Truist Insurance Holdings posts 9.1% organic revenue growth
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Truist Insurance Holdings Inc., the insurance brokerage of Truist Financial Corp., Thursday posted second-quarter revenue of $963 million and organic growth of 9.1%, up from 4.7% in the first quarter and 7.7% in last year’s second quarter, as its bank parent reported quarterly results.
Total segment revenue growth of 16% over the first quarter was driven by strong organic growth and the September 2022 acquisition of Dallas-based BenefitMall, a wholesale employee benefits broker, which added approximately $150 million in annual revenue to the brokerage’s wholesale division, Truist said in its earnings presentation.
The brokerage unit recorded second-quarter net income of $155 million, down from $178 million in the prior-year period.
Gains in organic growth were driven by higher property/casualty renewal premium due to rate and exposure increases while new business generation was up 27.6% over the second quarter of 2022.
Net acquired revenue totaled $41 million for the quarter.
Property/casualty premium rate increases remained relatively consistent compared with prior quarters while market factors such as inflation, rising reinsurance rates and natural catastrophes continue to challenge the industry, Truist said.
On April 3, Truist closed the sale of 20% of its insurance unit to private-equity firm Stone Point Capital LLC for $1.95 billion, valuing the unit at $14.75 billion.
