SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
December 8, 1997
(Exact name of registrant as specified in its charter)
FBL Financial Group, Inc.
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
Iowa
1-11917
42-1411715
(Address of Principal executive offices) (Zip Code)
5400 University Avenue
West Des Moines, Iowa 50266
Registrant's telephone number, including area code
(515) 225-5400
(Former name or former address, if changed since last report.) N/A
Item 5. Other Events.
On December 8, 1997, FBL Financial Group, Inc. (the
"Company") announced the formation of an alliance with American
Equity Investment Life Holding Company, a privately held
insurance holding company, for the development, marketing and
administration of variable annuity and variable universal life
insurance products. A subsidiary of the Company will reinsure
the variable business written by American Equity. Also announced
was a planned $25,000,000 cash investment in American Equity by
the Company. The press release announcing these matters is
included as an exhibit to this Form 8-K.
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.
FBL FINANCIAL GROUP, INC.
(Registrant)
Date: December 11, 1997
By: /s/ James W. Noyce
James W. Noyce, Chief Financial Officer
EXHIBITS TO FORM 8-K
99.1 Press Release dated December 8, 1997
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
MONDAY, DECEMBER 8, 1997
FBL FINANCIAL GROUP, INC. AND AMERICAN EQUITY INVESTMENT LIFE
HOLDING COMPANY ANNOUNCE ALLIANCE TO SELL VARIABLE PRODUCTS;
INVESTMENT IN AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
West Des Moines, Iowa - FBL Financial Group, Inc. (NYSE: FFG) and
American Equity Investment Life Holding Company both of West Des
Moines, Iowa today announced a strategic alliance which includes
an agreement under which FBL Financial Group will assist American
Equity Investment Life Holding Company (American Equity) in the
development, marketing and administration of variable annuity and
variable universal life insurance products. Under a separate
reinsurance arrangement, FBL Financial Group, through its wholly-
owned subsidiary Farm Bureau Life Insurance Company, will share
in the risks, costs and profits of the variable business written
by American Equity.
Also announced is a planned $25,000,000 cash investment by FBL
Financial Group in common stock of American Equity. This
transaction, which is contingent upon regulatory approval, is
expected to take place by December 31, 1997. A portion of the
shares acquired by FBL Financial Group will be placed in a voting
trust with the voting trustees being members of management of
American Equity. The voting trust arrangement will allow
American Equity's management to maintain control of the Company
and will limit FBL Financial Group's power to vote to 20 percent
of the Company's voting securities. FBL Financial Group will
name a member to American Equity Investment Life Insurance
Company's Board of Directors.
American Equity Investment Life Holding Company is a privately
held holding company organized and controlled by David J. Noble,
the company's Chairman, President and Treasurer. Mr. Noble is the
former Chairman and President of The Statesman Group, Inc. The
holding company wholly owns American Equity Investment Life
Insurance Company, an Iowa domiciled insurance company. American
Equity sells a wide array of fixed income annuities and
traditional life insurance products in 31 states and the District
of Columbia through approximately 3,700 agents. American Equity
began selling annuity products in 1997 and during the eleven
month period ended November 30, 1997, annuity premiums collected
totaled $128,500,000.
The companies have signed a letter of intent to jointly design
and develop certain variable annuity and variable life insurance
products to be marketed exclusively by American Equity. American
Equity will develop and expand its agency and brokerage force for
the marketing and distribution of the variable products and FBL
Financial Group will assist American Equity with the formation of
a registered broker/dealer to facilitate the marketing efforts.
FBL Financial Group will also provide the administrative support
and systems resources to manage and administer the variable
business sold by American Equity. Costs incurred by FBL Financial
Group to administer these variable products will be allocated to
American Equity. It is anticipated variable products will be
available for sale by American Equity no later than June 1998.
Noble stated, "American Equity views the strategic alliance with
FBL as a major unique event that will benefit both groups as they
take advantage of a very dynamic and exciting opportunity for the
future. American Equity's initial Business Plan contemplated
marketing variable insurance products during 1998. The success
of our marketing efforts of fixed annuities which have exceeded
$25,000,000 for each of the months of October and November
mandates our continuing efforts in the fixed annuity arena, while
at the same time continuing to follow our planned program for
variable products."
Tom Gibson, Chief Executive Officer of FBL Financial Group
stated, "We believe the investment in and alliance with American
Equity will provide FBL Financial Group with a significant source
of revenues and profits over the long term. American Equity has
a solid business plan and a proven ability to develop, market and
distribute annuity products. By combining our expertise in
variable products with American Equity's marketing force, we
expect to generate a significant level of variable annuity and
variable life insurance business."
Gibson added, "The alliance will also help our bottom line by
expanding the volume of business over which we spread our fixed
costs. We expect this deal will be additive to earnings
beginning in 1999."
The statements in this release concerning the outlook on American
Equity's growth opportunities and potential for profitability and
related potential impact on the earnings of FBL Financial Group,
Inc. are forward-looking statements that involve certain risks
and uncertainties, including the acceptance of American Equity's
current and future products by customers and agents, and the
success of American Equity's marketing efforts. These forward-
looking statements are based on assumptions which American Equity
and FBL Financial Group believe to be reasonable. No assurance
can be given that the assumptions will prove to be correct, and
the difference between assumptions and actual results could be
material.
FBL Financial Group is a holding company whose primary operating
subsidiaries include Farm Bureau Life Insurance Company, Western
Farm Bureau Life Insurance Company and Utah Farm Bureau Insurance
Company. It underwrites, markets and distributes life insurance,
annuities, property-casualty insurance and mutual funds to
individuals and small businesses in 15 Midwestern and Western
states, including approximately 700,000 Farm Bureau member
families, through an exclusive agency force.
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