Reliance Global Group Enters Into Letter of Intent to Sell U.S. Benefits Alliance/EBS Business Unit; Expects Closing Within 30 Days

Core Insights - Reliance Global Group, Inc. has entered into a non-binding letter of intent to sell its subsidiaries, U.S. Benefits Alliance, LLC and Employee Benefits Solutions, LLC, as part of its strategy to monetize non-core assets and strengthen its balance sheet [1][2] - The company plans to use 50% of the net proceeds from the sale to reduce debt, enhancing its financial flexibility and capital structure [2][3] - The remaining proceeds will be allocated to business development initiatives, particularly focusing on expanding the platforms RELI Exchange and 5minuteinsure.com, which aim to innovate the insurance market [2][3] Company Strategy - The sale of the EBS/USBA business unit is a significant step in Reliance's transformation into a technology-first wholesale insurance organization [2] - The company emphasizes a disciplined capital allocation strategy, aiming to sharpen its focus on segments with the greatest long-term opportunities for scale and profitability [2][3] - Reliance Global Group is leveraging AI and cloud-based technologies to improve efficiencies in the insurance agency and brokerage industry [3] Business Platforms - RELI Exchange provides independent insurance agencies with a suite of business development tools to compete effectively against larger national agencies [3] - 5minuteinsure.com utilizes AI and data mining to deliver quick and personalized insurance quotes to consumers, enhancing user experience in purchasing auto, home, and life insurance [3]