EMC National Life Company has agreed to recapture a block of annuities and life insurance policies with reserves totaling $250 million from FBL Financial Group Inc.

The business includes annuities, universal life and permanent life insurance company originally written by one of the companies that merged to form EMC, Urbandale, Iowa, in 2003, according to FBL, West Des Moines, Iowa (NYSE:FFG).

The effective date of the deal would be Oct. 1, and FBL and EMC hope to close on it Friday.

The deal should help EquiTrust Life Insurance Company, an FBL subsidiary, record an after-tax gain of $9 million on a Generally Accepted Accounting Principles basis and an after-tax gain of $20 million on a statutory basis, FBL says.

FBL will giving up a stream of about $700,000 in earnings per quarter.

EquiTrust Life assumed the business through 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,” FBL Chief Executive Officer James Hohmann says in a statement.

Once the deal is completed, the company action-level risk-based capital ratio at EquiTrust will increase by about 20 percentage points, Hohmann says.