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UNITED STATES
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 March 6, 1996
(Date of earliest event reported)
ALLIED Group, Inc.
(Exact name of registrant as specified in its chapter)
Iowa 0-14243 42-0958655
(State of other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) Fine Number) Identification No.)
701 Fifth Avenue, Des Moines, Iowa 50391-2000
(Address of principal executive offices) (Zip Code)
515-280-4211
(Registrant's telephone number including area code)
The total number of pages contained herein is 3 .
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Item 5. Other Events.
On March 6, 1996, ALLIED Group, Inc. announced two events. The first was a Board
of Directors decision to pay first-quarter 1996 dividends of $0.22 per share on
March 28, 1996, and the second was that the ESOP Trustee elected to convert the
ESOP Series preferred stock to common stock on March 7, 1996. Attached hereto
and incorporated herein is the press release which is filed as Exhibit 20.1 to
this Form 8-K.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
20.1 Press release dated March 6, 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 thereunto duly authorized.
ALLIED Group, Inc.
(Registrant)
/s/ Jamie H. Shaffer
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Jamie H. Shaffer, President (Financial)
(Principal Financial Officer and
Principal Accounting Officer)
Date: March 6, 1996
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EXHIBIT 20.1
ALLIED
LOGO
NEWS RELEASE ALLIED Group, Inc.
For Immediate Release 701 5th Ave.
NASDAQ Symbol: ALGR Des Moines, IA 50391-2000
Contact: Jim Shaffer (515) 280-4326
ALLIED GROUP, INC. ANNOUNCES
DIVIDEND INCREASE, ESOP STOCK CONVERSION
Des Moines, Iowa, March 6, 1996--ALLIED Group, Inc. today announced two events
significant to investors. The first was a Board of Directors decision; the
second was an action taken by the Trustee of the Company's Employee Stock
Ownership Plan (ESOP).
At the March 5, 1996 Board meeting, the Directors voted to pay a first-quarter
1996 dividend of $0.22 per share on March 28, 1996 to stockholders of record on
March 26th. The dividend is $0.05 higher than the one paid in the fourth quarter
of 1995. "The increase recognizes the Company's strong capital position and its
potential financial performance," said Chairman John Evans. "The dividend is
expected to be in the mainstream in terms of payout ratio and yield."
Evans emphasized that in awarding the merited increase, Directors gave full
consideration to the dividend policy of the past ten years: "We understand the
significance investors have placed on our history of steady annual dividend
increases."
Primarily on the strength of the higher dividend and the Company's performance
trends, the ESOP Trustee has elected to convert the ESOP preferred stock to
common stock. The date of the conversion will be March 7, 1996.
Since the 2.9 million shares of ESOP Series convertible preferred stock were not
part of the 3-for-2 common stock split in 1993, each of those shares will
convert to 1.5 shares of common stock. The conversion will increase the number
of common shares outstanding to 13.9 million and the total market capitalization
to more than $575 million.
"The actions should be favorably received by the investment community," said Jim
Shaffer, President (Financial). "The higher dividend enhances total return, the
conversion will eliminate the confusing disparity between primary and fully
diluted earnings per share, and our market cap will henceforth be calculated on
a consistent basis."
Shaffer highlighted the positive impact on the Company's employee-owners: "Once
their ESOP account has been converted, they'll share directly in all benefits
that accrue to other investors. Participating in the higher dividend yield on
their common stock will be an immediate reward."
ALLIED Group, Inc. is a regional property-casualty insurance holding company
specializing in personal lines. The Company's property-casualty subsidiaries use
independent agencies, exclusive agencies, and direct response marketing to offer
products in central and western states. Information on ALLIED Group, Inc. is now
available at http://www.cprofiles.com, http://www.prnewswire.com/cnoc, and
http://www.cfonews.com/ALGR.
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