Truist Financial Corp Results Presentation Deck
3Q22 acquisition detail
Description
Strategic Rationale
Initial impact
Ongoing financial
impact
-
BenefitMall
Acquisition of a wholesale employee benefits insurance broker
focused on small to medium sized businesses
Closed 9/1/22
Significantly expands wholesale employee benefits offerings
(dental, life, vision, disability, long-term care); fills void in Truist
Insurance Holdings (TIH) offerings
Provides incremental IRM opportunities across TIH and Truist
commercial/corporate clients
-20 bps impact to CET1
-$160 million annual revenue with strong projected growth
Mid-20's EBITDA margin initially; growing to mid-30's over time
-$350 million intangible asset¹
Mid-teens IRR
1 Amortized over various time periods based on the economic benefit of the intangible asset, not to exceed 15 years
2 P&C loan spreads generally indexed to the 6-month Treasury and life loan generally spread indexed to BSBY
3 BankDirect useful life and amortization methodology have not yet been determined
BankDirect Capital Finance
Entered into an agreement to purchase BankDirect Capital
Finance, the insurance premium finance unit of Texas Capital
Bancshares
Anticipated to close 4Q22
Adds scale and life insurance premium finance capabilities
Pro forma: TIH becomes the #2 premium finance player
Expands west coast presence
High-quality, short duration loan portfolio
-$3.2 billion of loans added (with strong projected growth)
-15 bps impact to CET1 (RWA impact from loans and premium
paid)
-1.60% cash ROA
-250 bps blended spread across P&C and life²
Mid-20's steady state efficiency ratio
angible asset³
-$80 million
Mid-teens IRR
TRUIST HH
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