Truist Explores Sale of Specialty Insurance Lender Afco Credit

Truist is reportedly exploring a potential sale of its specialty lending unit, Afco Credit, as part of an ongoing corporate strategy to streamline operations and concentrate heavily on core banking functions. According to industry reports citing sources familiar with the matter, the financial institution is currently weighing an outright sale of the business or its underlying assets.

Streamlining Portfolio Operations

Afco Credit specializes in insurance premium financing, a niche lending segment that provides funds to commercial and personal clients to cover insurance policy costs. While the unit has historically generated operational revenue, leadership has increasingly targeted noncore segments for divestment to optimize performance metrics.

Representatives for Truist declined to comment when contacted about the potential transaction. Sources indicate that discussions remain in the preliminary stages, and market observers caution that a finalized transaction is not guaranteed.

Broader Restructuring and Asset Sales

The evaluation of Afco Credit follows a series of significant portfolio adjustments executed by the bank throughout the autumn months. In September, Truist disclosed filings indicating plans to divest approximately $5.5 billion in auto loans, effectively marking its exit from the near-prime auto lending sector. Those assets represented substantially all the holdings tied to its national auto finance affiliate, Regional Acceptance Corporation. Prior to that exit, the institution also wound down its marine and recreational vehicle loan operations.

Additional portfolio adjustments materialized in October when Carlyle announced that its Global Credit platform had entered into an agreement to acquire a $7.7 billion portfolio of unsecured personal loans from Truist. That transaction is slated to conclude during the fourth quarter, pending standard regulatory and closing conditions.

Strategic Shift Under Leadership

During a mid-October earnings call, executives elaborated on the institution’s broader pivot away from specific consumer loan categories. Management emphasized a deliberate shift toward consumer lending products that maintain a more direct connection to core deposit relationships, such as residential home lending, enhanced credit card platforms, and targeted unsecured loan offerings.

The strategic repositioning coincides with leadership changes. Mike Lyons officially assumed the role of CEO on September 1, succeeding the previous executive administration. Subsequent commentary from leadership highlighted plans to direct capital investments toward modernizing the branch and ATM networks, advancing mobile digital capabilities, and expanding performance-based marketing initiatives alongside rewards platforms.

• Truist evaluates options for specialty insurance lender Afco Credit.
• Recent divestments include multi-billion-dollar portfolios in auto and personal loans.
• Leadership prioritizes deposit-linked consumer lending products and core operations.