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Monday, August 3, 2026

Artificial intelligence is reshaping how insurance gets sold and serviced, automating agency workflows, sharpening underwriting decisions, and compressing the time between quote and bind. As those platforms mature, some operators are choosing to monetize legacy distribution assets and funnel the proceeds into technology that scales faster than headcount.

Shares of Reliance Global Group, Inc. (Nasdaq: EZRA) are soaring Monday after the company signed a non-binding letter of intent to sell the assets of its Altruis Benefit Consulting subsidiary for $11 million in cash. The proposed sale would retire all of the company's term debt and add meaningful cash to the balance sheet without issuing a single share.

Reliance Global Group is an InsurTech company applying artificial intelligence, cloud computing, and proprietary technology to the insurance agency and brokerage business. It operates a portfolio of insurance agencies alongside AI tools built to improve operational efficiency and customer experience. Altruis is a Michigan-based health insurance agency and benefits consulting business that has grown under Reliance ownership.

The structure is straightforward. Roughly $9.35 million would be paid at closing, with $1.65 million placed in an interest-bearing escrow. The remaining escrow balance, plus accrued interest, releases to Reliance 18 months after closing. The entire purchase price is cash: no buyer stock, no seller note, no earnout.

The balance sheet math is where the story sits. Reliance would fully repay its Oak Street Funding term loan of approximately $4.4 million, its only term debt, and still net roughly $7.6 million in aggregate incremental cash. That figure breaks into about $5 million of net proceeds at closing before transaction expenses and taxes, roughly $1.0 million of cash released from restriction as loan collateral, and the $1.65 million escrow. Retiring the loan also eliminates approximately $1 million in annual principal and interest expense.

The sale advances a portfolio strategy Reliance launched in 2025, converting mature insurance distribution assets into capital for higher-growth technology. Proceeds would fund continued build-out of the AI platform the company launched in July 2026 and expansion of its RELI Exchange InsurTech network. Reliance retains that platform, RELI Exchange, and its other insurance operations along with their recurring commission revenue.

"We believe that this proposed transaction speaks for itself: an $11 million all-cash price for one of our subsidiaries underscores the value of the business we have built at Reliance," said Ezra Beyman, Chairman and Chief Executive Officer. He added that if completed, Reliance would emerge with no term debt, a substantially stronger cash position, and no new shares issued.

The parties are targeting a closing within 60 days, subject to definitive agreements and customary conditions. The LOI is non-binding, and there is no assurance a deal gets signed or closes on these terms.

Shares of EZRA are soaring 98.9% to $3.63 in Monday morning trading.

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