Mubadala Investment Company has agreed with private equity firm Stone Point Capital to acquire a minority stake in US-based insurer Truist Insurance Holdings for $1.95 billion, along with other investors, the Abu Dhabi-based sovereign wealth fund announced Tuesday.
The 20% stake acquisition of Mubadala and its co-investors would give Truist Insurance Holdings, a unit of New York-listed Truist Financial Corporation, an aggregate valuation of $14.75 billion.
Truist Insurance will hold the remaining 80% stake upon completion of the stake purchase, expected in the second quarter of the year.
The investment would support Truist Insurance to accelerate its growth trajectory, said Luca Molinari, head of Financial Services at Mubadala, in a statement.
Truist Insurance is the US’ sixth-largest insurance broker headquartered in Charlotte, North Carolina, according to Mubadala.
The Abu Dhabi-based sovereign wealth fund has been boosting its local and global investments in recent years to contribute to the UAE’s economic diversification plans.
In January, Mubadala acquired US-based Dental Care Alliance (DCA), alongside funds managed by private equity firm Harvest Partners, for an undisclosed amount. In the same month, it also partnered with Alpha Dhabi Holding to create a joint venture that will tap into private credit opportunities and deploy $2.5 billion (AED 9 billion) worth of investment over the next five years.
In the Gulf, the sovereign investor announced a $3 billion cooperation agreement with Oman and the UAE’s Etihad Rail Company to develop a 303-kilometer railway network that will connect the two Gulf nations.
