NU Online News Service, Jan. 5, 2004, 12:17 p.m. EST – FBL Financial Group Inc., West Des Moines, Iowa, says it has extended a coinsurance relationship with American Equity Investment Life Insurance Company, West Des Moines, Iowa, and refinanced some of its debt.[@@]
FBL is the parent of Farm Bureau Life Insurance Company and EquiTrust Life Insurance Company. The FBL-American Equity coinsurance agreement calls for the EquiTrust unit to assume up to 20% of certain types of American Equity fixed annuities and equity-indexed annuities, FBL says.
FBL can cut off the flow of new coinsurance at the end of any month during which its total exposure for the year ends up exceeding $500 million in annual premiums, FBL says.
American Equity recently raised more than $173 million through an initial public stock offering.
In related news, FBL says it has used a new, $60 million line of credit to pay $45.3 million to redeem 49.5% of its Series C preferred stock.
FBL also has replaced a $40 million note payable to the Federal Home Loan Bank of Des Moines with a $40 million home loan bank funding agreement.