Farmers Insurance Exchanges in California Commence Cash Tender Offers

October 10, 2013

Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange announced that Farmers Insurance Exchange commenced a cash tender offer for any and all of its outstanding 8.625 percent surplus notes due 2024.

It was also announced that the exchanges commenced a cash tender offer for up to $550 million in aggregate liquidation amount, less any amount accepted in the 2024 Notes tender offer of Farmers Exchange capital’s outstanding 7.05 percent trust surplus note securities and 7.20 percent trust surplus note securities.

All validly tendered 2024 Notes will be accepted for purchase and all validly tendered 7.05 percent trust notes will be accepted for purchase before any 7.20 percent Trust Notes are accepted. There are currently outstanding $300 million aggregate principal amount of 2024 notes, $500 million aggregate liquidation amount of 7.05 percent trust notes and $150 million aggregate liquidation amount of 7.20 percent trust notes.

The tender offers are being made pursuant to an offer to purchase dated Oct. 9. The tender offers are set to expire Nov. 6 unless extended or terminated with respect to any series of notes. Holders must validly tender and not withdraw their notes before Oct. 23 unless extended with respect to any series of notes, to receive the applicable total consideration, which includes an early tender payment of $50 per $1,000 principal or liquidation amount of notes accepted for purchase.

The exchanges are three reciprocal insurers owned by their policyholders, and together with their subsidiaries and affiliates comprise the Farmers Insurance Group of Companies.

The Los Angeles-based Farmers Insurance Group of Companies serves more than 10 million households through more than 50,000 exclusive and independent agents. Farmers Group Inc. and its subsidiaries provide administrative and management services to the exchanges.

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