Truist
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It acquired wholesaler ARC Excess & Surplus, confirming an earlier report from this publication. -
Insurance Insider US spoke with the incoming CEO to discuss the future of TIH.
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The mid-market unit has been a home run but will now face the fresh test of integrating a $1.3bn revenue business.
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With the disposal, TIH would amass a robust war chest for a looming MGA consolidation arms race.
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Sources said that the business will be marketed off adjusted Ebitda of ~$500mn, including a title broking asset.
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The broker has seen an “outpouring of interest” from talent looking to join since the Truist exit.
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State National has been lined up to front for the vehicle, which would be a rare example of third-party capital in this space.
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The firm will no longer have to compete with one hand tied behind its back.
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The $15.5bn price tag equates to around 18x the company’s 2023 core Ebitda.
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The Insurance Insider US news team runs you through the earnings results for the day.
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The oversubscription may signal additional capacity waiting on the sidelines.
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The announcement confirms earlier reports from this publication.
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Sources said the deal was roughly three times over-subscribed as cat becomes hot.
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He will assume the role of office president in mid-2025.
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Sources said Stone Point and CD&R will each have stakes of around 35%.
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The firm will have more flexibility around talent compensation and M&A activity.
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TIH CEO John Howard said the deal positions TIH for continued growth.
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Work is underway to line up a supporting debt raise that could be ~$7bn.
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The executives were speaking after Truist reported Q4 organic growth of 7.3%, accelerating from 6.3% in Q3 and 5.6% in Q4 a year earlier.
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The bank’s representatives have started reaching out to other potential interested parties.
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He most recently served as the Truist-owned broker’s national director of P&C.
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The broking firm promoted Rachael Yelverton to director of strategic projects while Jeremy McCaslin was named chief innovation officer.
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Truist appointed Neil Kessler to lead the wholesale division as CEO, while Bill Goldstein will become CEO of the underwriting unit.
