Scale is critical to remain competitive in our rapidly changing industry, and through this partnership, we will benefit from Stone Point's and CD&R's expertise in financial services, proven track records of transformative value creation and the significant capital support from two leading financial sponsors," John Howard, Truist Insurance chairman and CEO, said in a release. Credit: Yingyaipumi/Adobe Stock
Truist Financial Corp. is selling its remaining 80% stake in Truist Insurance Holdings LLC, the fifth largest insurance broker in the U.S., to a private equity-led management group helmed by Clayton, Dubilier & Rice (CD&R) and Stone Point Capital, the selling firm reported.
The all-cash transaction is valued at $15.5 billion and the deal is expected to close during the upcoming quarter, Truist reported. Mubadala Investment Company and other co-investors are also involved in the transaction.
In April 2023, Stone Point Capital closed a $1.95 billion deal for 20% of Truist Insurance. Stone Point has around $9 billion in capital committed to the insurance sector, according to the private equity firm. Of the 149 companies in its network, insurance underwriting accounts for 30%, while insurance service firms and insurance distribution companies each account for 13%.
"Scale is critical to remain competitive in our rapidly changing industry, and through this partnership, we will benefit from Stone Point's and CD&R's expertise in financial services, proven track records of transformative value creation and the significant capital support from two leading financial sponsors," John Howard, Truist Insurance chairman and CEO, said in a release.
Truist Insurance anticipates that the deal will help the brokerage grow and infuse the operation with resources to scale up technology efforts and develop products and services.
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