FBL Financial (FFG) 8-K Reflecting the Impact of Adopting New DAC

Selected Financial Information

2011 Fourth Quarter

Reflecting the Impact of Adopting New DAC

Accounting Standard

(ASU No. 2010-26)

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.
Selected Financial Information (Unaudited)
December 31, 2011
Table of Contents/Notes
Consolidated Financial Statements:
Consolidated Balance Sheets	3
Consolidated Statements of Operations	5
Consolidated Statements of Operating Income, last four quarters	6
Financial Information by Segment:
Segment Information	7
Consolidating Statements of Pre-tax Operating Income	8
Statements of Pretax Operating Income (Loss), last four quarters:
Annuity Segment	10
Life Insurance Segment	11
Corporate and Other Segment	12
Deferred Acquisition Costs by Segment	13
Other Information	15

NOTE 1: Effective January 1, 2012, we retrospectively adopted new accounting guidance related to accounting for costs associated with acquiring or renewing insurance contracts. In order for investors to become familiar with the historical impact of this retrospective accounting adoption, we are providing select financial information prior to the first quarter earnings release.

NOTE 2: In addition to net income (loss), we have consistently used operating income (loss), a non-GAAP financial measure common in the life insurance industry, as a primary economic measure to evaluate our financial performance. Operating income (loss) 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 non-recurring 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 3: Certain financial information presented herein may not add due to rounding.

1

FBL Financial Group, Inc.

Impact of New DAC Accounting Standard

(Dollars in thousands, except per share data)

	Year ended December 31,
	2011			2010
Impact to total FBL Financial Group, Inc. stockholders' equity
Total FBL Financial Group, Inc. stockholders' equity as previously reported	$	1,278,066		$	1,146,322
Impact of adoption of new accounting guidance	(75,752		)	(101,688		)
Total FBL Financial Group, Inc. stockholders' equity as currently reported	$	1,202,314		$	1,044,634
	��
Impact to book value per share, including accumulated other comprehensive income
Book value per share, including accumulated other comprehensive income as previously reported	$	41.60		$	36.95
Impact of adoption of new accounting guidance	(2.47		)	(3.29		)
Book value per share, including accumulated other comprehensive income as currently reported	$	39.13		$	33.66
Impact to book value per share, excluding accumulated other comprehensive income
Book value per share, excluding accumulated other comprehensive income as previously reported	$	36.72		$	35.66
Impact of adoption of new accounting guidance	(3.39		)	(3.67		)
Book value per share, excluding accumulated other comprehensive income as currently reported	$	33.33		$	31.99
Impact to deferred acquisition costs
Deferred acquisition costs as previously reported	$	376,797		$	463,021
Impact of adoption of new accounting guidance	(116,541		)	(142,336		)
Deferred acquisition costs as currently reported	$	260,256		$	320,685
Impact to net income attributable to FBL Financial Group, Inc.
Total net income attributable to FBL Financial Group, Inc. as previously reported	$	31,276		$	120,653
Impact of adoption of new accounting guidance	9,463			(4,995		)
Total net income attributable to FBL Financial Group, Inc. as currently reported	$	40,739		$	115,658
Impact to operating income
Total operating income as previously reported	$	81,776		$	76,209
Impact of adoption of new accounting guidance	(2,961		)	(3,921		)
Total operating income as currently reported	$	78,815		$	72,288
Impact to operating income per share - assuming dilution
Total operating income per share - assuming dilution as previously reported	$	2.61		$	2.48
Impact of adoption of new accounting guidance	(0.09		)	(0.13		)
Total operating income per share - assuming dilution as currently reported	$	2.52		$	2.35

2

FBL Financial Group, Inc.

Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)

	Year ended December 31,
	2011		2010
Assets
Investments:
Fixed maturity securities - available for sale, at fair value (amortized cost: 2011 - $5,189,994; 2010- $4,768,155)	$	5,570,550	$	4,870,569
Equity securities - available for sale, at fair value (cost: 2011 - $55,697; 2010 - $54,912)	57,432		56,486
Mortgage loans	552,359		552,348
Real estate	2,541		8,265
Policy loans	172,368		170,341
Short-term investments	41,756		194,871
Other investments	189		461
Total investments	6,397,195		5,853,341
Cash and cash equivalents	296,339		4,794
Restricted debt defeasance trust assets	211,627		—
Securities and indebtedness of related parties	64,516		42,415
Accrued investment income	67,200		62,183
Amounts receivable from affiliates	3,942		2,025
Reinsurance recoverable	94,685		97,257
Deferred acquisition costs	260,256		320,685
Value of insurance in force acquired	25,781		27,706
Current income taxes recoverable	16,334		13,952
Other assets	67,590		67,000
Assets held in separate accounts	603,903		675,586
Assets of subsidiary held for sale	—		8,010,713
Total assets	$	8,109,368	$	15,177,657

3

FBL Financial Group, Inc.

Consolidated Balance Sheets (Continued)

(Dollars in thousands)

	Year ended December 31,
	2011		2010
Liabilities and stockholders' equity
Liabilities:
Future policy benefits:
Interest sensitive products	$	3,744,857	$	3,468,557
Traditional life insurance and accident and health products	1,401,995		1,362,410
Other policy claims and benefits	40,488		47,668
Supplementary contracts without life contingencies	359,663		353,935
Advance premiums and other deposits	211,573		188,577
Amounts payable to affiliates	713		328
Short-term debt payable to affiliates	—		100,000
Short-term debt payable to non-affiliates	174,258		—
Long-term debt payable to affiliates	49,968		—
Long-term debt payable to non-affiliates	97,000		271,168
Deferred income taxes	100,341		67,507
Other liabilities	122,180		104,653
Liabilities related to separate accounts	603,903		675,586
Liabilities of subsidiary held for sale	—		7,492,542
Total liabilities	6,906,939		14,132,931
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 29,457,644 shares in 2011 and 29,749,068 shares in 2010	129,684		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	177,845		51,644
Retained earnings	884,263		864,303
Total FBL Financial Group, Inc. stockholders' equity	1,202,314		1,044,634
Noncontrolling interest	115		92
Total stockholders' equity	1,202,429		1,044,726
Total liabilities and stockholders' equity	$	8,109,368	$	15,177,657

4

FBL Financial Group, Inc.

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except per share data)

	Year ended December 31,
	2011			2010
Revenues:
Interest sensitive product charges	$	97,103		$	93,881
Traditional life insurance premiums	168,519			162,056
Net investment income	343,310			324,540
Net realized capital gains on sales of investments	5,355			21,392
Total other-than-temporary impairment losses	(20,206		)	(30,637		)
Non-credit portion in other comprehensive income	6,555			20,821
Net impairment losses recognized in earnings	(13,651		)	(9,816		)
Other income	17,701			14,289
Total revenues	618,337			606,342
Benefits and expenses:
Interest sensitive product benefits	192,082			176,588
Traditional life insurance benefits	148,959			137,180
Policyholder dividends	17,030			17,571
Underwriting, acquisition and insurance expenses	128,184			128,567
Interest expense	8,532			9,566
Loss on debt redemption	33,176			—
Other expenses	20,652			19,782
Total benefits and expenses	548,615			489,254
	69,722			117,088
Income taxes	(18,797		)	(39,554		)
Equity income, net of related income taxes	1,284			3,459
Net income from continuing operations	52,209			80,993
Discontinued operations:
Loss on sale of subsidiary, net of tax	(54,143		)	—
Income from discontinued operations, net of tax	42,679			34,587
Total income (loss) from discontinued operations	(11,464		)	34,587
Net income	40,745			115,580
Net loss (income) attributable to noncontrolling interest	(6		)	78
Net income attributable to FBL Financial Group, Inc.	$	40,739		$	115,658
Earnings per common share:
Income from continuing operations	$	1.69		$	2.66
Income (loss) from discontinued operations	(0.37		)	1.14
Earnings per common share	$	1.32		$	3.80
Earnings per common share - assuming dilution:
Income from continuing operations	$	1.67		$	2.63
Income (loss) from discontinued operations	(0.37		)	1.13
Earnings per common share - assuming dilution	$	1.30		$	3.76
Cash dividends per common share	$	0.2875		$	0.2500

5

FBL Financial Group, Inc.
Consolidated Statements of Operating Income
(Dollars in thousands, except per share data)
	Q1 2011			Q2 2011			Q3 2011			Q4 2011
Operating revenues:
Interest sensitive product charges	$	24,112		$	24,053		$	24,792		$	24,136
Traditional life insurance premiums	41,387			44,139			40,342			42,651
Net investment income	83,706			86,685			85,987			86,485
Other income	4,999			3,980			4,856			3,866
Total operating revenues	154,204			158,857			155,977			157,138
Benefits and expenses:
Interest sensitive product benefits	46,685			48,261			49,369			47,765
Traditional life insurance benefits	36,598			37,717			35,598			39,053
Policyholder dividends	4,300			4,356			4,109			4,265
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	6,361			6,596			5,150			5,844
Amortization of deferred acquisition costs	8,376			7,980			11,452			7,115
Amortization of value of insurance in force acquired	360			(6,172		)	1,405			(297		)
Other underwriting expenses	17,824			18,727			17,885			19,638
Total underwriting, acquisition and insurance expenses	32,921			27,131			35,892			32,300
Interest expense	2,388			2,153			1,983			2,008
Other expenses	4,881			6,001			4,886			4,884
Total benefits and expenses	127,773			125,619			131,837			130,275
	26,431			33,238			24,140			26,863
Income taxes	(8,340		)	(9,907		)	(8,122		)	(6,766		)
Net loss (income) attributable to noncontrolling interest	2			18			1			(27		)
Equity income, net of related income taxes	731			57			231			265
Operating income	18,824			23,406			16,250			20,335
Realized gains/losses on investments, net of offsets	203			111			(820		)	(5,031		)
Change in net unrealized gains/losses on derivatives, net of offsets	(243		)	725			285			(281		)
Net impact of discontinued operations	6,267			11,997			11,354			(41,079		)
Loss on debt redemption	—			—			—			(21,564		)
Net income (loss) attributable to FBL Financial Group, Inc.	$	25,051		$	36,239		$	27,069		$	(47,620	)
Operating income per common share - assuming dilution	$	0.60		$	0.75		$	0.52		$	0.65
Earnings (loss) per common share - assuming dilution	$	0.80		$	1.16		$	0.86		$	(1.55	)
Weighted average common shares outstanding (in thousands):
Basic	30,612			30,733			30,803			30,746
Effect of dilutive securities	510			474			463			509
Diluted	31,122			31,207			31,266			31,255
Operating return on equity, excluding AOCI - last twelve months (1)	10.7		%	11.5		%	10.7		%	7.6		%
Operating return on equity, including AOCI - last twelve months (1)	10.2		%	10.8		%	9.8		%	6.8		%

(1) Return on equity has not been restated to reflect the retrospective adoption of new accounting guidance or the impact of discontinued operations for periods prior to Q4 2011.

6

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 (loss). Accordingly, income taxes are not allocated to the segments. In addition, operating results are reported net of transactions between the segments.

7

FBL Financial Group, Inc.

Consolidating Statement of Pre-tax Operating Income

Year Ended December 31, 2011	Annuity		Life Insurance			Corporate & Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive product charges	$	664	$	49,146		$	47,283		$	97,093
Traditional life insurance premiums	—		168,519			—			168,519
Net investment income	181,974		134,999			25,890			342,863
Other income	2		292			17,407			17,701
Total operating revenues	182,640		352,956			90,580			626,176
Benefits and expenses:
Interest sensitive product benefits	100,487		62,364			29,229			192,080
Traditional life insurance benefits	—		148,966			—			148,966
Policyholder dividends	—		17,030			—			17,030
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	3,428		16,074			4,448			23,950
Amortization of deferred policy acquisition costs	8,916		18,042			7,967			34,925
Amortization of value of insurance in force acquired	244		(4,948		)	—			(4,704		)
Other underwriting expenses	11,302		44,926			17,846			74,074
Total underwriting, acquisition and insurance expenses	23,890		74,094			30,261			128,245
Interest expense	—		—			8,532			8,532
Other expenses	—		—			20,652			20,652
Total benefits and expenses	124,377		302,454			88,674			515,505
	58,263		50,502			1,906			110,671
Net income attributable to noncontrolling interest	—		—			(6		)	(6		)
Equity income, before tax	—		—			394			394
Pre-tax operating income	$	58,263	$	50,502		$	2,294		$	111,059
Income taxes on operating income									(32,244		)
Realized gains/losses on investments									(5,983		)
Change in net unrealized gains/losses on derivatives									932
Loss on debt redemption									(21,564		)
Total loss from discontinued operations									(11,461		)
Net income attributable to FBL Financial Group, Inc.									$	40,739

8

FBL Financial Group, Inc.

Consolidating Statement of Pre-tax Operating Income (Continued)

Year Ended December 31, 2010	Annuity			Life Insurance		Corporate & Other		Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive product charges	$	557		$	45,338	$	47,937	$	93,832
Traditional life insurance premiums	—			162,056		—		162,056
Net investment income	166,932			132,415		21,227		320,574
Other income	10			316		13,963		14,289
Total operating revenues	167,499			340,125		83,127		590,751
Benefits and expenses:
Interest sensitive product benefits	98,880			55,787		22,330		176,997
Traditional life insurance benefits	—			137,169		—		137,169
Policyholder dividends	—			17,571		—		17,571
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	2,966			15,452		3,987		22,405
Amortization of deferred policy acquisition costs	6,044			16,252		7,371		29,667
Amortization of value of insurance in force acquired	(1,018		)	2,601		—		1,583
Other underwriting expenses	10,944			41,561		19,929		72,434
Total underwriting, acquisition and insurance expenses	18,936			75,866		31,287		126,089
Interest expense	—			—		9,566		9,566
Other expenses	—			—		19,782		19,782
Total benefits and expenses	117,816			286,393		82,965		487,174
	49,683			53,732		162		103,577
Net income attributable to noncontrolling interest	—			—		78		78
Equity income, before tax	—			—		5,321		5,321
Pre-tax operating income	$	49,683		$	53,732	$	5,561	$	108,976
Income taxes on operating income								(36,688		)
Realized gains/losses on investments								6,491
Change in net unrealized gains/losses on derivatives								2,292
Total income from discontinued operations								34,587
Net income attributable to FBL Financial Group, Inc.								$	115,658

9

FBL Financial Group, Inc.
Statements of Pre-tax Operating Income
Annuity Segment
	Q1 2011			Q2 2011		Q3 2011		Q4 2011
Pre-tax Operating Income	(Dollars in thousands)
Operating revenues:
Interest sensitive product charges	$	161		$	154	$	182	$	167
Net investment income	43,460			46,506		45,635		46,373
Other income	—			1		—		1
Total operating revenues	43,621			46,661		45,817		46,541
Benefits and expenses:
Interest sensitive product benefits	24,717			25,200		25,336		25,234
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	1,072			892		740		724
Amortization of deferred acquisition costs	1,804			2,365		2,004		2,743
Amortization of value of insurance in force acquired	(150		)	317		440		(363		)
Other underwriting expenses	2,802			2,863		2,768		2,869
Total underwriting, acquisition and insurance expenses	5,528			6,437		5,952		5,973
Total benefits and expenses	30,245			31,637		31,288		31,207
Pre-tax operating income	$	13,376		$	15,024	$	14,529	$	15,334
Selected balance sheet data, securities at cost:
Assets:
Investments	$	3,136,065		$	3,248,310	$	3,297,875	$	3,298,442
Deferred acquisition costs	74,565			76,154		77,416		78,102
Value of insurance in force acquired	12,269			11,952		11,496		11,852
Liabilities and equity:
Liabilities:
Interest sensitive product reserves	$	2,674,844		$	2,748,421	$	2,784,995	$	2,812,666
Other insurance reserves	371,179			374,781		376,592		378,319
Allocated equity, excluding AOCI	242,997			249,218		252,082		254,602

10

FBL Financial Group, Inc.
Statements of Pre-tax Operating Income
Life Insurance Segment
	Q1 2011		Q2 2011			Q3 2011		Q4 2011
Pre-tax Operating Income	(Dollars in thousands)
Operating revenues:
Interest sensitive product charges	$	11,945	$	12,103		$	12,474	$	12,624
Traditional life insurance premiums	41,387		44,139			40,342		42,651
Net investment income	33,776		33,842			33,979		33,402
Other income	97		60			124		11
Total operating revenues	87,205		90,144			86,919		88,688
Benefits and expenses:
Interest sensitive product benefits:
Interest credited	7,613		7,682			7,211		7,213
Death benefits	7,487		8,024			9,320		7,814
Total interest sensitive product benefits	15,100		15,706			16,531		15,027
Traditional life insurance benefits:
Death benefits	17,713		16,023			16,531		19,212
Surrender and other benefits	10,216		9,123			8,543		7,978
Increase in traditional life future policy benefits	8,669		12,571			10,524		11,863
Total traditional life insurance benefits	36,598		37,717			35,598		39,053
Policyholder dividends	4,300		4,356			4,109		4,265
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	3,937		4,540			3,442		4,155
Amortization of deferred acquisition costs	5,533		3,609			4,877		4,023
Amortization of value of insurance in force acquired	510		(6,489		)	965		66
Other underwriting expenses	10,654		11,383			10,863		12,026
Total underwriting, acquisition and insurance expenses	20,634		13,043			20,147		20,270
Total benefits and expenses	76,632		70,822			76,385		78,615
Pre-tax operating income	$	10,573	$	19,322		$	10,534	$	10,073
Selected balance sheet data, securities at cost:
Assets:
Investments	$	2,175,151	$	2,208,177		$	2,212,936	$	2,224,280
Deferred acquisition costs	177,597		181,208			182,384		187,113
Value of insurance in force acquired	20,751		27,241			26,275		26,210
Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	632,454	$	636,791		$	642,362	$	647,711
Other insurance reserves	1,502,695		1,516,521			1,533,024		1,549,886
Allocated equity, excluding AOCI	271,429		273,434			280,450		286,067

11

FBL Financial Group, Inc.
Statements of Pre-tax Operating Income (Loss)
Corporate and Other Segment
	Q1 2011		Q2 2011			Q3 2011			Q4 2011
Pre-tax Operating Income (Loss)	(Dollars in thousands)
Operating revenues:
Interest sensitive product charges	$	12,006	$	11,796		$	12,136		$	11,345
Net investment income	6,470		6,337			6,373			6,710
Other income	4,902		3,919			4,732			3,854
Total operating revenues	23,378		22,052			23,241			21,909
Benefits and expenses:
Interest sensitive product benefits	6,868		7,355			7,502			7,504
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	1,352		1,164			968			965
Amortization of deferred acquisition costs	1,039		2,007			4,572			349
Other underwriting expenses	4,368		4,481			4,254			4,743
Total underwriting, acquisition and insurance expenses	6,759		7,652			9,794			6,057
Interest expense	2,388		2,153			1,983			2,008
Other expenses	4,881		6,001			4,886			4,884
Total benefits and expenses	20,896		23,161			24,165			20,453
	2,482		(1,109		)	(924		)	1,456
Net loss (income) attributable to noncontrolling interest	2		18			1			(27		)
Equity income (loss), before tax	1,124		88			(409		)	(409		)
Pre-tax operating income (loss)	$	3,608	$	(1,003	)	$	(1,332	)	$	1,020
Selected balance sheet data, securities at cost:
Assets:
Investments	$	523,074	$	469,288		$	472,571		$	492,182
Deferred acquisition costs	105,364		103,849			100,150			99,916
Separate account assets	695,777		681,996			574,374			603,903
Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	257,953	$	262,501		$	277,215		$	284,480
Other insurance reserves	93,489		96,617			94,716			93,826
Separate account liabilities	695,777		681,996			574,374			603,903
Allocated equity, excluding AOCI	503,595		532,684			549,722			480,800

12

FBL Financial Group, Inc.
Deferred Acquisition Costs by Segment
	Q1 2011			Q2 2011			Q3 2011			Q4 2011
	(Dollars in thousands)
Annuity
Balance - beginning of period	$	71,842		$	74,565		$	76,154		$	77,416
Capitalization:
Commissions	4,557			3,839			2,889			3,039
Expenses	348			327			266			373
Total capitalization	4,905			4,166			3,155			3,412
Amortization - operating basis, before impact of unlocking	(1,804		)	(2,365		)	(2,410		)	(2,743		)
Amortization - unlocking, operating basis	—			—			406			—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(378		)	(212		)	111			17
Balance - end of period	$	74,565		$	76,154		$	77,416		$	78,102
Life Insurance
Balance - beginning of period	$	176,419		$	177,597		$	181,208		$	182,384
Capitalization:
Commissions	4,372			4,538			3,950			5,445
Expenses	2,059			2,373			2,015			2,791
Deferral of sales inducements	682			247			105			587
Total capitalization	7,113			7,158			6,070			8,823
Amortization - operating basis, before impact of unlocking	(5,670		)	(3,790		)	(3,155		)	(4,094		)
Amortization - unlocking, operating basis	—			—			(1,763		)	—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(265		)	243			24			—
Balance - end of period	$	177,597		$	181,208		$	182,384		$	187,113
Corporate and Other
Balance - beginning of period	$	105,369		$	105,364		$	103,849		$	100,150
Capitalization:
Commissions	736			612			373			240
Deferral of sales inducements	36			4			2			15
Total capitalization	772			616			375			255
Amortization - operating basis, before impact of unlocking	(1,060		)	(1,182		)	(5,406		)	(366		)
Amortization - unlocking, operating basis	—			(850		)	819			—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	283			(99		)	513			(123		)
Balance - end of period	$	105,364		$	103,849		$	100,150		$	99,916

13

FBL Financial Group, Inc.
Deferred Acquisition Costs by Segment (Continued)
	Q1 2011			Q2 2011			Q3 2011			Q4 2011
	(Dollars in thousands)
Total
Balance - beginning of period	$	353,630		$	357,526		$	361,211		$	359,950
Capitalization:
Commissions	9,665			8,989			7,212			8,724
Expenses	2,407			2,700			2,281			3,164
Deferral of sales inducements	718			251			107			602
Total capitalization	12,790			11,940			9,600			12,490
Amortization - operating basis, before impact of unlocking	(8,534		)	(7,337		)	(10,971		)	(7,203		)
Amortization - unlocking, operating basis	—			(850		)	(538		)	—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(360		)	(68		)	648			(106		)
Balance - end of period	357,526			361,211			359,950			365,131
Impact of realized/unrealized gains/losses in AOCI	(34,371		)	(54,698		)	(107,099		)	(104,875		)
Deferred acquisition costs	$	323,155		$	306,513		$	252,851		$	260,256

14

FBL Financial Group, Inc.
Other Information
	March 31,			June 30,			September 30,			December 31,
	2011			2011			2011			2011
	(Dollars in thousands, except per share data)
Capitalization:
Senior notes with affiliates, due 2015	$	100,000		$	99,927		$	99,932		$	49,968
Senior notes, due 2014	75,185			75,171			75,156			75,142
Senior notes, due 2017	99,006			99,041			99,079			99,116
Trust preferred securities, due 2047	97,000			97,000			97,000			97,000
Total debt	371,191			371,139			371,167			321,226
Preferred stock	3,000			3,000			3,000			3,000
Common stockholders' equity, excluding AOCI	1,018,021			1,055,336			1,082,254			1,021,469
Total capitalization, excluding AOCI	1,392,212			1,429,475			1,456,421			1,345,695
Accumulated other comprehensive income	63,435			120,041			230,174			177,845
Total capitalization, including AOCI	$	1,455,647		$	1,549,516		$	1,686,595		$	1,523,540
Common shares outstanding	31,134,662			31,206,396			31,237,734			30,650,634
Book Value per Share:
Excluding AOCI	$	32.70		$	33.82		$	34.65		$	33.33
Including AOCI	34.73			37.66			42.01			39.13
Debt-to-Capital Ratio:
Excluding AOCI	26.7		%	26.0		%	25.5		%	23.9		%
Including AOCI	25.5			24.0			22.0			21.1
Debt-to-Capital Ratio with 100% Credit for Trust Preferred Securities:
Excluding AOCI	19.7		%	19.2		%	18.8		%	16.7		%
Including AOCI	18.8			17.7			16.3			14.7

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