A small Midwestern mutual life insurer has turned itself into a public company.
The insurer, Federal Life Insurance Company of Riverwoods, Illinois, is now a subsidiary of Federal Life Group Inc., a company with stock that trades on the Nasdaq Capital Market.
Shares trade under the symbol Nasdaq:FLF.
Federal Life’s stock may not stay on the Nasdaq Capital Market for very long: The company warned in the offering prospectus that it may try to avoid U.S. Securities and Exchange Commission quarterly and annual reporting requirements by getting its stock delisted from the Nasdaq Capital Market.
“This would materially and adversely affect the liquidity of our stock,” the company said in a list of offering risk factors.
The Deal Structure
A mutual insurer is owned by the policyholders.
Federal Life’s previous holding company, Federal Life Mutual Holding Company, completed a subscription offering, for the eligible policyholders and annuity holders, Dec. 4.
The company completed a community offering — for directors, officers, employees, “strategic partners,” and Insurance Capital Group LLC (ICG) — Tuesday.
Federal Life said in its prospectus that it hoped to 3.4 million shares to 4.6 million shares, at an initial price of $10 per share.
The company actually sold 3.53 million shares, according to Federal Life.
The total proceeds amounted to $35.3 million.