Federal Life Group Announces Short-Form Merger

Rhea-AI Summary

Federal Life Group (OTC: FLFG) announced a short-form merger with its parent on December 15, 2025. The parent currently owns more than 90% of Federal Life common stock; the merger will make the parent the 100% owner. Minority stockholders will be paid $15.25 per share as provided in the merger agreement. The company said the short-form merger is anticipated to close prior to the end of the year.

Key takeaways: transaction type, cash consideration per share, current >90% parent ownership, and expected year-end closing.

Positive

• Cash consideration of $15.25 per share for minority holders
• Parent's existing >90% stake enables a short-form merger
• Expected closing prior to year-end 2025 provides timing clarity

Negative

• Company will become 100% parent-owned, ending public minority ownership
• Minority shareholders will be cashed out and lose future public trading rights

News Market Reaction – FLFG

+60.42%

1 alert

+60.42% News Effect

On the day this news was published, FLFG gained 60.42%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Company to merge with FLG Merger Sub to Continue Mission of Delivering Next Generation of Accident & Health, Life, and Annuity Products

CHICAGO, Dec. 15, 2025 (GLOBE NEWSWIRE) -- Federal Life Group, Inc. (“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 (Trading Symbol 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.

About Federal Life
Federal Life is a leading insurance business that has been protecting individuals and families with valuable products for over 100 years. Incorporated in 1899 and headquartered in the Chicago metropolitan area, Federal Life is proud of its longstanding tradition of financial strength, stability, and as an innovator in the industry. Federal Life is excited to deliver the next generation of accident & health, life, and annuity products through innovative product design and risk management solutions for insurance and reinsurance clients.

Anders Raaum
Investor Relations
araaum@federallife.com
847.850.3311

FAQ

What did Federal Life Group (FLFG) announce on December 15, 2025?

Federal Life announced a short-form merger with its parent that will make the parent 100% owner and pay minority holders $15.25 per share.

How much will FLFG shareholders receive in the short-form merger?

Non-parent shareholders will be entitled to $15.25 per share under the merger agreement.

Why can Federal Life (FLFG) use a short-form merger?

The parent already owns more than 90% of common stock, which permits a short-form merger to acquire remaining shares.

When is the FLFG short-form merger expected to close?

The company anticipates the merger will close prior to the end of 2025.

What happens to FLFG shares after the parent reaches 100% ownership?

Upon closing, Federal Life will be 100% owned by its parent, eliminating public minority ownership of FLFG shares.