Reliance Sells Altruis for $8M to Fund AI and RELI Platform

Reliance Global Group completed the sale of substantially all assets of its Altruis Benefit Consulting subsidiary for $8 million in cash, augmenting capital reserves to fund its proprietary artificial intelligence platform and the RELI Exchange network, according to an Investing.com report.

The transaction closed on September 23 and includes a potential earnout of up to $1 million over three years tied to annual revenue growth targets. The divestiture represents the second non-core agency sale executed by Reliance Global Group Inc. (NASDAQ:EZRA) during the month, following the prior disposition of Southwestern Montana Insurance Center on September 11.

"Completing the Altruis sale, following the Southwestern Montana transaction earlier this month, reflects the steady execution of our portfolio monetization strategy," said Ezra Beyman, chairman and chief executive officer, in a statement regarding the deal.

Cash Breakdown and Holdback Terms

Under the terms of the purchase agreement, Reliance received approximately $7.5 million in upfront cash proceeds. The remaining funds include $461,729 placed in indemnity and working capital holdback accounts to cover customary post-closing adjustments.

Additionally, a $3.1 million secured promissory note issued by the buyer was settled and paid in full shortly after the transaction on September 30. The immediate collection of the note accelerated liquidity inflows from the asset sale.

Capital Redeployment Into AI and Exchange Initiatives

Management intends to allocate the incoming liquidity toward core growth pillars, specifically the expansion of its digital AI platform and the RELI Exchange insurtech network.

"With the buyer's seller note now paid in full, the proceeds strengthen our balance sheet and give us more capacity to invest in our AI platform and the RELI Exchange network," Beyman said.

Portfolio Monetization Strategy in Focus

The systematic shedding of traditional insurance agencies highlights a strategic pivot away from conventional brokerage operations toward technology-driven insurance infrastructure. By pruning legacy assets, the firm aims to streamline capital allocation toward higher-margin digital tools designed to support independent insurance agents across the RELI Exchange ecosystem.