FBL Tells Investors How to Price a Life Insurer
April 13, 2021 by Allison Bell
What You Need to Know
- One measure of deal value is price divided by book value, with “accumulated other comprehensive income” excluded from book value.
- FBL says typical ratios for recent annuity issuer deals have ranged from 1 to 1 to about 1.25 to 1.
- The firm contends that prices for deals made before COVID-19 appeared are irrelevant.
FBL Financial Group Inc. says critics of its decision to accept a $528 million acquisition offer from its sister, Farm Bureau Property & Casualty Insurance Company, have no idea how to price a small, struggling annuity issuer in a pandemic.