What You Need to Know
- FBL P&C is trying to help FBL Financial go private.
- Ronald Bobman, Capital Returns' president, has now signed a cooperation and support agreement.
- FBL Financial reported higher net income on higher revenue for the first quarter.
Farm Bureau Property & Casualty Insurance Company may have moved a step closer to helping a sister company, FBL Financial Group Inc., go private.
Farm Bureau P&C announced Monday that it has agreed to increase its offer for outside investors’ shares of FBL Financial stock to $61 each, from $56. The move increases the total deal value by $47 million, to $575 million.
Capital Returns Management LLC, a company that had opposed the deal, has accepted the new price and agreed to vote its shares in favor of the purchase. Ronald Bobman, Capital Returns’ president, signed a cooperation and support agreement, according to a proxy statement amendment filed with the SEC.
Farm Bureau P&C and FBL Financial are both controlled by the West Des Moines, Iowa-based Iowa Farm Bureau Federation.
The federation turned FBL Financial into public company in 1999, by selling a minority stake in the company to the public through an initial public offering.