ALLIED GROUP, INC. ANNOUNCES STOCK EXCHANGE
ALLIED GROUP, INC. ANNOUNCES STOCK EXCHANGE DES MOINES, Iowa, Nov. 2 /PRNewswire/ -- ALLIED Group, Inc.
(NASDAQ: ALGR) today announced its affiliate, ALLIED Mutual Insurance Company, is exchanging 1,827,222 shares of company common stock for 1,827,222 shares of 6.75 percent preferred stock. The transaction lowers ALLIED Group, Inc.'s cost of capital and allows ALLIED Mutual to increase investment income; it has been approved by both boards of directors and is effective the date of this release.
The preferred stock, issued at a value of $28.50 per share, is perpetual, nonconvertible, voting, and cumulative with respect to dividends. It ranks on parity with the existing ESOP preferred stock. The 6.75 preferred is voting stock in the same class as company common stock, with one vote per share. Dividends are payable quarterly. Should ALLIED Mutual ever sell the preferred stock, voting rights will be extinguished and the shares will be callable at $28.50 per share five years or more after such sale. 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 the suburban and rural areas of central and western states. -0- 11/2/92 /CONTACT: Jim Schaffer of ALLIED, 515-280-4326/ (ALGR) CO: ALLIED Group, Inc.; ALLIED Mutual Insurance Company ST: Iowa IN: INS SU:
KH -- MN011 -- 1687 11/02/92 14:40 EST
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|Date:||Nov 2, 1992|
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