Banking corporation Truist in negotiations for $10 billion sale of its remaining insurance division, according to media reports.

In a potential deal that could reshape the financial services landscape, Stone Point Capital is reportedly in negotiations to buy the rest of Truist's insurance brokerage for approximately $10 billion.

The negotiations, led by Truist's management team, come after Stone Point previously acquired a non-controlling stake in TIAA's banking unit, alongside other investors. This latest move would see Stone Point take full ownership of the nation's seventh-largest insurance broker, which facilitates approximately $45 billion in premiums and generates over $3 billion in annual revenue.

The potential selloff of Truist's insurance business is a change of heart, as the company was bullish about retaining the majority of its insurance business in February. However, Truist's CEO, Bill Rogers, stated that the sale maximizes long-term strategic and financial flexibility.

The insurance arm's sale would leave Truist with only two major business lines: commercial and consumer banking. This move could free up an additional 2 percentage points of capital, potentially helping Truist comply with new capital requirements proposed by regulators, led by the Federal Reserve. These new standards could force banks with between $250 billion and $1 trillion in assets to hold roughly 10% more capital.

Truist announced an effort to save $750 million in costs over the next 18 months, suggesting that the bank is looking to streamline its operations. The bank's ratio of loss-absorbing capital to assets was 9.6% as of June 30, slightly above the minimum that could potentially rise.

No comment has been provided by either Truist or Stone Point regarding a possible deal. However, if the negotiations are successful, it would mark a significant expansion for Stone Point Capital, which has grown through its investments in the financial services sector.

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Stay tuned for updates on this developing story.

Banking corporation Truist in negotiations for $10 billion sale of its remaining insurance division, according to media reports.