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{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7} stake for $1.95 billion strategically positions Truist Insurance plan Holdings for lengthy-time period success and growth

Truist maintains consumer service technique, strategic flexibility, and long term upside in insurance plan business enterprise

Stone Position is a blue-chip lover with substantial encounter in financial providers

Truist to host investor contact at 9:00 a.m. ET currently, Feb. 16, 2023

CHARLOTTE, N.C. and GREENWICH, Conn., Feb. 16, 2023 /PRNewswire/ — Truist (NYSE: TFC) declared these days that it has agreed to offer a 20{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7} stake in Truist Insurance Holdings, Inc., a subsidiary of Truist and the sixth-major insurance policy brokerage in the United States, to money managed by Stone Level Capital, a foremost personal fairness business concentrated on the global economical products and services market, for $1.95 billion. Mubadala Financial commitment Corporation and other co-traders are collaborating in the expense with Stone Issue. The transaction represents an combination value of $14.75 billion for Truist Insurance policies Holdings, which includes a widespread fairness worth of $9.75 billion and $5. billion of inter-corporation preferred fairness issued by Truist Insurance policies Holdings to Truist. Upon closing of the financial investment, expected in Q2 2023, Truist will very own 80{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7} of Truist Coverage Holdings, which will go on to be an important contributor for Truist and its shareholders.

“We are thrilled for this collaboration with Stone Place, as the expense demonstrates the major value of Truist Insurance Holdings and strategically positions it, and Truist, for long-expression accomplishment,” explained Truist Chairman and Main Govt Officer Bill Rogers.

The transaction will allow Truist to sustain strategic flexibility and long run upside in Truist Insurance policy Holdings, which will continue on to benefit from Truist’s operations, entry to capital, and client interactions. Truist will also maintain and enhance its consumer company strategy to featuring main insurance products and solutions to its banking consumers. Also, Truist Insurance policy Holdings gains an professional companion in Stone Stage, which delivers deep industry abilities to aid accelerate Truist Insurance plan Holdings’ expansion. Both of those Truist Insurance policies Holdings and Truist will reward from Stone Point’s part as a solid money spouse enabling potential development opportunities.

“Present day announcement is a recognition of the success and quality of Truist Insurance plan Holdings’ models, the trusted relationships we’ve developed with consumers, and earlier mentioned all, the really hard do the job and relentless determination of our teammates,” explained Truist Insurance Holdings Chairman and CEO John Howard. “We work in an attractive, rising, and dynamic marketplace in which scale is vital to stay aggressive. With Stone Point’s business knowledge and role as a funds companion, we will be strategically positioned for extended-expression results and progress as we go on growing our portfolio and investing in ground breaking electronic solutions.”

“Truist Insurance policies Holdings is a scaled, diversified U.S. retail and wholesale coverage distribution system that has expert robust expansion both of those organically and as a result of a disciplined acquisition approach,” claimed Chuck Davis, CEO of Stone Position. “We have had a longstanding and mutually helpful romantic relationship with Truist for quite a few a long time and we and our co-investors could not be additional fired up to husband or wife with them, John, and the whole Truist Insurance policies Holdings crew in its next section of lucrative expansion.”

Transaction Information

Truist’s Board of Administrators has permitted the arrangement to market a 20{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7} stake in Truist Insurance Holdings to money managed by Stone Position, in partnership with Mubadala Expense Corporation and other co-investors, with the cash proceeds from the transaction received by Truist. Truist Insurance policy Holdings’ aggregate valuation of $14.75 billion signifies 17.2x 2022 altered EBITDA and 27.4x 2022 modified earnings. The transaction, which excludes Truist Insurance policy Holdings’ top quality finance small business, is envisioned to improve Truist’s consolidated CET1 ratio by 32 foundation factors and be 6{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7} accretive to tangible ebook worth for every share. Truist also expects the transaction to be about neutral to web cash flow available to common shareholders and earnings for each share, with the opportunity for increased progress as the produced funds is deployed in excess of time.

On closing of the transaction, which is matter to customary closing conditions and regulatory approvals, a five-particular person Board will be formed to oversee Truist Insurance Holdings, comprising four users appointed by Truist and one member appointed by Stone Level.

Truist Meeting Get in touch with

Truist will host a conference simply call to examine the transaction currently, February 16, 2023 at 9 a.m. ET.

Traders can access a live audio webcast of the conference get in touch with at 9 a.m. ET nowadays and look at the information launch and presentation products at ir.truist.com beneath “Functions & Shows.” The conference simply call can also be accessed by dialing 855-303-0072 and making use of passcode 400707. A replay of the connect with will be offered on the internet site for 30 times.

Advisors

Morgan Stanley & Co. LLC and Truist Securities are serving as financial advisors and Davis Polk & Wardwell LLP is serving as legal counsel to Truist and Truist Insurance coverage Holdings. Simpson Thacher & Bartlett LLP is serving as legal counsel to Stone Stage.

About Truist

Truist Financial Corporation is a purpose-driven money solutions enterprise dedicated to inspiring and developing far better lives and communities. Truist has foremost marketplace share in a lot of higher-expansion markets in the nation and gives a wide range of goods and companies by means of our retail and small organization banking, commercial banking, corporate and investment banking, insurance policy, prosperity management, and specialized lending organizations. Headquartered in Charlotte, North Carolina, Truist is a major 10 U.S. industrial financial institution with whole assets of $555 billion as of December 31, 2022. Truist Bank, Member FDIC. Master more at Truist.com.

About Truist Insurance policy Holdings

Truist Insurance policy Holdings, Inc., the sixth-largest insurance policies broker in the U.S. and seventh-greatest in the environment, is a subsidiary of Truist Money Company (NYSE: TFC). Headquartered in Charlotte, NC, Truist Insurance coverage Holdings operates additional than 250 places of work as a result of its Wholesale, Retail, and Insurance policies Solutions divisions. To find out extra, pay a visit to www.truistinsurance.com.

About Stone Issue

Stone Issue is an financial commitment company primarily based in Greenwich, CT, with in excess of $45 billion of assets under management. Stone Stage targets investments in organizations in the worldwide monetary solutions market and associated sectors. The organization invests in a range of option asset lessons, such as personal fairness as a result of its flagship Trident Funds. Stone Place also manages equally liquid and private credit resources and managed accounts. In addition, Stone Place Funds Markets supports our business, portfolio organizations and other consumers by delivering dedicated financing solutions. For additional info, you should pay a visit to https://www.stonepoint.com/.

About Mubadala Financial commitment Organization

Mubadala Investment decision Enterprise is a sovereign trader taking care of a global portfolio, aimed at producing sustainable economic returns for the Government of Abu Dhabi. Mubadala’s $284 billion portfolio spans six continents with interests in many sectors and asset classes. It leverages its deep sectoral know-how and very long-standing partnerships to push sustainable advancement and profit, when supporting the ongoing diversification and world wide integration of the financial system of the United Arab Emirates. For much more info about Mubadala Financial investment Company, be sure to stop by: www.mubadala.com

Cautionary Note Regarding Forward-Wanting Statements

This release incorporates “forward-searching statements” in just the that means of the Personal Securities Litigation Reform Act of 1995 concerning the monetary affliction, benefits of operations, company options and long term efficiency of Truist and TIH. Words and phrases this kind of as “anticipates,” “thinks,” “estimates,” “expects,” “forecasts,” “intends,” “ideas,” “projects,” “may possibly,” “will,” “need to,” “would,” “could” and other similar expressions are intended to discover these forward-on the lookout statements. Forward-searching statements are not based on historical facts but alternatively signify management’s expectations and assumptions regarding the firm’s enterprise, the financial state and other long term situations. Hence, these kinds of statements contain inherent uncertainties, hazards and alterations in instances that are complicated to forecast. As a final result, real results may perhaps differ materially from individuals contemplated by ahead-seeking statements. Whilst there can be no assurance that any listing of pitfalls and uncertainties is full, critical aspects that could trigger actual benefits to differ materially from people contemplated by forward-searching statements contain the pitfalls and uncertainties much more fully reviewed underneath Item 1A-Risk Elements in Truist’s most not too long ago filed Annual Report on Form 10-K and in Truist’s subsequent filings with the Securities and Trade Fee. Traders are cautioned not to spot undue reliance on these ahead-wanting statements, which communicate only as of the date they are manufactured. Besides to the extent expected by applicable legislation or regulation, Truist undertakes no obligation to revise or update any forward-looking statements.

Source Truist Economic Company