FBL Financial set to go private in $528M deal; reinsurance renewals 'orderly'

TOP NEWS IN GLOBAL INSURANCE

* Farm Bureau Property & Casualty Insurance Co. agreed to acquire all of the outstanding FBL Financial Group Inc. class A and class B common shares that neither it nor the Iowa Farm Bureau Federation currently own for $56.00 per share in cash. The aggregate cash purchase price is approximately $528 million. Once the deal closes, Iowa Farm Bureau will continue to be the majority owner of the company, and FBL Financial's common shares will cease trading on the New York Stock Exchange.

* The reinsurance market operated in an "orderly and efficient manner" at the Jan. 1 reinsurance renewals despite "record-setting" U.S. hurricane landfall and uncertainty about the impact of the coronavirus pandemic, according to broker Aon PLC's reinsurance solutions division. The broker said demand for reinsurance cover was "slightly up" and there were "mixed rate change outcomes across programs."

➤ US insurance companies with highest price-to-estimated 2021 EPS ratios

Based on analysts estimates for 34 public property and casualty insurers, it is expected that median earnings per share in 2021 for industry will be 33.5% up as compared to 2020.

➤ Chubb, Allstate raised homeowners rates in November 2020

State insurance regulators approved 280 homeowners insurance rate change requests in the month.

PROPERTY AND CASUALTY

* The U.K. Supreme Court is scheduled to make its ruling on the country's business interruption test case on Jan. 15.

* Axa SA subsidiary Axa Liabilities Managers SAS has put Coverys Syndicate 3330 up for sale, Insurance Insider reported, citing sources.

* Arthur J. Gallagher & Co. agreed to acquire specialist U.K. insurance broker Bollington Wilson Group Ltd. for undisclosed terms.

* Alliant Insurance Services Inc. purchased Vertus for undisclosed terms. The acquired entity offers several services and solutions, including medical, dental, life, disability, absence management and voluntary benefits.

LIFE AND HEALTH

* Unisys Corp. agreed to purchase a group annuity contract for about $280 million through which it will transfer benefit obligations related to certain retirees under its U.S. pension plans to Massachusetts Mutual Life Insurance Co.

* The U.K. government has launched a global health insurance card that ensures U.K. residents' access to emergency and medically necessary care when traveling in the European Union will continue.

REINSURANCE

* United Insurance Holdings Corp. renewed its reinsurance agreements that provide coverage for in-force, new and renewal business, effective Jan. 1. The all other perils catastrophe excess of loss agreement provides protection in excess of $15 million against up to $110 million of all catastrophe loss events other than named windstorms and earthquakes.

* MetLife Inc. unit Metropolitan Tower Life Insurance Co. completed four U.K. longevity reinsurance transactions with Legal & General Assurance Society Ltd. in 2020.

MARKETS

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