Exhibit 99.1
Press Release
Truist announces agreement to sell minority stake in Truist Insurance Holdings to Stone Point Capital, valuing
the business at $14.75 billion
Sale of 20% stake for $1.95 billion strategically positions Truist Insurance Holdings for long-term success and growth
Truist maintains client service approach, strategic flexibility, and future upside in insurance business
Stone Point is a blue-chip partner with extensive experience in financial services
Truist to host investor call at 9:00 a.m. ET today, Feb. 16, 2023
Charlotte, N.C. and Greenwich, Conn., Feb. 16, 2023 – Truist (NYSE: TFC) announced today that it has agreed to sell a 20% stake in Truist Insurance Holdings, Inc., a subsidiary of Truist and the sixth-largest insurance brokerage in the United States, to funds managed by Stone Point Capital, a leading private equity firm focused on the global financial services industry, for $1.95 billion. Mubadala Investment Company and other co-investors are participating in the investment with Stone Point. The transaction represents an aggregate value of $14.75 billion for Truist Insurance Holdings, including a common equity value of $9.75 billion and $5.0 billion of inter-company preferred equity issued by Truist Insurance Holdings to Truist. Upon closing of the investment, expected in Q2 2023, Truist will own 80% of Truist Insurance Holdings, which will continue to be an important contributor for Truist and its shareholders.
“We are excited for this collaboration with Stone Point, as the investment demonstrates the significant value of Truist Insurance Holdings and strategically positions it, and Truist, for long-term success,” said Truist Chairman and Chief Executive Officer Bill Rogers.
The transaction allows Truist to maintain strategic flexibility and future upside in Truist Insurance Holdings, which will continue to benefit from Truist’s operations, access to capital, and client relationships. Truist will also preserve and enhance its client service approach to offering leading insurance products to its banking clients. Moreover, Truist Insurance Holdings gains an experienced partner in Stone Point, which brings deep industry expertise to help accelerate Truist Insurance Holdings’ growth. Both Truist Insurance Holdings and Truist will benefit from Stone Point’s role as a strong capital partner enabling future growth opportunities.
“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.”
“Truist Insurance Holdings is a scaled, diversified U.S. retail and wholesale insurance distribution platform that has experienced strong growth both organically and through a disciplined acquisition strategy,” said Chuck Davis, CEO of Stone Point. “We have had a longstanding and mutually beneficial relationship with Truist for many years and we and our co-investors could not be more excited to partner with them, John, and the entire Truist Insurance Holdings team in its next phase of profitable growth.”
Transaction Details
Truist’s Board of Directors has approved the agreement to sell a 20% stake in Truist Insurance Holdings to funds managed by Stone Point, in partnership with Mubadala Investment Company and other co-investors, with the cash proceeds from the transaction received by Truist. Truist Insurance Holdings’ aggregate valuation of $14.75 billion
1
