FBL Financial 8K Group Reports Fourth Quarter 2013 Results | FFG 6 Feb 14

Financial Supplement

2013 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	American Stock Transfer & Trust Company, LLC
	6201 15th Avenue
	Brooklyn, NY 11219
	http://www.amstock.com



FBL Financial Group, Inc.
Financial Supplement (Unaudited)
December 31, 2013
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: On December 30, 2011, we sold our wholly-owned subsidiary, EquiTrust Life Insurance Company. We recognized an additional loss on the sale of subsidiary of $2.3 million, net of tax, during the first quarter 2012 as a result of post-closing sales price adjustments. As a result of the sale, our consolidated financial statements are presented to reflect the operations of the component sold as discontinued operations.

In connection with the EquiTrust Life Sale, during the first quarter of 2012, we completed the required redemption of $175.0 million of our long-term debt in accordance with the mandatory redemption provisions of the underlying notes. The make-whole redemption price of $210.9 million, which included repayment of principal, accrued interest and a make-whole premium, was funded from assets held in two irrevocable debt defeasance trusts. The make-whole redemption premium was based on U.S. Treasury yields and considered an embedded derivative with a fair value of $33.1 million at December 31, 2011. The change in fair value during 2012 was offset by the write off of deferred debt issuance costs and reported in other expenses in the consolidated statements of operations. 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 2: In addition to net income, 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 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, 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 3: Certain financial information presented herein may not add due to rounding.

FBL Financial Group, Inc.

Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)



	December 31, 2013		December 31, 2012
Assets
Investments:
Fixed maturities - available for sale, at fair value (amortized cost: 2013 - $5,828,539; 2012 - $5,637,608)	$	6,081,753	$	6,265,745
Equity securities - available for sale, at fair value (cost: 2013 - $90,071; 2012 - $82,140)	91,555		86,253
Mortgage loans	575,861		554,843
Real estate	4,084		4,668
Policy loans	176,993		174,254
Short-term investments	108,677		74,516
Other investments	1,079		371
Total investments	7,040,002		7,160,650

Cash and cash equivalents	6,370		78,074
Securities and indebtedness of related parties	116,305		100,606
Accrued investment income	75,186		69,965
Amounts receivable from affiliates	3,145		3,931
Reinsurance recoverable	100,001		98,238
Deferred acquisition costs	335,514		204,326
Value of insurance in force acquired	23,579		17,154
Current income taxes recoverable	—		6,735
Other assets	67,266		59,238
Assets held in separate accounts	693,955		618,809









Total assets	$	8,461,323	$	8,417,726

FBL Financial Group, Inc.

Consolidated Balance Sheets (Continued)

(Dollars in thousands)



	December 31, 2013		December 31, 2012
Liabilities and stockholders' equity
Liabilities:
Future policy benefits:
Interest sensitive products	$	4,278,871	$	4,050,846
Traditional life insurance and accident and health products	1,515,139		1,457,075
Other policy claims and benefits	45,530		39,072
Supplementary contracts without life contingencies	349,761		361,273
Advance premiums and other deposits	240,441		226,485
Amounts payable to affiliates	408		1,658
Long-term debt payable to affiliates	—		50,000
Long-term debt payable to non-affiliates	97,000		97,000
Current income taxes	1,499		—
Deferred income taxes	122,839		208,433
Other liabilities	71,089		94,828
Liabilities related to separate accounts	693,955		618,809
Total liabilities	7,416,532		7,205,479

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 24,742,942 shares in 2013 and 24,282,184 shares in 2012	134,993		115,706
Class B common stock, without par value - authorized 1,500,000 shares, issued and outstanding 11,413 shares in 2013 and 1,192,890 in 2012	72		7,522
Accumulated other comprehensive income	119,067		289,853
Retained earnings	787,609		796,110
Total FBL Financial Group, Inc. stockholders' equity	1,044,741		1,212,191
Noncontrolling interest	50		56
Total stockholders' equity	1,044,791		1,212,247
Total liabilities and stockholders' equity	$	8,461,323	$	8,417,726

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,
	2013			2012			2013			2012
Revenues:
Interest sensitive product charges	$	27,206		$	26,350		$	111,575		$	101,410
Traditional life insurance premiums	46,069			44,169			180,944			175,086
Net investment income	93,561			91,531			370,651			361,324
Net realized capital gains on sales of investments	3,142			6,810			15,967			17,479

Total other-than-temporary impairment losses	(802		)	(5,211		)	(6,662		)	(26,399		)
Non-credit portion in other comprehensive income	—			(2,698		)	4,250			9,372
Net impairment losses recognized in earnings	(802		)	(7,909		)	(2,412		)	(17,027		)
Other income	3,808			3,643			14,506			17,268
Total revenues	172,984			164,594			691,231			655,540

Benefits and expenses:
Interest sensitive product benefits	53,188			49,337			203,599			196,387
Traditional life insurance benefits	40,676			39,365			160,471			156,290
Policyholder dividends	3,322			3,382			13,319			14,275
Underwriting, acquisition and insurance expenses	32,831			34,866			138,260			141,906
Interest expense	1,217			1,980			6,863			7,952
Loss on debt redemption	—			—			—			33
Other expenses	4,175			4,054			18,414			20,513
Total benefits and expenses	135,409			132,984			540,926			537,356
	37,575			31,610			150,305			118,184
Income taxes	(12,399		)	(10,451		)	(49,322		)	(40,071		)
Equity income, net of related income taxes	1,741			1,374			7,410			4,683
Net income from continuing operations	26,917			22,533			108,393			82,796
Discontinued operations:
Loss on sale of subsidiary, net of tax	—			—			—			(2,252		)
Income (loss) from discontinued operations, net of tax	—			22			—			(687		)
Total income (loss) from discontinued operations	—			22			—			(2,939		)
Net income	26,917			22,555			108,393			79,857
Net loss attributable to noncontrolling interest	35			31			165			83
Net income attributable to FBL Financial Group, Inc.	$	26,952		$	22,586		$	108,558		$	79,940

Comprehensive income attributable to FBL Financial Group, Inc.	$	10,703		$	24,007		$	(62,228	)	$	191,948

Earnings per common share:
Income from continuing operations	$	1.08		$	0.87		$	4.25		$	3.01
Loss from discontinued operations	—			—			—			(0.11		)
Earnings per common share	$	1.08		$	0.87		$	4.25		$	2.90
Earnings per common share - assuming dilution:
Income from continuing operations	$	1.07		$	0.86		$	4.21		$	2.97
Loss from discontinued operations	—			—			—			(0.10		)
Earnings per common share - assuming dilution	$	1.07		$	0.86		$	4.21		$	2.87

Cash dividends per common share	$	0.15		$	0.10		$	0.52		$	0.40
Special cash dividend per common share	$	—		$	—		$	2.00		$	—



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

	Q4 2012			Q1 2013			Q2 2013			Q3 2013			Q4 2013
Operating revenues:
Interest sensitive product charges	$	26,304		$	25,292		$	26,848		$	32,177		$	27,216
Traditional life insurance premiums	44,169			44,934			46,058			43,883			46,069
Net investment income	91,201			91,402			93,579			94,449			93,226
Other income	3,643			3,714			3,696			3,288			3,808
Total operating revenues	165,317			165,342			170,181			173,797			170,319

Benefits and expenses:
Interest sensitive product benefits	49,355			48,509			48,721			53,438			53,222
Traditional life insurance benefits	39,360			39,798			40,263			39,726			40,675
Policyholder dividends	3,382			3,358			3,395			3,244			3,322
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	6,332			8,184			7,391			5,696			6,139
Amortization of deferred acquisition costs	7,483			6,102			9,462			7,978			6,810
Amortization of value of insurance in force acquired	687			537			782			632			549
Other underwriting expenses	18,588			20,105			19,183			19,857			19,232
Total underwriting, acquisition and insurance expenses	33,090			34,928			36,818			34,163			32,730
Interest expense	1,980			1,975			1,838			1,833			1,217
Other expenses	4,054			4,384			4,818			5,037			4,175
Total benefits and expenses	131,221			132,952			135,853			137,441			135,341
	34,096			32,390			34,328			36,356			34,978
Income taxes	(11,321		)	(10,596		)	(11,253		)	(11,694		)	(11,491		)
Net loss attributable to noncontrolling interest	31			28			34			68			35
Equity income, net of related income taxes	1,374			1,312			2,528			1,829			1,741
Operating income	24,180			23,134			25,637			26,559			25,263

Realized gains/losses on investments, net of offsets	(1,774		)	1,895			4,413			406			1,492
Change in net unrealized gains/losses on derivatives, net of offsets	158			(63		)	(463		)	88			197
Net impact of discontinued operations	22			—			—			—			—
Net income attributable to FBL Financial Group, Inc.	$	22,586		$	24,966		$	29,587		$	27,053		$	26,952

Operating income per common share - assuming dilution	$	0.93		$	0.89		$	0.98		$	1.02		$	1.00
Earnings per common share - assuming dilution	$	0.86		$	0.96		$	1.13		$	1.04		$	1.07

Weighted average common shares outstanding (in thousands):
Basic	25,779			25,598			25,833			25,770			24,896
Effect of dilutive securities	315			272			243			260			233
Diluted	26,094			25,870			26,076			26,030			25,129

Operating return on equity, excluding AOCI - last twelve months	8.8		%	9.3		%	9.8		%	10.7		%	10.8		%
Operating return on equity, including AOCI - last twelve months	7.0		%	7.3		%	7.7		%	8.5		%	8.9		%

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, 2013	Annuity		Life Insurance			Corporate & Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive product charges	$	300	$	15,136		$	11,780		$	27,216
Traditional life insurance premiums	—		46,069			—			46,069
Net investment income	49,464		35,507			8,255			93,226
Other income	—		(129		)	3,937			3,808
Total operating revenues	49,764		96,583			23,972			170,319

Benefits and expenses:
Interest sensitive product benefits	26,476		17,075			9,671			53,222
Traditional life insurance benefits	—		40,675			—			40,675
Policyholder dividends	—		3,322			—			3,322
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	564		4,622			953			6,139
Amortization of deferred policy acquisition costs	2,693		3,686			431			6,810
Amortization of value of insurance in force acquired	166		383			—			549
Other underwriting expenses	4,454		13,204			1,574			19,232
Total underwriting, acquisition and insurance expenses	7,877		21,895			2,958			32,730
Interest expense	—		—			1,217			1,217
Other expenses	—		—			4,175			4,175
Total benefits and expenses	34,353		82,967			18,021			135,341
	15,411		13,616			5,951			34,978
Net loss attributable to noncontrolling interest	—		—			35			35
Equity loss, before tax	—		—			(1,362		)	(1,362		)
Pre-tax operating income	$	15,411	$	13,616		$	4,624		$	33,651

FBL Financial Group, Inc.

Consolidating Statements of Pre-tax Operating Income (Continued)



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 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 loss attributable to noncontrolling interest	—		—			31		31
Equity income, before tax	—		—			100		100
Pre-tax operating income	$	15,261	$	12,398		$	6,568	$	34,227



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

	Q4 2012				Q1 2013			Q2 2013			Q3 2013			Q4 2013
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	212			$	313		$	344		$	279		$	300
Net investment income	48,317				47,794			48,889			50,156			49,464
Other income	6				—			—			—			—
Total operating revenues	48,535				48,107			49,233			50,435			49,764

Benefits and expenses:
Interest sensitive product benefits	25,582				24,679			25,399			25,754			26,476
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	475				937			595			458			564
Amortization of deferred acquisition costs	2,875				2,821			1,160			2,748			2,693
Amortization of value of insurance in force acquired	282				164			369			208			166
Other underwriting expenses	4,060				4,825			4,637			4,840			4,454
Total underwriting, acquisition and insurance expenses	7,692				8,747			6,761			8,254			7,877
Total benefits and expenses	33,274				33,426			32,160			34,008			34,353
Pre-tax operating income	$	15,261			$	14,681		$	17,073		$	16,427		$	15,411

Selected balance sheet data, securities at cost:
Assets:
Investments	$	3,497,525			$	3,498,745		$	3,642,460		$	3,639,855		$	3,645,736
Deferred acquisition costs	82,396				82,653			83,352			82,734			82,404
Value of insurance in force acquired	9,307				9,133			8,737			8,531			8,364

Liabilities and equity:
Liabilities:
Interest sensitive product reserves	$	3,048,797			$	3,053,711		$	3,136,084		$	3,162,323		$	3,172,598
Other insurance reserves	383,340				382,600			380,612			377,388			376,879
Allocated equity, excluding AOCI	267,707				261,160			267,269			269,018			269,760

Other data:
Number of direct contracts	53,757				53,594			53,265			53,232			53,252

Portfolio yield net of assumed defaults	5.31		%		5.26		%	5.18		%	5.14		%	5.11		%
Credited rate	3.03				3.00			2.99			2.99			2.99
Spread on fixed annuities at end of quarter (1)	2.28		%		2.26		%	2.19		%	2.15		%	2.12		%

Interest sensitive reserve activity:
Individual deferred annuity reserve:
Balance, beginning of period	$	2,323,328			$	2,338,272		$	2,376,892		$	2,398,586		$	2,424,202
Deposits	54,114				77,115			60,470			56,325			64,936
Withdrawals, surrenders and death benefits	(41,005		)		(40,111		)	(46,431		)	(37,407		)	(36,221		)
Net flows	13,109				37,004			14,039			18,918			28,715

Policyholder interest	17,080				17,230			17,382			17,478			17,836
Annuitizations and other	(15,245		)		(15,614		)	(9,727		)	(10,780		)	(10,144		)
Balance, end of period	2,338,272				2,376,892			2,398,586			2,424,202			2,460,609
Other interest sensitive reserves	710,525				676,819			737,498			738,121			711,989
Total interest sensitive product reserves	$	3,048,797			$	3,053,711		$	3,136,084		$	3,162,323		$	3,172,598


(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 2012				Q1 2013			Q2 2013			Q3 2013			Q4 2013
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	14,592			$	13,737		$	14,500		$	20,831		$	15,136
Traditional life insurance premiums	44,169				44,934			46,058			43,883			46,069
Net investment income	34,300				34,729			35,064			35,210			35,507
Other income	(55		)		(62		)	(69		)	(73		)	(129		)
Total operating revenues	93,006				93,338			95,553			99,851			96,583

Benefits and expenses:
Interest sensitive product benefits:
Interest credited	7,827				7,448			7,731			8,057			8,093
Death benefits and other	7,212				9,875			9,631			11,582			8,982
Total interest sensitive product benefits	15,039				17,323			17,362			19,639			17,075
Traditional life insurance benefits:
Death benefits	17,631				18,368			15,680			18,740			17,917
Surrender and other benefits	7,517				9,101			9,064			8,263			8,690
Increase in traditional life future policy benefits	14,212				12,329			15,519			12,723			14,068
Total traditional life insurance benefits	39,360				39,798			40,263			39,726			40,675
Policyholder dividends	3,382				3,358			3,395			3,244			3,322
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	4,971				6,100			5,866			4,407			4,622
Amortization of deferred acquisition costs	4,491				3,022			4,385			4,667			3,686
Amortization of value of insurance in force acquired	405				373			413			424			383
Other underwriting expenses	12,960				13,432			12,866			13,481			13,204
Total underwriting, acquisition and insurance expenses	22,827				22,927			23,530			22,979			21,895
Total benefits and expenses	80,608				83,406			84,550			85,588			82,967
Pre-tax operating income	$	12,398			$	9,932		$	11,003		$	14,263		$	13,616

Selected balance sheet data, securities at cost:
Assets:
Investments	$	2,315,174			$	2,341,579		$	2,404,847		$	2,462,296		$	2,473,047
Deferred acquisition costs	199,266				205,065			209,078			210,818			216,743
Value of insurance in force acquired	23,193				22,796			22,381			21,957			21,571

Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	686,067			$	707,123		$	736,341		$	761,236		$	774,614
Other insurance reserves	1,615,088				1,633,287			1,649,913			1,660,841			1,679,942
Allocated equity, excluding AOCI	294,159				279,656			286,444			292,699			298,612



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

	Q4 2012				Q1 2013			Q2 2013			Q3 2013			Q4 2013
				(Dollars in thousands)
Other data:
Number of direct policies - traditional life	355,519				356,408			357,192			356,605			358,924
Number of direct policies - universal life	59,833				60,150			60,533			60,518			61,250
Direct face amounts - traditional life	$	40,333,397			$	41,017,541		$	41,696,782		$	42,030,894		$	42,865,933
Direct face amounts - universal life	$	5,806,602			$	5,904,084		$	6,007,750		$	6,062,960		$	6,189,967

Portfolio yield net of assumed defaults	5.74		%		5.58		%	5.53		%	5.49		%	5.48		%
Credited rate	4.08				4.10			4.08			4.04			3.93
Spread on universal life at end of quarter (1)	1.66		%		1.48		%	1.45		%	1.45		%	1.55		%

Interest sensitive reserve activity:
Balance, beginning of period	$	668,699			$	686,067		$	707,123		$	736,341		$	761,236
Deposits	28,349				33,049			40,014			33,649			24,838
Withdrawals and surrenders	(4,394		)		(4,347		)	(5,064		)	(4,206		)	(4,115		)
Net flows	23,955				28,702			34,950			29,443			20,723

Policyholder interest	7,116				6,773			6,950			7,193			7,405
Policy charges	(15,222		)		(14,714		)	(15,202		)	(15,050		)	(15,668		)
Benefits and other	1,519				295			2,520			3,309			918
Balance, end of period	$	686,067			$	707,123		$	736,341		$	761,236		$	774,614


(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 2012				Q1 2013			Q2 2013			Q3 2013			Q4 2013
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	11,500			$	11,242		$	12,004		$	11,067		$	11,780
Net investment income	8,584				8,879			9,626			9,083			8,255
Other income	3,692				3,776			3,765			3,361			3,937
Total operating revenues	23,776				23,897			25,395			23,511			23,972

Benefits and expenses:
Interest sensitive product benefits	8,734				6,507			5,960			8,045			9,671
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	886				1,147			930			831			953
Amortization of deferred acquisition costs	117				259			3,917			563			431
Other underwriting expenses	1,568				1,848			1,680			1,536			1,574
Total underwriting, acquisition and insurance expenses	2,571				3,254			6,527			2,930			2,958
Interest expense	1,980				1,975			1,838			1,833			1,217
Other expenses	4,054				4,384			4,818			5,037			4,175
Total benefits and expenses	17,339				16,120			19,143			17,845			18,021
	6,437				7,777			6,252			5,666			5,951
Net loss attributable to noncontrolling interest	31				28			34			68			35
Equity income (loss), before tax	100				(707		)	(245		)	(1,325		)	(1,362		)
Pre-tax operating income	$	6,568			$	7,098		$	6,041		$	4,409		$	4,624

Selected balance sheet data, securities at cost:
Assets:
Investments	$	715,701			$	720,919		$	693,058		$	645,686		$	666,521
Deferred acquisition costs	94,984				95,286			91,361			92,225			91,917
Separate account assets	618,809				651,474			641,248			665,252			693,955

Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	315,982			$	322,497		$	326,726		$	329,495		$	328,702
Other insurance reserves	99,031				98,270			95,402			95,213			96,840
Separate account liabilities	618,809				651,474			641,248			665,252			693,955
Allocated equity, excluding AOCI	357,472				402,358			414,728			336,539			354,302

Rollforward of separate account balances:
Beginning separate account balance	$	634,402			$	618,809		$	651,474		$	641,248		$	665,252
Net premiums	(1,253		)		5,847			8,214			5,114			5,262
Net investment income	5,433				47,848			2,112			36,448			44,798
Charges, benefits and surrenders	(19,773		)		(21,030		)	(20,552		)	(17,558		)	(21,357		)
Ending separate account balance	$	618,809			$	651,474		$	641,248		$	665,252		$	693,955

Other data:
Number of direct contracts - variable annuity	13,885				13,643			13,458			13,138			12,941
Number of direct policies - variable universal life	46,863				46,311			45,714			45,208			44,690
Direct face amounts - variable universal life	$	5,813,938			$	5,750,019		$	5,678,574		$	5,603,017		$	5,547,580



FBL Financial Group, Inc.
Deferred Acquisition Costs by Segment

	Q4 2012				Q1 2013			Q2 2013			Q3 2013			Q4 2013
				(Dollars in thousands)
Annuity
Balance - beginning of period	$	83,269			$	82,396		$	82,653		$	83,352		$	82,734
Capitalization:
Commissions	2,433				2,909			1,976			1,868			2,222
Expenses	200				297			220			233			137
Total capitalization	2,633				3,206			2,196			2,101			2,359
Amortization - operating basis, before impact of unlocking	(2,875		)		(2,821		)	(2,790		)	(2,748		)	(2,691		)
Amortization - unlocking, operating basis	—				—			1,630			—			—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(631		)		(128		)	(337		)	29			2
Balance - end of period	$	82,396			$	82,653		$	83,352		$	82,734		$	82,404

Life Insurance
Balance - beginning of period	$	194,351			$	199,266		$	205,065		$	209,078		$	210,818
Capitalization:
Commissions	6,699				5,682			5,024			4,027			6,392
Expenses	2,958				3,014			3,134			2,725			2,680
Deferral of sales inducements	691				393			319			70			655
Total capitalization	10,348				9,089			8,477			6,822			9,727
Amortization - operating basis, before impact of unlocking	(4,569		)		(3,080		)	(3,573		)	(4,896		)	(3,773		)
Amortization - unlocking, operating basis	—				—			(959		)	—			—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(864		)		(210		)	68			(186		)	(29		)
Balance - end of period	$	199,266			$	205,065		$	209,078		$	210,818		$	216,743

Corporate and Other
Balance - beginning of period	$	95,063			$	94,984		$	95,286		$	91,361		$	92,225
Capitalization:
Commissions	284				313			238			144			217
Deferral of sales inducements	15				8			5			1			25
Total capitalization	299				321			243			145			242
Amortization - operating basis, before impact of unlocking	(1,643		)		(283		)	(3,036		)	(499		)	(477		)
Amortization - unlocking, operating basis	1,491				—			(926		)	—			—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(226		)		264			(206		)	1,218			(73		)
Balance - end of period	$	94,984			$	95,286		$	91,361		$	92,225		$	91,917



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

	Q4 2012				Q1 2013			Q2 2013			Q3 2013			Q4 2013
				(Dollars in thousands)
Total
Balance - beginning of period	$	372,683			$	376,646		$	383,004		$	383,791		$	385,777
Capitalization:
Commissions	9,416				8,904			7,238			6,039			8,831
Expenses	3,158				3,311			3,354			2,958			2,817
Deferral of sales inducements	706				401			324			71			680
Total capitalization	13,280				12,616			10,916			9,068			12,328
Amortization - operating basis, before impact of unlocking	(9,087		)		(6,184		)	(9,399		)	(8,143		)	(6,941		)
Amortization - unlocking, operating basis	1,491				—			(255		)	—			—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(1,721		)		(74		)	(475		)	1,061			(100		)
Balance - end of period	376,646				383,004			383,791			385,777			391,064
Impact of realized/unrealized gains/losses in AOCI	(172,320		)		(153,936		)	(83,327		)	(67,211		)	(55,550		)
Deferred acquisition costs	$	204,326			$	229,068		$	300,464		$	318,566		$	335,514



FBL Financial Group, Inc.
Collected Premiums

	Q4 2012				Q1 2013			Q2 2013			Q3 2013			Q4 2013
				(Dollars in thousands)
Annuity
Individual:
First year	$	28,100			$	41,140		$	30,247		$	33,499		$	34,270
Renewal	26,112				36,136			29,367			23,172			22,910
Total individual	54,212				77,276			59,614			56,671			57,180
Group	3,516				1,988			2,760			1,706			2,271
Total Annuity	57,728				79,264			62,374			58,377			59,451

Life Insurance
Direct:
Universal life:
First year	13,958				17,944			24,123			19,113			9,290
Renewal	13,286				14,217			14,899			13,815			14,762
Total universal life	27,244				32,161			39,022			32,928			24,052
Participating whole life:
First year	2,753				3,202			2,817			2,922			2,968
Renewal	23,875				24,119			24,968			23,342			24,103
Total participating whole life	26,628				27,321			27,785			26,264			27,071
Term life and other:
First year	2,748				2,915			2,879			2,678			2,880
Renewal	19,406				19,476			19,889			19,992			20,584
Total term life and other	22,154				22,391			22,768			22,670			23,464
Total direct life insurance	76,026				81,873			89,575			81,862			74,587
Reinsurance	(4,726		)		(5,220		)	(5,113		)	(4,915		)	(5,175		)
Total Life Insurance	71,300				76,653			84,462			76,947			69,412

Corporate and Other
Variable, net of reinsurance	16,019				19,478			18,680			14,809			15,334
Accident and health, net of reinsurance	275				59			39			32			275
Total Corporate and Other	16,294				19,537			18,719			14,841			15,609

Total collected premiums	$	145,322			$	175,454		$	165,555		$	150,165		$	144,472



FBL Financial Group, Inc.
Other Information

	December 31,				March 31,			June 30,			September 30,			December 31,
	2012				2013			2013			2013			2013
				(Dollars in thousands, except per share data)

Capitalization:
Short-term debt	$	—			$	—		$	—		$	25,000		$	—
Senior notes with affiliates, due 2015	50,000				50,000			50,000			—			—
Trust preferred securities, due 2047	97,000				97,000			97,000			97,000			97,000
Total debt	147,000				147,000			147,000			122,000			97,000

Preferred stock	3,000				3,000			3,000			3,000			3,000
Common stockholders' equity, excluding AOCI	919,338				943,174			968,441			898,256			922,674
Total capitalization, excluding AOCI	1,069,338				1,093,174			1,118,441			1,023,256			1,022,674

Accumulated other comprehensive income	289,853				295,757			164,788			135,316			119,067
Total capitalization, including AOCI	$	1,359,191			$	1,388,931		$	1,283,229		$	1,158,572		$	1,141,741

Common shares outstanding	25,475,074				25,563,170			25,614,196			24,717,212			24,754,355

Book Value per Share:
Excluding AOCI	$	36.09			$	36.90		$	37.81		$	36.34		$	37.27
Including AOCI	47.47				48.47			44.24			41.82			42.08

Debt-to-Capital Ratio:
Excluding AOCI	13.7		%		13.4		%	13.1		%	11.9		%	9.5		%
Including AOCI	10.8				10.6			11.5			10.5			8.5

Debt-to-Capital Ratio with 100% Credit for Trust Preferred Securities:
Excluding AOCI	4.7		%		4.6		%	4.5		%	2.4		%	—		%
Including AOCI	3.7				3.6			3.9			2.2			—

Class A Common Ownership:
Iowa Farm Bureau Federation	60.8		%		60.4		%	60.3		%	59.7		%	59.7		%
Other Farm Bureau entities	6.2				5.7			5.7			5.9			5.7
Public	33.0				33.9			34.0			34.4			34.6
	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,
	2012				2013			2013			2013			2013

Quality of Fixed Maturity Securities:
AAA, AA, A	61.9		%		62.2		%	62.7		%	61.9		%	61.3		%
BBB	32.8				32.8			32.9			33.5			34.3
BB	3.4				3.0			2.6			2.8			2.7
<BB	1.9				2.0			1.8			1.8			1.7

Investment by Type:
Fixed maturity securities	64.1		%		65.5		%	66.2		%	66.9		%	66.8		%
Residential mortgage-backed	9.4				9.0			8.4			7.7			7.4
Commercial mortgage-backed	7.1				6.7			6.3			6.1			5.7
Other asset-backed	6.9				6.3			6.5			6.6			6.5
Mortgage loans	7.8				7.7			8.1			8.1			8.2
Equity securities	1.2				1.1			1.1			1.2			1.3
Other	3.5				3.7			3.4			3.4			4.1

Agent Strength Totals:
8-state Farm Bureau Property & Casualty channel	1,127				1,129			1,111			1,088			1,121
7 life partner states (1)	687				686			682			681			680
Total	1,814				1,815			1,793			1,769			1,801

(1) With the commencement of operations of Greenfields Life Insurance Company during the first quarter of 2013, Colorado is now included in our life partner states total.

	Q4 2012				Q1 2013			Q2 2013			Q3 2013			Q4 2013
Equity Income (Loss), net of related income taxes				(Dollars in thousands)
Equity income (loss):
Low income housing tax credit partnerships	$	(604	)		$	(1,346	)	$	(1,540	)	$	(1,473	)	$	(1,914	)
Other equity method investments	704				639			1,295			148			552
	100				(707		)	(245		)	(1,325		)	(1,362		)
Income taxes:
Taxes on equity income (loss)	(35		)		247			87			463			477
Investment tax credits	1,309				1,772			2,686			2,691			2,626
Equity income (loss), net of related income taxes	$	1,374			$	1,312		$	2,528		$	1,829		$	1,741

FBL Financial (FFG) 8-KFBL Financial Group Reports Fourth Quarter 2013 Results