Truist selling insurance unit at a $15.5B valuation to private-equity firms

Truist Financial Corp.
TFC,
-0.63%
said Tuesday it agreed to sell its remaining stake in Truist Insurance Holdings to an investor group led by Stone Point Capital and Clayton, Dubilier & Rice in a deal that values the insurance business at $15.5 billion. The investor group, which includes Mubadala Investment Co., is buying the fifth-largest insurance brokerage in the U.S. from Truist. Truist said it will evaluate a “variety of capital deployment options” with the roughly $10 billion in cash proceeds from the deal, “including a potential balance sheet repositioning.” Prior to any deployment, Truist said the deal will dilute its earnings by 20 cents a share in 2024. The deal is expected to close during the second quarter. Truist stock was down by 0.3% in premarket trades.