CHARLOTTE, N.C. — Charlotte-based Truist (NYSE: TFC) announced Thursday, that it has agreed to sell a 20% stake in Truist Insurance Holdings, Inc., a subsidiary of Truist, to funds managed private equity firm, Stone Point Capital, for $1.95 billion.
Truist Insurance Holdings, Inc is the sixth-largest insurance brokerage in the U.S. as this transaction holds a value of over $14.75 billion for Truist Insurance Holdings.
Mubadala Investment Company and other co-investors are investing with Stone Point. Closing of this sale is expected between April and June of this year, after which it will own 80% of Truist Insurance Holdings.
"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," Truist Chairman and Chief Executive Officer, Bill Rogers said.
CEO, John Howard, believes this transaction will allow them to maintain flexibility and future upside in Truist Insurance Holdings, which will positively impact all aspects of the company as "scale is critical to remain competitive"
"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," Howard said.
Howare continued on to say "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."
Upon closing of the transaction, a five-person Board will be formed to oversee Truist Insurance Holdings, with four members appointed by Truist and one member appointed by Stone Point.
"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," CEO of Stone Point, Chuck Davis, said.
"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." said Davis.
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