Truist dips after deal to sell remaining stake in insurance brokerage business

Tohokushinsha Film

20/02/2024 15:01

** Shares of lender Truist Financial  TFC.N  fall as much as
1.8% in morning trade, last down 0.5% at $35.93
    ** TFC agrees to sell remaining stake in Truist Insurance
Holdings (TIH) to an investor group led by PE firms Stone Point
Capital and Clayton, Dubilier & Rice
    ** All-cash deal values insurance brokerage business at
$15.5 bln, including debt
    ** Sale expected to increase TFC's CET1 capital ratio - a
measure of bank's core liquid capital - by 230 basis points
    ** The deal which is expected to close in second quarter,
gives TFC flexibility to invest in its core banking franchise
    ** Last year, TFC sold a 20% stake in its insurance
brokerage unit to Stone Point 

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))