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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report June 30, 1998
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UNITED FIRE & CASUALTY COMPANY
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(Exact name of registrant as specified in its charter)
Iowa 2-39621 42-0644327
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(State of Incorporation) (Commission (IRS Employer
File Number) Identification No.)
118 Second Avenue, S.E.
Cedar Rapids, Iowa 52407
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (319) 399-5700
ITEM 5. OTHER EVENTS
United Fire & Casualty Company, a property and casualty insurer, announces
the repurchase on June 29, 1998 of 625,000 shares of its common stock from
General Accident Insurance Company of America. The Company currently has
10,691,721 shares of common stock issued and outstanding. The transaction
was negotiated privately with General Accident. United Fire paid $42 per
share.
The Company financed the repurchase through available cash and liquidation of
some of its investment portfolio. United Fire intends to use 25,000 of the
shares to fund a contribution to its Employee Stock Ownership Plan. Current
plans call for the rest of the shares to be retired.
Management believes that given the current market prices, the Company's
shares are attractively valued, and the opportunity to repurchase
approximately 5.85% of the Company's outstanding stock at $42 per share is an
excellent use of capital.
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Except for historical information within this filing, it contains
forward-looking statements pertaining to the Company's current expectations
regarding the retirement of some of the repurchased stock and the use of some
of the repurchased stock to fund a contribution to the company's Employee
Stock Ownership Plan. Actual use of the repurchased stock may materially
differ depending upon changes in business conditions and various other
factors which involve uncertainty.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
UNITED FIRE & CASUALTY COMPANY
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(Registrant)
Date June 30, 1998 By /s/ Kent G. Baker
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Kent G. Baker
Vice President and
Chief Financial Officer
