Reliance Global reports 2023 net loss $12M vs. net income of $6.5M in 2022

“We are pleased to report 17% and 40% year-over-year increases in revenue for 2023 compared to 2022 and 2021, respectively,” commented Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group. “Of the 17% revenue increase, 67% relates to organic growth, and 33% was acquisition related. Our net loss was substantially driven by non-core operating and non-cash expense charges, such as, net estimate & fair value changes in acquisition earn-out payables & warrant liabilities, goodwill impairment, amortization, interest, share based compensation and discontinued operations results, tallying a net total of $11.3 million, resulting in a GAAP net loss of $12.0 million. When excluding these items to arrive at AEBITDA, our AEBITDA loss in 2023 shrinks to $687,000, which represents an improvement of $2.1 million or 75% from 2022. We attribute much of our AEBITDA improvement to our recently announced “OneFirm” strategy, which brings together our 9 owned and operated agencies across the United States to function as one cohesive unit, allowing for efficient and effective cross-selling, cross-collaboration, and cross-utilization of our human capital, which has resulted in increases to both the Company’s top and bottom lines. “As illustrated by our financial highlights, we’ve had great growth momentum and strong performance throughout 2023, a real testament to the significant contributions and commitment of my friends and colleagues here at Reliance. We’ve also effectively expanded our cutting-edge RELI Exchange agency partner digital platform, which now boasts solutions in 46 states, access to 35 carriers, and a network of hundreds of committed agency partners. We continue to see vast potential in the global insurance agency/brokerage market, which in 2023 had an estimated value of $436 billion, forecasted to grow to $613 billion by 2028. M&A deal volume in 2023 was $78 billion, or around 17% of market value. Reliance remains keenly active on identifying and growing its insurance agency/brokerage portfolio through strategic and synergistic acquisitions. As previously announced, the Company has an open letter of intent to acquire a leading provider of voluntary benefits to more than 45,000 employee lives throughout the United States, with projected AEBITDA of more than $4 million for 2024. I’m happy to provide an update that the deal continues to progress positively with the parties currently in the final stages of definitive agreement discussions.”