Truist Weighs Sale of Insurance Lender Afco Credit

Truist is reportedly looking to sell Afco Credit, its specialty division focused on insurance premium financing. This move follows Truist’s recent $15 billion sale of its insurance brokerage arm. The bank is currently shedding non-core businesses to focus on traditional commercial and retail banking. For business owners, this signals a potential transition in who handles your premium financing. Afco allows businesses and consumers to pay for insurance coverage over time rather than in a lump sum. When a lender like Afco hits the auction block, it usually means new ownership is coming. Private equity firms or specialty finance companies are the most likely buyers. For merchants and agencies using these programs, the immediate impact is usually minimal. However, new ownership can lead to changes in underwriting standards or digital payment interfaces. It is important to watch this sale closely if you rely on premium financing to keep your cash flow steady. A new owner might invest more in the platform’s technology or, conversely, tighten credit requirements to improve profitability. For now, expect business as usual, but keep your eye on your account representative for updates on service transitions.

Source: PYMNTS

← Return to the library· Submit a correction