AFCO Credit Corporation to acquire U.S. assets and operations of Cananwill
January 07 2009 - 8:00AM
PR Newswire (US)
PITTSBURGH, Jan. 7 /PRNewswire-FirstCall/ -- 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 BBT.com.
DATASOURCE: BB&T Corporation CONTACT: Daryl Zupan, President of
AFCO, +1-412-402-3841; or David Prosperi, Vice President of Aon
Global Public Relations, +1-312-381-2485; or Tamera Gjesdal, Senior
Vice President of BB&T Investor Relations, +1-336-733-3058; or
Jeff Nichols, Vice President of BB&T Corp. Communications,
+1-336-733-1472 Web site: http://www.bbt.com/ Company News On-Call:
http://www.prnewswire.com/comp/809325.html
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