![](https://www.citybiz.co/wp-content/uploads/2022/09/Truist.jpg)
Truist Insurance Holdings, Inc., a subsidiary of Truist Financial Corporation and the sixth-largest insurance brokerage in the U.S., announced today that it has signed a definitive agreement to acquire BankDirect Capital Finance, a nationwide premium finance company, from Texas Capital Bancshares, Inc..
After the closing, BankDirect will operate as a division of AFCO Credit Corporation, Truist Insurance Holdings’ existing premium finance operation in the U.S.
The transaction will add over $3 billion in loans to Truist Insurance Holdings’ premium finance business—which also includes CAFO Inc., its Canadian operation—while broadening its business into the life insurance arena. The transaction is expected to close in the fourth quarter of 2022, subject to 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 Chairman and CEO Bill Rogers. “The addition of BankDirect expands our team, further diversifies the risk management solutions we can provide our clients and creates new opportunities to fulfill our purpose to inspire and build better lives and communities.”
BankDirect Capital Finance was founded in 2005 and has grown through four acquisitions in the past 17 years. The company has a balanced portfolio of both property & casualty and life insurance products across a diversified national geographic footprint. With 122 employees, BankDirect operates in five offices across the U.S.
“BankDirect brings a strong track record of growth and success in the premium finance business, much like what we’ve achieved with our AFCO and CAFO organizations,” said Truist Chief Insurance Officer John Howard. “With this acquisition, we’ll extend our business into life insurance, a growing market for premium finance, as well as broaden our geographic reach, particularly on the West Coast. BankDirect’s focus on technology and digitization to enhance client experience also mirrors our strategic initiatives at Truist Insurance Holdings, further demonstrating how well our operations are aligned. All in all, this is a key acquisition for our premium finance business, and we’re excited to welcome BankDirect clients and employees to Truist.”
RBC Capital Markets and Truist Securities served as financial advisors, and Willkie Farr & Gallagher LLP served as legal counsel to Truist Insurance Holdings in this transaction. Morgan Stanley & Co. LLC and Texas Capital Securities served as financial advisors, and Cravath, Swaine & Moore served as legal counsel to Texas Capital Bancshares in this transaction.
About Truist Insurance Holdings
Truist Insurance Holdings, Inc., the sixth-largest insurance broker in the U.S. and seventh-largest in the world, is a subsidiary of Truist Financial Corporation (NYSE: TFC). Headquartered in Charlotte, NC, 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 finance for more than 65 years, AFCO Credit Corporation works with insurance agents to provide customized premium finance solutions to insureds, with the objective of improving cash flow and working capital. AFCO is transforming its business to a digitized, dual premium collection and financing product powered by new digital portals designed to simplify the way its clients do premium financing and to improve the overall client experience.