CHARLOTTE, NC, Sept. 6, 2022 Truist Insurance Holdings, Inc., a subsidiary of Truist Financial Corporation (NYSE: TFC) and the sixth largest insurance company in the US, announced today that it has entered into a definitive agreement to acquire BankDirect Capital Finance, a global financial services company, from Texas Capital. Bancshares, Inc. (NASDAQ: TCBI).
After the closing, BankDirect will operate as part of AFCO Credit Corporation, Truist Insurance Holdings’ existing US presence.
The actions will add up $3 billion in debt to Truist Insurance Holdings’ investment business — which also includes CAFO Inc., its Canadian operation — while expanding its business in the life insurance arena. The project is expected to close in the fourth quarter of 2022, subject to satisfactory closing conditions.
“This strategic investment expands our insurance portfolio and demonstrates our commitment to the growth of Truist Insurance Holdings,” said Truist’s President and CEO. Bill Rogers. “The addition of BankDirect expands our team, further diversifying the risk solutions we can offer to our customers and creating new opportunities to fulfill our mission of empowering and building better lives and communities.”
BankDirect Capital Finance was founded in 2005 and has grown through four acquisitions over the past 17 years. The company has a strong reputation for property & casualty and life insurance in various locations around the world. With 122 employees, BankDirect operates out of five offices in the US
“BankDirect brings a strong track record of growth and success in the financial services industry, such as what we have achieved with our AFCO and CAFO organizations,” said Truist Chief Insurance Officer. John Howard. “With this acquisition, we will expand our business into life insurance, the growing market of premium income, and expand our footprint, especially on the West Coast. BankDirect’s focus on technology and digital applications to improve the customer experience also reflects our expertise. of Truist Insurance Holdings, which also reflects the progress of our operations. All in all, this is an important news story for our insurance business, and we are delighted to welcome BankDirect customers and employees to Truist.”
RBC Capital Markets and Truist Securities acted as financial advisors, and Willkie Farr & Gallagher LLP acted as legal counsel to Truist Insurance Holdings in this transaction. Morgan Stanley & Co. LLC and Texas Capital Securities served as financial advisors, and Cravath, Swaine & Moore served as legal counsel to Texas Capital Bancshares in this transaction.
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Truist Insurance Holdings, Inc., the sixth largest insurance broker in the US and the seventh largest in the world, is a company of Truist Financial Corporation (NYSE: TFC). Headquartered in Charlotte, NC, Truist Insurance Holdings operates more than 240 offices through its subsidiaries: McGriff Insurance Services, Inc.; CRC Insurance Services, Inc.; Crump Life Insurance Services, Inc.; AmRisc, LLC; and its Insurance Services companies (AFCO Credit Corporation, CAFO Inc., and Kensington Vanguard Land Services, LLC). For more information, visit www.truistinsurance.com.
As a pioneering leader in premium financing for more than 65 years, AFCO Credit Corporation works with insurance providers to provide flexible insurance financing solutions, with the goal of increasing revenue and operating income. AFCO is transforming its business into a digitalized, two-tiered collection and processing of funds driven by new digital portals designed to reduce its customers’ initial cash flow and improve the customer experience.
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and future operations of Truist Financial Corporation or its subsidiaries (collectively, “Truist” ). Words such as “anticipate,” “believe,” “estimate,” “anticipate,” “forecast,” “will,” “opportunity,” “plan,” “project,” “could,” “may,” “should,” “”will” or similar words or expressions are intended to identify these forward-looking statements. These forward-looking statements are based on Truist’s expectations and opinions regarding Truist’s business, financial, and other future operations. Because forward-looking statements relate to the results and future events, involve inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Many events or factors could affect Truist’s future financial results and operations and could cause actual results or performance to differ from expectations. or performance. EXCEPT TO THE EXTENT REQUIRED BY LAW OR APPLICABLE LAW, Truist DISCLAIMS ANY LIABILITY change such conditions or publicly announce the effect of any changes shown herein to reflect future events. More information about Truist and factors that may affect the forward-looking statements contained herein can be found in Truist’s Annual Report on Form 10-K for its most recent fiscal year. December 31, 2021as amended by its Quarterly Reports on Form 10-Q, and its other filings with the Securities and Exchange Commission.
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