Truist selling remaining stake in namesake insurance brokerage in $15.5B deal

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%.

CD&R’s insurance investments include sales and marketing platform Tranzact and technology consultancy Capco.

“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.

Related:

• Insurance brokerage M&A activity dropped nearly 17%, but was still above average in 2023
• Help! I’m 65 and want to sell my insurance agency
• Focus on these 5 areas to improve the value of your agency