Truist Financial Corporation has announced the completion of the sale of its remaining stake in Truist Insurance Holdings (TIH), one of the United States’ largest insurance brokerage firms, to an investor group led by private equity firms Stone Point Capital and Clayton, Dubilier & Rice (CD&R). The sale also involved Mubadala Investment Company and other co-investors.

The all-cash transaction values TIH at an implied enterprise value of $15.5 billion. Truist Financial Corporation reported assets exceeding $535 billion as of March 31, 2024 and after-tax cash proceeds of approximately $10.1 billion.

John Howard, CEO of TIH, described the completion of the sale as “a significant opportunity to expand our operations in an industry where scale is critical to remain competitive.” He highlighted that with the support of Stone Point Capital and CD&R, TIH is poised to grow and explore new business opportunities.

New phase of growth

TIH, which now has more than 1,500 employee equity participants, has appointed a new board of directors to guide the company in its next phase of growth. Dan Glaser, former CEO of Marsh McLennan and operating partner at CD&R, has been named chairman. Other independent directors include Richard R. Whitt, former co-CEO of Markel Group, Julio Portalatin, former CEO of Mercer, and Ross Buchmueller, former CEO of PURE Insurance.

The completion of the sale also marks a strategic balance sheet repositioning for Truist, according to a news release. With a total of $27.7 billion of lower-yielding investment securities sold, the bank generated an after-tax loss of $5.1 billion in the second quarter of 2024. Truist plans to reinvest the proceeds into shorter-duration securities with higher yields, anticipating an additional $160 million in net interest income.

“We are thrilled to complete the purchase of TIH and enter the next phase of growth for the business as it becomes a fully independent company. Truist has built a valuable company, and we appreciate the partnership to reach this important milestone,” said Chuck Davis, co-CEO of Stone Point. He emphasized the firm’s commitment to collaborating with TIH’s leadership team and leveraging the company’s strong position in the industry. David Winokur, partner at CD&R, expressed his excitement about partnering with Stone Point and supporting TIH’s mission to attract and inspire talented insurance professionals.

Truist’s chairman and CEO, Bill Rogers, welcomed the partnership with Stone Point and CD&R. “The sale of TIH significantly enhances Truist’s financial profile and positions Truist to invest in and grow its core banking businesses,” said Rogers.

In its transformation into a standalone company, TIH will rebrand to reflect what was described as a clear and streamlined identity.

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