Cleary Gottlieb represented a wholly owned subsidiary of Mubadala Investment Company PJSC (Mubadala), a sovereign wealth fund of the Emirate of Abu Dhabi, in its participation in a co-investment alongside funds managed by Stone Point Capital and other co-investors for the $1.95 billion acquisition of a 20% minority interest in Truist Insurance Holdings (Truist Insurance), the insurance brokerage unit of Truist Financial Corp. (Truist), a company listed on the New York Stock Exchange.
The purchase agreement for the acquisition of the 20% minority interest was signed on February 16, 2023, and the transaction is expected to close in the second quarter of 2023, following satisfaction of customary closing conditions and receipt of regulatory approvals. The all-cash transaction represents an implied enterprise value of $14.75 billion for Truist Insurance, with an implied value of $9.75 billion for the common stock, and $5 billion of inter-company preferred stock provided by Truist Insurance to Truist. Truist will maintain an 80% stake in Truist Insurance.
Founded in 1922, Truist Insurance is the sixth-largest U.S. insurance brokerage and seventh-largest in the world. The company offers consultative risk management services and nearly all types of coverage, including personal, small business, corporate, employee benefits, life, and health. In addition to its network of independent retail agencies, Truist Insurance is one of the largest insurance wholesalers in the United States. The company operates more than 250 offices through five complementary business subsidiaries: McGriff; CRC Insurance Services; Crump Life Insurance Services; AmRisc; and Premium Finance/AFCO.