FBL Financial Group has closed the sale of its subsidiary, EquiTrust Life Insurance, to a controlled affiliate of Guggenheim Partners, in an all-cash transaction with initial sale proceeds of $471.4m.

The $471.4m initial sale proceeds consist of the preliminary purchase price of $440m increased by $31.4m for the closing net worth adjustment. The final price will be determined after the year-end statutory balance sheet is completed for EquiTrust Life.

The acquisition of EquiTrust includes the total independent channel business that has been developed since 2003, as well as a closed block of coinsured business.

Additionally, Farm Bureau Property & Casualty Insurance had redeemed $50m of FBL Financial’s $100m principal amount of 6.10% Senior Notes held solely by affiliates that were due in 2015.

A portion of the sale proceeds will be used to redeem the public debt as part of the terms of FBL Financial Group’s 5.85% Senior Notes and 5.875% Senior Notes that are due in 2014 and 2017 respectively.

EquiTrust Life sells fixed and indexed annuities and life insurance nationally through independent agents and marketing organizations. Guggenheim Partners is a diversified financial services firm with more than $125bn in assets under management.

FBL Financial’s primary operating subsidiary, Farm Bureau Life Insurance Company, distributes life insurance and annuities to individuals and small businesses.