Truist $1.95 billion sale of a stake in Truist Insurance to Stone Point Capital
We are advising Truist as the seller on this transaction
Davis Polk is advising Truist Financial Corporation on the $1.95 billion sale of a 20% minority stake in Truist Insurance Holdings, Inc., a subsidiary of Truist, to Stone Point Capital LLC. The transaction represents an implied enterprise value of $14.75 billion for Truist Insurance Holdings, with an implied equity value of $9.75 billion and $5 billion of inter-company preferred stock provided by Truist Insurance Holdings to Truist. Upon closing of the investment, which is expected in the second quarter of 2023 and is subject to customary closing conditions and regulatory approvals, Truist will own 80% of Truist Insurance Holdings and a five-person board of directors will be formed to oversee Truist Insurance Holdings, comprising four members appointed by Truist and one member appointed by Stone Point.
Truist, a purpose-drive financial services company, has leading market share in many high-growth markets in the country and offers a wide range of products and services through its retail and small business banking, commercial banking, corporate and investment banking, insurance, wealth management and specialized lending businesses. Headquartered in Charlotte, North Carolina, Truist is a top 10 U.S. commercial bank with total assets of $555 billion as of December 31, 2022.
Truist Insurance Holdings is the sixth-largest U.S. insurance brokerage and seventh-largest in the world, with a scaled and diversified platform across its wholesale and retail insurance divisions.
Stone Point is a financial services-focused private equity firm based in Greenwich, Connecticut, with over $45 billion of assets under management. Stone Point invests in a number of alternative asset classes, including private equity through its flagship Trident Funds. Stone Point will be joined in the investment by Abu Dhabi’s Mubadala Investment Company and other co-investors.
The Davis Polk financial institutions M&A team includes partners Margaret E. Tahyar, H. Oliver Smith and Evan Rosen and associates Caitlin Hutchinson Maddox and Malik M. Khalil. Partner Adam Kaminsky and counsel Kevin A. Brown are providing executive compensation advice. Partner William A. Curran and associate Danielle Rapaccioli are providing tax advice. Partner James A. Florack and counsel Darren Mahone are providing finance advice. Members of the Davis Polk team are based in the New York and Washington DC offices.