Stone Point to Acquire Stake in Truist Insurance for Nearly $2B

Truist today said it has agreed to sell a 20% stake its insurance brokerage business to private equity firm Stone Point Capital for $1.95 billion.

Mubadala Investment Company and other co-investors are participating with Stone Point in the investment into Truist Insurance Holdings, the sixth-largest insurance broker in the U.S., now valued at $14.75 billion.

Truist Insurance Holdings operates more than 250 offices through its wholesale, retail, and insurance services divisions. Its insurance units include McGriff Insurance Services; CRC Insurance Services; Crump Life Insurance Services; AmRisc; and premium finance companies AFCO Credit, Prime Rate Premium Finance and CAFO.

The transaction is expected to close in the second quarter. At closing, a five-person board will be formed to oversee Truist Insurance Holdings, made up of four members appointed by Truist and one member appointed by Stone Point.

Truist CEO Bill Rogers said the investment “demonstrates the significant value of Truist Insurance Holdings and strategically positions it, and Truist, for long-term success.” The financial services company said the deal gives it “strategic flexibility” and the broker business can use Stone Point’s insurance industry expertise to accelerate growth. Truist said it will preserve and enhance its client service approach to offering leading insurance products to its banking clients.

“Today’s announcement is a recognition of the success and quality of Truist Insurance Holdings’ brands, the trusted relationships we’ve developed with clients, and above all, the hard work and relentless commitment of our teammates,” said Truist Insurance Holdings Chairman and CEO John Howard. “We operate in an attractive, growing, and dynamic industry in which scale is critical to remain competitive. With Stone Point’s industry expertise and role as a capital partner, we will be strategically positioned for long-term success and growth as we continue expanding our portfolio and investing in innovative digital solutions.”