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 January 15, 1998
(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.
Attached hereto and incorporated herein is the press release dated January 15,
1998 which is filed as Exhibit 20.3 this Form 8-K.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
20.3 Press release dated January 15, 1998
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
-------------------------------------------------------------
Jamie H. Shaffer, Treasurer
(Principal Financial Officer and Principal Accounting Officer)
Date: January 15, 1998
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Exhibit 20.3
ALLIED GROUP, INC. ANNOUNCEMENT
Des Moines, Iowa, January 15, 1998 -- ALLIED Group, Inc. (NYSE symbol GRP)
announced today that a complaint has been filed by Mary M. Rieff, a policyholder
of ALLIED Mutual Insurance Company ("ALLIED Mutual"), in the Iowa District Court
in and for Polk County Iowa, against ALLIED Group, Inc. ("Company") and certain
other individuals who are or were officers and/or directors of ALLIED Mutual and
the Company. The complaint asserts, among other things, that (a) the defendants
were responsible for the inappropriate transfer of ALLIED Mutual's corporate
assets, the seizure of certain corporate opportunities and the implementation of
an improper de facto demutualization without informing or compensating
policyholders or receiving the appropriate approval from regulatory authorities;
(b) that this allegedly wrongful demutualization began on or about January 1,
1985 and was accomplished through transfers of ALLIED Mutual's assets to the
Company and to the individual defendants for inadequate consideration; (c) that
the individual defendants breached fiduciary duties owed to ALLIED Mutual,
wasted its corporate assets and intentionally interfered with its contracts,
prospective business advantage and business relationships; and (d) that
defendants improperly transferred substantial ownership of and control over the
Company and ALLIED Mutual's insurance business. The complaint further asserts
that as a result of the foregoing, ALLIED Mutual and its policyholders have
suffered damages in excess of $500 million. The complaint requests an accounting
of the assets allegedly wrongfully transferred to the Company and compensation
to ALLIED Mutual for the value of such assets, for the seizure of corporate
opportunities, and for the de facto demutualization of ALLIED Mutual. The
complaint also asks for certain other relief including attorneys' fees and
costs, equitable relief and interest and restitution for any assets wrongfully
transferred or conveyed.
The Company believes that the suit is without merit and intends to vigorously
defend this action.
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