Truist Insurance Holdings, Inc. a subsidiary of Truist Financial Corporation (TFC) has inked a deal to buy Constellation Affiliated Partners from Redbird Capital Partners. Terms of the deal were not disclosed.
Truist Insurance Holdings, Inc is a leading insurance broker and Constellation Affiliated Partners is an insurance distribution platform operating seven managing general agents (MGAs) and program managers.
Constellation Affiliated Partners will become a part of the Truist Insurance Holdings’ CRC Group, and upon completion of the deal, Constellation is expected to contribute around $160 million in annual revenue to the Wholesale division. (See Truist Financial stock analysis on TipRanks)
Commenting on the acquisition, John Howard, Chairman and CEO of Truist Insurance Holdings stated, “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.”
Recently, Wells Fargo analyst Mike Mayo maintained a Buy rating on the stock and said “Insurance supports our thesis that the merger that formed Truist should produce greater than expected synergies, esp. after our meeting today with the head of this business (John Howard).”
Mayo added “Truist has one of banking’s best footprints, in our opinion. The franchise reflects fast growing markets, and we view their management team approach as best-of-breed, given prior management of BB&T running community banking, and prior management of SunTrust running wholesale. The cost savings ahead due to the merger is also a differentiating factor, resulting in a strong self-help story, in our view.”
Mayo assigned Truist a price target of $74, which implies 20.9% upside potential to current levels. Shares of TFC have gained 29.7% year-to-date.
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 6 Buys versus 9 Holds. The average analyst price target of $64.93 implies 6.1% upside potential to current levels.
According to TipRanks’ Smart Score system, Truist gets a 5 out of 10, which indicates that the stock is likely to perform in line with market averages.
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