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Member, Beacon International Group, Ltd.
WINSTON-SALEM, N.C.BB&T Corp. said it will purchase insurance premium finance company AFCO Credit Corp. and its Canadian affiliate, CAFO Inc., from Pittsburgh-based Mellon Financial Corp.
The transaction, the terms of which were not disclosed, is subject to regulatory approval and is expected to be completed during the first quarter of 2007, BB&T said in a statement.
Insurance premium financing is a loan that enables businesses and consumers to pay their insurance costs over time, improving cash flow and providing additional credit and working capital.
The acquisition would move Winston-Salem, N.C.-based BB&T from ninth- to second-largest provider of insurance premium financing in the United States and the largest in Canada.
BB&T Corp. is the parent company of Raleigh, N.C.-based BB&T Insurance Services Inc., one of the top 10 insurance brokers by revenue in the United States, according to Business Insurance rankings.