Truist Weighs Sale of Afco, Which Manages $6 Billion to $7 Billion in Assets
Key Facts
Truist Financial is weighing a sale of Afco Credit or a direct exit from its asset portfolio, in a potential move involving a business that manages an estimated $6 billion to $7 billion in assets. Bloomberg, via Investing.com, reported, citing people familiar with the matter, that the group is weighing a sale of the entire company against a disposal of its assets, without settling valuation terms. Afco provides premium finance, making any exit related to a specialized lending unit within Truist's business. The company has not announced a final decision or deal terms in the available information. The cited asset size reflects what Afco manages, not a sale value or a disclosed valuation of the company.
Afco operates in insurance premium finance through solutions it offers to insurance agents for their insured clients, according to Truist's description of its business. Part of its business focuses on short-term commercial financing that helps midsize companies pay insurance costs upfront. Examples cited in the Bloomberg report include trucking fleets and construction contractors, which face property and liability insurance obligations. These facilities finance insurance obligations before their payment due dates, according to the report's description. Afco's business therefore differs from the unsecured personal loans Truist agreed to sell to Carlyle in a separate deal.
The Afco news follows other steps to reshape Truist's lending portfolio, but the available information does not link those steps to a specific motive for selling the unit. On September 15, the company disclosed its strategic decision to exit near-prime auto lending, and it also sold a $5.5 billion auto loan portfolio, according to EL7 data. Before that, it stopped boat and recreational vehicle loans during the second quarter, while also reducing loan originations in other less profitable consumer units, such as prime and subprime auto lending, according to Reuters. On October 16, Truist announced an agreement to sell an approximately $7.7 billion portfolio of unsecured personal loans to Carlyle, with the deal expected to close in the fourth quarter of 2026. These moves put the Afco review in the context of a broader review of businesses, but do not establish that a potential exit from Afco is part of a single announced plan.
In its quarterly performance summary, Truist described its franchise review as ongoing, aimed at reallocating capital and expenses in line with its strategy and improving balance sheet composition. This provides a stated framework for reviewing businesses and allocating resources, but does not say whether Afco will be sold or explain the reasons for considering a sale. The group's total assets were $554 billion on September 30, 2026, according to its third-quarter results. Truist describes itself as one of the 10 largest commercial banks, and its consumer and wholesale businesses include specialized lending activities. The balance sheet's size places Afco within a large banking group, without by itself indicating the potential financial impact of any exit.
The Bloomberg report said Afco's assets could attract interest from private credit firms as Truist explores sale options. But the people familiar with the matter cited by the report said deliberations remain at an early stage and may not result in a final deal. The report gave no date for a decision or timeline for completing a potential process. The options therefore remain a sale of the company or a disposal of its assets, with valuation and terms still unsettled. The available context contains no announcement from Truist confirming an agreement involving Afco.
In trading, Truist shares rose about 1% after the report, according to Bloomberg via Investing.com, bringing their gain over the 12 months ended when the report was published on October 27, 2026, to 11%. EL7 data showed the stock closing at $48.44 on October 23, before the report was published. The move cited in the report reflects the stock's response after the news, while the 12-month performance places that move in a longer-term context. The available information does not detail how much the Afco news contributed to the stock's gain over that period.