The divestiture of EquiTrust Life will allow FBL Financial to focus on the farm bureau market.

FBL Financial Group, Inc. has agreed to sell its subsidiary, EquiTrust Life Insurance Company, to controlled affiliates of Guggenheim Partners, LLC.

FBL Financial, West Des Moines, Iowa, says in a press statement the company paid a preliminary purchase price of $440 million in an all-cash transaction.

EquiTrust Life sells fixed and indexed annuities and life insurance nationally through independent agents and marketing organizations. Guggenheim Partners, LLC is a diversified financial services firm with more than $125 billion in assets under management.

In conjunction with the sale, FBL Financial also announced several capital management actions, including redemption of $175 million of public senior notes, redemption of $50 million of affiliate senior notes and a stock repurchase authorization of $200 million.

Subject to regulatory approval, the transaction is expected to close on or about December 30, 2011, FBL Financial says.

Bank of America Merrill Lynch is acting as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to FBL Financial Group.