Stone Point Capital and CD&R Acquire Truist's Insurance Business

Stone Point Capital and CD&R Acquire Truist's Insurance Business

Private equity news the week of February 19th, 2024.


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Deal News

Stone Point Capital and Clayton, Dubilier & Rice have agreed to acquire Truist’s insurance business, Truist Insurance Holdings, at a valuation of $15.5 billion. The acquisition price is 18 times EBITDA in 2023. Stone Point had previously acquired a minority stake in the business last year at a valuation of $14.8 billion. 

Truist Insurance Holdings is the sixth-largest insurance brokerage in the world. That said, it only accounts for 7% of Truist’s total net income, with the rest coming from consumer and corporate banking. Exiting the insurance business will help Truist successfully pass Federal Reserve stress tests – which have been imposing higher capital requirements on regional banks. 

Stone Point manages $45 billion in AUM and has made a name for itself acquiring non-core divisions of financial firms. Last year, the firm acquired TIAA’s bank, now called EverBank. Truist’s insurance business, which has 25% margins and steady fee-based revenues, fits the profile of a Stone Point buyout. (Source)

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