Truist completed its sale of a 20% stake in Truist Insurance Holdings, a subsidiary of Truist, to funds managed by Stone Point Capital, a 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. Truist will continue to maintain an 80% ownership stake in Truist Insurance Holdings.
“This investment is a testament to the quality and success of Truist Insurance Holdings and our teammates,” Bill Rogers, chairman and CEO of Truist, said. “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 John Howard, chairman and CEO, 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.
“This partnership highlights the value of our business, people and brands,” Howard said. “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.”
