Truist Financial’s stock up on report of $10 billion unit sale to Stone Point

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Truist Financial’s stock up on report of $10 billion unit sale to Stone Point
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Truist’s stock leads gainers among the stocks in the S&P 500 after losing about a third of its value year to date

Truist Financial Corp.’s stock led gains among components of the S&P 500 on Tuesday following a report that it may sell its insurance-brokerage business.

Truist Financial TFC, +6.40% was up 6.3% to its highest levels in about a month on the heels of a report by Semafor that it’s in negotiations to sell the remaining 80% of its insurance-brokerage business to private-equity firm Stone Point for $10 billion. Stone Point already acquired 20% of the business earlier this year and is in talks to buy the remaining stake, according to the report, which cited unnamed people familiar with the deal.Citi analyst Keith Horwitz reiterated a buy rating on Truist and said the $10 billion price implies a valuation of about $2 billion more than the valuation the minority stake in the business got in February.

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