Kan/Neb Farm Bureau Merge w/FB Mut'l

Farm Bureau Mutual Insurance Company announced that the Farm Bureau property-casualty affiliates in Kansas (Farm Bureau Mutual Insurance Company, Inc.) and Nebraska (Farm Bureau Insurance Company of Nebraska) will merge into Farm Bureau Mutual Insurance Company. The Farm Bureau Mutual property-casualty pool currently operates predominantly in Iowa, Minnesota, South Dakota, Utah, Arizona and New Mexico. These three mutual companies have signed a memorandum of understanding to merge operations and are working toward finalizing a definitive agreement. This merger is contingent upon regulatory approval and is expected to close during the first quarter of 2003. "Our policyholders will benefit from improved rate stability as we achieve greater geographic diversification by moving from a one-state to an eight-state environment," John Tatum, executive vice president and general manager