PITTSBURGH, SC – January 7, 2009 – AFCO Credit Corporation today said it plans to buy the domestic operations and assets of the premium finance business of Cananwill from Aon Corporation (NYSE:AON) .
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 Company, the principal subsidiary of Winston-Salem, N.C.-based BB&T Corporation (NYSE:BBT) . 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 Corporation 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.
Insurance premium financing provides loans that enable businesses and consumers to pay their insurance costs over time, improving cash flow and supplying additional credit and working capital.
Businesses that want to boost their liquidity in this uncertain economy often overlook the benefits of insurance premium financing, said Daryl Zupan, president of AFCO, CAFO and Prime Rate. We have available funding and are very pleased to be adding the strength and expertise of Cananwill to the spectrum of our premium finance offerings.
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.
With $137 billion in assets, BB&T Corporation is the nation’s 14th largest financial holding company. It operates more than 1,500 financial centers in 11 states and Washington, D.C.
More information about the company is available at www.BBT.com