Truist Insurance Holdings further enhances premium finance business with acquisition of BankDirect Capital Finance
Charlotte, North Carolina, September 6, 2022 Truist Insurance Holdings, Inc., Truist Financial Corporation (NYSE: TFC) and the sixth-largest U.S. insurance brokerage firm today announced that it has signed a definitive agreement from Texas Capital Bancshares, Inc. (NASDAQ: TCBI).
Upon closing, BankDirect will operate as a division of AFCO Credit Corporation, Truist Insurance Holdings’ existing premium financing business in the United States
transactions will increase $3 billion Lending to Truist Insurance Holdings’ premium finance business, which also includes its Canadian business, CAFO Inc., while expanding into life insurance. The transaction is expected to close in the fourth quarter of 2022, subject to customary closing conditions.
“This strategic investment increases the breadth of our insurance capabilities and demonstrates our continued commitment to the growth of Truist Insurance Holdings,” said Truist Chairman and Chief Executive Officer Bill Rogers“The addition of BankDirect expands our team, further enriches the risk management solutions we can offer our clients, and creates new opportunities to achieve our goal of inspiring and building better lives and communities.”
Founded in 2005, BankDirect Capital Finance has grown through four acquisitions over the past 17 years. The company has a balanced portfolio of property and casualty and life insurance products across a diverse National Geographic footprint. BankDirect has 122 employees in five offices in the US
“BankDirect brings a strong track record of growth and success to the premium finance business, as we have achieved across the AFCO and CAFO organisations,” said Truist Chief Insurance Officer John Howard“Through this acquisition, we will expand our business into the growing premium financial market of life insurance and expand our geographic reach, particularly on the West Coast. BankDirect’s focus on technology and digitalization to enhance the customer experience also reflects our Strategy”
RBC Capital Markets and Truist Securities as financial advisors, and Wilkie Farr & Gallagher LLP acted as legal counsel to Truist Insurance Holdings in this transaction. Morgan Stanley & Co. LLC and Texas Capital Securities acted as financial advisors and Cravath, Swaine & Moore acted as legal advisors to Texas Capital Bancshares in this transaction.
About Truist Insurance Holdings
Truist Insurance Holdings, Inc. is the sixth largest insurance brokerage company in the United States and the seventh largest in the world, and is a subsidiary of Truist Financial Corporation (NYSE: TFC). Headquartered in Charlotte, North Carolina, Truist Insurance Holdings operates more than 240 offices through its subsidiaries: McGriff Insurance Services, Inc.; CRC Insurance Services; Crump Life Insurance Services; AmRisc, LLC; and its insurance Service companies (AFCO Credit Corporation, CAFO Inc. and Kensington Vanguard Land Services, LLC).To learn more, visit www.truistinsurance.com.
A pioneer in premium financing for over 65 years, AFCO Credit Corporation has partnered with insurance agents to provide insureds with customized premium financing solutions to improve cash flow and working capital. AFCO is transforming its business into a digital, dual premium collection and financing product powered by a new digital portal, designed to simplify the way its customers finance their premiums and improve the overall customer experience.
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and future performance of Truist Financial Corporation or its subsidiaries (collectively, “Truist”).Words such as “anticipate,” “believe,” “estimate,” “anticipate,” “forecast,” “intend,” “opportunity,” “plan,” “project,” “may,” “may,” “should,” etc. ,” “will” or other similar words or expressions are intended to identify these forward-looking statements. These forward-looking statements are based on Truist’s current expectations and assumptions about Truist’s business, economic and other future conditions. events and are therefore subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Many possible events or factors could affect Truist’s future financial results and performance and could cause actual results or performance to differ from those expected Material differences exist. Except to the extent required by applicable law or regulation, Truist undertakes no obligation to update such factors or to publicly announce the results of any revisions to any forward-looking statements contained herein to reflect future events or developments. For more information and factors that could affect the forward-looking statements contained herein, please refer to Truist’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021as updated by its quarterly report on Form 10-Q and other filings with the Securities and Exchange Commission.
Source Truist Financial Corporation