Truist Financial is selling its majority stake in the regional bank’s insurance brokerage unit
The Charlotte, North Carolina, company said Tuesday that it has agreed to sell the remaining 80% of Truist Insurance Holdings to two private-equity firms and other investors. CEO Bill Rogers said on a call with analysts that the transaction —
“You’ve heard me talk a lot recently about the work being done at Truist to simplify our organization and to better control our expenses in our core businesses to drive improved performance in the future.” Rogers said. “By selling [Truist Insurance Holdings], we’ll have capital capacity to play more offense. … In addition, our significantly stronger balance sheet will be positioned to weather an even wider range of economic environments.”
Stone Point Capital in Greenwich, Connecticut — which bought 20% of the insurance unit in February 2023 — and Clayton, Dubilier & Rice in New York led the all-cash purchase of Truist Insurance Holdings. Other investors, including Abu Dhabi’s sovereign wealth fund, Mubadala Investment, are participating in the deal, which is slated to close in the second quarter, pending regulatory approval.
The agreement is the