Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Bank of America Corporation (BAC) - free report >>
JPMorgan Chase & Co. (JPM) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bank of America Corporation (BAC) - free report >>
JPMorgan Chase & Co. (JPM) - free report >>
Image: Bigstock
SunTrust (STI) to Sell Insurance Premium Finance Subsidiary
With the strategy to focus on core Wholesale Banking operations, SunTrust Banks, Inc. (STI - Free Report) announced an agreement to divest its commercial lines insurance premium finance subsidiary, Premium Assignment Corporation (“PAC”) to Kansas City, MO-based IPFS Corporation. The financial details of the deal, expected to close in fourth-quarter 2017, were not revealed.
Hugh S. (Beau) Cummins, III, Wholesale Segment executive at SunTrust said, “PAC has demonstrated good growth and profitability, and has been led by a successful management team. This transaction aligns PAC with a company that has a proven track record in the insurance sector, and one that will hire all PAC teammates.”
Notably, the transaction is still subject to several customary closing conditions. As of Jun 30, 2017, PAC had $1.4 billion in assets and finances commercial lines insurance premiums in all the states. SunTrust had acquired PAC as part of its deal to buy Regional Investment Corporation in 1994.
SunTrust intends to improve profitability for focusing on Wholesale Banking business. Also, the company is continuing with its loan portfolio diversification plan to increase commercial real estate and commercial and industrial loans.
Several major banks including Bank of America Corporation (BAC - Free Report) , JPMorgan Chase & Co. (JPM - Free Report) and Citigroup Inc. (C - Free Report) have been undertaking measures to strengthen core operations and have divested/closed several non-core businesses. These measures significantly boost profitability and enhance shareholders’ value.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>