Truist Insurance Holdings posts higher Q4 revenue, lower profit
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Truist Insurance Holdings Inc., the insurance brokerage unit of Truist Financial Corp., Thursday posted fourth-quarter revenue of $851 million, up $59 million, or 7.4%, from the year-earlier period.
Revenue was up 7.3% on an organic basis. That compared with 6.3% in the third quarter and 5.6% in the fourth quarter of 2022.
Interest income totaled $21 million, off $4 million, or 6.25%, from the third quarter and $21 million, or 100%, from the year-earlier period.
The brokerage unit reported net income of $1 million for the quarter, down 94% from $17 million in the third quarter and 99% from $107 million in the year-earlier period.
Non-interest expenses swelled to $743 million, from $701 million in the third quarter and $662 million in the fourth quarter of 2022.
Truist said in its conference call with analysts Thursday that property/casualty premium rate increases remained relatively consistent with prior quarters and the brokerage continues to see growth in exposure units and in the value of exposure units due to inflation.
On April 3, Truist closed the sale of 20% of its insurance brokerage unit to private-equity firm Stone Point Capital LLC for $1.95 billion, valuing the unit at $14.75 billion.
Truist Financial Chairman and CEO Bill Rogers, during the question and answer session of the conference call, said Truist Insurance Holdings presents “a capital opportunity to us” and that the bank is “always evaluating alternatives.
Earlier, during the presentation portion of the call, Chief Financial Officer Mike Maguire said Truist Financial “continues to evaluate our strategic options for TIH (Truist Insurance Holdings).”
