021 compared to $353,899 for the three months ended June 30, 2020. The Company had total general and administrative expenses of $1,202,350 for the three months ended June 30, 2021, as compared to $1,082,752 for the three months ended June 30, 2020. Loss from operations for the three months ending June 30, 2021 was $1,104,790, compared to $1,025,443 for the three months ended June 30, 2020. Net loss for the three months ended June 30, 2021 was $1,276,886, or ($0.12) per share, compared to $1,138,413, or ($0.27), the three months ended June 30, 2020.
The Company had revenues of $4,514,577 for the six months ended June 30, 2021, as compared to $3,646,332 for the six months ended June 30, 2020. The Company had total commission expense of $1,087,743 for the six months ended June 30, 2021 compared to $779,484 for the six months ended June 30, 2020. The Company had total general and administrative expenses of $2,206,751 for the six months ended June 30, 2021, as compared to $2,203,872 for the six months ended June 30, 2020. Loss from operations for the six months ended June 30, 2021 was $1,589,645, compared to $1,832,961 for the six months ended June 30, 2020. Net loss for the six months ended June 30, 2021 was $1,890,812, or ($0.20) per share, compared to $2,118,211, or ($0.51), the six months ended June 30, 2020.
The complete financial results will be available in the Company’s Form 10-Q, which is expected to be filed with the U.S. Securities & Exchange Commission later today.
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
