Done deal.

$15.25 cash; closed this month.

Disclaimer / Disclosure

Federal Life (FLFG)

January 23, 2024

Federal Life Group, Inc. (FLFG): this life insurer recently raised capital at $8.19 per share, adding scale so that Bain/ICG can develop it as a growth platform. It rarely trades on the Expert Market. It is too small and illiquid for institutions to buy. Its Expert Market status makes it hard for retail investors to buy. We will largely be at Bain’s mercy in terms of their plans, but it is reasonable to assume that they don’t plan on keeping it in its current tiny form for the long-term. Its fully adjusted tangible book value is around $8.75 per share.

January 1, 2025

Based on this year’s earnings, FLFG’s tangible book value has risen to around $9 per share as well as one can tell with the limited disclosure from the company. Their growth initiatives are working and earnings are accelerating. They will compound their book value over time. For better or for worse, we’re at Bain’s mercy. They control it and will do whatever is best for Bain. That will probably mean taking it public via an IPO or selling it within the next few years.

April 30, 2025

FLFG has a book value of ~$10 and earns ~$1.50. With a market cap of ~$143 million, if Bain takes it public it could get added to the Russell 2000 index.

July 1, 2025

FLFG generated a ~24% return on equity this past quarter. Their tangible book value is ~$9.37 per share. They will probably IPO it within the next 2-3 years. Its market cap has grown to a level where it could be eligible for index inclusion. Bain is using FLFG as a rollup vehicle. The deal target has ~$155 million of assets. They had a ~11% return on equity last year. 96% of their revenues were from individual life insurance and 4% were from individual annuities. They grew their total equity from ~$18 million to ~$24 million from 2021 through 2024 for a ~11% annual growth rate. They have operated exclusively in Texas since 1985.

December 15, 2025

Company to merge with FLG Merger Sub

Federal Life, a leading provider, through its affiliates, of insurance and retirement solutions founded in 1899, announced its intent to engage in a short-form merger with its parent. Federal Life’s parent currently owns more than 90% of the common stock of Federal Life (FLFG). The short-form merger will result in Federal Life becoming 100% owned by its parent. Upon closing of the short-form merger, stockholders, other than the parent, will be entitled to receive $15.25 per share as provided in the merger agreement.

The merger is anticipated to close prior to the end of the year.

January 13, 2026

The Federal Life Group short-form merger closed. Funds are in the process of being distributed from the Depository Trust Company (DTC) and will hit accounts shortly. On to the next one (with six possibilities in February). Stay tuned…