COVU Acquires Ford Insurance Agency, Strengthening Position as Leader in AI-Native Insurance Servicing

COVU, a leader in AI-native customer servicing for the insurance industry, has acquired Ford Insurance Agency, its 4th strategic acquisition. This marks the foundation for a national platform that gives agencies the ability to scale or exit on their terms. COVU aims to empower independent agencies through flexible, AI-native solutions that protect customer relationships, deepen carrier value, and elevate operational performance.

Reliance Global Group, Inc. (Nasdaq: RELI) has signed a non-binding Letter of Intent (LOI) to sell Fortman Insurance Agency, a wholly-owned subsidiary, for $5 million in cash [1]. The sale price represents a significant premium over the original acquisition cost, highlighting Reliance's successful asset monetization strategy. The proceeds from the sale are intended to support the planned acquisition of Spetner Associates, an expanding insurance platform expected to generate strong cash flow.

Since acquiring Fortman, Reliance has implemented operational enhancements, upgraded internal systems, and established a strong leadership team. These efforts have transformed Fortman into a well-capitalized, efficiently run agency with a growing customer base and enhanced market presence. CEO Ezra Beyman noted that the sale underscores Reliance's disciplined capital allocation strategy and commitment to value creation.

The LOI is subject to customary due diligence and negotiations, with further updates to follow. Potential positives include the successful monetization of Fortman, which aligns with Reliance's growth strategy. Potential negatives include the uncertainty introduced by the non-binding nature of the LOI and the risk that the buyer may withdraw or renegotiate the terms.

Reliance's insider trading activity in the past six months shows that insiders have sold a total of 8,237 shares for an estimated $30,746, with no purchases made [2]. This sale highlights Reliance's commitment to disciplined capital allocation and enhancing shareholder value.

References:
[1] https://www.nasdaq.com/articles/reliance-global-group-signs-loi-sell-fortman-insurance-agency-5-million
[2] https://www.nasdaq.com/articles/reliance-global-group-signs-loi-sell-fortman-insurance-agency-5-million