Truist Financial Corporation · NYSE:TFC
Truist Financial — Merger or Acquisition (February 2023)
16 slides from Truist Financial's merger presentation, Feb 16, 2023
Slide 1: Strategically Positioning Truist Insurance Holdings for Long-Term Success
Exhibit 99.2 Strategically Positioning Truist Insurance Holdings for Long-Term Success Bill Rogers – Chairman & CEO Mike Maguire – CFO John Howard – Chief Insurance Officer Truist Financial Corporation February 16, 2023 1
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the financial condition, results of operations, business plans and the future performance of Truist. Words such as “anticipates,” “
Slide 3: Non-GAAP information
Non-GAAP information This presentation contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ( GAAP ). Truist’s management uses these “non-GAAP” measures in their analysis o
Slide 4: Executive summary
Executive summary Overview Strategic Rationale Financial Impact th ü Truist Insurance Holdings (TIH) is the 6 largest ü New ownership structure, combined with ü Creates +32 bps of CET1 capital U.S. insurance broker with scale, strong organic significant expertise of Stone Point, ü +6% tangible book
Slide 5: Insurance brokerage industry backdrop
Insurance brokerage industry backdrop Firm Pricing Rapidly Consolidating Industry Increasing Valuation Differential Total Consolidated P&C Premium YoY Growth Global Announced Acquisitions in Last 10 Years Price / LTM EPS Number of Announced Insurance Brokerage Transactions Insurance Brokers and Regi
Slide 6: Overview of Truist Insurance Holdings (TIH)
Overview of Truist Insurance Holdings (TIH) 1 1 TIH Key Facts Contribution to Truist th 6 250+ $45B+ 60% / 40% Largest broker Premiums Wholesale / Retail US offices in the US revenue mix 8% of Adjusted Net 13% of 35% of Total Fee Income to 1922 9,000+ 100+ 2 Revenue Income Common Founded Successful
Slide 7: TIH is an industry leader
TIH is an industry leader 1 Insurance Brokerage Rankings Favorable Business Mix Compared to Competition 2021 U.S. Brokerage Rank Company Revenue ($ B) 1 Marsh & McLennan $9.3 TIH 2 Aon $5.5 Peer median 40% / 60% 76% / 24% 3 Arthur J. Gallagher $4.7 4 Willis Towers Watson $4.5 5 Brown & Brown $3.0 Mu
Slide 8: Summary of key terms
Summary of key terms − $14.75B aggregate value Valuation − Common equity value: $9.75B − Preferred equity issued to Truist: $5.0B Investment size – $1.95B – 20% minority stake; investment to be made by Stone Point Capital, in partnership with co-investors including Mubadala Investment Company (colle
Slide 9: Highlighting the significant value of TIH and Truist
Highlighting the significant value of TIH and Truist Addresses Multiple Differential of Business Segments… …Highlighting Value of TIH and Truist Valuation Multiples Illustrative Truist Sum-of-the-Parts Valuation (Price / 2022 EPS, x) ($ B) 15% $74 $14.75 higher than 27.4x current market cap $64 Curr
Slide 10: Strong capital generation preserving future flexibility
Strong capital generation Preserving future flexibility Strong Capital Generation Accretive to Tangible Book Value CET1 Ratio Tangible Book Value Per Share +32 bps +6% 9.3% $19.07 9.0% $18.04 Truist Pro Forma Truist Pro Forma EPS Neutral Transaction Initially; Accretion Over Time Treatment of Noncon
Slide 11: Conclusion
Conclusion Compelling Strategic Rationale Attractive Financial Impacts ü New ownership structure, combined with ü Creates +32 bps of CET1 capital significant expertise of Stone Point, creates additional opportunities to support growth ü +6% tangible book value per share accretion ü Enhances EPS grow
Slide 12: Appendix
Appendix Appendix
Slide 13: TIH key historical financial metrics
1 TIH key historical financial metrics Historical Financial Metrics 2020 2021 2022 Adjusted Excluding Merger-Related Charges ($ MM) Revenue 2,225 2,652 3,089 Noninterest expense 1,628 1,885 2,229 EBITDA 597 767 860 Amortization and depreciation 72 106 132 Net income 392 507 538 Key ratios EBITDA mar
Slide 14: Illustrative pro forma financial impacts
Illustrative pro forma financial impacts Illustrative Financial Statement Impact Illustrative Net Transaction Capital & Cash Truist ($ MM) 1 ($ MM) Minority Stake Sale Reinvestment of Proceeds Pro Forma Current Stake sale proceeds 1,950 Balance Sheet Taxes due (387) Cash and securities 150,935 1,538
Slide 15: Non-GAAP reconciliations
Non-GAAP reconciliations Truist Diluted EPS ($ MM, except per share data, shares in thousands) Year ended Dec. 31, 2022 Net income available to common shareholders - GAAP $ 5,927 Merger-related and restructuring charges 393 Securities (gains) losses 54 Loss (gain) on early extinguishment of debt (30
Slide 16: Non-GAAP reconciliations
Non-GAAP reconciliations 1,2 2 Insurance Holdings EBITDA Adjusted Historical Financials Ex. Merger-Related Charges ($ MM) ($ MM) 2018 2019 2020 2021 2022 2020 2021 2022 Total revenue $ 1,859 $ 2,096 $ 2,225 $ 2,652 $ 3,089 Total revenue $ 2,225 $ 2,652 $ 3,089 Pre-tax income $ 311 $ 447 $ 510 $ 633
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