FBL FINANCIAL GROUP INC - FORM 8-K - EX-99.2 - INVESTOR SUPPLEMENT

Attached files

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EX-99.2 - PDF OF INVESTOR SUPPLEMENT - FBL FINANCIAL GROUP INC	investorsupplement2011q3.pdf
8-K - 8K FILING - FBL FINANCIAL GROUP INC	pressrelease8k2011q3.htm
EX-99.1 - EARNINGS RELEASE - FBL FINANCIAL GROUP INC	exh991newsreleaseq32011.htm

Financial Supplement

2011 Third Quarter Report




Corporate Headquarters	FBL Financial Group, Inc.
	5400 University Avenue
	West Des Moines, Iowa 50266-5997
	(515) 225-5400
Financial Inquiries	For more information contact:
	Jim Brannen
	Chief Financial Officer
	Jim.Brannen@FBLFinancial.com
	(515) 225-5631

	Don Seibel
	Vice President - Finance
	Don.Seibel@FBLFinancial.com
	(515) 226-6399

	Kathleen Till Stange
	Investor Relations Vice President
	Kathleen.TillStange@FBLFinancial.com
	(515) 226-6780
Internet Information	FBL Financial Group, Inc.
	www.fblfinancial.com
Stock Symbol	NYSE: FFG
Transfer Agent	The Bank of New York Mellon
	c/o BNY Mellon Shareowner Services
	Shareholder Relations Department
	P.O. Box 358015
	Jersey City, NJ 07310-1900
	www.bnymellon.com/shareowner



FBL Financial Group, Inc.
Financial Supplement (Unaudited)
September 30, 2011
Table of Contents/Notes

Consolidated Financial Statements:
Consolidated Balance Sheets		3
Consolidated Statements of Operations		5
Consolidated Statements of Operating Income, last five quarters		6
Financial Information by Segment:
Segment Information		7
Consolidating Statements of Pre-tax Operating Income (Loss)		8
Statements of Pretax Operating Income (Loss), last five quarters:
Traditional Annuity - Exclusive Distribution Segment		10
Traditional Annuity - Independent Distribution Segment		11
Traditional and Universal Life Insurance Segment		13
Variable Segment		15
Corporate and Other Segment		16
Discontinued Operations - EquiTrust Life Business		17
Deferred Policy Acquisition Costs/Deferred Sales Inducements by Segment		18
Collected Premiums, last five quarters		20
Parent Company Liquidity		21
Other Information		22

NOTE 1: As announced on October 7, 2011, we intend to exit the independent distribution business which represents a majority of the operations for our subsidiary, EquiTrust Life Insurance Company (EquiTrust Life). As a result, we are in the process of selling EquiTrust Life to affiliates of Guggenheim Partners, LLC. This transaction is subject to regulatory approval and other customary closing conditions and is expected to close on or about December 30, 2011. While EquiTrust Life is being sold in its entirety, Farm Bureau Life will reinsure a limited portion of the EquiTrust Life business related to variable universal life and variable annuity products distributed through various unaffiliated third parties, as well as a small amount of fixed life and annuity products. The business component being sold (herein described as “the EquiTrust Life Business”) encompasses the entire Traditional Annuity - Independent segment and a smaller portion of our Traditional and Universal Life Insurance and Corporate and Other segments. Selected balance sheet and operating results of the EquiTrust Life Business, which will be presented as discontinued operations beginning in the fourth quarter of 2011, are provided on page 17.

Upon closing of the sale, we plan to redeem, in accordance with mandatory redemption provisions of the underlying notes, a portion of our long-term debt. Planned redemptions include $50.0 million of our senior notes with affiliates on the sale closing date and all of our $175.0 million public senior notes on or about January 30, 2012. Our Board of Directors has also approved a stock repurchase plan beginning in November 2011.

Additional information regarding the sale of EquiTrust Life and our capital management initiatives can be found in our September 30, 2011 Form 10-Q or press release and related Form 8-K dated October 7, 2011.

NOTE 2: In addition to net income, FBL Financial Group has consistently used operating income (loss), a non-GAAP financial measure common in the life insurance industry, as a primary economic measure to evaluate its financial performance. Operating income (loss) for the periods presented equals net income adjusted to eliminate the impact of realized gains and losses on investments and changes in net unrealized gains and losses on derivatives.

We use operating income (loss), in addition to net income, to measure our performance since realized gains and losses on investments and the change in net unrealized gains and losses on derivatives can fluctuate greatly from quarter to quarter. These fluctuations make it difficult to analyze core operating trends. In addition, for derivatives not designated as hedges, there is a mismatch between the valuation of the asset and liability when deriving net income. Specifically, call options relating to our index business are one or two-year assets while the embedded derivative in the index contracts represents the rights of the contract holder to receive index credits over the entire period the index annuities are expected to be in force. For our other embedded derivatives and interest rate swaps, the instruments are marked to market, but the associated liabilities are not marked to market. A view of our operating performance without the impact of these mismatches and nonrecurring items enhances the analysis of our results. We use operating income for goal setting, determining short-term incentive compensation and evaluating performance on a basis comparable to that used by many in the investment community.

NOTE 3: Certain financial information presented herein may not add due to rounding.

FBL Financial Group, Inc.

Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)



	September 30,		December 31,
	2011		2010
Assets
Investments:
Fixed maturity securities - available for sale, at fair value (amortized cost: 2011 - $11,501,763; 2010 - $10,974,330)	$	12,218,511	$	11,128,524
Equity securities - available for sale, at fair value (cost: 2011 - $79,808; 2010 - $77,689)	80,304		78,656
Mortgage loans	1,234,917		1,254,437
Derivative instruments	29,791		40,729
Real estate	11,030		13,554
Policy loans	171,481		170,341
Other long-term investments	112		132
Short-term investments	56,984		383,369
Total investments	13,803,130		13,069,742

Cash and cash equivalents	120,341		4,794
Securities and indebtedness of related parties	74,776		57,832
Accrued investment income	151,862		135,384
Amounts receivable from affiliates	4,565		2,025
Reinsurance recoverable	100,488		122,326
Deferred policy acquisition costs	613,264		812,025
Deferred sales inducements	184,824		259,148
Value of insurance in force acquired	25,127		27,706
Current income taxes recoverable	—		17,914
Other assets	77,415		72,154
Assets held in separate accounts	638,904		753,050






Total assets	$	15,794,696	$	15,334,100

FBL Financial Group, Inc.

Consolidated Balance Sheets (Continued)

(Dollars in thousands)



	September 30,		December 31,
	2011		2010
Liabilities and stockholders' equity
Liabilities:
Future policy benefits:
Interest sensitive and index products	$	10,934,249	$	10,645,927
Traditional life insurance and accident and health products	1,388,501		1,362,410
Other policy claims and benefits	44,761		51,393
Supplementary contracts without life contingencies	499,940		506,167
Advance premiums and other deposits	210,224		188,577
Amounts payable to affiliates	884		573
Short-term debt payable to affiliates	—		100,000
Long-term debt payable to affiliates	99,932		—
Long-term debt payable to non-affiliates	271,235		271,168
Current income taxes	2,807		—
Deferred income taxes	206,812		131,174
Other liabilities	93,886		177,247
Liabilities related to separate accounts	638,904		753,050
Total liabilities	14,392,135		14,187,686

Stockholders' equity:
FBL Financial Group, Inc. stockholders' equity
Preferred stock, without par value, at liquidation value - authorized 10,000,000 shares, issued and outstanding 5,000,000 Series B shares	3,000		3,000
Class A common stock, without par value - authorized 88,500,000 shares, issued and outstanding 30,044,744 shares in 2011 and 29,749,068 shares in 2010	127,904		118,165
Class B common stock, without par value - authorized 1,500,000 shares, issued and outstanding 1,192,990 shares	7,522		7,522
Accumulated other comprehensive income	200,539		39,895
Retained earnings	1,063,508		977,740
Total FBL Financial Group, Inc. stockholders' equity	1,402,473		1,146,322
Noncontrolling interest	88		92
Total stockholders' equity	1,402,561		1,146,414
Total liabilities and stockholders' equity	$	15,794,696	$	15,334,100

FBL Financial Group, Inc.

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except per share data)



	Three months ended September 30,						Nine months ended September 30,
	2011			2010			2011			2010
Revenues:
Interest sensitive and index product charges	$	28,865		$	28,371		$	89,235		$	88,809
Traditional life insurance premiums	40,342			38,721			125,868			120,757
Net investment income	187,253			181,974			562,064			539,971
Derivative income (loss)	(73,658		)	39,826			(37,811		)	7,877
Net realized capital gains on sales of investments	13,107			6,532			24,368			13,448

Total other-than-temporary impairment losses	(1,226		)	(370		)	(32,317		)	(58,880		)
Non-credit portion in other comprehensive income	(296		)	(1,063		)	13,523			42,331
Net impairment loss recognized in earnings	(1,522		)	(1,433		)	(18,794		)	(16,549		)

Other income	4,856			3,562			13,835			10,512
Total revenues	199,243			297,553			758,765			764,825

Benefits and expenses:
Interest sensitive and index product benefits	144,238			117,282			418,170			367,920
Change in value of index product embedded derivatives	(88,390		)	56,598			(86,725		)	24,052
Traditional life insurance benefits	35,598			35,242			109,913			103,762
Policyholder dividends	4,109			4,193			12,765			13,253
Underwriting, acquisition and insurance expenses	50,050			33,603			136,038			127,204
Interest expense	5,311			6,099			17,051			18,334
Other expenses	6,840			4,310			19,244			13,619
Total benefits and expenses	157,756			257,327			626,456			668,144
	41,487			40,226			132,309			96,681
Income taxes	(14,159		)	(13,530		)	(42,766		)	(31,996		)
Equity income, net of related income taxes	237			1,955			2,041			4,257
Net income	27,565			28,651			91,584			68,942
Net loss attributable to noncontrolling interest	1			26			21			79
Net income attributable to FBL Financial Group, Inc.	$	27,566		$	28,677		$	91,605		$	69,021

Earnings per common share	$	0.89		$	0.94		$	2.98		$	2.27
Earnings per common share - assuming dilution	$	0.88		$	0.93		$	2.93		$	2.25

Cash dividends per common share	$	0.0625		$	0.0625		$	0.1875		$	0.1875



FBL Financial Group, Inc.
Consolidated Statements of Operating Income
(Dollars in thousands, except per share data)

	Q3 2010			Q4 2010			Q1 2011			Q2 2011			Q3 2011
Operating revenues:
Interest sensitive and index product charges	$	28,388		$	30,878		$	30,786		$	29,574		$	28,868
Traditional life insurance premiums	38,721			41,299			41,387			44,139			40,342
Net investment income	181,974			181,399			186,519			188,292			187,253
Derivative income	8,372			10,634			15,536			23,868			22,962
Other income	3,562			3,776			4,999			3,980			4,856
Total operating revenues	261,017			267,986			279,227			289,853			284,281

Benefits and expenses:
Interest sensitive and index product benefits	125,317			129,669			134,493			142,325			144,596
Traditional life insurance benefits	35,242			33,409			36,598			37,717			35,598
Policyholder dividends	4,193			4,318			4,300			4,356			4,109
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	3,397			3,498			3,923			4,404			3,248
Amortization of deferred policy acquisition costs	20,036			21,871			29,765			20,897			27,143
Amortization of value of insurance in force acquired	406			32			360			(6,172		)	1,405
Other underwriting expenses	19,468			18,894			18,615			19,616			18,833
Total underwriting, acquisition and insurance expenses	43,307			44,295			52,663			38,745			50,629
Interest expense	6,099			6,120			6,109			5,631			5,311
Other expenses	4,310			5,335			4,900			7,504			6,840
Total benefits and expenses	218,468			223,146			239,063			236,278			247,083
	42,549			44,840			40,164			53,575			37,198
Income taxes	(14,343		)	(15,722		)	(12,937		)	(16,690		)	(12,658		)
Net loss (income) attributable to noncontrolling interest	26			(1		)	2			18			1
Equity income, net of related income taxes	1,955			1,184			1,399			405			237
Operating income	30,187			30,301			28,628			37,308			24,778

Realized gains/losses on investments, net of offsets	1,567			14,259			(2,686		)	1,407			2,673
Change in net unrealized gains/losses on derivatives, net of offsets	(3,077		)	7,072			551			(1,169		)	115
Net income attributable to FBL Financial Group, Inc.	$	28,677		$	51,632		$	26,493		$	37,546		$	27,566

Operating income per common share - assuming dilution	$	0.98		$	0.98		$	0.92		$	1.19		$	0.79
Earnings per common share - assuming dilution	$	0.93		$	1.67		$	0.85		$	1.20		$	0.88

Weighted average common shares outstanding (in thousands):
Basic	30,428			30,495			30,612			30,733			30,803
Effect of dilutive securities	269			460			510			474			463
Diluted	30,697			30,955			31,122			31,207			31,266

Operating return on equity, excluding AOCI - last twelve months	10.8		%	10.2		%	10.7		%	11.5		%	10.7		%
Operating return on equity, including AOCI - last twelve months	11.0		%	10.1		%	10.2		%	10.8		%	9.8		%

FBL Financial Group, Inc.

Segment Information

We analyze operations by reviewing financial information regarding products that are aggregated into four product segments. The product segments are (1) Traditional Annuity - Exclusive Distribution ("Exclusive Annuity"), (2) Traditional Annuity - Independent Distribution ("Independent Annuity"), (3) Traditional and Universal Life Insurance and (4) Variable. We also have various support operations and corporate capital that are aggregated into the Corporate and Other segment.

The Exclusive Annuity segment primarily consists of fixed rate annuities and supplementary contracts (some of which involve life contingencies) sold through our exclusive agency distribution. Fixed rate annuities provide for tax-deferred savings and supplementary contracts provide for the systematic repayment of funds that accumulate interest. Fixed rate annuities consist primarily of flexible premium deferred annuities, but also include single premium deferred and immediate contracts. With fixed rate annuities, we bear the underlying investment risk and credit interest to the contracts at rates we determine, subject to interest rate guarantees.

The Independent Annuity segment consists of fixed rate and index annuities and supplementary contracts (some of which involve life contingencies) sold through our independent distribution or assumed through coinsurance agreements. With index annuity products, we bear the underlying investment risk and credit interest in an amount equal to a percentage of the gain in a specified market index, subject to minimum guarantees.

The Traditional and Universal Life Insurance segment consists of whole life, term life and universal life policies. These policies provide benefits upon the death of the insured and may also allow the customer to build cash value on a tax-deferred basis.

The Variable segment consists of variable universal life insurance and variable annuity contracts. These products are similar to universal life insurance and traditional annuity contracts, except the contract holder has the option to direct the cash value of the contract to a wide range of investment sub-accounts, thereby passing the investment risk to the contract holder. During 2010, we discontinued underwriting new sales of variable products and terminated new sales with our variable alliance partners during 2010 and 2011. We continue to receive premiums from sales that occurred prior to this change. During 2010, our Farm Bureau Life distribution channel began selling variable products underwritten by a large well-known insurance company with variable product expertise. We earn fees from the sale of brokered products, which are reported as other income. A portion of these fees are passed on to the agents as commissions for the underlying sales. The decision to discontinue underwriting variable products was made because we lacked the scale necessary to generate acceptable returns and be competitive in this product line over time. The existing in force business remains on our books and we will continue to administer this business.

The Corporate and Other segment consists of the following corporate items and products/services that do not meet the quantitative threshold for separate segment reporting:



•	investments and related investment income not specifically allocated to our product segments;
•	interest expense;
•	accident and health insurance products, primarily a closed block of group policies;
•	investment management and advisory services;
•	marketing and distribution services for the sale of mutual funds and insurance products not issued by us; and
•	leasing services, primarily with affiliates.

We analyze our segment results based on pre-tax operating income (loss). Accordingly, income taxes are not allocated to the segments. In addition, operating results are reported net of transactions between the segments.

FBL Financial Group, Inc.

Consolidating Statements of Pre-tax Operating Income (Loss)



Quarter Ended September 30, 2011	Traditional Annuity - Exclusive			Traditional Annuity - Independent		Traditional & Universal Life Insurance		Variable			Corporate & Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive and index product charges	$	182		$	3,590	$	12,960	$	12,136		$	—		$	28,868
Traditional life insurance premiums	—			—		40,342		—			—			40,342
Net investment income	46,098			98,708		34,427		4,474			3,546			187,253
Derivative income (loss)	(40		)	23,002		—		—			—			22,962
Other income	—			—		124		1,395			3,337			4,856
Total operating revenues	46,240			125,300		87,853		18,005			6,883			284,281

Benefits and expenses:
Interest sensitive and index product benefits	25,286			95,022		16,786		7,502			—			144,596
Traditional life insurance benefits	—			—		35,598		—			—			35,598
Policyholder dividends	—			—		4,109		—			—			4,109
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	—			—		2,425		823			—			3,248
Amortization of deferred policy acquisition costs	2,667			10,867		7,151		6,458			—			27,143
Amortization of value of insurance in force acquired	440			—		965		—			—			1,405
Other underwriting expenses	2,159			4,005		9,171		2,955			543			18,833
Total underwriting, acquisition and insurance expenses	5,266			14,872		19,712		10,236			543			50,629
Interest expense	—			—		—		—			5,311			5,311
Other expenses	—			—		—		586			6,254			6,840
Total benefits and expenses	30,552			109,894		76,205		18,324			12,108			247,083
	15,688			15,406		11,648		(319		)	(5,225		)	37,198
Net loss attributable to noncontrolling interest	—			—		—		—			1			1
Equity loss, before tax	—			—		—		—			(400		)	(400		)
Pre-tax operating income (loss)	$	15,688		$	15,406	$	11,648	$	(319	)	$	(5,624	)	$	36,799

FBL Financial Group, Inc.

Consolidating Statements of Pre-tax Operating Income (Loss) (Continued)



Quarter Ended September 30, 2010	Traditional Annuity - Exclusive			Traditional Annuity - Independent		Traditional & Universal Life Insurance		Variable			Corporate & Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive and index product charges	$	158		$	5,510	$	11,171	$	11,549		$	—		$	28,388
Traditional life insurance premiums	—			—		38,721		—			—			38,721
Net investment income	43,341			99,051		33,478		4,167			1,937			181,974
Derivative income (loss)	(668		)	9,538		—		—			(498		)	8,372
Other income	1			—		35		881			2,645			3,562
Total operating revenues	42,832			114,099		83,405		16,597			4,084			261,017

Benefits and expenses:
Interest sensitive and index product benefits	24,925			82,988		13,452		3,952			—			125,317
Traditional life insurance benefits	—			—		35,242		—			—			35,242
Policyholder dividends	—			—		4,193		—			—			4,193
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	—			—		2,626		771			—			3,397
Amortization of deferred policy acquisition costs	172			14,590		6,306		(1,032		)	—			20,036
Amortization of value of insurance in force acquired	(92		)	—		498		—			—			406
Other underwriting expenses	2,215			4,875		8,722		3,073			583			19,468
Total underwriting, acquisition and insurance expenses	2,295			19,465		18,152		2,812			583			43,307
Interest expense	—			—		—		—			6,099			6,099
Other expenses	—			—		—		998			3,312			4,310
Total benefits and expenses	27,220			102,453		71,039		7,762			9,994			218,468
	15,612			11,646		12,366		8,835			(5,910		)	42,549
Net loss attributable to noncontrolling interest	—			—		—		—			26			26
Equity income, before tax	—			—		—		—			3,008			3,008
Pre-tax operating income (loss)	$	15,612		$	11,646	$	12,366	$	8,835		$	(2,876	)	$	45,583



FBL Financial Group, Inc.
Statements of Pre-tax Operating Income
Traditional Annuity - Exclusive Distribution Segment

	Q3 2010				Q4 2010			Q1 2011			Q2 2011			Q3 2011
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive and index product charges	$	158			$	123		$	161		$	154		$	182
Net investment income	43,341				43,591			44,421			47,290			46,098
Derivative loss:
Proceeds from option settlements	52				86			177			87			27
Cost of money for call options	(69		)		(65		)	(64		)	(65		)	(67		)
Cost of interest rate swaps	(651		)		(659		)	(658		)	(440		)	—
Total derivative loss	(668		)		(638		)	(545		)	(418		)	(40		)
Other income	1				3			—			1			—
Total operating revenues	42,832				43,079			44,037			47,027			46,240

Benefits and expenses:
Interest sensitive and index product benefits	24,925				24,409			24,674			25,194			25,286
Underwriting, acquisition and insurance expenses:
Amortization of deferred policy acquisition costs	172				2,969			2,501			3,326			2,667
Amortization of value of insurance in force acquired	(92		)		(1,029		)	(150		)	317			440
Other underwriting expenses	2,215				2,132			2,149			2,246			2,159
Total underwriting, acquisition and insurance expenses	2,295				4,072			4,500			5,889			5,266
Total benefits and expenses	27,220				28,481			29,174			31,083			30,552
Pre-tax operating income	$	15,612			$	14,598		$	14,863		$	15,944		$	15,688

Selected balance sheet data, securities at cost:
Assets:
Investments	$	2,980,444			$	3,025,565		$	3,136,065		$	3,248,310		$	3,297,875
Deferred policy acquisition costs	98,586				98,896			102,505			104,610			106,536
Value of insurance in force acquired	11,237				12,143			12,269			11,952			11,496

Liabilities and equity:
Liabilities:
Interest sensitive and index product reserves	$	2,518,748			$	2,581,300		$	2,673,069		$	2,746,674		$	2,783,228
Other insurance reserves	368,622				369,685			371,179			373,987			375,848
Allocated equity, excluding AOCI	269,158				275,088			261,156			267,712			271,007

Other data:
Number of direct contracts	53,313				53,428			53,608			53,881			53,839

Portfolio yield net of assumed defaults	5.73		%		5.79		%	5.70		%	5.75		%	5.72		%
Credited rate	3.66				3.49			3.43			3.42			3.32
Spread on direct fixed annuities at end of quarter (1)	2.07		%		2.30		%	2.27		%	2.33		%	2.40		%

Interest sensitive and index product reserve activity:
Individual deferred annuity reserve:
Balance, beginning of period	$	1,896,788			$	1,931,756		$	1,974,661		$	2,043,957		$	2,102,447
Deposits	73,393				77,587			116,089			99,347			68,463
Withdrawals, surrenders and death benefits	(40,404		)		(33,865		)	(41,443		)	(37,930		)	(28,773		)
Net flows	32,989				43,722			74,646			61,417			39,690

Policyholder interest/index credits	17,025				16,682			16,895			17,104			17,367
Annuitizations and other	(15,046		)		(17,499		)	(22,245		)	(20,031		)	(16,126		)
Balance, end of period	1,931,756				1,974,661			2,043,957			2,102,447			2,143,378
Other interest sensitive reserves	586,992				606,639			629,112			644,227			639,850
Total interest sensitive and index product reserves	$	2,518,748			$	2,581,300		$	2,673,069		$	2,746,674		$	2,783,228

(1) Point-in-time spread at the balance sheet date used by management for decision making, which differs from the spread earned during the reporting period disclosed in the Form 10Q or 10K.



FBL Financial Group, Inc.
Statements of Pre-tax Operating Income
Traditional Annuity - Independent Distribution Segment

	Q3 2010				Q4 2010			Q1 2011			Q2 2011			Q3 2011
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive and index product charges	$	5,510			$	7,172		$	6,302		$	4,786		$	3,590
Net investment income	99,051				97,359			100,335			99,184			98,708
Derivative income:
Proceeds from option settlements	30,660				31,875			36,555			44,757			43,425
Cost of money for call options	(21,122		)		(20,570		)	(20,474		)	(20,471		)	(20,423		)
Total derivative income	9,538				11,305			16,081			24,286			23,002
Total operating revenues	114,099				115,836			122,718			128,256			125,300

Benefits and expenses:
Interest sensitive and index product benefits:
Fixed rate annuities:
Interest credited and other	35,411				35,422			34,660			34,707			34,464
Amortization of deferred sales inducements	773				1,344			1,014			432			136
Total fixed annuity product benefits	36,184				36,766			35,674			35,139			34,600
Index annuities:
Interest credited	9,273				9,108			9,058			9,080			10,133
Amortization of deferred sales inducements	7,635				5,255			9,479			7,756			9,916
Index credits	29,896				32,426			33,359			42,322			40,373
Total index product benefits	46,804				46,789			51,896			59,158			60,422
Total interest sensitive and index product benefits	82,988				83,555			87,570			94,297			95,022
Underwriting, acquisition and insurance expenses:
Amortization of deferred policy acquisition costs	14,590				13,830			17,910			9,034			10,867
Other underwriting expenses	4,875				4,825			4,047			4,410			4,005
Total underwriting, acquisition and insurance expenses	19,465				18,655			21,957			13,444			14,872
Total benefits and expenses	102,453				102,210			109,527			107,741			109,894
Pre-tax operating income	$	11,646			$	13,626		$	13,191		$	20,515		$	15,406

Selected balance sheet data, securities at cost:
Assets:
Investments	$	6,892,612			$	6,908,184		$	6,985,882		$	7,031,955		$	6,887,660
Deferred policy acquisition costs	426,675				403,036			403,016			418,607			421,528
Deferred sales inducements	263,351				247,428			247,943			257,374			258,681

Liabilities and equity:
Liabilities:
Interest sensitive and index product reserves - direct	$	5,859,771			$	5,924,051		$	6,057,649		$	6,155,133		$	6,041,339
Interest sensitive and index product reserves - assumed	1,307,270				1,249,560			1,224,090			1,200,666			1,168,847
Other insurance reserves	158,381				156,386			151,956			152,573			148,455
Allocated equity, excluding AOCI	367,583				367,816			388,536			392,745			384,974



FBL Financial Group, Inc.
Statements of Pre-tax Operating Income
Traditional Annuity - Independent Distribution Segment (Continued)

	Q3 2010				Q4 2010			Q1 2011			Q2 2011			Q3 2011
				(Dollars in thousands)
Other data:
Number of direct contracts	87,127				86,855			87,785			88,158			87,086

Fixed rate annuitites:
Portfolio yield net of assumed defaults	5.57		%		5.55		%	5.47		%	5.45		%	5.41		%
Credited rate	4.92				4.92			4.91			4.86			4.78
Spread on direct fixed rate annuities at end of quarter (1)	0.65		%		0.63		%	0.56		%	0.59		%	0.63		%

Index annutities:
Portfolio yield net of assumed defaults	5.65		%		5.64		%	5.61		%	5.57		%	5.47		%
Credited rate/option cost	3.19				3.08			3.03			2.96			2.93
Spread on direct index annuities at end of quarter (1)	2.46		%		2.56		%	2.58		%	2.61		%	2.54		%

Interest sensitive and index product reserve activity:
Individual deferred annuity reserve:
Balance, beginning of period	$	7,004,760			$	7,037,713		$	7,019,146		$	7,126,978		$	7,175,978
Deposits	100,770				144,152			179,410			177,206			132,820
Withdrawals, surrenders and death benefits	(204,029		)		(242,832		)	(171,153		)	(213,966		)	(287,516		)
Net flows	(103,259		)		(98,680		)	8,257			(36,760		)	(154,696		)

Policyholder interest/index credits	79,472				84,732			87,176			96,169			96,731
Derivative value change and other	56,740				(4,619		)	12,399			(10,409		)	(87,903		)
Balance, end of period	7,037,713				7,019,146			7,126,978			7,175,978			7,030,110
Other interest sensitive reserves	129,328				154,465			154,761			179,821			180,076
Total interest sensitive and index product reserves	$	7,167,041			$	7,173,611		$	7,281,739		$	7,355,799		$	7,210,186

(1) Point-in-time spread at the balance sheet date used by management for decision making, which differs from the spread earned during the reporting period disclosed in the Form 10Q or 10K.



FBL Financial Group, Inc.
Statements of Pre-tax Operating Income
Traditional and Universal Life Insurance Segment

	Q3 2010			Q4 2010		Q1 2011		Q2 2011			Q3 2011
Pre-tax Operating Income			(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	11,171		$	11,922	$	12,317	$	12,838		$	12,960
Traditional life insurance premiums	38,721			41,299		41,387		44,139			40,342
Net investment income	33,478			33,720		34,089		34,205			34,427
Other income	35			45		97		60			124
Total operating revenues	83,405			86,986		87,890		91,242			87,853

Benefits and expenses:
Interest sensitive and index product benefits:
Interest credited and index credits	7,301			7,519		7,895		7,454			7,465
Death benefits	6,151			7,351		7,486		8,025			9,321
Total interest sensitive product benefits	13,452			14,870		15,381		15,479			16,786
Traditional life insurance benefits:
Death benefits	14,929			13,599		17,713		16,023			16,531
Surrender and other benefits	9,522			8,144		10,216		9,123			8,543
Increase in traditional life future policy benefits	10,791			11,666		8,669		12,571			10,524
Total traditional life insurance benefits	35,242			33,409		36,598		37,717			35,598
Policyholder dividends	4,193			4,318		4,300		4,356			4,109
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	2,626			2,850		2,797		3,369			2,425
Amortization of deferred policy acquisition costs	6,306			4,882		7,934		5,415			7,151
Amortization of value of insurance in force acquired	498			1,059		510		(6,489		)	965
Other underwriting expenses	8,722			8,490		8,878		9,368			9,171
Total underwriting, acquisition and insurance expenses	18,152			17,281		20,119		11,663			19,712
Total benefits and expenses	71,039			69,878		76,398		69,215			76,205
Pre-tax operating income	$	12,366		$	17,108	$	11,492	$	22,027		$	11,648

Selected balance sheet data, securities at cost:
Assets:
Investments	$	2,140,043		$	2,140,593	$	2,179,376	$	2,214,276		$	2,225,566
Deferred policy acquisition costs	243,756			250,688		252,763		258,903			261,619
Deferred sales inducements	7,091			7,885		8,375		9,065			9,657
Value of insurance in force acquired	22,335			21,262		20,751		27,241			26,275

Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	631,536		$	636,199	$	641,357	$	651,805		$	663,620
Other insurance reserves	1,468,895			1,489,858		1,502,695		1,516,521			1,533,024
Allocated equity, excluding AOCI	315,358			318,845		324,308		327,325			334,778



FBL Financial Group, Inc.
Statements of Pre-tax Operating Income
Traditional and Universal Life Insurance Segment (Continued)

	Q3 2010				Q4 2010			Q1 2011			Q2 2011			Q3 2011
				(Dollars in thousands, except face amounts in millions)
Other data:
Number of direct policies - traditional life	346,548				349,009			348,942			350,219			350,372
Number of direct policies - universal life	56,129				56,935			57,384			57,701			57,816
Direct face amounts - traditional life	$	35,469			$	36,201		$	36,475		$	37,091		$	37,586
Direct face amounts - universal life	$	5,080			$	5,212		$	5,319		$	5,410		$	5,425

Portfolio yield net of assumed defaults	6.15		%		6.19		%	6.13		%	6.08		%	6.06		%
Credited rate	4.28				4.28			4.29			4.29			4.29
Spread on direct universal life at end of quarter (1)	1.87		%		1.91		%	1.84		%	1.79		%	1.77		%

Interest sensitive reserve activity:
Balance, beginning of period	$	630,016			$	631,536		$	636,199		$	641,357		$	651,805
Deposits	13,838				18,258			18,823			23,520			22,328
Withdrawals and surrenders	(5,498		)		(6,186		)	(6,115		)	(5,683		)	(5,723		)
Net flows	8,340				12,072			12,708			17,837			16,605

Policyholder interest/index credits	6,554				6,522			6,526			6,486			6,663
Policy charges	(11,638		)		(12,290		)	(12,634		)	(13,396		)	(13,320		)
Benefits and other	(1,736		)		(1,641		)	(1,442		)	(479		)	1,867
Balance, end of period	$	631,536			$	636,199		$	641,357		$	651,805		$	663,620

(1) Point-in-time spread at the balance sheet date used by management for decision making, which differs from the spread earned during the reporting period disclosed in the Form 10Q or 10K.



FBL Financial Group, Inc.
Statements of Pre-tax Operating Income (Loss)
Variable Segment

	Q3 2010				Q4 2010			Q1 2011			Q2 2011			Q3 2011
Pre-tax Operating Income (Loss)				(Dollars in thousands, except face amounts in millions)

Operating revenues:
Interest sensitive product charges	$	11,549			$	11,661		$	12,006		$	11,796		$	12,136
Net investment income	4,167				4,273			4,555			4,400			4,474
Other income	881				1,074			1,403			1,008			1,395
Total operating revenues	16,597				17,008			17,964			17,204			18,005

Benefits and expenses:
Interest sensitive product benefits:
Interest credited	2,319				2,340			2,368			2,403			2,542
Death benefits	1,633				4,495			4,500			4,952			4,960
Total interest sensitive product benefits	3,952				6,835			6,868			7,355			7,502
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	771				648			1,126			1,035			823
Amortization of deferred policy acquisition costs	(1,032		)		190			1,420			3,122			6,458
Other underwriting expenses	3,073				2,879			2,854			3,152			2,955
Total underwriting, acquisition and insurance expenses	2,812				3,717			5,400			7,309			10,236
Other expenses	998				1,097			508			1,095			586
Total benefits and expenses	7,762				11,649			12,776			15,759			18,324
Pre-tax operating income (loss)	$	8,835			$	5,359		$	5,188		$	1,445		$	(319	)

Selected balance sheet data, securities at cost:
Assets:
Investments	$	269,887			$	272,908		$	283,426		$	287,907		$	306,027
Deferred policy acquisition costs	149,024				150,109			149,999			147,371			142,389
Deferred sales inducements	2,557				2,538			2,552			2,531			2,517
Separate account assets	705,156				753,050			774,774			759,927			638,904

Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	250,644			$	254,817		$	257,953		$	262,501		$	277,215
Other insurance reserves	31,251				32,861			33,280			36,456			36,790
Separate account liabilities	705,156				753,050			774,774			759,927			638,904
Allocated equity, excluding AOCI	108,515				110,566			109,779			112,173			116,845

Rollforward of separate account balances:
Beginning separate account balance	$	658,820			$	705,156		$	753,050		$	774,774		$	759,927
Net premiums	5,166				6,599			9,630			9,790			(3,407		)
Net investment income (loss)	64,559				62,085			36,119			2,010			(94,692		)
Charges, benefits and surrenders	(23,389		)		(20,790		)	(24,025		)	(26,647		)	(22,924		)
Ending separate account balance	$	705,156			$	753,050		$	774,774		$	759,927		$	638,904

Other data:
Number of direct contracts - variable annuity	18,963				18,603			18,199			17,805			17,442
Number of direct policies - variable universal life	56,253				55,484			54,667			53,897			53,119
Direct face amounts - variable universal life	$	7,078			$	6,982		$	6,876		$	6,763		$	6,662



FBL Financial Group, Inc.
Statements of Pre-tax Operating Loss
Corporate and Other Segment

	Q3 2010				Q4 2010			Q1 2011			Q2 2011			Q3 2011
Pre-tax Operating Loss				(Dollars in thousands)

Operating revenues:
Net investment income	$	1,937			$	2,456		$	3,119		$	3,213		$	3,546
Derivative loss	(498		)		(33		)	—			—			—
Other income	2,645				2,654			3,499			2,911			3,337
Total operating revenues	4,084				5,077			6,618			6,124			6,883

Benefits and expenses:
Other underwriting and insurance expenses	583				570			687			440			543
Interest expense	6,099				6,120			6,109			5,631			5,311
Other expenses	3,312				4,238			4,392			6,409			6,254
Total benefits and expenses	9,994				10,928			11,188			12,480			12,108
	(5,910		)		(5,851		)	(4,570		)	(6,356		)	(5,225		)
Net loss (income) attributable to noncontrolling interest	26				(1		)	2			18			1
Equity income (loss), before tax	3,008				1,821			2,153			622			(400		)
Pre-tax operating loss	$	(2,876	)		$	(4,031	)	$	(2,415	)	$	(5,716	)	$	(5,624	)

Selected balance sheet data, securities at cost:
Assets:
Investments	$	382,744			$	567,331		$	423,215		$	334,341		$	368,758
Securities and indebtedness of related parties	55,196				57,846			65,151			72,241			74,787

Liabilities and equity:
Liabilities:
Insurance reserves	$	61,218			$	61,040		$	60,209		$	60,161		$	57,926
Debt	371,147				371,168			371,191			371,139			371,167
Equity, excluding AOCI	(3,913		)		31,112			49,119			71,564			91,331



FBL Financial Group, Inc.
Discontinued Operations - EquiTrust Life Business


Pre-tax Operating Income by Segment

	Q3 2010				Q4 2010			Q1 2011			Q2 2011			Q3 2011
				(Dollars in thousands)
Segment
Traditional Annuity - Independent Distribution	$	11,646			$	13,626		$	13,191		$	20,515		$	15,406
Traditional and Universal Life Insurance	183				341			54			989			211
Corporate and Other (1)	(1,416		)		(1,632		)	(1,098		)	(2,680		)	(3,256		)
Total	$	10,413			$	12,335		$	12,147		$	18,824		$	12,361

(1) Includes investment income on excess capital related to EquiTrust Life Business, interest expense on our debt required to be redeemed and transaction costs incurred by the parent company. In addition, expenses were reduced for corporate overhead of approximately $0.9 million per quarter, a portion of which were previously allocated to the Traditional Annuity - Independent Distribution segment. These expenses are expected to be absorbed by other segments after the sale.



Selected Balance Sheet Data
September 30, 2011

	Traditional Annuity - Independent Distribution		Traditional and Universal Life Insurance		Variable		Corporate & Other		Total
	(Dollars in thousands)
Assets, securities at cost:
Total investments	$	6,887,660	$	12,629	$	—	$	202,210	$	7,102,499
Deferred policy acquisition costs	421,528		3,908		—		—		425,436
Deferred sales inducements	258,681		1,403		—		—		260,084
Assets held in separate accounts	—		—		64,530		—		64,530

Liabilities:
Policy liabilities and accruals	$	7,358,641	$	18,873	$	—	$	—	$	7,377,514
Liabilities related to separate accounts	—		—		64,530		—		64,530



FBL Financial Group, Inc.
Deferred Policy Acquisition Costs/Deferred Sales Inducements by Segment

	Q3 2010				Q4 2010			Q1 2011			Q2 2011			Q3 2011
				(Dollars in thousands)
Traditional Annuity - Exclusive Distribution
Balance - beginning of period	$	93,888			$	98,586		$	98,896		$	102,505		$	104,610
Capitalization:
Commissions	3,759				4,408			5,628			4,729			3,628
Expenses	952				777			1,002			947			773
Total capitalization	4,711				5,185			6,630			5,676			4,401
Amortization - operating basis, before impact of unlocking	(935		)		(2,969		)	(2,501		)	(3,326		)	(3,230		)
Amortization - unlocking, operating basis	763				—			—			—			563
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	159				(1,906		)	(520		)	(245		)	192
Balance - end of period	$	98,586			$	98,896		$	102,505		$	104,610		$	106,536

Traditional Annuity - Independent Distribution
Balance - beginning of period	$	668,449			$	690,026		$	650,464		$	650,959		$	675,981
Impact of reclassification of realized losses to AOCI	7,719				—			—			—			—
Capitalization:
Commissions	10,512				14,546			17,337			16,348			12,892
Expenses	1,032				1,245			1,276			1,308			1,361
Deferral of sales inducements	7,369				10,442			12,745			12,993			11,002
Total capitalization	18,913				26,233			31,358			30,649			25,255
Amortization - operating basis, before impact of unlocking	(26,049		)		(26,360		)	(28,403		)	(19,925		)	(24,423		)
Amortization - unlocking, operating basis	3,051				5,931			—			2,703			3,504
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	17,943				(45,366		)	(2,460		)	11,595			(108		)
Balance - end of period	$	690,026			$	650,464		$	650,959		$	675,981		$	680,209

Traditional & Universal Life Insurance
Balance - beginning of period	$	249,778			$	250,847		$	258,573		$	261,138		$	267,968
Capitalization:
Commissions	3,659				7,713			6,282			6,671			5,890
Expenses	3,604				4,608			4,039			4,598			3,954
Deferral of sales inducements	91				917			682			818			677
Total capitalization	7,354				13,238			11,003			12,087			10,521
Amortization - operating basis, before impact of unlocking	(5,780		)		(4,987		)	(8,071		)	(5,596		)	(4,796		)
Amortization - unlocking, operating basis	(586		)		—			—			—			(2,440		)
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	81				(525		)	(367		)	339			23
Balance - end of period	$	250,847			$	258,573		$	261,138		$	267,968		$	271,276



FBL Financial Group, Inc.
Deferred Policy Acquisition Costs/Deferred Sales Inducements by Segment (Continued)

	Q3 2010				Q4 2010			Q1 2011			Q2 2011			Q3 2011
				(Dollars in thousands)
Variable
Balance - beginning of period	$	150,046			$	151,581		$	152,647		$	152,551		$	149,902
Capitalization:
Commissions	766				935			961			700			561
Expenses	200				104			91			63			68
Deferral of sales inducements	12				14			36			4			2
Total capitalization	978				1,053			1,088			767			631
Amortization - operating basis, before impact of unlocking	(342		)		(220		)	(1,441		)	(1,792		)	(7,605		)
Amortization - unlocking, operating basis	1,362				—			—			(1,355		)	1,132
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(463		)		233			257			(269		)	846
Balance - end of period	$	151,581			$	152,647		$	152,551		$	149,902		$	144,906

Total
Balance - beginning of period	$	1,162,161			$	1,191,040		$	1,160,580		$	1,167,153		$	1,198,461
Impact of reclassification of realized losses to AOCI	7,719				—			—			—			—
Capitalization:
Commissions	18,696				27,602			30,208			28,448			22,971
Expenses	5,788				6,734			6,408			6,916			6,156
Deferral of sales inducements	7,472				11,373			13,463			13,815			11,681
Total capitalization	31,956				45,709			50,079			49,179			40,808
Amortization - operating basis, before impact of unlocking	(33,106		)		(34,536		)	(40,416		)	(30,639		)	(40,054		)
Amortization - unlocking, operating basis	4,590				5,931			—			1,348			2,759
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	17,720				(47,564		)	(3,090		)	11,420			953
Balance - end of period	1,191,040				1,160,580			1,167,153			1,198,461			1,202,927
Impact of realized/unrealized gains/losses in AOCI	(284,139		)		(89,407		)	(142,717		)	(222,729		)	(404,839		)
Deferred policy acquisition costs/deferred sales inducements	$	906,901			$	1,071,173		$	1,024,436		$	975,732		$	798,088

In September 2010, the FASB issued guidance related to accounting for costs associated with acquiring or renewing insurance contracts as discussed in Note 1 to the consolidated financial statements in our Form 10-Q. We plan to retrospectively adopt this guidance on January 1, 2012. We have conducted a preliminary analysis through September 30, 2011 to estimate the potential impact to our consolidated balance sheet upon adoption during 2012 as follows:



	Deferred Policy Acquisition Costs as of September 30, 2011		Expected % Decrease Upon Adoption
	(Dollars in Thousands)
Farm Bureau Life Insurance Company	$	336,492	29% to 33%
EquiTrust Life Insurance Company	276,772		4% to 8%
FBL Financial Group, Inc.	$	613,264	17% to 21%

The Company's net income since the beginning of 2010 is expected to be reduced by $1.1 million to $1.4 million per quarter upon retrospective adoption of the new guidance. The reduction to net income attributable to Farm Bureau Life is expected to be $0.8 million to $1.0 million per quarter. These amounts are estimates and the actual impact to future net income could vary materially based on future sales volumes and the emergence of profits from the underlying business.



FBL Financial Group, Inc.
Collected Premiums

	Q3 2010				Q4 2010			Q1 2011			Q2 2011			Q3 2011
				(Dollars in thousands)
Traditional Annuity - Exclusive Distribution
Individual:
First year	$	41,926			$	43,021		$	73,715		$	64,225		$	39,907
Renewal	31,812				34,929			42,915			36,515			29,742
Total individual	73,738				77,950			116,630			100,740			69,649
Group	2,423				1,850			2,844			4,045			5,586
Total Traditional Annuity - Exclusive Distribution	76,161				79,800			119,474			104,785			75,235

Traditional Annuity - Independent Distribution
Direct:
Fixed rate annuities	16,150				18,022			25,143			28,611			10,394
Index annuities	90,733				129,609			157,306			154,856			125,627
Total direct	106,883				147,631			182,449			183,467			136,021
Reinsurance	373				397			328			657			398
Total Traditional Annuity - Independent Distribution, net of reinsurance	107,256				148,028			182,777			184,124			136,419

Traditional and Universal Life Insurance
Direct:
Universal life:
Exclusive distribution:
First year	2,117				2,391			2,711			4,015			4,526
Renewal	10,282				11,216			11,747			12,417			10,992
Total exclusive distribution	12,399				13,607			14,458			16,432			15,518
Independent distribution	1,434				3,882			3,751			6,504			6,010
Total universal life	13,833				17,489			18,209			22,936			21,528
Participating whole life:
First year	2,396				3,275			2,839			3,300			2,461
Renewal	22,754				23,618			24,105			25,480			22,857
Total particpating whole life	25,150				26,893			26,944			28,780			25,318
Term life and other:
First year	3,084				2,971			2,688			2,970			2,694
Renewal	15,200				16,362			16,559			17,093			17,176
Total term life and other	18,284				19,333			19,247			20,063			19,870
Total direct	57,267				63,715			64,400			71,779			66,716
Reinsurance	(4,578		)		(5,016		)	(5,311		)	(5,095		)	(4,901		)
Total Traditional and Universal Life Insurance, net of reinsurance	52,689				58,699			59,089			66,684			61,815

Variable
Variable annuities (1)	10,514				10,241			12,617			9,918			8,287
Variable universal life (1)	11,303				11,110			11,270			11,415			10,667
Total	21,817				21,351			23,887			21,333			18,954
Reinsurance	(241		)		(218		)	(65		)	(887		)	497
Total Variable, net of reinsurance	21,576				21,133			23,822			20,446			19,451

Corporate and Other
Accident and health premiums collected, net of reinsurance	36				261			69			34			39
Total collected premiums, net of reinsurance	$	257,718			$	307,921		$	385,231		$	376,073		$	292,959

(1) Amounts are net of portion ceded to and include amounts assumed from alliance partners.



FBL Financial Group, Inc.
Parent Company Liquidity

	January - September 2011			October - December 2011
	Actual			Projected (5)			Total
	(Dollars in thousands)
Total cash and invested assets, beginning of period	$	28,454		$	27,984		$	28,454
Sources:
Dividends from insurance subsidiaries	15,000			9,600			24,600
Dividends from non-insurance subsidiaries	2,100			2,500			4,600
Investment income	295			137			432
Management fees from subsidiaries and affiliates	6,097			1,760			7,857
Total sources	23,492			13,997			37,489

Uses:
Interest expense	(17,366		)	(4,931		)	(22,297		)
Stockholders' dividends (1)	(5,837		)	(1,954		)	(7,791		)
General expenses	(10,613		)	(1,828		)	(12,441		)
Total uses	(33,816		)	(8,713		)	(42,529		)

Net proceeds from sale of EquiTrust Life (2)	—			432,700			432,700
Partial redemption of affiliate senior note payable	—			(50,000		)	(50,000		)
Other, net (3)	9,854			1,410			11,264
Total cash and invested assets, end of period (4)	$	27,984		$	417,378		$	417,378



(1)	The projected dividends are based on quarterly rates of $0.0075 per Series B redeemable preferred share and $0.0625 per common share. The common stock dividend rate for the remainder of 2011 is pending quarterly Board of Directors approval.

(2)	Assumes proceeds of $440.0 million for the sale of EquiTrust Life on 12/30/2011 and transaction costs of $7.3 million. Sale price will change with final purchase price adjustment.

(3)	Other fluctuates from period to period primarily due the issuance of shares of company stock including option exercises and the timing of settlements of amounts due to/from affiliates and external parties.

(4)	Parent company cash flows do not include the impact of any stock repurchase activity pursuant to the Company's $200.0 million stock repurchase plan.

(5)	Based on best estimates at September 30, 2011; actual results may differ materially.



FBL Financial Group, Inc.
Other Information

	September 30,				December 31,			March 31,			June 30,			September 30,
	2010				2010			2011			2011			2011
				(Dollars in thousands, except per share data)

Capitalization (2):
Senior notes with affiliates, due 2015 (1)	$	100,000			$	100,000		$	100,000		$	99,927		$	99,932
Senior notes, due 2014	75,213				75,199			75,185			75,171			75,156
Senior notes, due 2017	98,934				98,969			99,006			99,041			99,079
Trust preferred securities, due 2047	97,000				97,000			97,000			97,000			97,000
Total debt	371,147				371,168			371,191			371,139			371,167

Preferred stock	3,000				3,000			3,000			3,000			3,000
Common stockholders' equity, excluding AOCI	1,050,974				1,103,427			1,132,898			1,171,519			1,198,934
Total capitalization, excluding AOCI	1,425,121				1,477,595			1,507,089			1,545,658			1,573,101

Accumulated other comprehensive income	116,453				39,895			54,194			105,403			200,539
Total capitalization, including AOCI	$	1,541,574			$	1,517,490		$	1,561,283		$	1,651,061		$	1,773,640

Common shares outstanding	30,865,606				30,942,058			31,134,662			31,206,396			31,237,734

Book Value per Share:
Excluding AOCI	$	34.05			$	35.66		$	36.39		$	37.54		$	38.38
Including AOCI	37.82				36.95			38.13			40.92			44.80

Debt-to-Capital Ratio:
Excluding AOCI	26.0		%		25.1		%	24.6		%	24.0		%	23.6		%
Including AOCI	24.1				24.5			23.8			22.5			20.9

Debt-to-Capital Ratio with 100% Credit for Trust Preferred Securities:
Excluding AOCI	19.2		%		18.6		%	18.2		%	17.7		%	17.4		%
Including AOCI	17.8				18.1			17.6			16.6			15.5

Class A Common Ownership:
Iowa Farm Bureau Federation	51.9		%		51.7		%	51.4		%	51.3		%	51.3		%
Other Farm Bureau entities	7.4				7.4			7.3			7.3			7.3
Public	40.7				40.9			41.3			41.4			41.4
	100.0		%		100.0		%	100.0		%	100.0		%	100.0		%

(1) Senior notes with affiliates originally due in November 2011 were refinanced with original holders in the second quarter of 2011.
(2) See Note 1 on the Table of Contents for expected capital management actions that will impact capitalization levels.



FBL Financial Group, Inc.
Other Information (Continued)

	September 30,		December 31,		March 31,		June 30,		September 30,
	2010		2010		2011		2011		2011

Quality of Fixed Maturity Securities:
AAA, AA, A	61.8	%	62.8	%	62.4	%	63.3	%	64.6	%
BBB	33.0		31.0		30.9		30.4		29.6
BB	3.7		3.9		4.1		3.9		3.7
<BB	1.5		2.3		2.6		2.4		2.1

Investment by Type:
Fixed maturity securities	60.5	%	58.5	%	59.9	%	60.6	%	61.1	%
Residential mortgage-backed	14.7		15.1		14.9		15.4		14.9
Commercial mortgage-backed	7.8		8.0		8.0		8.1		8.4
Other asset-backed	3.3		3.7		3.8		4.1		4.1
Mortgage loans	9.6		9.5		9.3		9.1		8.9
Equity securities	0.6		0.6		0.6		0.6		0.6
Other	3.5		4.6		3.5		2.1		2.0

Agent Strength Totals:
Farm Bureau Life channel:
8-state Farm Bureau Property & Casualty channel	1,228		1,205		1,187		1,190		1,206
7 life-only states	795		791		793		707		683
Total Farm Bureau Life channel	2,023		1,996		1,980		1,897		1,889

EquiTrust Life channel:
Independent agents	18,077		17,316		15,322		14,709		14,631

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