Trust expects more M&A opportunities in insurance industry

Having made 11 acquisitions in the insurance business since 2019, Truist Financial is looking for more such deals.

The insurance brokerage industry is in the midst of massive consolidation and expects that trend to continue, the company’s chief insurance officer John Howard said Friday, which presents an opportunity for Truist. .

“I think we’ll see some compelling elements that will help fill in the blanks,” Howard said at a bank meeting. “Whether it brings additional features or geographic reach that are beneficial to us”.

Recent insurance-related acquisitions of Truist Financial include the September purchase of a premium finance company from Texas Capital Bancshares.

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Based in Charlotte, North Carolina, Truist has a significant footprint in the insurance business and is unique in the US banking industry. Truist Insurance Holdings is his sixth-largest insurance broker in the United States, providing 9% of the company’s net profits, 14% of its revenues and 34% of its commission income, Truist said Friday.

So far this year, Truist’s insurance division has announced three acquisitions. Acquisition of a national luxury financial company from Texas Capital Bancshares.

Truist, a $548 billion company that grew from the 2019 merger of BB&T and SunTrust Banks, faces pressure from investors to increase revenue and improve efficiency. Total revenue in the third quarter increased he 4.4% from the same period last year, while net income available to common shareholders fell 5%.

After completing the merger of BB&T and SunTrust earlier this year, Truist executives said Friday that the company is now more focused on its customers.

“I think we’re starting to see results,” Chief Financial Officer Mike Maguire said in remarks at the Boston Bank Analysts Association conference. “The pipeline is building. We are seeing productivity gains.”

Truist also said it sees opportunities to sell insurance to more customers.

“We have millions of retail customers and hundreds of thousands of commercial, midmarket and corporate customers and we can play a role in helping them secure insurance coverage,” said Howard. .

“We are investing heavily in training and technology to facilitate this,” he said. “Now that the core bank integration is complete, teammates in these businesses will have significantly more time to engage in strategic and risk advisory conversations with clients.”

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