Truist continues expansion with 12% organic revenue growth in Q3
Truist Insurance Holdings grew Q3 organic revenues by 12% year on year, among the highest organic growth in the company’s history, and expanded adjusted Ebitda margins by 370 bps, it disclosed on Friday.
The organic top line increase is down from the 15% it generated in the second quarter, but overall revenue for Q3 increased by 24% to $677mn. The third quarter was the first to include revenues from Constellation, which is expected to add $160mn in annual top line income.
The organic revenue number beat CEO Kelly King’s projections from this past summer, when he said the company expected high-single-digit third-quarter growth.
Adjusted Ebitda grew by 45% overall to $176mn. New business across the insurance division increased by 26%, which Truist said came from an improving US economy with insureds adding exposures to policies and the rate environment remaining firm.
The new business figure was up from 13% in the first quarter and 25% in the second quarter, perhaps a sign the bank’s emphasis on cross-selling is paying off.
Notably, the company said rate increases in the third quarter were comparable or slightly up from the second quarter. Truist also said its wholesale division continued to benefit from the inflow of business to the E&S markets as a result of tighter terms and conditions, rate increases, and sustained capacity constraints in the standard market.
Truist’s insurance division is made up of wholesale broker CRC Group, retailer McGriff, MGA specialist AmRisc, Crump Life and three premium finance businesses.