Truist sells stake in one of its business lines for $2 billion to private equity firm
Truist is selling a chunk of its insurance brokerage business — for a hefty price tag.
The Charlotte-based bank announced Thursday that it agreed to sell a 20% stake in its subsidiary Truist Insurance Holdings, Inc. to Stone Point Capital, a private equity firm based in Greenwich, Conn. The purchase price is just under $2 billion.
In a news release, the bank said that partnering with Stone Point will ensure long-term growth for its insurance broker business, which helps clients find coverage and manage risk for everything from commercial properties to small businesses.
“The investment demonstrates the significant value of Truist Insurance Holdings and strategically positions it, and Truist, for long-term success,” Truist CEO Bill Rogers said in a statement.
Truist’s insurance subsidiary is based in Charlotte and dates back more than 100 years. The bank employs about 53,000 workers in total, including about 2,800 locally.
Stone Point Capital has more than $45 billion worth of assets under management, with a focus on the financial services industry, according to the firm’s website. The company has about 130 employees.
After the deal closes, a five-person board of directors will oversee Truist Insurance Holding. Four members will be appointed by the bank, and one will be appointed by Stone Point Capital.
About Truist Insurance Holdings
Truist Insurance Holdings operates more than 250 offices across the country, according to the bank, and is the sixth-largest insurance broker in the U.S.
The Stone Point transaction values the business at about $14.75 billion, the news release said.
Truist Insurance Holdings has been steadily expanding over the last year, buying up three new firms over the course of 2022.
Those acquisitions included Kensington Vanguard National Land Services, a New-York-based title insurance agency and Texas-based BenefitMall, a smaller insurance broker.
“As Truist Insurance Holdings celebrates its centennial year, investing in our insurance capabilities and offerings continues to be a top priority,” Rogers said in a statement after one such acquisition in August.
This story was originally published February 17, 2023 at 11:23 AM.
