Truist Acquires Premium Finance Firm From Bank Holding Company
Truist Insurance Holdings Inc., one of the largest U.S. brokerages and a part of Truist Financial Corp., announced that it has agreed to acquire the national premium finance company BankDirect Capital Finance from Texas Capital Bancshares.
BankDirect will now become a division of Truist’s premium finance operation, known as AfCo Credit Corp, the company said in a news release.
The acquisition will add more than $3 billion in loans to Truist Insurance Holdings’ premium finance buisness and will broaden its business into the life insurance arena. The terms of the deal were not disclosed in the announcement, but the transaction should close in the fourth quarter this year, Truist officials said.
BankDirect was founded in 2005 and has grown through four acquisitions in the past 17 years. The company said it has a portfolio of property & casualty and life insurance products across the country. With 122 employees, BankDirect operates in five offices in the U.S. but has corporate headquarters in Lake Forest, Illinois.
Texas Capital Bancshares, a bank holding company, is based in Dallas. Truist is headquartered in Charlotte, North Carolina.
RBC Capital Markets and Truist Securities served as financial advisors on the deal, and the Willkie Farr & Gallagher firm served as legal counsel to Truist. Morgan Stanley and Texas Capital Securities served as financial advisors, and Cravath, Swaine & Moore served as legal counsel to Texas Capital Bancshares.
Mergers & Acquisitions
Was this article valuable?
Here are more articles you may enjoy.