Stone Point Capital, a private equity firm focused on investing in businesses within the global financial services industry, has bought a 20 percent stake in Truist Insurance Holdings Inc., a subsidiary of financial services company Truist, for $1.95 billion.
The transaction represents an aggregate value of $14.75 billion for Truist Insurance Holdings, including a common equity value of $9.75 billion and $5 billion of inter-company preferred equity issued by Truist Insurance Holdings to Truist. The transaction allows Truist to maintain strategic flexibility and future upside in Truist Insurance Holdings, which looks to benefit from Truist’s operations, access to capital and client relationships. Stone Point looks to help drive Truist Insurance Holdings’ growth. Mubadala Investment Co. and other co-investors are participating in the investment with Stone Point.
“With Stone Point’s industry expertise and role as a capital partner, we will be strategically positioned for long-term success and growth as we continue expanding our portfolio and investing in innovative digital solutions,” says John Howard, Truist Insurance Holdings chairman and CEO.
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 Holdings. Simpson Thacher & Bartlett LLP is serving as legal counsel to Stone Point.