FBL Financial Group Announces Reinsurance Transaction.WEST DES MOINES, Iowa West Des Moines is a city in Polk, Dallas, and Warren counties in the U.S. state of Iowa. As of the 2000 census, the city population was 46,403; a special census taken in the spring of 2005 counted 51,744 residents. -- FBL FBL Full Bell Lines (coin grading) FBL Fly by Light FBL FIATA Bill of Lading FBL Functional Baseline FBL Foundation for a Better Life FBL Federal Barge Lines, Inc. Financial Group, Inc. (NYSE NYSE See: New York Stock Exchange : FFG) today announced an agreement with EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. National Life Company (EMCNL), whereby EMCNL will recapture a block of annuities and life insurance policies with reserves totaling $250 million. The effective date for this transaction is October 1, 2009 with a planned closing by October 30, 2009. As a result of this recapture transaction, FBL Financial Group subsidiary EquiTrust Life Insurance Company expects to record an after-tax gain of $9 million on a generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting basis and an after-tax gain of $20 million on a statutory basis. The forgone after-tax GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). earnings from this block of business, after reinvestment of proceeds, are approximately $0.7 million per quarter. This business includes annuities, universal life and permanent life insurance originally written by National Travelers Life Company (a company which merged with Employers Modern Life Company in 2003 to create EMCNL). EquiTrust Life originally assumed this business as part of a closed block transaction in 2001. "We are pleased to announce this transaction as one of many steps that FBL Financial Group is taking to strengthen its capital position," said Chief Executive Officer James E. Hohmann. "This transaction increases EquiTrust Life's statutory capital and is expected to increase its company action level risk-based capital ratio Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. by approximately 20 percentage points." FBL Financial Group is a holding company whose primary operating subsidiaries are Farm Bureau Life Insurance Company and EquiTrust Life Insurance Company. FBL underwrites, markets and distributes life insurance, annuities and mutual funds to individuals and small businesses. In addition, FBL manages all aspects of two Farm Bureau affiliated property-casualty insurance companies for a management fee. For more information, please visit www.fblfinancial.com. FFG-1 |
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