On Wednesday, Renasant Corp (NYSE:RNST) stock maintained its Hold rating and a $33.00 price target from Truist Securities following the announcement of the sale of Renasant Insurance assets to Sunstar Insurance Group.
The transaction's financial details were not disclosed, but an estimated value of approximately $83 million was suggested, based on comparable sales metrics. Renasant Insurance, which contributed 1.5% to RNST's total revenues with $14.2 million generated in 2023, will undergo rebranding as Sunstar Insurance Services.
The sold entity operated eight offices in north and north-central Mississippi. The deal is expected to enable Renasant Corp to restructure its securities portfolio, which had a yield of 2.04% in the first quarter of 2024. The current leadership and employees of Renasant Insurance will join Sunstar, and all existing offices will continue to operate under the new branding.
Sunstar Insurance Group, ranking as the 33rd largest insurance firm with over $12 billion in premiums, operates across 50 offices in six states in the Southeast and Midwest. This acquisition marks Sunstar's strategic entry into Mississippi. The integration of Renasant Insurance's leadership and staff is anticipated to be seamless, ensuring continuity for clients and employees alike.
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