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Mubadala, Stone Point Capital deal on minority stake in Truist Insurance Holdings

The UAE investment firm will own 20 per cent stake for $1.95 billion positions Truist Insurance Holdings for long-term success and growth

Mubadala Investment Company on Tuesday announced that it partnered with primary investor Stone Point Capital, a leading private equity firm focused on the global financial services industry, alongside other co-investors, to purchase a 20 per cent stake for $1.95 billion in Truist Insurance Holdings, a subsidiary of Truist Financial Corporation.

In a statement, the Abu Dhabi based investment company, said the deal is expected to conclude in second quarter of 2023.

Based in Charlotte, North Carolina, Truist Insurance Holdings is the sixth-largest insurance broker in the US and operates more than 240 offices through its subsidiaries.

The transaction represents an aggregate value of $14.75 billion for Truist Insurance Holdings. Upon closing of the investment, expected in second quarter of 2023, Truist will own 80 per cent of Truist Insurance Holdings, which will continue to be an important contributor for Truist and its shareholders.

“Truist Insurance Holdings is a very attractive business with a leadership position in US insurance distribution, and has generated a consistently strong financial performance,” said Luca Molinari, head of Financial Services at Mubadala.

“We are excited to partner with Stone Point, Truist and the management team of Truist Insurance Holdings to enable the business to accelerate in its growth trajectory.”

Mubadala Investment Company, which has $284 billion portfolio spans six continents with interests in multiple sectors and asset classes, is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for the government of Abu Dhabi.

— muzaffarrizvi@khaleejtimes.com