Afco handles insurance premium financing, and Truist is unloading noncore lending businesses, according to the report.
Truist is looking to sell the business outright, or its assets, per the report.
Truist’s exploration of a sale of Afco is in its early stages, and a deal may not be reached, the report said.
Reached by PYMNTS, a Truist spokesperson declined to comment on the report.
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Truist disclosed in September that it was selling $5.5 billion worth of auto loans and exiting the near-prime auto lending business. The bank said at the time that the loans represented substantially all assets of its national auto finance company affiliate, Regional Acceptance Corporation.
Announcing this move in a September filing with the Securities and Exchange Commission, Truist said that it aimed to sharpen its strategic focus by exiting a noncore, less profitable business. Earlier, Truist discontinued its marine and recreational vehicle loan business.
Truist said its strategic review was ongoing.
Global investment firm Carlyle said in an Oct. 16 press release that its Global Credit platform agreed to buy a $7.7 billion portfolio of unsecured personal loans from Truist.
The transaction is expected to close in the fourth quarter, subject to customary closing conditions, according to the release.
On the same day, Oct. 16, PYMNTS reported that Truist management said during an earnings call that the bank was reducing parts of its consumer loan book and that it was shifting consumer lending toward products tied more directly to deposit relationships, including credit cards, home lending and unsecured loans.
New Truist CEO Mike Lyons said during the Oct. 16 earnings call that investment in the consumer bank will include “the branch network, ATM network, technology, mobile digital, performance-based marketing, an enhanced client-focused credit card platform, and a rewards platform.”
Lyons became the new CEO of Truist on Sept. 1. When announcing the appointment in June, Truist Lead Independent Director Thomas E. Skains said in a press release that Lyons is “an action-oriented leader committed to high performance across the full range of our company operations and the right person to lead Truist’s next chapter of growth.”
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