CHARLOTTE, N.C. and GREENWICH, Conn., April 3,
2023 /PRNewswire/ -- Truist (NYSE: TFC) announced
today that it has completed the previously announced sale of a 20%
stake in Truist Insurance Holdings, LLC, a subsidiary of Truist and
the sixth-largest insurance brokerage in the United States, to funds managed by Stone
Point Capital, a leading private equity firm focused on the global
financial services industry, for $1.95
billion, representing an aggregate value of $14.75 billion. Mubadala Investment Company and
other co-investors also participated in the investment with
Stone Point.
The transaction strategically positions Truist Insurance
Holdings and Truist for long-term success and growth and
demonstrates the significant value of the insurance business.
Truist will continue to maintain strategic flexibility and future
upside in Truist Insurance Holdings through its 80% majority
ownership stake. Truist Insurance Holdings will continue to benefit
from Truist's operations, access to capital, and client
relationships. Additionally, Stone
Point's role as a strong capital partner with deep industry
expertise is expected to enable future growth opportunities.
"This investment is a testament to the quality and success of
Truist Insurance Holdings and our teammates," said Truist Chairman
and CEO Bill Rogers. "We look
forward to continuing our longstanding relationship with
Stone Point to grow our insurance
business and further deepen our partnerships with clients and the
communities we serve, while also preserving significant strategic
and financial flexibility in the business."
Truist Insurance Holdings will continue to be led by Chairman
and CEO John Howard and will be
overseen by a five-person board, with four members appointed by
Truist and one member appointed by Stone
Point. The transaction increases Truist's Common Equity Tier
1 ratio by approximately 30 basis points. Truist also continues to
expect the transaction to be relatively neutral to earnings per
share.
"This partnership highlights the value of our business, people
and brands," said Howard. "Stone
Point's investment creates more capacity for our business to
grow while bolstering our competitive position as our industry
continues to consolidate. Consequently, I view this partnership as
the best of both worlds – maintaining our strong relationship
with Truist while also gaining an experienced partner in Stone
Point."
About Truist
Truist Financial Corporation is a purpose-driven financial
services company committed to inspiring and building better lives
and communities. Truist has leading market share in many
high-growth markets in the country and offers a wide range of
products and services through our retail and small business
banking, commercial banking, corporate and investment banking,
insurance, wealth management, and specialized lending businesses.
Headquartered in Charlotte, North
Carolina, Truist is a top 10 U.S. commercial bank with total
assets of $555 billion as of
December 31, 2022. Truist Bank,
Member FDIC. Learn more at Truist.com.
About Truist Insurance Holdings
Truist Insurance Holdings, LLC the sixth-largest insurance
broker in the U.S. and seventh-largest in the world, is a
subsidiary of Truist Financial Corporation (NYSE: TFC).
Headquartered in Charlotte, NC,
Truist Insurance Holdings operates more than 250 offices through
its Wholesale, Retail, and Insurance Services divisions. To learn
more, visit www.truistinsurance.com.
About Stone Point
Stone Point is an investment firm
based in Greenwich, CT, with over
$45 billion of assets under
management. Stone Point targets
investments in companies in the global financial services industry
and related sectors. The firm invests in a number of alternative
asset classes, including private equity through its flagship
Trident Funds. Stone Point also
manages both liquid and private credit funds and managed accounts.
In addition, Stone Point Capital Markets supports our firm,
portfolio companies and other clients by providing dedicated
financing solutions. For more information, please visit
https://www.stonepoint.com/.
About Mubadala Investment Company
Mubadala Investment Company is a sovereign investor managing a
global portfolio, aimed at generating sustainable financial returns
for the Government of Abu Dhabi.
Mubadala's $284 billion portfolio
spans six continents with interests in multiple sectors and asset
classes. It leverages its deep sectoral expertise and long-standing
partnerships to drive sustainable growth and profit, while
supporting the continued diversification and global integration of
the economy of the United Arab
Emirates. For more information about Mubadala Investment
Company, please visit: www.mubadala.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995
regarding the financial condition, results of operations, business
plans and future performance of Truist and TIH. Words such as
"anticipates," "believes," "estimates," "expects," "forecasts,"
"intends," "plans," "projects," "may," "will," "should," "would,"
"could" and other similar expressions are intended to identify
these forward-looking statements. Forward-looking statements are
not based on historical facts but instead represent management's
expectations and assumptions regarding the company's business, the
economy and other future conditions. Therefore, such statements
involve inherent uncertainties, risks and changes in circumstances
that are difficult to predict. As a result, actual results may
differ materially from those contemplated by forward-looking
statements. While there can be no assurance that any list of risks
and uncertainties is complete, important factors that could cause
actual results to differ materially from those contemplated by
forward-looking statements include the risks and uncertainties more
fully discussed under Item 1A-Risk Factors in Truist's
most recently filed Annual Report on Form 10-K and in
Truist's subsequent filings with the Securities and Exchange
Commission. Investors are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
they are made. Except to the extent required by applicable law or
regulation, Truist undertakes no obligation to revise or update any
forward-looking statements.
View original
content:https://www.prnewswire.com/news-releases/truist-completes-previously-announced-sale-of-minority-stake-in-truist-insurance-holdings-to-stone-point-capital-301788745.html
SOURCE Truist Financial Corporation