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Bill Oddy
To: ALLFBL, ALL_OA, ALLFED
cc:
Subject: Important news
I am pleased to share with you, the agents and employees of FBL, an
announcement that we just made a few moments ago. We will be consolidating
Kansas Farm Bureau Life Insurance Company into Farm Bureau Life. We have a
long association with Kansas Farm Bureau Life. Many of you already work with
the Kansas associates through the variable alliance we have with them. As I
stated in our news release, this consolidation is our most significant
accomplishment since going public in 1996. It is also in keeping with our
three-pronged growth strategy. As you know, our growth strategy is (1)
internal growth from our traditional market and distribution system, (2)
alliances with other Farm Bureau companies, and (3) opportunities outside of
the Farm Bureau network.
Today we also announced a $75 million share repurchase and tender offer. We
are repurchasing $75 million of our shares at $20 per share in order to
utilize excess capital and improve our return on equity. Over time, FBL's
profitable operations have contributed to the growth of our capital base that
exceeds the amount of capital needed to support our insurance and financial
services business. After evaluating a variety of alternatives, we decided
that the purchase of FBL stock through a tender offer is the best action to
utilize our excess capital and improve returns to our stockholders.
Both of today's announcements demonstrate our commitment to running FBL for
the benefit of our shareholders, including you, our employee shareholders.
Employees who own FBL shares, either directly or through the 401(k) plan, may
tender shares in this offer. Employees will receive details of this tender
through the same mailing that is going to all FBL shareholders. A copy of the
news release may be found on FB Today and HomeField.
Thank you for your support, and as always, I welcome your comments and
questions.
PLEASE PRINT AND SHARE THIS MESSAGE WITH OTHERS IN YOUR AREA WHO DO NOT HAVE
ACCESS TO LOTUS NOTES.
