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Truist Weighs Sale of Insurance Lender Afco Credit

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Truist Weighs Sale of Insurance Lender Afco Credit

Truist is seeking a buyer for specialty lender Afco Credit as the bank sharpens its focus on banking operations, Bloomberg reported Monday (Oct. 26), citing unnamed sources.

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Afco handles insurance premium financing, and Truist is unloading noncore lending businesses, according to the report.

Truist is looking to sell the business outright, or its assets, per the report.

Truist’s exploration of a sale of Afco is in its early stages, and a deal may not be reached, the report said.

Reached by PYMNTS, a Truist spokesperson declined to comment on the report.

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Truist disclosed in September that it was selling $5.5 billion worth of auto loans and exiting the near-prime auto lending business. The bank said at the time that the loans represented substantially all assets of its national auto finance company affiliate, Regional Acceptance Corporation.

Announcing this move in a September filing with the Securities and Exchange Commission, Truist said that it aimed to sharpen its strategic focus by exiting a noncore, less profitable business. Earlier, Truist discontinued its marine and recreational vehicle loan business.

Global investment firm Carlyle said in an Oct. 16 press release that its Global Credit platform agreed to buy a $7.7 billion portfolio of unsecured personal loans from Truist.

The transaction is expected to close in the fourth quarter, subject to customary closing conditions, according to the release.


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