Reliance Global (RELI) 7 Nov 24 2024 Q3 Earnings call transcript

Reliance Global Group, a leading insurance and financial services company, recently announced its financial results for the third quarter ended September 30, 2024, highlighting a successful period marked by robust revenue growth and effective cost management. During a recent earnings call, executives Ezra Beyman, Chairman and Chief Executive Officer, and Joel Markovits, Chief Financial Officer, provided insights into the company's performance, strategic initiatives, and future outlook.

Financial Highlights and Strategic Initiatives

The third quarter of 2024 saw Reliance Global Group achieve a 5% increase in revenue, reaching $3.4 million, while total operating expenses declined by 16%. This positive shift significantly improved the company's loss from operations by 64%, reflecting the success of its OneFirm strategy. The strategy, which unifies owned and geographically dispersed insurance agencies, has proven effective in enabling efficient cross-selling, collaboration, and optimized use of human capital.

A significant highlight of the quarter was the launch of an AI-powered commercial quote and buying solution on the RELI Exchange platform, which is expected to revolutionize the insurance industry by streamlining the traditionally time-sensitive quoting process. This cutting-edge solution not only enhances client satisfaction but also empowers agents to unlock new revenue streams and increase commission potential.

Strategic Acquisition and Market Expansion

Reliance Global Group is poised for further growth with the upcoming acquisition of Spetner Associates, Inc., a leading voluntary benefits insurance agency provider serving over 85,000 employees nationally. The acquisition is expected to double the company's consolidated revenues and pave the way for additional accelerated revenue growth through expanded service offerings and enhanced market positioning.

The Spetner acquisition is particularly significant as it aligns with Reliance's mission to build a multibillion-dollar, highly profitable business enterprise. By integrating Spetner's innovative benefit solutions and extensive market reach, Reliance aims to set a new industry standard and bring enhanced services to a broader audience. The acquisition is expected to drive significant synergies and substantially increase the company's growth trajectory.

Financial Performance and Future Outlook

Ezra Beyman, Chairman and CEO, expressed confidence in the acquisition's potential impact on Reliance's financial health and long-term success. He highlighted the company's commitment to transforming Reliance into a highly profitable multibillion-dollar enterprise that consistently delivers exceptional returns for shareholders. With a disciplined approach to growth and strategic initiatives, Reliance is well-positioned to achieve financial success.

Joel Markovits, Chief Financial Officer, provided details on the company's financial performance for the third quarter, noting significant growth trends and improved net results. The OneFirm strategy has proven successful in driving efficiency and reducing operating costs. Markovits also discussed the potential for further cost savings and synergies following the acquisition of Spetner Associates.

Conclusion

Reliance Global Group's third quarter performance underscores its commitment to sustained growth and financial success. The strategic acquisition of Spetner Associates, coupled with innovative technological solutions and a disciplined approach to fiscal management, positions Reliance for significant growth and long-term value creation for shareholders. The company's focus on market expansion and strategic acquisitions, coupled with its commitment to delivering exceptional returns, underscores its potential as a transformative player in the insurance and financial services industry.