SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: May 3, 1996
EQUITABLE OF IOWA COMPANIES
(Exact Name of Registrant as Specified in Its Charter)
Iowa
(State or Other Jurisdiction of Incorporation)
0-8590 42-1083593
(Commission File Number) (I.R.S. Employer Identification No.)
604 Locust Street, P.O. Box 1635, Des Moines, IA 50306
(Address of Principal Executive Offices) (Zip Code)
(515) 245-6911
(Registrant's Telephone Number, Including Area Code)
ITEM 5. Other Events.
See attached Press Release identified as "Exhibit 99", which by this
reference is incorporated herein.
ITEM 7. Exhibits.
Press Release of Equitable of Iowa Companies dated May 3, 1996
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.
EQUITABLE OF IOWA COMPANIES
Date: May 3, 1996 By /s/ Paul E. Larson
___________________________________
Paul E. Larson
Executive Vice President and CFO
(Principal Financial Officer)
EXHIBIT INDEX
Exhibit No. Description Page
___________ ___________ ____
99 Press Release of Equitable of Iowa Companies
dated May 3, 1996
EQUITABLE NEWS
OF IOWA COMPANIES
700 Locust Street, Suite 201,
Des Moines, Iowa 50309
CONTACT: Susan B. Watson
Vice President - Finance
(515) 241-7660
Cynthia M. Schaus
Manager - Corporate Communications
(515) 241-7607
EQUITABLE OF IOWA TO ACQUIRE
GOLDEN AMERICAN, EXPAND MARKET PRESENCE
DES MOINES, May 3, 1996 -- Equitable of Iowa Companies (NYSE:EIC)
announced that it has signed a definitive agreement to acquire Golden
American Life Insurance Company, a growing company with 1995 year-end
assets of $1.2 billion, and its broker-dealer affiliate, Directed Services,
Inc. The all cash transaction is valued at $144 million, including the
repayment of debt of $51 million. Completion of the transaction is
expected during the third quarter of 1996, and is subject to customary
conditions and regulatory approvals.
"We believe the acquisition of Golden American is a great strategic
fit for Equitable of Iowa," explained Fred S. Hubbell, Equitable of Iowa
chairman, president and chief executive officer. "It further diversifies
our product portfolio by significantly increasing our presence in the
variable annuity business and adding variable life insurance products. The
purchase also expands our distribution channels to include national and
regional brokerage firms that serve as a natural contact for customers
interested in products that combine the potential investment performance of
mutual funds with the tax-advantages of annuities and life insurance."
"In addition, we expect to leverage Golden American's service and
technology capabilities for variable products with our proven success in
fixed annuities and life insurance, as well as our history of profitability
and financial strength. We believe this move will enable us to better
serve the rapidly growing market for our retirement savings products."
Based in Wilmington, DE, Golden American has been actively engaged in
the variable product business under the leadership of Terry L. Kendall and
currently has approximately $1.3 billion of total variable annuities in
force. First quarter 1996 variable annuity premiums are estimated at $116
million. The acquisition of Golden American will provide Equitable of Iowa
with access to a strong internal sales team of 14 wholesalers and a network
of 140 broker-dealers with more than 6,000 registered representatives
currently appointed to sell their products.
Equitable of Iowa currently has agreements in place to sell its variable
annuity with 230 broker-dealers with 3,700 registered representatives.
Hubbell indicated that Golden American would maintain its Delaware operations,
with Kendall continuing to provide key leadership as president and chief
executive officer of this unit.
"Equitable of Iowa is a known leader in the fixed annuity business and
we believe we will provide a nice complement with our variable annuity
business. We also have a variable life product that will further enhance
the company's efforts to meet the needs of its customers," observed Terry L.
Kendall. "We at Golden American are excited about this opportunity to join
the Equitable of Iowa team to work together to position the combined team to
be a significant competitor in the retirement savings market."
Kendall continued, "We also believe Equitable of Iowa's financial
strength and high quality ratings, when combined with our products and
service leadership, will prove to be a potent force in the distribution of
annuities through banks as well as through brokerage firms."
Equitable of Iowa Companies' strategy for success is to build on its
financial strength and customer focus, diversify its product portfolio,
expand its distribution channels, and increase its overall presence in the
retirement savings market. At the end of the most recent quarter,
operating earnings and assets were both reported to have increased over 18
percent compared to the year before, consistent with the company's track
record for profitable growth. With assets of $10.0 billion as of March 31,
1996, Equitable of Iowa is the holding company for Equitable Life Insurance
Company of Iowa, USG Annuity & Life Company, Locust Street Securities, and
Equitable Investment Services.
- - fact sheet attached -
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Equitable of Iowa Companies
FACT SHEET
May 3, 1996
Golden Equitable Combined
American of Iowa Pro Forma
________ _________ _________
<S> <C> <C> <C>
YEAR END 1995
_____________
GAAP Assets $1,200 $9,800 $11,000
(millions)
Premium
(millions)
Variable Annuities $108 $ 66 $ 174
Fixed Annuities 11 1,402 1,413
Life Insurance 5 128 133
______ ______ _______
124 1,596 1,720
Policyholder Liabilities
(millions)
Variable Annuities $996 $ 69 $1,065
Fixed Annuities 33 6,623 6,656
Life Insurance 13 1,071 1,084
______ _____ ______
1,042 7,763 8,805
Statutory Capital and
Surplus $66 $533 $599
(millions)
FIRST QUARTER 1996
__________________
Premium
(millions)
Variable Annuities $116 (est.) $34 $154
Distribution Network
Career/Brokerage Agents 0 53,000
Registered Reps 6,000 3,700
Broker Dealers 140 230
Wholesalers 14 0
Operations
Employees 85 500
Headquarters Wilmington, Des Moines,
Delaware Iowa
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