Press Releases and Updates
January 22, 2009
Progress Report January 2009
First Trinity Financial Corporation (“First Trinity”) completes acquisition of First Life America Corporation
As previously reported, First Trinity entered into a Stock Purchase Agreement to purchase all the outstanding stock of First Life American Corporation (“First Life”) from Brooke Capital Corporation (“BCC”) on July 18, 2008, for an amount not to exceed $8 million. First Life was the wholly owned subsidiary of BCC. The acquisition was approved by the Kansas Insurance Commissioner on October 17, 2008. However, on October 28, 2008, BCC filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Kansas. The filing occurred before the purchase of First Life was closed. On December 9, 2008, an Amendment was entered into that changed the purchase price to $2.5 million, and made the sale subject to Bankruptcy Court approval. Bankruptcy court approval was secured and First Trinity completed its acquisition of First Life on December 23, 2008. The purchase price of $2.5 million was funded with cash on hand.
On December 31, 2007, First Life had an in-force book of 10,332 policies with total face amount of $153,800,000. At September 30, 2008, First Life had assets of $31,218,665 liabilities of $28,074,520, and shareholders’ equity of $3,144,145 on a statutory basis. First Life net premium income for the nine months ending September 30, 2008 was $4,871,119.
This is a significant step forward in the expansion of our life insurance business and the growth of the company, said Gregg Zahn, CEO and founder of First Trinity.