Third Quarter 2022 Earnings Conference Call
Insurance Holdings
Represents performance for Truist Insurance Holdings' Retail, Wholesale, and Services Divisions
Metrics
Income statement ($ MM)
Net interest income
Noninterest income
Total revenue
Commentary
Revenue increased 13% vs. 3Q21
3Q22
Linked Qtr.
Change
Like Qtr.
Change
-
$33
$5
$5
734
(99)
82
767
(94)
87
Noninterest expense
640
17
103
-
Segment net income
95
(84)
(16)
Performance ($ MM)
Y-o-Y organic revenue growth
6.5%
(120) bps
(540) bps
-
Net acquired revenue
41
(39)
(30)
-
Organic revenue growth was 6.5%
Acquired revenue of $41 million
New business generation was strong with stable retention
Revenue down 11% vs. 2Q22 primarily due to revenue seasonality in P&C renewal
commissions
Expenses were up 20% vs. 3Q21
Increase driven by higher performance-based incentive expense, increase
from acquisitions, higher T&E expense, and ongoing investments
Market conditions
-
-
P&C premium rate increases remained relatively consistent vs. prior quarters
Continue to see growth in exposure units and growth in the value of the
exposure units due to inflation
Completed the acquisition of BenefitMall, the nation's largest benefits wholesale
general agency, with expected annual revenue of $160 million
Announced agreement to acquire BankDirect Capital Finance, a nationwide premium
finance company with over $3 billion in loans
Performance based commissions
21
(2)
2
Adjusted EBITDA (1)
181
(97)
3
Adjusted EBITDA margin (1)
23.5%
(880) bps
(270) bps
(1) EBITDA is a non-GAAP measurement of operating profitability that is calculated by adding back interest, taxes, depreciation, and amortization to net income. Truist's management also adds back merger-
related and restructuring charges, incremental operating expenses related to the merger, and other selected items. Truist's management uses this measure in its analysis of the Corporation's Insurance
Holdings segment. Truist's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the
effects of significant gains and charges. See non-GAAP reconciliations included in the attached Appendix.
TRUIST HH
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