Truist To Sell Stake in TIH to Stone Point and CD&R

Truist Financial Corporation has confirmed a definitive agreement to divest its remaining stake in Truist Insurance Holdings (TIH), the fifth-largest insurance brokerage in the United States. The transaction, an all-cash deal valued at an implied enterprise value of $15.5 billion, is led by an investor group featuring private equity firms Stone Point Capital (Stone Point) and Clayton, Dubilier & Rice (CD&R), along with Mubadala Investment Company and other co-investors.

The sale of TIH is anticipated to enhance Truist's December 31, 2023, CET1 capital ratio by 230 basis points and increase tangible book value per share by $7.12 or 33 percent.

Bill Rogers, Truist chairman and CEO, said of the transaction, "We are pleased to have reached an agreement to sell TIH as it will further strengthen our balance sheet, afford us the ability to maintain our earnings profile, and create significant ongoing flexibility to invest in our core banking franchise."

He continued, "We are incredibly proud of the success we've achieved together with TIH over the years and are excited to see how Stone Point and CD&R continue to build the business in its next chapter of growth."

Stone Point and CD&R will provide operational support to TIH as the partnership aims to position TIH for growth in the insurance brokerage market, enabling the company to invest in technology, develop new products, and deliver enhanced value to clients.

John Howard, chairman and CEO of TIH, highlighted the significance of scale in the evolving industry and welcomed the partnership with Stone Point and CD&R. The collaboration is expected to leverage their financial expertise and support TIH's growth strategy.

The transaction, subject to regulatory reviews and customary closing conditions, is anticipated to conclude in the second quarter of 2024. Truist's Board of Directors has unanimously approved the agreement.