--News Direct--
By Meg Flippin, Benzinga
Reliance Global Group Inc. (NASDAQ: RELI), an InsurTech firm aiming to transform the traditional insurance agency model, is seeing its OneFirm approach pay off. The company reported a year-over-year increase in revenue in the third quarter and adjusted EBITDA turned positive for the first time in Reliance Global’s history.
Reliance Global credits that to its OneFirm strategy, aimed at capturing a larger share of the expanding insurance market. Launched last year with OneFirm, all of its insurance brands are consolidated under the RELI Exchange banner. Reliance says it provides RELI Exchange with the ability to leverage existing employees better, improve data access and reduce overall operating expenses. It also enables the company to offer insurance agents a more robust platform that covers multiple insurance lines and can provide fast and accurate quotes from more than 30 insurance carriers.
OneFirm Boosts Sales
“OneFirm is expected to significantly enhance the company’s market presence across the U.S., as Reliance Global Group’s agencies operate under the unified brand of RELI Exchange across all business lines and in all markets,” said Ezra Beyman, Reliance Global Group's Chairman and Chief Executive Officer when OneFirm was announced. “We anticipate that this will fortify our relationships with carriers, enabling us to realize more profitable commission and bonus contracts due to expected increases in business volume.”
Those words appear to be coming true. In the third quarter, Reliance Global reported revenue increased 5% year-over-year to $3.4 million, while total operating expenses decreased 16% to $3.9 million. Furthermore, losses from operations decreased by 64% compared to a year ago. Reliance Global said the net loss for the third quarter showed an improvement of approximately $1 million, or 54%, compared to last year’s third quarter. Meanwhile, adjusted EBITDA in the 2024 third quarter was a $43,000 gain, which represents a 121% year-over-year increase from the 2023 comparable quarter.
"These highly positive financial results are a testament to the success of the OneFirm strategy, which brings together our owned and operated, but geographically dispersed, insurance agencies, to operate as one cohesive unit, allowing for efficient and effective cross-selling, cross-collaboration and human capital cross utilization,” said Beyman. “The success of the OneFirm approach is clearly evident and demonstrated by the quarter's promising revenue growth, decrease in operating costs and positive changes to net results. We feel strongly that our disciplined approach strengthens our financial position and sets the stage for continued sustained growth and long-term value creation for our shareholders."
Spetner Deal Closing On The Horizon
In addition to driving its OneFirm strategy, Reliance Global is focused on closing its acquisition of Spetner Associates Inc., which it announced in May and said should close in the coming months. Spetner is a voluntary benefits insurance agency/provider serving more than 85,000 employees around the nation. Reliance Global expects the integration of Spetner will double consolidated revenues and accelerate revenue growth. The company reiterated that expectation when reporting third-quarter results. “We are confident that the integration of Spetner will close to double our consolidated revenues and serve as a catalyst for additional accelerated revenue growth, by having an expanded combined range of service offerings, enhancing our market position and paving the way for sustained profitability and longer-term success,” said Beyman.
RELI Exchange Gets An Upgrade
As if that wasn’t enough, Reliance Global also enhanced its RELI Exchange platform with the launch of its AI-powered Quote & Bind solution, which was completed ahead of schedule. Reliance Global said it’s a transformative tool that “significantly” accelerates the quoting and binding process for commercial insurance policies. The technology is now live, enabling agents to provide faster, more competitive quotes and bind policies instantly, reported Reliance Global. “The solution not only enhances operational efficiency for our partners but also creates new revenue opportunities by capitalizing on high-demand commercial lines, such as, general liability, cyber liability and workers compensation,” Beyman said. The company has only recently begun utilizing cross-selling to sell existing clients more products.
When Reliance Global launched, it set out to build a multi-billion-dollar profitable business that leverages AI and other advanced technologies to fix what it believes are need gaps within the insurance agent industry through innovation, expansion and disciplined fiscal management.
The actions taken during the third quarter appear to have further strengthened its position to achieve that goal. Stay tuned to learn more as its deal closes and it launches new advancements in the quarters to come.
Featured photo by Vlad Deep on Unsplash.
This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.
Benzinga is a leading financial media and data provider, known for delivering accurate, timely, and actionable financial information to empower investors and traders.
Contact Details
Benzinga
+1 877-440-9464
Company Website
View source version on newsdirect.com: https://newsdirect.com/news/reliance-global-now-adjusted-ebitda-positive-with-growing-revenue-reflecting-potential-benefits-of-onefirm-approach-685023704
