BB&T acquires AFCO and CAFO

BB&T Corporation has completed its acquisition of AFCO Credit Corporation, an insurance premium finance company, and its Canadian affiliate, CAFO Inc., from Mellon Financial Corporation.
The move is expected to elevate BB&T from the ninth-largest provider of insurance premium financing in the United States (and the largest in Canada) to the second-largest company in its class in the United States.
The terms of the agreement have not been disclosed.
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.
BB&T currently operates insurance premium finance subsidiary Prime Rate Premium Finance Corporation Inc.
AFCO and CAFO will retain their brand name and operate separately from Prime Rate as a specialized unit of BB&T’s specialized lending division.
Daryl Zupan, president of AFCO and CAFO, along with his existing senior management team will continue to oversee the organization’s 16 offices across the U.S. and Canada.
AFCO, founded in 1954, was acquired by Mellon in 1993 and has clients that include large conglomerate, medium-sized corporations, municipalities, professional practices, sole practitioners, groups and associations.
The Canadian offices are located in Edmonton, Montreal and Toronto.