Truist completes sale of Truist Insurance Holdings
Truist Financial Corporation has completed the previously announced sale of its remaining stake in Truist Insurance Holdings, a subsidiary of Truist and the fifth largest insurance brokerage in the US, to an investor group led by private equity firms Stone Point Capital and Clayton, Dubilier & Rice. Mubadala Investment Company and other co-investors also participated in the investment.
The all-cash transaction values TIH at an implied enterprise value of $15.5 billion. Additionally, the company’s leaders and producers were given the opportunity to co-invest in TIH resulting in over 1,500 employee equity participants in the new stand-alone TIH.
With the closing of this transaction, TIH has established a best-in-class board of directors comprised of top insurance industry talent, who will set the company’s strategic direction and provide guidance to the leadership team. Dan Glaser, former CEO of Marsh McLennan and Operating Partner at CD&R, has been named Chairman. Richard R. Whitt, former Co-CEO of Markel Group, Julio Portalatin, former CEO of Mercer, and Ross Buchmueller, Former CEO of PURE Insurance, will serve as independent directors.
As part of its move to a standalone organization, the company will rebrand as its former abbreviation—TIH. The new, simplified name builds on the company’s past but positions it for the future with a brand that is clear and streamlined, reflecting the increased nimbleness and agility it gains from being an independent operation.
“Today’s announcement is a testament to our strategy, the value of our insurance business, and the strength and dedication of our teammates. Our investors provide us with a significant opportunity to expand our operations in an industry where scale is critical to remain competitive. With their backing, we will explore new avenues of growth and strengthen our overall operating strategy built around our diversified portfolio of top-performing businesses, each of which will continue to operate in the marketplace under its current brand name.” – TIH Chief Executive Officer John Howard.
“TIH has built a strong reputation in the brokerage marketplace through our wide-ranging portfolio of businesses. That reputation has been validated by the fact that both our debt and equity offerings were significantly oversubscribed. Having our own teammates investing in TIH, while retaining all our key talent, indicates a level of go-forward stability that bodes well for our future success.” – TIH President Dave Obenauer.
“We are thrilled to complete the purchase of TIH and enter the next phase of growth for the business as it becomes a fully independent company. Truist has built a valuable company, and we appreciate the partnership to reach this important milestone. We look forward to working closely with John and Dave and our TIH colleagues and now fellow shareholders to continue to build TIH.” – Chuck Davis, Co-CEO of Stone Point.
