Truist has announced that it has agreed to sell a 20% stake in Truist Insurance Holdings, Inc., a subsidiary of Truist and the sixth-largest insurance brokerage in the US, to funds managed by Stone Point Capital, a private equity firm focused on the global financial services industry, for $1.95 billion.
Mubadala Investment Company, as well as other co-investors are participating in the investment with Stone Point.
Overall, the transaction represents an aggregate value of $14.75 billion for Truist Insurance Holdings. The aggregate value includes a common equity value of $9.75 billion and $5 billion of inter-company preferred equity issued by Truist Insurance Holdings to Truist.
Upon closing of the investment, which is expected to be in the second quarter of 2023, Truist will own 80% of Truist Insurance Holdings, which will continue to be an important contributor for Truist and its shareholders.
Moreover, the transaction will allow Truist to maintain strategic flexibility and future upside in Truist Insurance Holdings, which will continue to benefit from Truist’s operations, access to capital, and client relationships. At the same time, Truist will also preserve and enhance its client service approach to offering leading insurance products to its banking clients.
Truist Insurance Holdings has gained a very experienced partner in Stone Point. The company brings a deep level of expertise which will help accelerate Truist Insurance Holdings’ growth.
Both Truist Insurance Holdings and Truist will benefit from Stone Point’s role as a strong capital partner enabling future opportunities for expansion and growth.
“We are excited for this collaboration with Stone Point, as the investment demonstrates the significant value of Truist Insurance Holdings and strategically positions it, and Truist, for long-term success,” said Truist Chairman and Chief Executive Officer Bill Rogers.
“Today’s announcement is a recognition of the success and quality of Truist Insurance Holdings’ brands, the trusted relationships we’ve developed with clients, and above all, the hard work and relentless commitment of our teammates,” added Truist Insurance Holdings Chairman and CEO John Howard.
“We operate in an attractive, growing, and dynamic industry in which scale is critical to remain competitive. With Stone Point’s industry expertise and role as a capital partner, we will be strategically positioned for long-term success and growth as we continue expanding our portfolio and investing in innovative digital solutions.”
“Truist Insurance Holdings is a scaled, diversified U.S. retail and wholesale insurance distribution platform that has experienced strong growth both organically and through a disciplined acquisition strategy,” commented Chuck Davis, CEO of Stone Point.
“We have had a longstanding and mutually beneficial relationship with Truist for many years and we and our co-investors could not be more excited to partner with them, John, and the entire Truist Insurance Holdings team in its next phase of profitable growth.”
