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

Attached files

file	filename
8-K - 8-K - FBL FINANCIAL GROUP INC	pressrelease8k2012q4.htm
EX-99.1 - NEWS RELEASE - FBL FINANCIAL GROUP INC	exh991newsreleaseq4.htm
EX-99.3 - INVESTMENT SCHEDULES - FBL FINANCIAL GROUP INC	exhibit993investments4q12.htm

Financial Supplement

2012 Fourth 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 Executive Officer
	Jim.Brannen@FBLFinancial.com
	(515) 225-5631

	Don Seibel
	Chief Financial Officer
	Don.Seibel@FBLFinancial.com
	(515) 226-6399

	Kathleen Till Stange
	Corporate & 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	Computershare Shareowner Services
	250 Royall Street
	Canton, MA 02021
	www.computershare.com/



FBL Financial Group, Inc.
Financial Supplement (Unaudited)
December 31, 2012
Table of Contents/Notes

Consolidated Financial Statements:
Consolidated Balance Sheets		2
Consolidated Statements of Comprehensive Income		4
Consolidated Statements of Operating Income, last five quarters		5
Financial Information by Segment:
Segment Information		6
Consolidating Statements of Pre-tax Operating Income		7
Statements of Pre-tax Operating Income, last five quarters:
Annuity Segment		9
Life Insurance Segment		10
Corporate and Other Segment		12
Deferred Acquisition Costs by Segment		13
Collected Premiums, last five quarters		15
Other Information		16

NOTE 1: Effective January 1, 2012, we retrospectively adopted new accounting guidance related to accounting for costs associated with acquiring or renewing insurance contracts. All periods herein reflect the impact of this adoption.

NOTE 2: On December 30, 2011, we sold our wholly owned subsidiary, EquiTrust Life Insurance Company (EquiTrust Life). While we sold our entire equity interest in EquiTrust Life, another subsidiary, Farm Bureau Life Insurance Company is reinsuring 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.

In accordance with mandatory redemption provisions of the underlying notes, we redeemed $225.0 million of our long-term debt. Redemptions include $50.0 million of our senior notes with affiliates on December 30, 2011 and our $175.0 million public senior notes on January 30, 2012. In addition, we began repurchasing stock in the fourth quarter of 2011 under a stock repurchase plan approved by the Board of Directors.

Additional information regarding the impact of adopting the new accounting guidance, the sale of EquiTrust Life and our capital management initiatives can be found in our filings with the SEC.

NOTE 3: In addition to net income (loss), we have consistently used operating income, a non-GAAP financial measure common in the life insurance industry, as a primary economic measure to evaluate our financial performance. Operating income for the periods presented equals net income (loss) adjusted to eliminate the impact of realized gains and losses on investments, changes in net unrealized gains and losses on derivatives, discontinued operations and loss on debt redemption associated with disposed operations.

We use operating income, in addition to net income (loss), 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. Also, the discontinued operations and loss on debt redemption are nonrecurring items. These fluctuations make it difficult to analyze core operating trends. 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 4: Certain financial information presented herein may not add due to rounding.

FBL Financial Group, Inc.

Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)



	December 31, 2012		December 31, 2011
Assets
Investments:
Fixed maturities - available for sale, at fair value (amortized cost: 2012 - $5,637,608; 2011 - $5,189,994)	$	6,265,745	$	5,570,550
Equity securities - available for sale, at fair value (cost: 2012 - $82,140; 2011 - $55,697)	86,253		57,432
Mortgage loans	554,843		552,359
Real estate	4,668		2,541
Policy loans	174,254		172,368
Short-term investments	74,516		41,756
Other investments	371		189
Total investments	7,160,650		6,397,195

Cash and cash equivalents	78,074		296,339
Restricted debt defeasance trust assets	—		211,627
Securities and indebtedness of related parties	100,606		64,516
Accrued investment income	69,965		67,200
Amounts receivable from affiliates	3,931		3,942
Reinsurance recoverable	98,238		94,685
Deferred acquisition costs	204,326		260,256
Value of insurance in force acquired	17,154		25,781
Current income taxes recoverable	6,735		16,334
Other assets	59,238		67,590
Assets held in separate accounts	618,809		603,903








Total assets	$	8,417,726	$	8,109,368

FBL Financial Group, Inc.

Consolidated Balance Sheets (Continued)

(Dollars in thousands)



	December 31, 2012		December 31, 2011
Liabilities and stockholders' equity
Liabilities:
Future policy benefits:
Interest sensitive products	$	4,050,846	$	3,744,857
Traditional life insurance and accident and health products	1,457,075		1,401,995
Other policy claims and benefits	39,072		40,488
Supplementary contracts without life contingencies	361,273		359,663
Advance premiums and other deposits	226,485		211,573
Amounts payable to affiliates	1,658		713
Short-term debt payable to non-affiliates	—		174,258
Long-term debt payable to affiliates	50,000		49,968
Long-term debt payable to non-affiliates	97,000		97,000
Deferred income taxes	208,433		100,341
Other liabilities	94,828		122,180
Liabilities related to separate accounts	618,809		603,903
Total liabilities	7,205,479		6,906,939

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 24,282,184 shares in 2012 and 29,457,644 shares in 2011	115,706		129,684
Class B common stock, without par value - authorized 1,500,000 shares, issued and outstanding 1,192,890 in 2012 and 1,192,990 shares in 2011	7,522		7,522
Accumulated other comprehensive income	289,853		177,845
Retained earnings	796,110		884,263
Total FBL Financial Group, Inc. stockholders' equity	1,212,191		1,202,314
Noncontrolling interest	56		115
Total stockholders' equity	1,212,247		1,202,429
Total liabilities and stockholders' equity	$	8,417,726	$	8,109,368

FBL Financial Group, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

(Dollars in thousands, except per share data)



	Three months ended December 31,						Year ended December 31,
	2012			2011			2012			2011
Revenues:
Interest sensitive product charges	$	26,350		$	24,139		$	101,410		$	97,103
Traditional life insurance premiums	44,169			42,651			175,086			168,519
Net investment income	91,531			86,008			361,324			343,310
Net realized capital gains on sales of investments	6,810			746			17,479			5,355

Total other-than-temporary impairment losses	(5,211		)	(7,308		)	(26,399		)	(20,206		)
Non-credit portion in other comprehensive income	(2,698		)	(964		)	9,372			6,555
Net impairment losses recognized in earnings	(7,909		)	(8,272		)	(17,027		)	(13,651		)
Other income	3,643			3,866			17,268			17,701
Total revenues	164,594			149,138			655,540			618,337

Benefits and expenses:
Interest sensitive product benefits	49,337			47,831			196,387			192,082
Traditional life insurance benefits	39,365			39,046			156,290			148,959
Policyholder dividends	3,382			4,265			14,275			17,030
Underwriting, acquisition and insurance expenses	34,866			32,418			141,906			128,184
Interest expense	1,980			2,008			7,952			8,532
Loss on debt redemption	—			33,176			33			33,176
Other expenses	4,054			4,884			20,513			20,652
Total benefits and expenses	132,984			163,628			537,356			548,615
	31,610			(14,490		)	118,184			69,722
Income taxes	(10,451		)	7,711			(40,071		)	(18,797		)
Equity income, net of related income taxes	1,374			265			4,683			1,284
Net income (loss) from continuing operations	22,533			(6,514		)	82,796			52,209
Discontinued operations:
Loss on sale of subsidiary	—			(54,143		)	(2,252		)	(54,143		)
Income (loss) from discontinued operations, net of tax	22			13,064			(687		)	42,679
Total income (loss) from discontinued operations	22			(41,079		)	(2,939		)	(11,464		)
Net income (loss)	22,555			(47,593		)	79,857			40,745
Net loss (gain) attributable to noncontrolling interest	31			(27		)	83			(6		)
Net income (loss) attributable to FBL Financial Group, Inc.	$	22,586		$	(47,620	)	$	79,940		$	40,739

Comprehensive income	$	23,976		$	(135,550	)	$	191,865		$	166,946

Earnings per common share:
Income (loss) from continuing operations	$	0.87		$	(0.21	)	$	3.01		$	1.69
Loss from discontinued operations	—			(1.34		)	(0.11		)	(0.37		)
Earnings per common share	$	0.87		$	(1.55	)	$	2.90		$	1.32
Earnings per common share - assuming dilution:
Income (loss) from continuing operations	$	0.86		$	(0.21	)	$	2.97		$	1.67
Loss from discontinued operations	—			(1.34		)	(0.10		)	(0.37		)
Earnings per common share - assuming dilution	$	0.86		$	(1.55	)	$	2.87		$	1.30

Cash dividends per common share	$	0.1000		$	0.1000		$	0.4000		$	0.2875



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

	Q4 2011			Q1 2012			Q2 2012			Q3 2012			Q4 2012
Operating revenues:
Interest sensitive product charges	$	24,136		$	25,139		$	24,292		$	25,662		$	26,304
Traditional life insurance premiums	42,651			43,123			45,908			41,886			44,169
Net investment income	86,485			86,412			89,389			92,544			91,201
Other income	3,866			5,005			5,729			2,891			3,643
Total operating revenues	157,138			159,679			165,318			162,983			165,317

Benefits and expenses:
Interest sensitive product benefits	47,765			49,079			49,271			48,553			49,355
Traditional life insurance benefits	39,053			39,319			40,140			37,461			39,360
Policyholder dividends	4,265			4,244			3,370			3,279			3,382
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	5,844			5,699			6,129			5,552			6,332
Amortization of deferred acquisition costs	7,115			7,486			7,923			12,977			7,483
Amortization of value of insurance in force acquired	(297		)	687			1,521			2,562			687
Other underwriting expenses	19,638			18,147			19,099			19,147			18,588
Total underwriting, acquisition and insurance expenses	32,300			32,019			34,672			40,238			33,090
Interest expense	2,008			1,982			1,983			2,007			1,980
Other expenses	4,884			5,790			6,683			3,986			4,054
Total benefits and expenses	130,275			132,433			136,119			135,524			131,221
	26,863			27,246			29,199			27,459			34,096
Income taxes	(6,766		)	(8,971		)	(10,010		)	(9,705		)	(11,321		)
Net loss (income) attributable to noncontrolling interest	(27		)	20			98			(66		)	31
Equity income, net of related income taxes	265			1,621			630			1,058			1,374
Operating income	20,335			19,916			19,917			18,746			24,180

Realized gains/losses on investments, net of offsets	(5,031		)	(249		)	222			1,324			(1,774		)
Change in net unrealized gains/losses on derivatives, net of offsets	(281		)	(126		)	236			351			158
Net impact of discontinued operations	(41,079		)	(2,932		)	(84		)	55			22
Loss on debt redemption	(21,564		)	(22		)	—			—			—
Net income (loss) attributable to FBL Financial Group, Inc.	$	(47,620	)	$	16,587		$	20,291		$	20,476		$	22,586

Operating income per common share - assuming dilution	$	0.65		$	0.64		$	0.72		$	0.70		$	0.93
Earnings (loss) per common share - assuming dilution	$	(1.55	)	$	0.53		$	0.73		$	0.76		$	0.86

Weighted average common shares outstanding (in thousands):
Basic	30,746			30,527			27,437			26,562			25,779
Effect of dilutive securities	509			479			267			305			315
Diluted	31,255			31,006			27,704			26,867			26,094

Operating return on equity, excluding AOCI - last twelve months	7.6		%	7.8		%	7.6		%	8.1		%	8.8		%
Operating return on equity, including AOCI - last twelve months	6.8		%	6.8		%	6.4		%	6.6		%	7.0		%

FBL Financial Group, Inc.

Segment Information

We analyze operations by reviewing financial information regarding our primary products that are aggregated into the Annuity and Life Insurance product segments. In addition, our Corporate and Other segment includes various support operations, corporate capital and other product lines that are not currently underwritten by the Company.

The Annuity segment primarily consists of fixed rate annuities and supplementary contracts (some of which involve life contingencies). 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 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 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;
•		closed blocks of variable annuity, variable universal life insurance and accident and health insurance products;
•		advisory services for the management of investments and other companies;
•		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. 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



Quarter Ended December 31, 2012	Annuity		Life Insurance			Corporate & Other		Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive product charges	$	212	$	14,592		$	11,500	$	26,304
Traditional life insurance premiums	—		44,169			—		44,169
Net investment income	48,317		34,300			8,584		91,201
Other income	6		(55		)	3,692		3,643
Total operating revenues	48,535		93,006			23,776		165,317

Benefits and expenses:
Interest sensitive product benefits	25,582		15,039			8,734		49,355
Traditional life insurance benefits	—		39,360			—		39,360
Policyholder dividends	—		3,382			—		3,382
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	475		4,971			886		6,332
Amortization of deferred policy acquisition costs	2,875		4,491			117		7,483
Amortization of value of insurance in force acquired	282		405			—		687
Other underwriting expenses	4,060		12,960			1,568		18,588
Total underwriting, acquisition and insurance expenses	7,692		22,827			2,571		33,090
Interest expense	—		—			1,980		1,980
Other expenses	—		—			4,054		4,054
Total benefits and expenses	33,274		80,608			17,339		131,221
	15,261		12,398			6,437		34,096
Net income attributable to noncontrolling interest	—		—			31		31
Equity income (loss), before tax	—		—			100		100
Pre-tax operating income	$	15,261	$	12,398		$	6,568	$	34,227

FBL Financial Group, Inc.

Consolidating Statements of Pre-tax Operating Income (Continued)



Quarter Ended December 31, 2011	Annuity			Life Insurance		Corporate & Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive product charges	$	167		$	12,624	$	11,345		$	24,136
Traditional life insurance premiums	—			42,651		—			42,651
Net investment income	46,373			33,402		6,710			86,485
Other income	1			11		3,854			3,866
Total operating revenues	46,541			88,688		21,909			157,138

Benefits and expenses:
Interest sensitive product benefits	25,234			15,027		7,504			47,765
Traditional life insurance benefits	—			39,053		—			39,053
Policyholder dividends	—			4,265		—			4,265
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	724			4,155		965			5,844
Amortization of deferred acquisition costs	2,743			4,023		349			7,115
Amortization of value of insurance in force acquired	(363		)	66		—			(297		)
Other underwriting expenses	2,869			12,026		4,743			19,638
Total underwriting, acquisition and insurance expenses	5,973			20,270		6,057			32,300
Interest expense	—			—		2,008			2,008
Other expenses	—			—		4,884			4,884
Total benefits and expenses	31,207			78,615		20,453			130,275
	15,334			10,073		1,456			26,863
Net income attributable to noncontrolling interest	—			—		(27		)	(27		)
Equity income (loss), before tax	—			—		(409		)	(409		)
Pre-tax operating income	$	15,334		$	10,073	$	1,020		$	26,427



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

	Q4 2011				Q1 2012			Q2 2012			Q3 2012			Q4 2012
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	167			$	206		$	191		$	166		$	212
Net investment income	46,373				45,978			47,615			49,301			48,317
Other income	1				3			6			—			6
Total operating revenues	46,541				46,187			47,812			49,467			48,535

Benefits and expenses:
Interest sensitive product benefits	25,234				25,535			26,127			25,717			25,582
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	724				718			721			590			475
Amortization of deferred acquisition costs	2,743				2,293			35			4,124			2,875
Amortization of value of insurance in force acquired	(363		)		33			134			2,024			282
Other underwriting expenses	2,869				4,873			4,994			4,899			4,060
Total underwriting, acquisition and insurance expenses	5,973				7,917			5,884			11,637			7,692
Total benefits and expenses	31,207				33,452			32,011			37,354			33,274
Pre-tax operating income	$	15,334			$	12,735		$	15,801		$	12,113		$	15,261

Selected balance sheet data, securities at cost:
Assets:
Investments	$	3,298,442			$	3,405,435		$	3,514,096		$	3,533,318		$	3,497,525
Deferred acquisition costs	78,102				80,766			84,712			83,269			82,396
Value of insurance in force acquired	11,852				11,819			11,678			9,640			9,307

Liabilities and equity:
Liabilities:
Interest sensitive product reserves	$	2,812,666			$	2,906,991		$	3,029,007		$	3,061,295		$	3,048,797
Other insurance reserves	378,319				379,977			383,547			382,989			383,340
Allocated equity, excluding AOCI	254,602				256,383			266,180			268,654			267,707

Other data:
Number of direct contracts	53,894				54,091			54,142			53,941			53,757

Portfolio yield net of assumed defaults	5.65		%		5.55		%	5.40		%	5.40		%	5.31		%
Credited rate	3.32				3.32			3.14			3.05			3.03
Spread on fixed annuities at end of quarter (1)	2.33		%		2.23		%	2.26		%	2.35		%	2.28		%

Interest sensitive reserve activity:
Individual deferred annuity reserve:
Balance, beginning of period	$	2,143,378			$	2,182,809		$	2,252,575		$	2,302,564		$	2,323,328
Deposits	65,867				107,172			85,259			55,610			54,114
Withdrawals, surrenders and death benefits	(29,344		)		(33,066		)	(36,745		)	(35,560		)	(41,005		)
Net flows	36,523				74,106			48,514			20,050			13,109

Policyholder interest	17,403				17,729			17,971			17,570			17,080
Annuitizations and other	(14,495		)		(22,069		)	(16,496		)	(16,856		)	(15,245		)
Balance, end of period	2,182,809				2,252,575			2,302,564			2,323,328			2,338,272
Other interest sensitive reserves	629,857				654,416			726,443			737,967			710,525
Total interest sensitive product reserves	$	2,812,666			$	2,906,991		$	3,029,007		$	3,061,295		$	3,048,797


(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
Life Insurance Segment

	Q4 2011			Q1 2012			Q2 2012			Q3 2012			Q4 2012
Pre-tax Operating Income			(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	12,624		$	13,189		$	13,292		$	13,827		$	14,592
Traditional life insurance premiums	42,651			43,123			45,908			41,886			44,169
Net investment income	33,402			33,846			34,841			35,089			34,300
Other income	11			(53		)	(44		)	(57		)	(55		)
Total operating revenues	88,688			90,105			93,997			90,745			93,006

Benefits and expenses:
Interest sensitive product benefits:
Interest credited	7,213			7,141			7,209			7,075			7,827
Death benefits	7,814			8,244			10,060			7,808			7,212
Total interest sensitive product benefits	15,027			15,385			17,269			14,883			15,039
Traditional life insurance benefits:
Death benefits	19,212			18,406			15,033			16,261			17,631
Surrender and other benefits	7,978			8,657			8,160			12,220			7,517
Increase in traditional life future policy benefits	11,863			12,256			16,947			8,980			14,212
Total traditional life insurance benefits	39,053			39,319			40,140			37,461			39,360
Policyholder dividends	4,265			4,244			3,370			3,279			3,382
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	4,155			4,019			4,413			4,073			4,971
Amortization of deferred acquisition costs	4,023			5,246			5,997			5,482			4,491
Amortization of value of insurance in force acquired	66			654			1,387			538			405
Other underwriting expenses	12,026			11,875			12,311			12,159			12,960
Total underwriting, acquisition and insurance expenses	20,270			21,794			24,108			22,252			22,827
Total benefits and expenses	78,615			80,742			84,887			77,875			80,608
Pre-tax operating income	$	10,073		$	9,363		$	9,110		$	12,870		$	12,398

Selected balance sheet data, securities at cost:
Assets:
Investments	$	2,224,280		$	2,215,738		$	2,258,183		$	2,277,934		$	2,315,174
Deferred acquisition costs	187,113			190,953			193,091			194,351			199,266
Value of insurance in force acquired	26,210			25,597			24,167			23,612			23,193

Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	647,711		$	652,427		$	658,735		$	668,699		$	686,067
Other insurance reserves	1,549,886			1,566,750			1,584,627			1,595,819			1,615,088
Allocated equity, excluding AOCI	286,067			277,192			281,372			286,382			294,159



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

	Q4 2011				Q1 2012			Q2 2012			Q3 2012			Q4 2012
				(Dollars in thousands)
Other data:
Number of direct policies - traditional life	352,274				352,336			353,596			353,358			355,519
Number of direct policies - universal life	58,115				58,618			58,883			58,958			59,833
Direct face amounts - traditional life	$	38,235,322			$	38,552,018		$	39,252,561		$	39,617,946		$	40,333,397
Direct face amounts - universal life	$	5,481,755			$	5,538,683		$	5,619,904		$	5,666,272		$	5,806,602

Portfolio yield net of assumed defaults	5.97		%		5.93		%	5.89		%	5.83		%	5.74		%
Credited rate	4.26				4.16			4.17			4.12			4.08
Spread on universal life at end of quarter (1)	1.71		%		1.77		%	1.72		%	1.71		%	1.66		%

Interest sensitive reserve activity:
Balance, beginning of period	$	642,362			$	647,711		$	652,427		$	658,735		$	668,699
Deposits	16,492				17,363			18,976			20,703			28,349
Withdrawals and surrenders	(4,634		)		(6,531		)	(6,175		)	(3,688		)	(4,394		)
Net flows	11,858				10,832			12,801			17,015			23,955

Policyholder interest	6,469				6,370			6,552			6,382			7,116
Policy charges	(13,187		)		(12,898		)	(14,325		)	(13,918		)	(15,222		)
Benefits and other	209				412			1,280			485			1,519
Balance, end of period	$	647,711			$	652,427		$	658,735		$	668,699		$	686,067


(1)	Point-in-time spread at the balance sheet date used by management for decision making with universal life (excluding products with a secondary guarantee) 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
Corporate and Other

	Q4 2011				Q1 2012			Q2 2012			Q3 2012			Q4 2012
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	11,345			$	11,744		$	10,809		$	11,669		$	11,500
Net investment income	6,710				6,588			6,933			8,154			8,584
Other income	3,854				5,055			5,767			2,948			3,692
Total operating revenues	21,909				23,387			23,509			22,771			23,776

Benefits and expenses:
Interest sensitive product benefits	7,504				8,159			5,875			7,953			8,734
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	965				962			995			889			886
Amortization of deferred acquisition costs	349				(53		)	1,891			3,371			117
Other underwriting expenses	4,743				1,399			1,794			2,089			1,568
Total underwriting, acquisition and insurance expenses	6,057				2,308			4,680			6,349			2,571
Interest expense	2,008				1,982			1,983			2,007			1,980
Other expenses	4,884				5,790			6,683			3,986			4,054
Total benefits and expenses	20,453				18,239			19,221			20,295			17,339
	1,456				5,148			4,288			2,476			6,437
Net loss (income) attributable to noncontrolling interest	(27		)		20			98			(66		)	31
Equity income (loss), before tax	(409		)		111			(1,143		)	(644		)	100
Pre-tax operating income	$	1,020			$	5,279		$	3,243		$	1,766		$	6,568

Selected balance sheet data, securities at cost:
Assets:
Investments	$	492,182			$	514,044		$	556,455		$	591,857		$	715,701
Deferred acquisition costs	99,916				99,542			98,446			95,063			94,984
Separate account assets	603,903				655,755			617,538			634,402			618,809

Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	284,480			$	290,802		$	298,800		$	306,249		$	315,982
Other insurance reserves	93,826				99,256			95,102			95,870			99,031
Separate account liabilities	603,903				655,755			617,538			634,402			618,809
Allocated equity, excluding AOCI	480,800				395,259			375,130			359,881			357,472

Rollforward of separate account balances:
Beginning separate account balance	$	574,374			$	603,903		$	655,755		$	617,538		$	634,402
Net premiums	2,881				5,061			7,102			2,127			(1,253		)
Net investment income (loss)	44,758				65,617			(25,590		)	33,305			5,433
Charges, benefits and surrenders	(18,110		)		(18,826		)	(19,729		)	(18,568		)	(19,773		)
Ending separate account balance	$	603,903			$	655,755		$	617,538		$	634,402		$	618,809

Other data:
Number of direct contracts - variable annuity	14,915				14,627			14,355			14,088			13,885
Number of direct policies - variable universal life	49,198				48,794			48,086			47,473			46,863
Direct face amounts - variable universal life	$	6,061,761			$	6,065,488		$	5,970,850		$	5,897,007		$	5,813,938



FBL Financial Group, Inc.
Deferred Acquisition Costs by Segment

	Q4 2011				Q1 2012			Q2 2012			Q3 2012			Q4 2012
				(Dollars in thousands)
Annuity
Balance - beginning of period	$	77,416			$	78,102		$	80,766		$	84,712		$	83,269
Capitalization:
Commissions	3,039				4,537			3,708			2,547			2,433
Expenses	373				426			358			306			200
Total capitalization	3,412				4,963			4,066			2,853			2,633
Amortization - operating basis, before impact of unlocking	(2,743		)		(2,293		)	(2,122		)	(4,124		)	(2,875		)
Amortization - unlocking, operating basis	—				—			2,087			—			—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	17				(6		)	(85		)	(172		)	(631		)
Balance - end of period	$	78,102			$	80,766		$	84,712		$	83,269		$	82,396

Life Insurance
Balance - beginning of period	$	182,384			$	187,113		$	190,953		$	193,091		$	194,351
Capitalization:
Commissions	5,445				5,924			5,189			3,616			6,699
Expenses	2,791				2,507			2,666			2,292			2,958
Deferral of sales inducements	587				578			469			98			691
Total capitalization	8,823				9,009			8,324			6,006			10,348
Amortization - operating basis, before impact of unlocking	(4,094		)		(5,340		)	(3,571		)	(3,959		)	(4,569		)
Amortization - unlocking, operating basis	—				—			(2,458		)	(1,554		)	—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	—				171			(157		)	767			(864		)
Balance - end of period	$	187,113			$	190,953		$	193,091		$	194,351		$	199,266

Corporate and Other
Balance - beginning of period	$	100,150			$	99,916		$	99,542		$	98,446		$	95,063
Capitalization:
Commissions	240				315			355			232			284
Deferral of sales inducements	15				12			5			4			15
Total capitalization	255				327			360			236			299
Amortization - operating basis, before impact of unlocking	(366		)		8			(3,590		)	(549		)	(1,643		)
Amortization - unlocking, operating basis	—				—			1,741			(2,795		)	1,491
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(123		)		(709		)	393			(275		)	(226		)
Balance - end of period	$	99,916			$	99,542		$	98,446		$	95,063		$	94,984



FBL Financial Group, Inc.
Deferred Acquisition Costs by Segment (Continued)

	Q4 2011				Q1 2012			Q2 2012			Q3 2012			Q4 2012
				(Dollars in thousands)
Total
Balance - beginning of period	$	359,950			$	365,131		$	371,261		$	376,249		$	372,683
Capitalization:
Commissions	8,724				10,776			9,252			6,395			9,416
Expenses	3,164				2,933			3,024			2,598			3,158
Deferral of sales inducements	602				590			474			102			706
Total capitalization	12,490				14,299			12,750			9,095			13,280
Amortization - operating basis, before impact of unlocking	(7,203		)		(7,625		)	(9,283		)	(8,632		)	(9,087		)
Amortization - unlocking, operating basis	—				—			1,370			(4,349		)	1,491
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(106		)		(544		)	151			320			(1,721		)
Balance - end of period	365,131				371,261			376,249			372,683			376,646
Impact of realized/unrealized gains/losses in AOCI	(104,875		)		(122,510		)	(150,069		)	(169,385		)	(172,320		)
Deferred acquisition costs	$	260,256			$	248,751		$	226,180		$	203,298		$	204,326



FBL Financial Group, Inc.
Collected Premiums

	Q4 2011				Q1 2012			Q2 2012			Q3 2012			Q4 2012
				(Dollars in thousands)
Annuity
Individual:
First year	$	38,866			$	57,802		$	44,832		$	35,496		$	28,100
Renewal	27,362				49,716			41,193			21,170			26,112
Total individual	66,228				107,518			86,025			56,666			54,212
Group	3,434				2,298			1,277			4,832			3,516
Total Annuity	69,662				109,816			87,302			61,498			57,728

Life Insurance
Direct:
Universal life:
First year	3,636				4,014			4,391			7,854			13,958
Renewal	12,155				13,109			12,862			12,068			13,286
Total universal life	15,791				17,123			17,253			19,922			27,244
Participating whole life:
First year	2,863				3,061			2,878			2,510			2,753
Renewal	23,800				24,520			25,393			22,950			23,875
Total participating whole life	26,663				27,581			28,271			25,460			26,628
Term life and other:
First year	2,892				2,976			2,881			2,637			2,748
Renewal	17,795				18,075			18,429			18,382			19,406
Total term life and other	20,687				21,051			21,310			21,019			22,154
Total direct life insurance	63,141				65,755			66,834			66,401			76,026
Reinsurance	(4,996		)		(5,406		)	(4,627		)	(4,548		)	(4,726		)
Total Life Insurance	58,145				60,349			62,207			61,853			71,300

Corporate and Other
Variable, net of reinsurance	16,147				19,974			22,134			15,684			16,019
Accident and health, net of reinsurance	261				58			39			36			275
Total Corporate and Other	16,408				20,032			22,173			15,720			16,294

Collected premiums from continuing operations	144,215				190,197			171,682			139,071			145,322

Collected premiums from discontinued operations	149,292				—			—			—			—

Total collected premiums	$	293,507			$	190,197		$	171,682		$	139,071		$	145,322



FBL Financial Group, Inc.
Other Information

	December 31,				March 31,			June 30,			September 30,			December 31,
	2011				2012			2012			2012			2012
				(Dollars in thousands, except per share data)

Capitalization:
Senior notes with affiliates, due 2015	$	49,968			$	49,971		$	49,973		$	50,000		$	50,000
Senior notes, due 2014	75,142				—			—			—			—
Senior notes, due 2017	99,116				—			—			—			—
Trust preferred securities, due 2047	97,000				97,000			97,000			97,000			97,000
Total debt	321,226				146,971			146,973			147,000			147,000

Preferred stock	3,000				3,000			3,000			3,000			3,000
Common stockholders' equity, excluding AOCI	1,021,469				928,834			922,682			914,917			919,338
Total capitalization, excluding AOCI	1,345,695				1,078,805			1,072,655			1,064,917			1,069,338

Accumulated other comprehensive income	177,845				180,839			233,110			288,432			289,853
Total capitalization, including AOCI	$	1,523,540			$	1,259,644		$	1,305,765		$	1,353,349		$	1,359,191

Common shares outstanding	30,650,634				27,695,759			26,752,871			25,933,171			25,475,074

Book Value per Share:
Excluding AOCI	$	33.33			$	33.54		$	34.49		$	35.28		$	36.09
Including AOCI	39.13				40.07			43.20			46.40			47.47

Debt-to-Capital Ratio:
Excluding AOCI	23.9		%		13.6		%	13.7		%	13.8		%	13.7		%
Including AOCI	21.1				11.7			11.3			10.9			10.8

Debt-to-Capital Ratio with 100% Credit for Trust Preferred Securities:
Excluding AOCI	16.7		%		4.6		%	4.7		%	4.7		%	4.7		%
Including AOCI	14.7				4.0			3.8			3.7			3.7

Class A Common Ownership:
Iowa Farm Bureau Federation	52.2		%		55.7		%	57.7		%	59.7		%	60.8		%
Other Farm Bureau entities	7.5				5.8			5.3			6.1			6.2
Public	40.3				38.5			37.0			34.2			33.0
	100.0		%		100.0		%	100.0		%	100.0		%	100.0		%



FBL Financial Group, Inc.
Other Information (Continued)

	December 31,		March 31,		June 30,		September 30,		December 31,
	2011		2012		2012		2012		2012

Quality of Fixed Maturity Securities:
AAA, AA, A	64.2	%	64.0	%	64.2	%	63.2	%	61.9	%
BBB	30.8		31.2		31.1		32.1		32.8
BB	2.7		2.5		2.7		2.9		3.4
<BB	2.3		2.3		2.0		1.8		1.9

Investment by Type:
Fixed maturity securities	63.1	%	63.1	%	63.1	%	63.7	%	64.1	%
Residential mortgage-backed	10.6		10.7		10.4		9.9		9.4
Commercial mortgage-backed	7.7		7.5		7.5		7.3		7.1
Other asset-backed	5.7		6.5		6.9		7.3		6.9
Mortgage loans	8.6		8.1		8.0		7.7		7.8
Equity securities	0.9		0.8		1.0		1.2		1.2
Other	3.4		3.3		3.1		2.9		3.5

Agent Strength Totals:
8-state Farm Bureau Property & Casualty channel	1,225		1,226		1,193		1,171		1,166
6 life-only states	712		709		689		693		687
Total	1,937		1,935		1,882		1,864		1,853

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FBL FINANCIAL GROUP INC Reports