Sheryl J Moore

By Warren S. Hersch

January 2, 2012

FBL Financial Group, Inc., West Des Moines, Iowa (NYSE: FFG), has closed the previously announced sale of its subsidiary, EquiTrust Life Insurance Company, to a controlled affiliate of Guggenheim Partners, LLC, New York, N.Y., in an all-cash transaction with initial sale proceeds of $471.4 million.

FBL Financial says the initial sale proceeds of $471.4 million consist of the preliminary purchase price of $440 million increased by $31.4 million for the closing net worth adjustment, calculated as the estimated change in EquiTrust Life’s adjusted statutory net worth for the nine-month period since March 31, 2011. The final price will be determined after the year-end statutory balance sheet is completed for EquiTrust Life and a further post-closing adjusted statutory net worth reconciliation is calculated.

EquiTrust Life sells fixed and indexed annuities and life insurance nationally through independent agents and marketing organizations. Guggenheim Partners, LLC is a diversified financial services firm with more than $125 billion in assets under management. The acquisition of EquiTrust Life includes all of the independent channel business developed since 2003, as well as a closed block of coinsured business.

In conjunction with the closing of the sale of EquiTrust Life, $50 million of FBL Financial Group’s $100 million principal amount of 6.10% Senior Notes due 2015, held solely by affiliates, have been redeemed from Farm Bureau Property & Casualty Insurance Company. Additionally, in accordance with the terms of FBL Financial Group’s 5.85% Senior Notes due 2014 and 5.875% Senior Notes due 2017, a portion of the sale proceeds will be used to redeem this public debt.

FBL Financial says the notes, which have a principal amount outstanding of $175 million, are expected to be redeemed on January 30, 2012, at the make-whole redemption price. The indentures governing these notes have been discharged in conjunction with the closing of the sale of EquiTrust Life.

Originally Posted at LifeHealthPro on January 2, 2012 by Warren S. Hersch.