AFCO Credit Corp. has plans to buy the domestic operations and assets of the premium finance business of Cananwill from Aon Corp.
Glenview, Ill.-based Cananwill provides insurance premium financing for commercial property and casualty policies. It was founded in 1937.
AFCO is the primary insurance premium finance subsidiary of Branch Banking and Trust Co., the principal subsidiary of Winston-Salem, N.C.-based BB&T Corp. Pending regulatory approval, the AFCO purchase is expected to be completed by the end of the first quarter. Terms were not disclosed.
BB&T is the second largest provider of insurance premium financing in the United States and the largest in Canada. Insurance Premium Finance is a unit of BB&T’s Specialized Lending division.
“We are strongly committed to insurance premium finance loans and this acquisition will significantly strengthen our franchise in the United States,” said Tol Broome, manager of BB&T Specialized Lending. “Cananwill employees share our values and our common goals of providing outstanding client service and helping clients achieve financial success.”
BB&T’s insurance premium finance operation is made up of Pittsburgh-based AFCO Credit Corp. and AFCO Acceptance Corporation, which operate nine offices across the country; AFCO affiliate CAFO, which operates three offices in Canada; and Prime Rate Premium Finance of Florence, S.C.
BB&T acquired AFCO and CAFO from the former Mellon Financial Corporation in 2007. Founded in 1954, AFCO’s client base includes large conglomerates, medium-sized corporations, municipalities, professional practices, sole practitioners, groups and associations.
Colonnade Securities LLC advised Aon and Cananwill on the transaction.
Source: BB&T Corp.