Truist publicizes settlement to promote minority stake in Truist Insurance coverage Holdings to Stone Level Capital, valuing the enterprise at $14.75 billion

Sale of 20% stake for $1.95 billion strategically positions Truist Insurance coverage Holdings for long-term success and progress

Truist maintains shopper service method, strategic flexibility, and future upside in insurance coverage enterprise

Stone Level is a blue-chip accomplice with in depth expertise in monetary companies

Truist to host investor name at 9:00 a.m. ET immediately, Feb. 16, 2023

CHARLOTTE, N.C. and GREENWICH, Conn., Feb. 16, 2023 /PRNewswire/ — Truist (NYSE: TFC) introduced immediately that it has agreed to promote a 20% stake in Truist Insurance coverage Holdings, Inc., a subsidiary of Truist and the sixth-largest insurance coverage brokerage in the USA, to funds managed by Stone Level Capital, a number one personal fairness agency centered on the worldwide monetary companies business, for $1.95 billion. Mubadala Funding Firm and different co-investors are taking part within the funding with Stone Level. The transaction represents an mixture worth of $14.75 billion for Truist Insurance coverage Holdings, together with a typical fairness worth of $9.75 billion and $5.0 billion of inter-company most popular fairness issued by Truist Insurance coverage Holdings to Truist. Upon closing of the funding, anticipated in Q2 2023, Truist will personal 80% of Truist Insurance coverage Holdings, which can proceed to be an vital contributor for Truist and its shareholders.

“We’re excited for this collaboration with Stone Level, because the funding demonstrates the numerous worth of Truist Insurance coverage Holdings and strategically positions it, and Truist, for long-term success,” mentioned Truist Chairman and Chief Govt Officer Invoice Rogers.

The transaction permits Truist to keep up strategic flexibility and future upside in Truist Insurance coverage Holdings, which can proceed to learn from Truist’s operations, entry to capital, and shopper relationships. Truist can even protect and improve its shopper service method to providing main insurance coverage merchandise to its banking shoppers. Furthermore, Truist Insurance coverage Holdings positive factors an skilled accomplice in Stone Level, which brings deep business experience to assist speed up Truist Insurance coverage Holdings’ progress. Each Truist Insurance coverage Holdings and Truist will profit from Stone Level’s position as a robust capital accomplice enabling future progress alternatives.

“At present’s announcement is a recognition of the success and high quality of Truist Insurance coverage Holdings’ manufacturers, the trusted relationships we have developed with shoppers, and above all, the exhausting work and relentless dedication of our teammates,” mentioned Truist Insurance coverage Holdings Chairman and CEO John Howard. “We function in a gorgeous, rising, and dynamic business during which scale is crucial to stay aggressive. With Stone Level’s business experience and position as a capital accomplice, we can be strategically positioned for long-term success and progress as we proceed increasing our portfolio and investing in progressive digital options.”

“Truist Insurance coverage Holdings is a scaled, diversified U.S. retail and wholesale insurance coverage distribution platform that has skilled sturdy progress each organically and thru a disciplined acquisition technique,” mentioned Chuck Davis, CEO of Stone Level. “We’ve had a longstanding and mutually helpful relationship with Truist for a few years and we and our co-investors couldn’t be extra excited to accomplice with them, John, and the whole Truist Insurance coverage Holdings crew in its subsequent section of worthwhile progress.”

Transaction Particulars

Truist’s Board of Administrators has accredited the settlement to promote a 20% stake in Truist Insurance coverage Holdings to funds managed by Stone Level, in partnership with Mubadala Funding Firm and different co-investors, with the money proceeds from the transaction obtained by Truist. Truist Insurance coverage Holdings’ mixture valuation of $14.75 billion represents 17.2x 2022 adjusted EBITDA and 27.4x 2022 adjusted earnings. The transaction, which excludes Truist Insurance coverage Holdings’ premium finance enterprise, is anticipated to extend Truist’s consolidated CET1 ratio by 32 foundation factors and be 6% accretive to tangible ebook worth per share. Truist additionally expects the transaction to be roughly impartial to web earnings obtainable to frequent shareholders and earnings per share, with the potential for enhanced progress because the generated capital is deployed over time.

Upon closing of the transaction, which is topic to customary closing circumstances and regulatory approvals, a five-person Board can be shaped to supervise Truist Insurance coverage Holdings, comprising 4 members appointed by Truist and one member appointed by Stone Level.

Truist Convention Name

Truist will host a convention name to debate the transaction immediately, February 16, 2023 at 9 a.m. ET.

Buyers can entry a stay audio webcast of the convention name at 9 a.m. ET immediately and examine the information launch and presentation supplies at ir.truist.com underneath “Occasions & Displays.” The convention name will also be accessed by dialing 855-303-0072 and utilizing passcode 400707. A replay of the decision can be obtainable on the web site for 30 days.

Advisors

Morgan Stanley & Co. LLC and Truist Securities are serving as monetary advisors and Davis Polk & Wardwell LLP is serving as authorized counsel to Truist and Truist Insurance coverage Holdings. Simpson Thacher & Bartlett LLP is serving as authorized counsel to Stone Level.

About Truist

Truist Monetary Company is a purpose-driven monetary companies firm dedicated to inspiring and constructing higher lives and communities. Truist has main market share in lots of high-growth markets within the nation and presents a variety of services and products by our retail and small enterprise banking, business banking, company and funding banking, insurance coverage, wealth administration, and specialised lending companies. Headquartered in Charlotte, North Carolina, Truist is a prime 10 U.S. business financial institution with complete belongings of $555 billion as of December 31, 2022. Truist Financial institution, Member FDIC. Study extra at Truist.com.

About Truist Insurance coverage Holdings

Truist Insurance coverage Holdings, Inc., the sixth-largest insurance coverage dealer within the U.S. and seventh-largest on this planet, is a subsidiary of Truist Monetary Company (NYSE: TFC). Headquartered in Charlotte, NC, Truist Insurance coverage Holdings operates greater than 250 workplaces by its Wholesale, Retail, and Insurance coverage Companies divisions. To study extra, go to www.truistinsurance.com.

About Stone Level

Stone Level is an funding agency based mostly in Greenwich, CT, with over $45 billion of belongings underneath administration. Stone Level targets investments in corporations within the international monetary companies business and associated sectors. The agency invests in a lot of different asset courses, together with personal fairness by its flagship Trident Funds. Stone Level additionally manages each liquid and personal credit score funds and managed accounts. As well as, Stone Level Capital Markets helps our agency, portfolio corporations and different shoppers by offering devoted financing options. For extra info, please go to https://www.stonepoint.com/.

About Mubadala Funding Firm

Mubadala Funding Firm is a sovereign investor managing a world portfolio, geared toward producing sustainable monetary returns for the Authorities of Abu Dhabi. Mubadala’s $284 billion portfolio spans six continents with pursuits in a number of sectors and asset courses. It leverages its deep sectoral experience and long-standing partnerships to drive sustainable progress and revenue, whereas supporting the continued diversification and international integration of the financial system of the United Arab Emirates. For extra details about Mubadala Funding Firm, please go to: www.mubadala.com

Cautionary Notice Concerning Ahead-Trying Statements

This launch incorporates “forward-looking statements” throughout the which means of the Personal Securities Litigation Reform Act of 1995 concerning the monetary situation, outcomes of operations, enterprise plans and future efficiency of Truist and TIH. Phrases comparable to “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “initiatives,” “might,” “will,” “ought to,” “would,” “may” and different related expressions are supposed to establish these forward-looking statements. Ahead-looking statements aren’t based mostly on historic info however as an alternative signify administration’s expectations and assumptions concerning the corporate’s enterprise, the financial system and different future circumstances. Subsequently, such statements contain inherent uncertainties, dangers and adjustments in circumstances which can be tough to foretell. Consequently, precise outcomes might differ materially from these contemplated by forward-looking statements. Whereas there will be no assurance that any record of dangers and uncertainties is full, vital elements that might trigger precise outcomes to vary materially from these contemplated by forward-looking statements embrace the dangers and uncertainties extra totally mentioned underneath Merchandise 1A-Danger Elements in Truist’s most just lately filed Annual Report on Kind 10-Ok and in Truist’s subsequent filings with the Securities and Alternate Fee. Buyers are cautioned to not place undue reliance on these forward-looking statements, which converse solely as of the date they’re made. Besides to the extent required by relevant regulation or regulation, Truist undertakes no obligation to revise or replace any forward-looking statements.

SOURCE Truist Monetary Company