Truist Sells 20% Stake in Insurance Subsidiary to Stone Point Capital for $1.95B

Charlotte-based Truist Financial Corp. is selling a 20% stake in its insurance brokerage unit Truist Insurance Holdings, Inc. to funds managed by financial services-focused private equity firm Stone Point Capital for $1.95 billion.

United Arab Emirates-based Mubadala Investment Co. and other co-investors are participating in the investment with Stone Point.

The transaction represents an aggregate value of $14.75 billion for Truist Insurance, including a common equity value of $9.75 billion and $5 billion of inter-company preferred equity issued by Truist Insurance to Truist.

Bill Rogers, Truist’s chairman and chief executive, said the sale “demonstrates the significant value of Truist Insurance Holdings and strategically positions it, and Truist, for long-term success.”

The investment is expected to close in the second quarter. Truist will own 80% of Truist Insurance, which will continue to be an important contributor for the company.

A five-person Board will be formed to oversee Truist Insurance, comprising of four members appointed by Truist and one by Stone Point.

Truist Insurance Holdings Inc. is the sixth-largest insurance brokerage in the US with more than 250 offices and more than 9,000 employees, or about 17% of Truist’s overall workforce of 53,999 as of the end of last year.

Insurance was the bank’s top fee-revenue producer for fiscal 2022 at $3.04 billion, up 15.8% over fiscal 2021. By comparison, the next largest fee-income producer was wealth management income at $1.34 billion.