Truist Insurance Holdings profit falls
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Truist Insurance Holdings Inc., the insurance brokerage unit of Truist Financial Corp., Monday posted first-quarter net income of $67 million, down 36.2% from $105 million in the year-earlier period.
Net income was also off sequentially, down 33.7% from $101 million in the fourth quarter of 2023.
Truist Financial has moved results from its insurance unit to “discontinued operations” and restated previous earnings in anticipation of the closing of the sale of its remaining 80% stake in the brokerage.
Truist Financial announced in February that it had agreed to sell that stake to Stone Point Capital LLC and other investors
Truist Financial Chairman and CEO Bill Rogers said the sale of the insurance unit “will significantly strengthen our relative capital position, which will create substantial capacity for growth in our core banking businesses,” while discussing first-quarter results during a Monday morning conference call with analysts.
Mr. Rogers said the sale is on track to close in the current quarter.
Analysts have speculated the sale could become a catalyst for further consolidation among the leading ranks of the brokerage industry.
