Fitch gives Truist Insurance B

Fitch Ratings said it assigned Truist Insurance Holdings, LLC (TIH), McGriff Insurance Services, LLC (McGriff) and Panther Platform Midco, LP first-time B long-term issuer default ratings. The agency also assigned B+/RR3 ratings to the first-lien secured debt and CCC+/RR6 to the second-lien secured debt co-issued by TIH and McGriff. The outlook is stable.

TIH's ratings reflect the company's position as the fifth largest U.S. insurance broker with an estimated 2023 revenue of more than $3.4 billion and EBITDA of about $1 billion, the agency said. The company gets 80% of its revenue from property and casualty brokerage.

“However, weak balance sheet metrics including high EBITDA leverage (debt/EBITDA) and low interest coverage, weigh against the ratings. Fitch rates TIH relative to other insurance brokers and business services issuers and believes the company is well positioned at the B IDR category,” Fitch explained in a press release.

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