Truist Insurance Holdings, Inc., a subsidiary of Truist Financial Corporation and the sixth-largest insurance brokerage in the U.S., announced that it has signed a definitive agreement to acquire BenefitMall, the nation’s largest benefits wholesale general agency, from funds managed by global investment firm Carlyle. The transaction will add approximately $150 million of annual revenue to Truist Insurance Holdings’ wholesale division. Financial terms were not disclosed. The transaction is expected to close in the third quarter of 2022, subject to satisfaction of customary closing conditions.
“As Truist Insurance Holdings celebrates its centennial year, investing in our insurance capabilities and offerings continues to be a top priority,” said Truist Chairman and CEOÂ Bill Rogers. “This acquisition of BenefitMall enables us to further diversify the solutions we offer to our clients and create an enhanced client experience, which is at the core of our purpose to inspire and build better lives and communities.”
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BenefitMall has been serving clients for over 40 years, providing medical, dental, life, vision and long-term care benefits solutions. Through its network of approximately 20,000 retail brokers, the company provides employee benefits to more than 140,000 small and medium-sized businesses across the country, leveraging a combination of innovative technology and human expertise to deliver a seamless benefits selling experience for its carriers, brokers and their clients.
BenefitMall will be combined into CRC Group, a leading national wholesale distributor of specialty insurance products.
“We’re excited to welcome BenefitMall clients to Truist and have their team join our CRC Group organization,” said Truist Chief Insurance Officer John Howard. “With this acquisition, CRC Group will provide the broadest selection of products and services available from a wholesale broker today. Whether it is property and casualty; life, annuity and long-term care; or now employee benefits, CRC Group’s nationwide network of specialists are all focused on one goal – delivering success for our retail agency partners.”
“As the largest health benefits general agent in the U.S., we are deeply committed to the role we play as a mission-critical partner to our broker and carrier partners,” said BenefitMall CEOÂ Scott Kirksey. “We are proud of the growth we have achieved through our partnership with Carlyle and look forward to the exciting opportunity ahead to continue to deliver the fastest, easiest and most trusted benefits selling experience as part of the Truist team.”
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“Since we began investing in the business in 2017, BenefitMall has accomplished significant growth through a focus on broker technology enablement and investment in human capital in addition to successfully completing more than eight strategic acquisitions to transform into the market-leading wholesale benefits business,” said James Burr, managing director on the financial services team at Carlyle. “We are proud of our partnership with Scott and the entire BenefitMall team and are thankful to have played a part in their success over the past several years.”
RBC Capital Markets and Truist Securities served as financial advisors, and Willkie Farr & Gallagher LLP served as legal counsel to Truist Insurance Holdings in this transaction. Waller Helms Advisors and Barclays served as financial advisors, and Wachtell, Lipton, Rosen & Katz served as legal counsel to Carlyle in this transaction. Jones Day served as legal advisors to BenefitMall in this transaction.
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