By Andrei Skvarsky.
Mubadala, an Emirati state-owned investment company, has struck a deal with U.S. private equity firm Stone Point Capital and other investors to jointly buy a $1.95bn 20 per cent stake in Truist Insurance Holdings, the world’s seventh-largest insurance broker.
Truist Insurance Holdings is valued at $14.75bn by its parent company, investment bank Truist Financial Corp.
The deal, in which Truist Financial is going to retain ownership of the remaining 80 per cent stake in the brokerage, is expected to be closed in the second quarter of 2023, Mubadala said in a statement.
Reuters said Truist Financial’s profit had dropped in the year before the deal as the bank set aside more money for rainy-day funds to take care of potential delays with loan payments by borrowers because of rising inflation and borrowing costs.
Both Truist Financial and Truist Insurance Holdings are headquartered in Charlotte, North Carolina.
Truist Insurance Holdings is the sixth-largest insurance brokerage in the United States.
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