US-based financial services provider Truist agreed to sell a 20% stake in Truist Insurance Holdings to funds managed by private equity firm Stone Point Capital.

The $1.95bn deal values Truist’s insurance subsidiary at $14.75bbn.

Together with Stone Point, additional investors such as Mubadala Investment Company are taking part in the investment.

According to Truist, the deal enables it to maintain strategic flexibility and potential growth in Truist Insurance Holdings, which is claimed to be a leading brokerage in the US.

Truist Insurance Holdings chairman and CEO John Howard said: “The announcement is a recognition of the success and quality of Truist Insurance Holdings’ brands, the trusted relationships we have developed with clients, and above all, the hard work and relentless commitment of our teammates.

“We operate in an attractive, growing, and dynamic industry in which scale is critical to remain competitive. With Stone Point’s industry expertise and role as a capital partner, we will be strategically positioned for long-term success and growth as we continue expanding our portfolio and investing in innovative digital solutions.”

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Truist will continue to hold 80% in the insurance broker.

Stone Point CEO Chuck Davis said: “Truist Insurance Holdings is a scaled, diversified U.S. retail and wholesale insurance distribution platform that has experienced strong growth both organically and through a disciplined acquisition strategy.

“We have had a longstanding and mutually beneficial relationship with Truist for many years and we and our co-investors could not be more excited to partner with them, John, and the entire Truist Insurance Holdings team in its next phase of profitable growth.”

Under the terms of the agreement, a five-person board will be formed to manage Truist Insurance Holdings following the deal, which is subject to closing conditions and regulatory approval.

The board will be made up of four members chosen by Truist and one selected by Stone Point.