Mubadala and Partners Acquire 20% Stake in Truist for Nearly $2 Billion

Abu Dhabi’s sovereign investment company, Mubadala Investment Company, has collaborated with Stone Point Capital and other investors to buy a 20 per cent stake in Truist Insurance Holdings, a subsidiary of Truist Financial Corporation, for $1.95 billion. According to Mubadala, the acquisition values the sixth-largest insurance broker in the US at $14.75 billion, with a $9.75 billion common equity value and a $5 billion inter-company preferred equity issued by Truist Insurance Holdings to Truist. After the deal closes in the second quarter of 2023, Truist Insurance Holdings will retain 80% of the company, while Mubadala and Stone Point take on the remaining 20%.

Mubadala’s head of financial services, Luca Molinari, described the acquisition as a significant move, stating that “Truist Insurance Holdings is a very attractive business with a leadership position in US insurance distribution, and has generated a consistently strong financial performance.” With this partnership, Mubadala has joined forces with Stone Point, Truist, and the management team of Truist Insurance Holdings, with the intention of boosting the company’s growth trajectory.

Truist Insurance Holdings is headquartered in Charlotte, North Carolina, and is one of the largest insurance brokers in the United States, with a broad range of customers, including individuals and small businesses. The company specializes in providing tailored insurance solutions, including risk management, employee benefits, and property and casualty insurance, among others. With this equity investment, Truist Insurance Holdings will gain access to Mubadala’s extensive network of partnerships and Stone Point Capital’s deep industry expertise, positioning the company for future growth.

In conclusion, the acquisition of Truist Insurance Holdings by Mubadala and Stone Point Capital represents a major move for the insurance sector in the United States. Moving forward, Truist Insurance Holdings is expected to benefit from Mubadala’s extensive global network, further expanding its footprint in the US insurance market.