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With over US$48 billion in premiums, Truist Insurance is the fifth largest broker in the US, seventh largest globally – and this week it looks like it may finalize a majority stake sale to Stone Point Capital and Clayton Dubilier & Rice.
The sale of the stake in Truist could be announced later this week, according to confidential Bloomberg sources. Last April, the company sold a 20% stake to a Stone Point-headed group.
Private equity group Stone Point paid $1.95 billion for the 20% stake, and it is believed that the current valuation is on the same terms as the initial investment, valuing the insurance giant at close to $15 billion – 33% of the total value of the PE firm’s assets under management.
Headed by chairman and chief executive John Howard, the giant broker completed a revamp of its wholesale business arm last month – splitting it into two divisions, wholesale and underwriting.
It is still uncertain whether the company’s premium finance business will be included – the original deal excluded that part of the business.
Truist Insurance Holdings employs around 9,000 employees, close to 17% of parent company Truist Financial Corp’s 53,000 workforce. The news of a potential sale follows last September’s announcement by the parent company’s CEO Bill Rogers that there would be “sizeable reductions in force” over the coming year.
Truist Insurance companies include a number of important industry brands including:
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