Truist Monetary Company (Truist) has accomplished the sale of its US insurance coverage brokerage arm, Truist Insurance coverage Holdings (TIH), to a consortium led by Stone Level Capital and Clayton, Dubilier & Rice (CD&R).
The all-cash deal, which was first introduced in February, locations the enterprise worth of TIH at $15.5bn.
Upon closing, Truist acquired after-tax money proceeds of roughly $10.1bn.
The investor group additionally consists of Mubadala Funding Firm and different co-investors.
TIH mentioned the transfer has allowed greater than 1,500 Truist leaders and producers to co-invest within the now stand-alone insurance coverage dealer.
With the completion of the transaction, TIH has shaped a brand new board of administrators.
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Dan Glaser, former CEO of Marsh McLennan and working companion at CD&R, has been appointed as chairman.
Becoming a member of Glaser as impartial administrators are Richard Whitt, former co-CEO of Markel Group; Julio Portalatin, former CEO of Mercer; and Ross Buchmueller, former CEO of PURE Insurance coverage.
Truist chairman and CEO Invoice Rogers mentioned: “The sale of TIH considerably enhances Truist’s monetary profile and positions Truist to put money into and develop its core banking companies.”
TIH CEO John Howard mentioned: “Our buyers present us with a big alternative to increase our operations in an business the place scale is vital to stay aggressive.
“With their backing, we’ll discover new avenues of development and strengthen our total working technique constructed round our diversified portfolio of top-performing companies, every of which is able to proceed to function within the market below its present model title.”
According to its transition to an impartial entity, the corporate will even reintroduce its earlier abbreviation – TIH.
In April 2023, Stone Level Capital acquired a 20% curiosity in TIH for $1.95bn, which valued the insurance coverage firm at roughly $14.75bn.
