Reliance Global Group to Sell Altruis Benefit Consulting for $11M in Cash — Reliance Global Group, Inc.

Event summary

Reliance Global Group has signed a non-binding LOI to sell its Altruis Benefit Consulting subsidiary for $11 million in cash.
The transaction would retire all of Reliance's term debt (~$4.4M) and generate approximately $7.6 million in incremental cash after closing costs.
Proceeds will be used to fund the development of its AI platform and RELI Exchange InsurTech network, with no dilution of shares.
The deal is expected to close within 60 days, subject to customary closing conditions.

The big picture

Reliance Global Group's proposed sale of Altruis Benefit Consulting aligns with its 2025 strategy to monetize mature insurance assets and reinvest in high-growth InsurTech initiatives. The transaction underscores a broader industry trend where legacy insurers and brokers are streamlining operations to focus on digital transformation, particularly AI-driven platforms that enhance operational efficiency and customer experiences.

What we're watching

Execution Risk: Whether Reliance can close the deal within the targeted 60-day timeline and secure the full $11 million purchase price.
Capital Redeployment: How effectively Reliance deploys the proceeds to accelerate its AI platform and RELI Exchange InsurTech network growth.
Strategic Focus: The pace at which Reliance monetizes other mature insurance distribution assets as part of its portfolio strategy.