Truist Insurance Holdings further strengthens its premium finance business with the acquisition of BankDirect Capital Finance

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CHARLOTTE, North Carolina, September 6, 2022 Truist Insurance Holdings, Inc., a subsidiary of Truist Financial Corporation (NYSE: TFC) and the sixth-largest insurance brokerage in the United States, today announced that it has signed a definitive agreement to acquire BankDirect Capital Finance, a national premium finance company, from Texas Capital Bancshares, Inc. (NASDAQ: TCBI).

After closing, BankDirect will operate as a division of AFCO Credit Corporation, the existing premium financing operation of Truist Insurance Holdings in the United States.

The transaction will add more $3 billion in lending to Truist Insurance Holdings’ premium finance business, which also includes CAFO Inc., its Canadian business, while expanding its life insurance business. The transaction is expected to close in the fourth quarter of 2022, subject to the satisfaction of 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’s President and CEO. Bill Roger. “The addition of BankDirect expands our team, further diversifies the risk management solutions we can offer our clients and creates new opportunities to fulfill our purpose of inspiring and building better lives and communities.”

BankDirect Capital Finance was founded in 2005 and has grown through four acquisitions over the past 17 years. The company has a balanced portfolio of P&C and life insurance products across a diverse national geographic footprint. With 122 employees, BankDirect operates in five offices across the United States

“BankDirect brings a strong track record of growth and success in the premium finance industry, much like what we have achieved with our AFCO and CAFO organizations,” said Truist’s Director of Insurance. John Howard. “With this acquisition, we will expand our business into life insurance, a growing market for premium financing, and expand our geographic reach, particularly on the West Coast. BankDirect’s focus on technology and digitalization to improve the customer experience also reflects our strategic initiatives at Truist Insurance Holdings, demonstrating how aligned our operations are. Overall, this is a key acquisition for our premium finance business, and we are delighted to welcome BankDirect customers and employees to Truist.

RBC Capital Markets and Truist Securities acted as financial advisors, and Willkie Farr & Gallagher LLP acted as legal counsel to Truist Insurance Holdings in connection with this transaction. Morgan Stanley & Co. LLC and Texas Capital Securities served as financial advisors, and Cravath, Swaine & Moore served as legal advisor to Texas Capital Bancshares in this transaction.

About Truist Insurance Holdings
Truist Insurance Holdings, Inc., the sixth largest insurance broker in the United States and seventh in the world, is a subsidiary of Truist Financial Corporation (NYSE: TFC). Based in Charlotte, North Carolina, Truist Insurance Holdings operates more than 240 offices through its subsidiaries: McGriff Insurance Services, Inc.; CRC Insurance Services, Inc.; Crump Life Insurance Services, Inc.; AmRisc, LLC; and its insurance services companies (AFCO Credit Corporation, CAFO Inc. and Kensington Vanguard Land Services, LLC). To learn more, visit www.truistinsurance.com.

About AFCO
As a pioneering leader in premium financing for more than 65 years, AFCO Credit Corporation works with insurance agents to provide customized premium financing solutions to policyholders, with the goal of improving cash flow and fund rolling. AFCO is transforming its business into a digitized dual collection and premium financing product, powered by new digital portals designed to simplify the way its customers conduct premium financing and to improve the overall customer experience.

Forward-looking statements
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 “expects”, “believes”, “estimates”, “expects”, “anticipates”, “intends”, “opportunity”, “plans”, “projects”, “could” , “may”, “should”, “”will” or other similar words or expressions are intended to identify such forward-looking statements. These forward-looking statements are based on Truist’s current expectations and assumptions regarding Truist’s business, economic and other future conditions. Because forward-looking statements relate to future results and events, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Many possible events or factors could affect the future financial results and performance of Truist and could cause actual results or performance to differ materially from anticipated results or performance.Except to the extent required by applicable law or regulation, Tr uist undertakes no obligation to update these factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Further information regarding Truist and factors that could affect the forward-looking statements contained herein is available in Truist’s Annual Report on Form 10-K for the fiscal year ended. December 31, 2021as updated by its quarterly reports on Form 10-Q, and its other filings with the Securities and Exchange Commission.

SOURCE Truist Financial Corporation

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