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Mubadala Investment Co., Abu Dhabi’s sovereign investor, has partnered with primary investors and private equity firms, including Stone Point Capital and Clayton and Dubilier & Ross, to purchase the remaining stake in an insurance brokerage business from US-based Truist Financial Corporation.
This investment follows Mubadala’s purchase in 2023 of a 20% stake in Truist Insurance Holdings (TIH), alongside Stone Point Capital and other co-investors, for $1.95 billion, the sovereign investor said in a statement on Thursday.
The all-cash transaction values TIH at $15.5 billion, or approximately 18x TIH's 2023 core EBITDA.
The transaction is expected to be completed during the second quarter of 2024, subject to certain regulatory reviews and approvals and the satisfaction of other customary closing conditions.
Based in Charlotte, North Carolina, Truist Insurance Holdings is the fifth largest insurance broker in the United States and operates more than 200 offices through its portfolio of wholesale, retail, and insurance services businesses.
Its parent Truist is the seventh largest bank in the US with more than $535 billion in assets. It reported a loss in the fourth quarter, hurt by a raft of one-time charges tied to regulatory and restructuring activities, and a fall in net interest income, according to Reuters.
(Writing by Brinda Darasha; editing by Seban Scaria)
