Truist Financial Corporation has reached a definitive agreement to sell its remaining stake in Truist Insurance Holdings (TIH) to an investor group led by private equity firms Stone Point Capital and Clayton, Dubilier & Rice.
TIH is a subsidiary of Truist and the fifth largest insurance brokerage in the US.
The parties expect to complete the transaction during the second quarter of 2024, subject to regulatory approvals.
Mubadala Investment Company and other co-investors are also participating in the investment.
The all-cash transaction values TIH at an implied enterprise value of US$15.5 billion, the company says. The sale of TIH is expected to increase Truist's 31 December 2023, CET1 capital ratio by 230 basis points and increase its tangible book value per share by US$7.12 or 33 per cent.
Truist chairman and CEO Bill Rogers comments: "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.”
