Truist Financial Corporation, with assets exceeding $535 billion, recently reported after-tax cash proceeds of about $10.1 billion from the sale of its subsidiary, TIH. John Howard, CEO of TIH, views this sale as a significant opportunity for the company to enhance and expand its operations in a highly competitive industry. With the backing of Stone Point Capital and CD&R, Howard believes that TIH is well-positioned for growth and exploring new business ventures. The company, now boasting over 1,500 employee equity participants, has appointed a new board of directors to guide it through its next growth phase.
Dan Glaser, former CEO of Marsh McLennan and operating partner at CD&R, has been named chairman of the board. Other notable industry leaders on the board include Richard R. Whitt, Julio Portalatin, and Ross Buchmueller.
For Truist, the sale represents a strategic move aimed at repositioning its balance sheet. The bank has divested $27.7 billion of lower-yielding investment securities, resulting in an after-tax loss of $5.1 billion in the second quarter. Truist intends to reinvest the proceeds into securities with higher yields, with the goal of generating an additional $160 million in net interest income. Both Stone Point Capital and CD&R have expressed their enthusiasm about acquiring TIH and look forward to supporting the company's growth as an independent entity.
Bill Rogers, chairman and CEO of Truist, believes that the sale of TIH will enhance the financial profile of Truist and enable the company to concentrate on strengthening its core banking businesses. As TIH transitions into a standalone company, it will undergo a rebranding process to reflect its new clear and streamlined identity.
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