A division of BB&T Corp. plans to purchase the U.S. premiumfinance operations of Aon Corp. brokerage. Financial terms were notreleased.

Winston-Salem, N.C.-based bank BB&T's AFCO Credit Corp. saidit plans to buy the U.S. operations of Cananwill, an internationalpremium finance business owned by Chicago-based Aon. The deal isexpected to be completed by the end of the first quarter, AFCOsaid.

AFCO is the primary insurance premium finance subsidiary ofBB&T, which also owns BB&T Insurance Services, an insurancebrokerage firm based in Raleigh, N.C.

BB&T said it is the second largest provider of insurancepremium financing in the United States and the largest in Canada.The premium finance unit is part of BB&T's Specialized Lendingdivision.

"We are strongly committed to insurance premium finance loansand this acquisition will significantly strengthen our franchise inthe United States," said Tol Broome, manager of BB&TSpecialized Lending. "Cananwill employees share our values and ourcommon goals of providing outstanding client service and helpingclients achieve financial success."

BB&T said its insurance premium finance operation is made upof Pittsburgh-based AFCO Credit Corp. and AFCO Acceptance Corp.that operates nine offices across the United States; AFCO'saffiliate CAFO, which maintains three offices in Canada; and PrimeRate Premium Finance of Florence, S.C.

In an e-mail statement, David Prosperi, vice president, globalpublic relations for Aon said, "The decision to sell Cananwill ispart of Aon's ongoing effort to focus on its core strengths of riskbrokerage and human capital consulting."

In its filings with the Securities and Exchange Commission, Aonsaid third-quarter losses in 2008 in its Cananwill business, alongwith soft market conditions, offset revenue gains in the Americasoperation.

Yesterday, Aon said it completed its deal to sell its AISManagement Group unit to Mercury Insurance Group for $120 million.The deal, announced in October, was an all cash transaction thatclosed Friday.

(This story was updated at 11 a.m. on Jan. 8)