Truist Financial To Sell Remaining Stake In Truist Insurance Holdings

(RTTNews) - Truist Financial Corp. (TFC) announced Tuesday that it has reached a definitive agreement to sell its remaining stake in Truist Insurance Holdings, a subsidiary of Truist and the fifth largest insurance brokerage in the U.S., to an investor group led by private equity firms Stone Point Capital and Clayton, Dubilier & Rice. Mubadala Investment Company and other co-investors are also participating in the investment.

The all-cash transaction values Truist Insurance at an implied enterprise value of $15.5 billion. The sale of Truist Insurance and reinvestment of the $10.1 billion of expected cash proceeds are estimated to be $0.20 dilutive to 2024 earnings per share.

Following closing, Truist intends to evaluate a variety of capital deployment options, including a potential balance sheet repositioning with a goal of replacing Truist Insurance's earnings.

The parties expect to complete the transaction during the second quarter of 2024, subject to certain regulatory reviews and approvals and the satisfaction of other customary closing conditions. Truist's Board of Directors has unanimously approved the agreement.