Truist Insurance, the fifth-largest broker in the United States with premiums exceeding US$48 billion, is on the brink of finalizing a majority stake sale to private equity firms Stone Point Capital and Clayton Dubilier & Rice. This potential transaction positions Truist Insurance as the seventh-largest broker globally.
Confidential sources from Bloomberg suggest that the announcement of the stake sale could occur later this week. Notably, in April of the previous year, Truist Insurance sold a 20% stake to a consortium led by Stone Point.
Stone Point Capital, a private equity group, acquired the 20% stake for $1.95 billion, with indications that the current valuation mirrors the terms of the initial investment. This valuation places the insurance giant at a valuation close to $15 billion, constituting approximately 33% of Stone Point Capital’s total assets under management.
Under the leadership of chairman and chief executive John Howard, Truist Insurance recently completed a restructuring of its wholesale business arm, dividing it into two distinct divisions: wholesale and underwriting. However, the inclusion of the company’s premium finance business in the potential sale remains uncertain, as it was excluded from the original deal.
With approximately 9,000 employees, Truist Insurance Holdings represents nearly 17% of the workforce of its parent company, Truist Financial Corp, which employs a total of 53,000 individuals. This development follows a statement made by Truist Financial Corp’s CEO, Bill Rogers, in September of the previous year, indicating forthcoming “sizeable reductions in force” over the upcoming year.
