Reliance Global Group has signed a letter of intent to sell Altruis Benefit Consulting, a Michigan benefits consultancy, for $11 million in cash. The Lakewood, New Jersey-based insurtech company described the LOI as non-binding.
Reliance stated there is no assurance that definitive agreements will be executed or that the transaction will close on the described terms or timeline.
Under the terms, approximately $9.35 million would be paid at closing, with $1.65 million held in an interest-bearing escrow account released 18 months after closing. The entire purchase price is payable in cash, with no buyer stock, seller note, or earnout involved. After repaying its Oak Street Funding term loan of approximately $4.4 million, Reliance projects net incremental cash of approximately $7.6 million in total. Retiring that term loan would also eliminate roughly $1 million annually in principal and interest expense, freeing that cash for other uses. The buyer was not identified in the announcement.
Neither Reliance's own release nor any subsequent coverage has named the buyer. That's not unusual at the non-binding LOI stage, when parties often prefer not to disclose a counterparty until definitive agreements are signed, but it does mean the deal remains genuinely uncertain until that stage is reached, consistent with Reliance's own repeated caution that there is no assurance the transaction closes on these terms.
The proposed sale is the third Michigan benefits divestiture for Reliance since the start of 2026. The company earlier sold Employee Benefits Solutions, LLC and U.S. Benefits Alliance, LLC as part of the same strategy to reduce debt and redeploy capital, according to Investing.com.
Altruis was founded in 2003 by Anthony Fracchia and his father, Robert, and grew to more than $40 million in annual premium sales across individual, Medicare, and group health insurance markets by 2019, when Fracchia took full control of the business. Reliance acquired the agency later that year in a deal reported at the time to be worth approximately $5.5 million, structured as a combination of $1.4 million in cash from an affiliated entity controlled by Reliance CEO Ezra Beyman, $4.1 million in debt from an unaffiliated lender, and roughly 11.9 million shares of restricted stock, a price Fracchia has said reflected close to 8 times EBITDA. Altruis reported approximately $2.5 million in revenue in 2018, ahead of the deal closing. The firm serves individual and group health insurance clients across Michigan.
The proposed $11 million price represents roughly double the original transaction value seven years later, though the two deals aren't directly comparable given the different mix of cash, debt, and stock involved in the original purchase versus an all-cash sale now.
The sale fits the pattern of an active national market for benefits consulting books. Employee benefits agencies with revenues of $1 million or more are the highest-multiple insurance category in 2026, trading at 9 to 12 times EBITDA, according to CT Acquisitions. Michigan has also seen consolidation activity from larger brokers. Risk Strategies acquired two Greater Detroit benefits firms in January 2025, and HUB International acquired seven Michigan benefits businesses in 2023.
Reliance said the sale proceeds would fund its AI platform, launched in July 2026, and its RELI Exchange InsurTech network for independent agencies. Health insurance policies written through RELI Exchange grew 72% year over year during the 2025 open enrollment period, according to Reliance's February 2026 reporting. Its broker network expanded from approximately 65 to approximately 300 agency partners since 2022.
The sale would leave Reliance with RELI Exchange and its other insurance agency operations while exiting traditional benefits distribution entirely. Ezra Beyman, chairman and CEO, said the proposed transaction would allow the company to "convert a portion of that value into cash and put it to work in the areas we believe offer the greatest growth potential."
The parties are targeting a closing within 60 days, subject to customary closing conditions. Reliance trades on Nasdaq under the ticker EZRA.
