Truist Insurance Holdings, a subsidiary of Truist Financial Corporation (NYSE: TFC), has announced a significant step in expanding its insurance business through the acquisition of Constellation Affiliated Partners. This strategic move, finalized on May 24, 2021, sees Truist Insurance Holdings acquiring an insurance distribution platform from RedBird Capital Partners, a platform known for operating seven managing general agents (MGAs) and program managers. This acquisition is set to bolster Truist’s wholesale division by adding approximately $160 million in annual revenue and significantly enhancing its offerings in the Partners Insurance space. The financial details of the transaction remain undisclosed.
Kelly S. King, Chairman and CEO of Truist Financial Corporation, highlighted the importance of this acquisition, stating, “Expanding our insurance business remains a key priority for Truist as we continually look for ways to enhance our offerings and introduce new clients to Truist. This acquisition enables us to continue diversifying our revenue and provide expansive insurance solutions to our clients—while ultimately helping us fulfill our purpose to build better lives and communities.” This underscores Truist’s commitment to growth in the partners insurance sector and its dedication to providing comprehensive solutions.
John Howard, Chairman and CEO of Truist Insurance Holdings, further elaborated on the strategic benefits, “The Constellation Affiliated Partners transaction is a key acquisition that will further build out our national programs business. It significantly expands our wholesale division, allowing us to double our programs business, and brings greater diversity to the types of programs we can provide clients by adding their complementary offerings.” This acquisition is particularly crucial for strengthening Truist’s position in partners insurance programs and broadening the scope of services available through their partner network.
Constellation Affiliated Partners, established by RedBird Capital Partners in 2019, has experienced rapid growth through strategic acquisitions, focusing on building a robust partners insurance distribution network. Their specialization in core markets such as contractors’ general liability, transportation, condominium/homeowners associations, and professional liability perfectly complements Truist’s existing portfolio, creating synergistic opportunities within the partners insurance landscape.
Howard expressed his enthusiasm about the integration, “We’re excited to welcome Constellation Affiliated Partners clients to Truist, and have their team join our organization. We have a shared commitment to accelerating our investment in data and analytics, and look forward to continuing to grow our business, both organically and through further acquisitions.” This shared vision emphasizes a future-focused approach to partners insurance, leveraging data and analytics to enhance service delivery and expand market presence.
Constellation Affiliated Partners will be integrated into Truist Insurance Holdings’ CRC Group, a leading national wholesale distributor of specialty insurance products. This integration is expected to streamline operations and enhance service capabilities for partners insurance solutions within the combined entity.
For this transaction, RBC Capital Markets and Truist Securities acted as financial advisors for Truist, with legal counsel provided by Willkie Farr & Gallagher LLP. Constellation Affiliated Partners received financial advisory services from Evercore and legal counsel from Fried, Frank, Harris, Shriver & Jacobson LLP.
About Truist Insurance Holdings
Truist Insurance Holdings, recognized as the sixth largest insurance broker in the U.S. and seventh largest globally, operates as an indirect subsidiary of Truist Financial Corporation. With over 240 offices, Truist Insurance Holdings operates through various subsidiaries, including McGriff Insurance Services, Inc.; CRC Insurance Services, Inc.; Crump Life Insurance Services, Inc.; AmRisc, LLC; and its Premium Finance companies, AFCO Credit Corporation, Prime Rate Premium Finance Corporation, Inc., and CAFO Inc. Their extensive network and diverse service offerings solidify their standing as a leader in the partners insurance market.
Forward-Looking Statements
This announcement contains forward-looking statements regarding Truist’s financial condition, business plans, and future performance, as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumptions and are subject to uncertainties, risks, and changes in circumstances that are difficult to predict. Factors that could cause actual results to differ materially from anticipated results are detailed in Truist’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and other SEC filings. Truist disclaims any obligation to update these statements except as required by law.
