Truist Sells Insurance Unit for $15.5 Billion to Focus on Core Banking

The sale to private equity firms is part of a broader strategy to streamline operations and bolster capital efficiency.

Truist Financial sells its majority stake in Truist Insurance Holdings for $15.5 billion to a group led by private equity firms Stone Point Capital and Clayton, Dubilier & Rice.
The sale is part of Truist's strategy to streamline operations and enhance capital efficiency, aiming for a leaner, more efficient organization.
Proceeds from the sale are expected to significantly bolster Truist's capital, with $10.5 billion in after-tax cash proceeds and an increase in Common Equity Tier 1 capital by 230 basis points.
The deal, pending regulatory approval, is anticipated to close in the second quarter of 2024, marking a strategic shift for Truist towards strengthening its core banking business.
Truist plans to use the proceeds for various capital deployment options, including balance sheet repositioning and potentially resuming share repurchases, to offset the earnings impact from the sale of the insurance unit.