Truist To Sell Insurance Business For $10 Billion

According to persons familiar with the situation, Truist Financial is in talks to sell its insurance brokerage subsidiary to private equity firm Stone Point for around $10 billion.

The conversations illustrate the enduring effects of this year’s banking crisis, which is still reshaping the industrial environment.

A comprehensive revision of capital regulations proposed by US regulators in the aftermath of the crisis is causing banks to prioritize their core businesses and driving a retreat from secondary projects.

Truist’s stock rose 7.3% to $29.42 on Tuesday, putting it on track for its greatest intraday percentage gain since early May if present levels hold.

Stone Point purchased a 20% share in Truist Insurance Holdings in April in a transaction valued at $14.75 billion.

Truist stated that it would retain 80% ownership of the unit when the purchase was announced in February, before to the industry turbulence.

According to the Semafor report, the talks are still ongoing, and a settlement may be contingent on Stone Point’s ability to raise sufficient debt.

While the mergers and acquisitions market is gradually improving, buyout loans remain a source of concern as lenders wait for stronger signs of a revival in dealmaking before financing corporate purchases.

Truist Financial did not react to Reuters’ request for comment on the Semafor study, while Truist Insurance and Stone Point did not respond.

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