Capital Returns Management Sends Letter to Special Committee of the Board of Directors of FBL Financial Group Calling on the Committee to Reject the Grossly Inadequate Take Private Proposal from Farm Bureau Property and Casualty Insurance Company

NEW YORK, Dec. 15, 2020 /PRNewswire/ -- Capital Returns Management, LLC (together with its affiliates, "Capital Returns"), one of the top 10 beneficial owners of FBL Financial Group, Inc. ("FFG" or the "Company") (NYSE: FFG), sent a letter to the Special Committee of the Company's Board of Directors on Tuesday, December 1, 2020.

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In the letter, Capital Returns expressed the belief that the take private acquisition proposal (the "Take Private Proposal") put forth by Farm Bureau Property and Casualty Insurance Company ("FBPCIC"), a related party, at just $47 per share is grossly inadequate. Capital Returns noted that comparable transactions involving annuity or life insurance companies – including two transactions in which the Special Committee members themselves were involved – support a price for FFG of at least $70 per share.

Capital Returns also highlighted the fact that FFG's strong competitive advantage in an attractive market, recent investments in its fee-based wealth management services, and strategic importance to FBPCIC – to whom it provides all executive management and employees – all justify a substantial premium to book value for FFG. FBPCIC is also expected to enjoy substantial capital efficiencies following a combination with FFG.  Capital Returns believes that while there are benefits to a combination of FFG and FBPCIC into a single entity, FFG's unaffiliated shareholders should be fairly compensated. Without an appropriate premium, the Special Committee members should not be pressured by FBPCIC into ending FFG's independent and successful existence as a public company.

Capital Returns warned the Special Committee to act with care and diligence as it negotiates with FBPCIC on behalf of all shareholders. Among other things, Capital Returns called on the Special Committee to carefully police the conflicts of interest posed by FBPCIC's proposal and ensure that the interests of unaffiliated shareholders are protected.

The full text of Capital Returns' letter to the Special Committee of the FBL Financial Group Board of Directors can be found at the following link: https://tinyurl.com/ycz4lkb2

About Capital Returns
Capital Returns is a sector focused fund that invests exclusively in the insurance industry.

Investor and Media Contact:
Ronald Bobman
Capital Returns Management, LLC
(212) 813-0860
[email protected]

SOURCE Capital Returns Management, LLC

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