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FOR IMMEDIATE RELEASE
Kansas City Life and GuideOne Group of Companies sign
Stock purchase agreement for GuideOne Life Insurance Co.
KANSAS CITY, Mo./ March 31, 2003 – Kansas
City Life Insurance Company and The GuideOne Group of Companies,
based in West Des Moines, Iowa, have signed a definitive agreement
under which Kansas City Life will buy all of GuideOne Life Insurance
Company’s issued and outstanding shares of stock for approximately
$78 million.
The acquisition of GuideOne Life will represent an increase of
approximately 10% in assets and policyholders for Kansas City
Life, according to R. Philip Bixby, President and Chief Executive
Officer. The agreement also creates a marketing partnership that
provides for sales of Kansas City Life products through GuideOne’s
Group property/casualty agents.
“Kansas City Life’s consistently strong capital position
permits us to look for opportunities for growth, even in difficult
economic times,” Bixby said. “By acquiring GuideOne
Life, we gain not only an increase in our customer base but a
marketing opportunity as well.”
The purchase price is payable in cash at closing. The transaction
is subject to, among other things, approval by the Iowa and Missouri
Insurance Departments. The sale is expected to close in the second
quarter of 2003.
About Kansas City Life:
Kansas City Life Insurance Co., founded in 1895, is a Missouri
corporation with its Home Office in Kansas City, Mo. The Company’s
major sales emphasis is life insurance and annuities. Total revenues
in 2002 were $440.2 million. Life insurance in force, at the end
of the year 2002, totaled $26.6 billion, while assets totaled
$3.9 billion. The Company operates in 48 states and the District
of Columbia. For more information, please visit www.kclife.com.
About GuideOne Life:
GuideOne Life, an Iowa corporation, is a stock life insurer owned
directly by The GuideOne Financial Group, Inc., a holding company
owned by GuideOne Mutual Insurance Co. and GuideOne Specialty
Mutual Insurance Co. GuideOne Life operations are conducted on
a branch office basis and through captive and independent multiple-line
agents associated with the parent company in West Des Moines,
Iowa. GuideOne Life is licensed in 40 states with the vast majority
of life premium volume generated by approximately 280 exclusive
GuideOne insurance agents.
GuideOne Life is a historically profitable company, reporting
net operating gains in each of the last five years. In 2002 GuideOne
Life’s total direct premiums and annuity considerations
totaled $58.4 million, respectively. Net income was $7.5 million
in 2002 and total net admitted assets as of December 31, 2002,
were $347.7 million, both numbers based on Statutory Accounting
Principles since Generally Accepted Accounting Principle numbers
are unavailable.
Any forward-looking statements contained in this release,
which reflect management’s best judgment based on factors
currently known, involve risks and uncertainties. Actual results
could differ materially from those anticipated in the forward-looking
statements included herein as a result of a number of factors,
including among others the possibility of unforeseen changes in
the political, economic or regulatory environment, demographic
changes and others.
FOR MORE INFORMATION,
Contact:
William A. Schalekamp, Sr. Vice President,
General Counsel & Secretary, Kansas City Life
Phone: (816) 753-7000
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