Top six US broker Truist to sell ~$2bn stake to PE house Stone Point at $14bn+ value

Truist Financial is selling a minority stake in its $14.75 billion insurance brokerage business to private equity house Stone Point Capital in a bid to strategically position the business for future growth opportunities.

Truist has agreed terms with funds managed by Stone Point Capital to sell a 20% stake for $1.95 billion in Truist Insurance Holdings, which claims to be the sixth-largest insurance broker in the US.

The transaction aims to strategically position the brokerage for long-term growth, while allowing it to maintain flexibility and benefit from access to capital through a strong capital partner.

Mubadala Investment Company 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 Holdings, including a common equity value of $9.75 billion and $5.0 billion of inter-company preferred equity issued by Truist Insurance Holdings to Truist.

Upon closing, expected in Q2 2023, Truist will own 80% of Truist Insurance Holdings. Mubadala Investment Company and other co-investors are participating in the investment with Stone Point.

Stone Point CEO Chuck Davis described Truist Insurance as a “scaled, diversified” US retail and wholesale insurance distribution platform that has experienced strong growth both organically and through a disciplined acquisition strategy.

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."

Truist Insurance Holdings chairman and CEO John Howard, commented: "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 chairman and chief executive officer Bill Rogers, added: "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."

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