Reliance Global Completes $2.625M Montana Agency Sale as InsurTech Pivot Continues

The sale converts a legacy agency into cash

Reliance Global Group completed the sale of Southwestern Montana Insurance Center for $2.625 million in cash at closing. The transaction closed September 11 and was effective September 1, according to the company. No Reliance shares were issued as consideration.

The buyer also agreed to an uncapped earnout tied to the agency’s EBITDA for the 12 months ending August 31, 2027. Reliance said the base purchase price reflected an 8.75-times multiple on $300,000 of pro forma EBITDA, with additional consideration linked to EBITDA above that level.

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The transaction is part of a larger portfolio reshaping

Management is positioning the divestiture as part of a shift away from owning a collection of traditional agencies and toward a more technology-focused insurance model. Reliance has also announced a separate pending sale of Altruis Benefit Consulting.

The company says proceeds can support the balance sheet, debt reduction and investment in RELI Exchange, its AI- and technology-driven insurance platform. That makes the use of proceeds as important as the headline sale price.

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A cleaner model can improve strategic clarity

Selling mature agency assets can simplify the story if management can show that the capital is being redeployed into higher-growth or more scalable technology. It can also reduce complexity that comes from operating multiple localized agencies with different economics.

The trade-off is that divestitures also remove existing revenue and cash flow. Investors therefore need to compare the earnings being sold with the return Reliance can generate from the technology platform and any future acquisitions or partnerships.

Sources: [1]

Execution now shifts to capital allocation

The earnout creates some continued exposure to the agency’s performance without requiring Reliance to retain ownership. Meanwhile, the cash proceeds give management more flexibility at a time when it is emphasizing AI-enabled insurance operations.

The next useful disclosures will be the final economics of the Altruis transaction, changes in debt and liquidity, and evidence that RELI Exchange can translate product development into customer growth and recurring revenue. Those milestones will show whether the portfolio reshaping is creating a stronger operating model rather than simply a smaller one.

The transaction also creates a clean benchmark for management’s capital-allocation claims. Reliance can now be measured against the cash received, any eventual earnout and the financial contribution that left with the agency. If technology investment produces faster organic growth, better margins or a more scalable distribution network, the strategic logic becomes easier to validate. If replacement growth requires substantial new capital or repeated acquisitions, investors will have to weigh that against the certainty of the earnings streams being monetized today.

Sources: [1] · [2]