Will Truist Spin Off its Large Insurance Unit?
Truist Financial (NYSE: TFC), the entity that was created by the merger of bank giants BB&T and SunTrust, has many qualities that make it an attractive bank stock. One of those differentiators is its large insurance division, which is the fifth-largest insurance broker in the U.S. and the sixth-largest in the world.
The insurance business generates a nice stream of fee income that helps diversify the bank's revenue, and many of Truist's peers don't have insurance, so it's a nice differentiator.
But recently there have been rumors swirling that Truist may be looking to either spin off the unit or sell a portion of the unit to realize its full value. Let's take a look at why management is considering this and what route they are likely to take.
Source Fool.com
