FBL Financial 8K Group Reports Fourth Quarter 2014 Results | FFG 5 Feb 15

FBL FINANCIAL GROUP, INC.

INVESTOR SUPPLEMENT

2014 Fourth Quarter




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, 2014
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: 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 and changes in net unrealized gains and losses on derivatives.

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. These fluctuations make it difficult to analyze core operating trends. A view of our operating performance without the impact of these 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 2: Certain financial information presented herein may not add due to rounding.

FBL Financial Group, Inc.

Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)



	December 31, 2014		December 31, 2013
Assets
Investments:
Fixed maturities - available for sale, at fair value (amortized cost: 2014 - $6,111,433; 2013 - $5,828,539)	$	6,700,698	$	6,081,753
Equity securities - available for sale, at fair value (cost: 2014 - $107,410; 2013 - $90,071)	112,623		91,555
Mortgage loans	629,296		575,861
Real estate	3,622		4,084
Policy loans	182,502		176,993
Short-term investments	48,585		108,677
Other investments	3,644		1,079
Total investments	7,680,970		7,040,002

Cash and cash equivalents	76,632		6,370
Securities and indebtedness of related parties	129,872		116,305
Accrued investment income	76,445		75,186
Amounts receivable from affiliates	2,666		3,145
Reinsurance recoverable	101,247		100,001
Deferred acquisition costs	220,760		335,514
Value of insurance in force acquired	22,497		23,579
Other assets	70,286		67,266
Assets held in separate accounts	683,033		693,955








Total assets	$	9,064,408	$	8,461,323

FBL Financial Group, Inc.

Consolidated Balance Sheets (Continued)

(Dollars in thousands)



	December 31, 2014		December 31, 2013
Liabilities and stockholders' equity
Liabilities:
Future policy benefits:
Interest sensitive products	$	4,543,980	$	4,278,871
Traditional life insurance and accident and health products	1,581,138		1,515,139
Other policy claims and benefits	34,895		45,530
Supplementary contracts without life contingencies	341,955		349,761
Advance premiums and other deposits	248,679		240,441
Amounts payable to affiliates	188		408
Long-term debt payable to non-affiliates	97,000		97,000
Current income taxes	2,764		1,499
Deferred income taxes	205,698		122,839
Other liabilities	72,196		71,089
Liabilities related to separate accounts	683,033		693,955
Total liabilities	7,811,526		7,416,532

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 24,703,903 shares in 2014 and 24,742,942 shares in 2013	144,625		134,993
Class B common stock, without par value - authorized 1,500,000 shares, issued and outstanding 11,413 shares in 2014 and 2013	72		72
Accumulated other comprehensive income	258,410		119,067
Retained earnings	846,737		787,609
Total FBL Financial Group, Inc. stockholders' equity	1,252,844		1,044,741
Noncontrolling interest	38		50
Total stockholders' equity	1,252,882		1,044,791
Total liabilities and stockholders' equity	$	9,064,408	$	8,461,323

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,
	2014			2013			2014			2013
Revenues:
Interest sensitive product charges	$	27,685		$	27,206		$	109,770		$	111,575
Traditional life insurance premiums	45,344			46,069			183,300			180,944
Net investment income	98,492			93,561			382,082			370,651
Net realized capital gains on sales of investments	221			3,142			3,760			15,967

Total other-than-temporary impairment losses	(549		)	(802		)	(822		)	(6,662		)
Non-credit portion in other comprehensive income	—			—			—			4,250
Net impairment losses recognized in earnings	(549		)	(802		)	(822		)	(2,412		)
Other income	3,954			3,808			14,849			14,506
Total revenues	175,147			172,984			692,939			691,231

Benefits and expenses:
Interest sensitive product benefits	53,395			53,188			211,540			203,599
Traditional life insurance benefits	41,013			40,676			162,876			160,471
Policyholder dividends	2,926			3,322			12,012			13,319
Underwriting, acquisition and insurance expenses	34,711			32,831			138,258			138,260
Interest expense	1,212			1,217			4,707			6,863
Other expenses	4,446			4,175			16,445			18,414
Total benefits and expenses	137,703			135,409			545,838			540,926
	37,444			37,575			147,101			150,305
Income taxes	(12,233		)	(12,399		)	(47,335		)	(49,322		)
Equity income, net of related income taxes	2,932			1,741			10,103			7,410
Net income	28,143			26,917			109,869			108,393
Net loss attributable to noncontrolling interest	5			35			72			165
Net income attributable to FBL Financial Group, Inc.	$	28,148		$	26,952		$	109,941		$	108,558

Comprehensive income (loss) attributable to FBL Financial Group, Inc.	$	52,197		$	10,703		$	249,284		$	(62,228	)

Earnings per common share	$	1.13		$	1.08		$	4.42		$	4.25
Earnings per common share - assuming dilution	$	1.13		$	1.07		$	4.39		$	4.21

Cash dividends per common share	$	0.35		$	0.15		$	1.40		$	0.52
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 2013			Q1 2014			Q2 2014			Q3 2014			Q4 2014
Operating revenues:
Interest sensitive product charges	$	27,216		$	27,091		$	27,361		$	27,633		$	27,686
Traditional life insurance premiums	46,069			45,492			47,444			45,020			45,344
Net investment income	93,226			92,321			93,772			95,375			98,344
Other income	3,808			3,861			3,011			4,023			3,954
Total operating revenues	170,319			168,765			171,588			172,051			175,328

Benefits and expenses:
Interest sensitive product benefits	53,222			53,501			51,767			52,647			53,193
Traditional life insurance benefits	40,675			41,497			41,991			38,371			41,013
Policyholder dividends	3,322			3,345			2,907			2,834			2,926
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	6,139			5,653			6,186			6,227			4,790
Amortization of deferred acquisition costs	6,810			7,947			6,633			8,674			9,746
Amortization of value of insurance in force acquired	549			449			694			564			1,786
Other underwriting expenses	19,232			19,364			21,343			19,427			18,465
Total underwriting, acquisition and insurance expenses	32,730			33,413			34,856			34,892			34,787
Interest expense	1,217			1,212			1,086			1,197			1,212
Other expenses	4,175			4,128			4,383			3,488			4,446
Total benefits and expenses	135,341			137,096			136,990			133,429			137,577
	34,978			31,669			34,598			38,622			37,751
Income taxes	(11,491		)	(10,276		)	(10,999		)	(12,158		)	(12,341		)
Net loss attributable to noncontrolling interest	35			43			17			7			5
Equity income, net of related income taxes	1,741			1,648			2,531			2,992			2,932
Operating income	25,263			23,084			26,147			29,463			28,347

Realized gains/losses on investments, net of offsets	1,492			(328		)	1,737			597			(220		)
Change in net unrealized gains/losses on derivatives, net of offsets	197			236			758			99			21
Net income attributable to FBL Financial Group, Inc.	$	26,952		$	22,992		$	28,642		$	30,159		$	28,148

Operating income per common share - assuming dilution	$	1.00		$	0.92		$	1.05		$	1.18		$	1.13
Earnings per common share - assuming dilution	$	1.07		$	0.91		$	1.14		$	1.21		$	1.13

Weighted average common shares outstanding (in thousands):
Basic	24,896			24,937			24,835			24,858			24,830
Effect of dilutive securities	233			180			148			131			132
Diluted	25,129			25,117			24,983			24,989			24,962

Operating return on equity, excluding AOCI - last twelve months	10.8		%	10.8		%	10.8		%	11.1		%	11.2		%
Operating return on equity, including AOCI - last twelve months	8.9		%	9.0		%	9.1		%	9.3		%	9.2		%

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 annuity segment also includes index annuities. With index annuity products, we bear the underlying investment risk and credit interest in an amount equal to a percentage of the gain in a specified market index, subject to minimum guarantees.

The 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, 2014	Annuity		Life Insurance			Corporate & Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive product charges	$	535	$	15,549		$	11,602		$	27,686
Traditional life insurance premiums	—		45,344			—			45,344
Net investment income	52,797		37,212			8,335			98,344
Other income	—		(85		)	4,039			3,954
Total operating revenues	53,332		98,020			23,976			175,328

Benefits and expenses:
Interest sensitive product benefits	26,971		17,221			9,001			53,193
Traditional life insurance benefits	—		41,013			—			41,013
Policyholder dividends	—		2,926			—			2,926
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	463		3,676			651			4,790
Amortization of deferred policy acquisition costs	2,591		4,708			2,447			9,746
Amortization of value of insurance in force acquired	1,405		381			—			1,786
Other underwriting expenses	3,913		13,170			1,382			18,465
Total underwriting, acquisition and insurance expenses	8,372		21,935			4,480			34,787
Interest expense	—		—			1,212			1,212
Other expenses	—		—			4,446			4,446
Total benefits and expenses	35,343		83,095			19,139			137,577
	17,989		14,925			4,837			37,751
Net loss attributable to noncontrolling interest	—		—			5			5
Equity loss, before tax	—		—			(325		)	(325		)
Pre-tax operating income	$	17,989	$	14,925		$	4,517		$	37,431

FBL Financial Group, Inc.

Consolidating Statements of Pre-tax Operating Income (Continued)



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 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.
Statements of Pre-tax Operating Income
Annuity Segment

	Q4 2013				Q1 2014			Q2 2014			Q3 2014			Q4 2014
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	300			$	554		$	511		$	327		$	535
Net investment income	49,464				49,025			48,985			50,743			52,797
Total operating revenues	49,764				49,579			49,496			51,070			53,332

Benefits and expenses:
Interest sensitive product benefits	26,476				26,755			26,047			25,896			26,971
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	564				454			562			560			463
Amortization of deferred acquisition costs	2,693				2,461			2,740			2,685			2,591
Amortization of value of insurance in force acquired	166				143			583			183			1,405
Other underwriting expenses	4,454				4,319			4,915			4,775			3,913
Total underwriting, acquisition and insurance expenses	7,877				7,377			8,800			8,203			8,372
Total benefits and expenses	34,353				34,132			34,847			34,099			35,343
Pre-tax operating income	$	15,411			$	15,447		$	14,649		$	16,971		$	17,989

Selected balance sheet data, securities at amortized cost:
Assets:
Investments	$	3,645,736			$	3,713,165		$	3,803,609		$	3,821,291		$	3,851,301
Deferred acquisition costs	82,404				82,901			82,838			82,882			82,778
Value of insurance in force acquired	8,364				8,224			7,631			7,449			6,044

Liabilities and equity:
Liabilities:
Interest sensitive product reserves	$	3,172,598			$	3,232,193		$	3,271,567		$	3,310,214		$	3,370,109
Other insurance reserves	376,879				375,232			375,869			372,840			372,244
Allocated equity, excluding AOCI	269,760				266,949			269,910			272,546			276,934

Other data:
Number of direct contracts	53,252				53,179			53,132			52,938			52,938

Portfolio yield net of assumed defaults	5.11		%		5.07		%	5.00		%	4.97		%	4.94		%
Credited rate	2.99				2.97			2.88			2.88			2.87
Spread on fixed annuities at end of quarter (1)	2.12		%		2.10		%	2.12		%	2.09		%	2.07		%

Interest sensitive reserve activity:
Individual deferred annuity reserve:
Balance, beginning of period	$	2,424,202			$	2,460,609		$	2,508,669		$	2,549,318		$	2,584,236
Deposits	64,936				85,207			81,167			65,482			56,322
Withdrawals, surrenders and death benefits	(36,221		)		(43,079		)	(46,974		)	(37,656		)	(38,551		)
Net flows	28,715				42,128			34,193			27,826			17,771

Policyholder interest	17,836				17,946			17,875			17,574			18,830
Annuitizations and other	(10,144		)		(12,014		)	(11,419		)	(10,482		)	(11,045		)
Balance, end of period	2,460,609				2,508,669			2,549,318			2,584,236			2,609,792
Other interest sensitive reserves	711,989				723,524			722,249			725,978			760,317
Total interest sensitive product reserves	$	3,172,598			$	3,232,193		$	3,271,567		$	3,310,214		$	3,370,109


(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 2013				Q1 2014			Q2 2014			Q3 2014			Q4 2014
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	15,136			$	14,760		$	15,335		$	15,653		$	15,549
Traditional life insurance premiums	46,069				45,492			47,444			45,020			45,344
Net investment income	35,507				35,650			36,137			37,350			37,212
Other income	(129		)		(85		)	(79		)	(88		)	(85		)
Total operating revenues	96,583				95,817			98,837			97,935			98,020

Benefits and expenses:
Interest sensitive product benefits:
Interest credited	8,093				8,002			8,100			8,348			8,038
Death benefits and other	8,982				11,410			11,041			11,847			9,183
Total interest sensitive product benefits	17,075				19,412			19,141			20,195			17,221
Traditional life insurance benefits:
Death benefits	17,917				19,754			18,260			14,120			16,853
Surrender and other benefits	8,690				9,009			7,200			7,025			7,343
Increase in traditional life future policy benefits	14,068				12,734			16,531			17,226			16,817
Total traditional life insurance benefits	40,675				41,497			41,991			38,371			41,013
Policyholder dividends	3,322				3,345			2,907			2,834			2,926
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	4,622				4,152			4,873			4,753			3,676
Amortization of deferred acquisition costs	3,686				3,831			3,279			3,776			4,708
Amortization of value of insurance in force acquired	383				306			111			381			381
Other underwriting expenses	13,204				13,182			14,654			13,002			13,170
Total underwriting, acquisition and insurance expenses	21,895				21,471			22,917			21,912			21,935
Total benefits and expenses	82,967				85,725			86,956			83,312			83,095
Pre-tax operating income	$	13,616			$	10,092		$	11,881		$	14,623		$	14,925

Selected balance sheet data, securities at amortized cost:
Assets:
Investments	$	2,473,047			$	2,526,787		$	2,569,762		$	2,584,470		$	2,620,522
Deferred acquisition costs	216,743				219,974			224,374			227,849			232,020
Value of insurance in force acquired	21,571				21,266			21,154			20,773			20,392

Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	774,614			$	787,436		$	801,942		$	813,652		$	824,964
Other insurance reserves	1,679,942				1,695,142			1,715,370			1,735,299			1,750,822
Allocated equity, excluding AOCI	298,612				290,063			295,783			301,323			307,062



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

	Q4 2013				Q1 2014			Q2 2014			Q3 2014			Q4 2014
				(Dollars in thousands)
Other data:
Number of direct policies - traditional life	358,924				359,299			360,008			360,695			362,519
Number of direct policies - universal life	61,250				61,219			61,526			61,800			62,020
Direct face amounts - traditional life	$	42,865,933			$	43,359,093		$	44,033,818		$	44,605,483		$	45,294,950
Direct face amounts - universal life	$	6,189,967			$	6,235,767		$	6,322,240		$	6,382,181		$	6,435,869

Portfolio yield net of assumed defaults	5.48		%		5.47		%	5.43		%	5.40		%	5.35		%
Credited rate	3.93				3.93			3.94			3.86			3.86
Spread on universal life at end of quarter (1)	1.55		%		1.54		%	1.49		%	1.54		%	1.49		%

Interest sensitive reserve activity:
Balance, beginning of period	$	761,236			$	774,614		$	787,436		$	801,942		$	813,652
Deposits	24,838				27,289			28,116			23,853			23,550
Withdrawals and surrenders	(4,115		)		(6,541		)	(5,658		)	(4,578		)	(5,001		)
Net flows	20,723				20,748			22,458			19,275			18,549

Policyholder interest	7,405				7,370			7,416			7,573			7,392
Policy charges	(15,668		)		(15,631		)	(15,943		)	(16,041		)	(16,081		)
Benefits and other	918				335			575			903			1,452
Balance, end of period	$	774,614			$	787,436		$	801,942		$	813,652		$	824,964


(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 2013				Q1 2014			Q2 2014			Q3 2014			Q4 2014
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	11,780			$	11,777		$	11,515		$	11,653		$	11,602
Net investment income	8,255				7,646			8,650			7,282			8,335
Other income	3,937				3,946			3,090			4,111			4,039
Total operating revenues	23,972				23,369			23,255			23,046			23,976

Benefits and expenses:
Interest sensitive product benefits	9,671				7,334			6,579			6,556			9,001
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	953				1,047			751			914			651
Amortization of deferred acquisition costs	431				1,655			614			2,213			2,447
Other underwriting expenses	1,574				1,863			1,774			1,650			1,382
Total underwriting, acquisition and insurance expenses	2,958				4,565			3,139			4,777			4,480
Interest expense	1,217				1,212			1,086			1,197			1,212
Other expenses	4,175				4,128			4,383			3,488			4,446
Total benefits and expenses	18,021				17,239			15,187			16,018			19,139
	5,951				6,130			8,068			7,028			4,837
Net loss attributable to noncontrolling interest	35				43			17			7			5
Equity loss, before tax	(1,362		)		(1,580		)	(1,119		)	(246		)	(325		)
Pre-tax operating income	$	4,624			$	4,593		$	6,966		$	6,789		$	4,517

Selected balance sheet data, securities at amortized cost:
Assets:
Investments	$	666,521			$	625,172		$	595,009		$	618,631		$	614,669
Deferred acquisition costs	91,917				90,434			89,814			87,725			85,506
Separate account assets	693,955				694,570			712,533			686,218			683,033

Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	328,702			$	331,594		$	332,532		$	333,910		$	337,725
Other insurance reserves	96,840				97,534			94,983			94,564			95,062
Separate account liabilities	693,955				694,570			712,533			686,218			683,033
Allocated equity, excluding AOCI	354,302				375,201			386,034			397,156			407,438

Rollforward of separate account balances:
Beginning separate account balance	$	665,252			$	693,955		$	694,570		$	712,533		$	686,218
Net premiums	5,262				8,413			9,595			5,340			3,061
Net investment income	44,798				10,797			28,568			(11,995		)	12,069
Charges, benefits and surrenders	(21,357		)		(18,595		)	(20,200		)	(19,660		)	(18,315		)
Ending separate account balance	$	693,955			$	694,570		$	712,533		$	686,218		$	683,033

Other data:
Number of direct contracts - variable annuity	12,941				12,735			12,493			12,287			12,128
Number of direct policies - variable universal life	44,690				44,155			43,634			43,139			42,651
Direct face amounts - variable universal life	$	5,547,580			$	5,473,919		$	5,418,472		$	5,359,184		$	5,289,986



FBL Financial Group, Inc.
Deferred Acquisition Costs by Segment

	Q4 2013				Q1 2014			Q2 2014			Q3 2014			Q4 2014
				(Dollars in thousands)
Annuity
Balance - beginning of period	$	82,734			$	82,404		$	82,901		$	82,838		$	82,882
Capitalization:
Commissions	2,222				2,655			2,532			2,278			2,112
Expenses	137				270			223			248			281
Deferral of sales inducements	—				—			48			69			71
Total capitalization	2,359				2,925			2,803			2,595			2,464
Amortization - operating basis, before impact of unlocking	(2,691		)		(2,461		)	(2,938		)	(2,690		)	(2,598		)
Amortization - unlocking, operating basis	—				—			197			—			—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	2				33			(125		)	139			30
Balance - end of period	$	82,404			$	82,901		$	82,838		$	82,882		$	82,778

Life Insurance
Balance - beginning of period	$	210,818			$	216,743		$	219,974		$	224,374		$	227,849
Capitalization:
Commissions	6,392				3,797			4,821			4,447			5,472
Expenses	2,680				3,055			2,559			2,704			3,134
Deferral of sales inducements	655				244			387			215			419
Total capitalization	9,727				7,096			7,767			7,366			9,025
Amortization - operating basis, before impact of unlocking	(3,773		)		(3,865		)	(3,427		)	(3,803		)	(4,255		)
Amortization - unlocking, operating basis	—				—			60			—			(600		)
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(29		)		—			—			(88		)	1
Balance - end of period	$	216,743			$	219,974		$	224,374		$	227,849		$	232,020

Corporate and Other
Balance - beginning of period	$	92,225			$	91,917		$	90,434		$	89,814		$	87,725
Capitalization:
Commissions	217				267			239			128			187
Deferral of sales inducements	25				2			21			10			12
Total capitalization	242				269			260			138			199
Amortization - operating basis, before impact of unlocking	(477		)		(1,685		)	(1,237		)	(2,235		)	(1,571		)
Amortization - unlocking, operating basis	—				—			640			—			(892		)
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(73		)		(67		)	(283		)	8			45
Balance - end of period	$	91,917			$	90,434		$	89,814		$	87,725		$	85,506



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

	Q4 2013				Q1 2014			Q2 2014			Q3 2014			Q4 2014
				(Dollars in thousands)
Total
Balance - beginning of period	$	385,777			$	391,064		$	393,309		$	397,026		$	398,456
Capitalization:
Commissions	8,831				6,719			7,592			6,853			7,771
Expenses	2,817				3,325			2,782			2,952			3,415
Deferral of sales inducements	680				246			456			294			502
Total capitalization	12,328				10,290			10,830			10,099			11,688
Amortization - operating basis, before impact of unlocking	(6,941		)		(8,011		)	(7,602		)	(8,728		)	(8,424		)
Amortization - unlocking, operating basis	—				—			897			—			(1,492		)
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(100		)		(34		)	(408		)	59			76
Balance - end of period	391,064				393,309			397,026			398,456			400,304
Impact of realized/unrealized gains/losses in AOCI	(55,550		)		(105,551		)	(141,844		)	(148,900		)	(179,544		)
Deferred acquisition costs	$	335,514			$	287,758		$	255,182		$	249,556		$	220,760



FBL Financial Group, Inc.
Collected Premiums

	Q4 2013				Q1 2014			Q2 2014			Q3 2014			Q4 2014
				(Dollars in thousands)
Annuity
Individual:
Fixed rate:
First year	$	22,538			$	31,211		$	35,166		$	22,494		$	15,842
Renewal	22,910				32,374			30,110			23,581			19,677
Total fixed rate	45,448				63,585			65,276			46,075			35,519
Index annuity	11,732				21,219			17,063			19,646			20,867
Total individual	57,180				84,804			82,339			65,721			56,386
Group	2,271				1,448			2,235			2,035			3,063
Total Annuity	59,451				86,252			84,574			67,756			59,449

Life Insurance
Direct:
Universal life:
First year	9,290				10,318			11,374			7,991			6,763
Renewal	14,762				16,468			16,062			14,942			16,212
Total universal life	24,052				26,786			27,436			22,933			22,975
Participating whole life:
First year	2,968				2,513			2,673			3,173			2,905
Renewal	24,103				25,067			25,107			23,252			24,057
Total participating whole life	27,071				27,580			27,780			26,425			26,962
Term life and other:
First year	2,880				2,714			2,943			2,809			2,816
Renewal	20,584				21,455			21,317			21,192			22,139
Total term life and other	23,464				24,169			24,260			24,001			24,955
Total direct life insurance	74,587				78,535			79,476			73,359			74,892
Reinsurance	(5,175		)		(5,697		)	(5,890		)	(5,702		)	(6,875		)
Total Life Insurance	69,412				72,838			73,586			67,657			68,017

Corporate and Other
Variable, net of reinsurance	15,334				19,569			18,147			13,910			14,456
Accident and health, net of reinsurance	275				64			40			52			226
Total Corporate and Other	15,609				19,633			18,187			13,962			14,682

Total collected premiums	$	144,472			$	178,723		$	176,347		$	149,375		$	142,148



FBL Financial Group, Inc.
Other Information

	December 31,				March 31,			June 30,			September 30,			December 31,
	2013				2014			2014			2014			2014
				(Dollars in thousands, except per share data)

Capitalization:
Trust preferred securities, due 2047	97,000				97,000			97,000			97,000			97,000
Total debt	97,000				97,000			97,000			97,000			97,000

Preferred stock	3,000				3,000			3,000			3,000			3,000
Common stockholders' equity, excluding AOCI	922,674				932,213			951,727			971,025			991,434
Total capitalization, excluding AOCI	1,022,674				1,032,213			1,051,727			1,071,025			1,091,434

Accumulated other comprehensive income	119,067				188,547			242,334			234,361			258,410
Total capitalization, including AOCI	$	1,141,741			$	1,220,760		$	1,294,061		$	1,305,386		$	1,349,844

Common shares outstanding	24,754,355				24,701,852			24,713,506			24,672,812			24,715,316

Book Value per Share:
Excluding AOCI	$	37.27			$	37.74		$	38.51		$	39.36		$	40.11
Including AOCI	42.08				45.37			48.32			48.85			50.57

Debt-to-Capital Ratio:
Excluding AOCI	9.5		%		9.4		%	9.2		%	9.1		%	8.9		%
Including AOCI	8.5				7.9			7.5			7.4			7.2

Debt-to-Capital Ratio with 50% Credit for Trust Preferred Securities:
Excluding AOCI	4.7		%		4.7		%	4.6		%	4.5		%	4.4		%
Including AOCI	4.2				4.0			3.7			3.7			3.6

Class A Common Ownership:
Iowa Farm Bureau Federation	59.7		%		59.8		%	59.8		%	59.9		%	59.7		%
Other Farm Bureau entities	5.7				6.3			6.3			6.3			6.2
Public	34.6				33.9			33.9			33.8			34.1
	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,
	2013				2014			2014			2014			2014

Quality of Fixed Maturity Securities:
AAA, AA, A	61.3		%		61.8		%	63.5		%	62.7		%	63.5		%
BBB	34.3				33.8			32.5			33.5			32.9
BB	2.7				2.7			2.6			2.5			2.5
<BB	1.7				1.7			1.4			1.3			1.1

Investment by Type:
Fixed maturity securities	66.8		%		67.4		%	67.3		%	67.1		%	67.1		%
Residential mortgage-backed	7.4				7.3			7.1			6.7			6.4
Commercial mortgage-backed	5.7				6.0			6.6			6.7			6.9
Other asset-backed	6.5				6.4			6.4			6.6			6.8
Mortgage loans	8.2				8.0			8.0			8.3			8.2
Equity securities	1.3				1.4			1.5			1.5			1.5
Other	4.1				3.5			3.1			3.1			3.1

Agent Strength Totals:
Full time agents and agency managers:
8-state Farm Bureau Property & Casualty channel	1,121				1,117			1,126			1,119			1,141
7 life partner states (1)	680				677			675			667			654
	1,801				1,794			1,801			1,786			1,795

(1) Includes Greenfields Life Insurance Company agents in Colorado.

	Q4 2013				Q1 2014			Q2 2014			Q3 2014			Q4 2014
Equity Income (Loss), net of related income taxes				(Dollars in thousands)
Equity income (loss):
Low income housing tax credit partnerships	$	(1,914	)		$	(1,761	)	$	(1,669	)	$	(1,355	)	$	(1,626	)
Other equity method investments	552				181			550			1,109			1,301
	(1,362		)		(1,580		)	(1,119		)	(246		)	(325		)
Income taxes:
Taxes on equity income (loss)	477				566			379			93			126
Investment tax credits	2,626				2,662			3,271			3,145			3,131
Equity income, net of related income taxes	$	1,741			$	1,648		$	2,531		$	2,992		$	2,932

FBL Financial (FFG) 8-KFBL Financial Group Reports Fourth Quarter 2014 Results