Feb 16 Reuters Truist Financial Corp is selling a minority stake in its insurance brokerage unit to private equity firm Stone Point Capital in a deal that values the unit at 14.75 billion, it said on Thursday.

The move follows a year in which the commercial and investment bank39;s profit dropped as it set aside a bigger share for rainyday funds to deal with the chances of its borrowers falling behind on loan payments due to rising inflation and borrowing costs.

Investment firms like Stone Point have offered some respite in an environment which remains tough for dealmaking as companies backpedal on deals and prioritize cost cuts.

Stone Point along with Abu Dhabi39;s Mubadala Investment Co and other coinvestors will pay 1.95 billion for a 20 stake in the unit, Truist Financial said.

Last year, Stone Point also took fitness company Tivity Health private in a 2 billion deal.

Truist Financial said it expects to close the deal in the second quarter of this year, after which it will retain an 80 stake in the unit.

The unit, called Truist Insurance Holdings Inc, offers both retail and wholesale insurance.

Net income at the segment fell nearly 5 to 121 million in the fourth quarter, Truist Financial reported last month.

Reporting by Niket Nishant in Bengaluru; Editing by Savio D39;Souza and Arun Koyyur

Source Reuters