US-based bank Truist is holding discussions to divest its insurance brokerage Truist Insurance Holdings to Stone Point Capital for approximately $10bn, Semafor has reported.

In April this year, funds managed by Stone Point Capital acquired a 20% stake in Truist Insurance for $1.95bn. 

Following the minority stake divestment, Truist currently owns a 80% stake in the insurance brokerage.

Stone Point is now devising plans for acquiring the rest of the stakes, the news publication noted, citing sources.

In June this year, the US Federal Reserve Board conducted an annual bank stress test, in which Truist was among the banks with a weak stressed capital level.

The publication noted the prospective offloading could be an early effect of new, stricter regulations intended to avert another round of bank failures.

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By GlobalData

Sources said talks are under way and an announcement on the deal might depend on the potential of Stone Point to raise substantial funding in a market that is wary of buyout loans.

Truist’s representative declined to comment on the report while comment requests were not answered by Stone Point.

Truist Insurance Holdings is reputedly the sixth-largest insurance broker in the US and the seventh globally. 

It has more than 250 offices managing wholesale, retail and insurance services segments of the company.