Truist
-
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.
-
The mid-market unit has been a home run but will now face the fresh test of integrating a $1.3bn revenue business.
-
With the disposal, TIH would amass a robust war chest for a looming MGA consolidation arms race.
-
Sources said that the business will be marketed off adjusted Ebitda of ~$500mn, including a title broking asset.
-
The broker has seen an “outpouring of interest” from talent looking to join since the Truist exit.
-
State National has been lined up to front for the vehicle, which would be a rare example of third-party capital in this space.
-
The firm will no longer have to compete with one hand tied behind its back.
-
-
The $15.5bn price tag equates to around 18x the company’s 2023 core Ebitda.
-
The Insurance Insider US news team runs you through the earnings results for the day.
-
The oversubscription may signal additional capacity waiting on the sidelines.
-
The announcement confirms earlier reports from this publication.
-
Sources said the deal was roughly three times over-subscribed as cat becomes hot.
-
He will assume the role of office president in mid-2025.
-
Sources said Stone Point and CD&R will each have stakes of around 35%.
-
The firm will have more flexibility around talent compensation and M&A activity.
-
TIH CEO John Howard said the deal positions TIH for continued growth.
-
Work is underway to line up a supporting debt raise that could be ~$7bn.
-
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.
-
The bank’s representatives have started reaching out to other potential interested parties.
-
He most recently served as the Truist-owned broker’s national director of P&C.
-
The broking firm promoted Rachael Yelverton to director of strategic projects while Jeremy McCaslin was named chief innovation officer.
-
Truist appointed Neil Kessler to lead the wholesale division as CEO, while Bill Goldstein will become CEO of the underwriting unit.
-
The Inside P&C news team runs you through the earnings results for the day.
-
The executive declined to comment on Truist Insurance sale reports but said the firm is constantly assessing all its options.
-
Inside P&C has independently confirmed that the bank is working on a full sale of its insurance operation amid a challenging banking environment.
-
The private equity house already owns 20% of Truist’s insurance business following a deal earlier this year.
-
Inside P&C’s news team runs you through the key highlights of the week.
-
In a recent report titled “TFC: Primed for activist”, Wells Fargo notes investor discontent and lists pressing issues to be addressed at Truist.
-
The firm’s interim CEO Ami Barlev has argued that, with Vesttoo’s weekly expenses being $360,000, freezing assets above $1m would be “catastrophic for the company”.
-
The Inside P&C news team runs you through the earnings results for the day.
-
John Howard, CEO and chairman of Truist Insurance Holdings, noted that the response to its minority sale to Stone Point had been “very positive”.
-
Organic growth fell 90 basis points from 5.6% in Q4 2022 due to carrier capacity constraints and slower growth in wholesale.
-
The sale represents an aggregate value of $14.75bn and increases Truist's common equity Tier 1 ratio by approximately 30 basis points.
-
Inside P&C’s news team runs you through the key highlights of the week.
