FBL to sell EquiTrust Life

West Des Moines-based FBL Financial Group Inc. today announced it has agreed to sell its, EquiTrust Life Insurance Co. subsidiary, to controlled affiliates of Guggenheim Partners LLC for a preliminary purchase price of $440 million in an all-cash transaction.

EquiTrust Life sells fixed and indexed annuities and life insurance nationally through independent agents and marketing organizations. Guggenheim Partners is a diversified financial services firm with more than $125 billion in assets under management. In addition, FBL Financial Group is announcing several capital management actions, including redemption of $175 million of public senior notes, redemption of $50 million of affiliate senior notes and a stock repurchase authorization of $200 million.

“The divestiture of EquiTrust Life will allow FBL Financial Group to increase focus on its very attractive Farm Bureau market, while reducing risk and increasing financial flexibility,” James Hohmann, CEO of FBL Financial Group, said in a press release. “Over the past 10-plus years, EquiTrust Life has grown into a significant presence in the independent distribution annuity marketplace making it attractive to potential acquirers who are looking to pursue that line of business. For FBL Financial Group, this presented an opportunity to narrow its strategic focus to its Farm Bureau niche.”

This transaction is subject to regulatory approval and other customary closing conditions, and the purchase price will be subject to closing and post-closing net worth adjustments. The transaction is currently expected to close on or about Dec. 30.

“In conjunction with the consummation of this transaction, FBL Financial Group plans to take several actions to utilize excess capital, including redeeming $175 million of public debt, redeeming $50 million of affiliate debt and repurchasing stock pursuant to a $200 million stock repurchase authorization,” Hohmann said.

West Des Moines-based FBL Financial Group Inc. today announced it has agreed to sell its, EquiTrust Life Insurance Co. subsidiary, to controlled affiliates of Guggenheim Partners LLC for a preliminary purchase price of $440 million in an all-cash transaction.

EquiTrust Life sells fixed and indexed annuities and life insurance nationally through independent agents and marketing organizations. Guggenheim Partners is a diversified financial services firm with more than $125 billion in assets under management. In addition, FBL Financial Group is announcing several capital management actions, including redemption of $175 million of public senior notes, redemption of $50 million of affiliate senior notes and a stock repurchase authorization of $200 million.

“The divestiture of EquiTrust Life will allow FBL Financial Group to increase focus on its very attractive Farm Bureau market, while reducing risk and increasing financial flexibility,” James Hohmann, CEO of FBL Financial Group, said in a press release.

“Over the past 10-plus years, EquiTrust Life has grown into a significant presence in the independent distribution annuity marketplace making it attractive to potential acquirers who are looking to pursue that line of business. For FBL Financial Group, this presented an opportunity to narrow its strategic focus to its Farm Bureau niche.”

This transaction is subject to regulatory approval and other customary closing conditions, and the purchase price will be subject to closing and post-closing net worth adjustments. The transaction is currently expected to close on or about Dec. 30.

“In conjunction with the consummation of this transaction, FBL Financial Group plans to take several actions to utilize excess capital, including redeeming $175 million of public debt, redeeming $50 million of affiliate debt and repurchasing stock pursuant to a $200 million stock repurchase authorization,” Hohmann said.