FBL Financial (FFG) 8-K FBL Financial Group Reports Third Quarter 2008 Results

Exhibit 99.2

I N T E G R I T Y

F I N A N C I A L S T R E N G T H

O P E R A T I O N A L E X C E L L E N C E

F i n a n c i a l S u p p l e m e n t

September 30 , 2 0 0 8

For more information contact:
Jim Brannen
Chief Financial Officer
Jim.Brannen@FBLFinancial.com
TEL: 515.225.5631
Don Seibel
Vice President - Finance
Don.Seibel@FBLFinancial.com
TEL: 515.226.6399
Kathleen Till Stange
Investor Relations Vice President
Kathleen.TillStange@FBLFinancial.com	NYSE: FFG
TEL: 515.226.6780	www.fblfinancial.com

FBL Financial Group, Inc. Financial Supplement (Unaudited) September 30, 2008 Table of Contents/Notes
Consolidated Financial Statements:
Consolidated Balance Sheets	2
Consolidated Statements of Income	4
Consolidated Statements of Operating Income (Loss), last five quarters	5
Financial Information by Segment:
Segment Information	6
Consolidating Statements of Pre-tax Operating Income (Loss)	7
Statements of Pre-tax Operating Income (Loss), last five quarters:
Traditional Annuity - Exclusive Distribution Segment	8
Traditional Annuity - Independent Distribution Segment	9
Traditional and Universal Life Insurance Segment	10
Variable Segment	11
Corporate and Other Segment	12
Deferred Policy Acquisition Costs by Segment	13
Collected Premiums, last five quarters	14
Other Information	15
NOTE 1: In addition to net income, FBL Financial Group has consistently utilized operating income, a non-GAAP financial measure commonly used in the life insurance industry, as a primary economic measure to evaluate its financial performance. Operating income for the periods presented equals net income adjusted to eliminate the impact of:
• realized and unrealized gains and losses on investments; • changes in net unrealized gains and losses on derivatives; • the cumulative effect of changes in accounting principles.
We use operating income, in addition to net income, to measure our performance since realized and unrealized 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 cumulative effect of changes in accounting principles and discontinued operations are nonrecurring items.  These fluctuations make it difficult to analyze core operating trends.  In addition, for derivatives not designated as hedges, there is a mismatch between the valuation of the asset and liability when deriving net income.  Specifically, call options relating to our index business are one or two-year assets while the embedded derivative in the index contracts represents the rights of the contract holder to receive index credits over the entire period the index annuities are expected to be in force.  For our other embedded derivatives in the product segments and interest rate swaps backing our annuity liabilities, the embedded derivatives are marked to market, but the associated insurance liabilities are not marked to market.  A view of our operating performance without the impact of these mismatches and nonrecurring items enhances the analysis of our results.  We use operating income for goal setting, determining company-wide bonuses 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.

1

FBL Financial Group, Inc. Consolidated Balance Sheets (Unaudited) (Dollars in thousands)
	September 30,		December 31,
	2008		2007
Assets
Investments:
Fixed maturities - available for sale, at market (amortized cost:
2008 - $10,606,564; 2007 - $9,662,986)	$	9,637,147	$	9,522,592
Equity securities - available for sale, at market (cost:  2008 - $11,288;
2007 - $22,410)		11,263		23,633
Mortgage loans on real estate		1,316,905		1,221,573
Derivative instruments		17,342		43,918
Investment real estate, less allowances for depreciation of $0
in 2008 and 2007		2,559		2,559
Policy loans		181,187		179,490
Other long-term investments		1,300		1,300
Short-term investments		90,094		72,005
Total investments		11,257,797		11,067,070
Cash and cash equivalents		87,248		84,015
Securities and indebtedness of related parties		19,117		19,957
Accrued investment income		145,114		118,827
Amounts receivable from affiliates		10,241		10,831
Reinsurance recoverable		105,613		123,659
Deferred policy acquisition costs		1,268,432		991,155
Deferred sales inducements		399,180		321,263
Value of insurance in force acquired		55,319		41,215
Property and equipment, less allowances for depreciation of $81,881
in 2008 and $75,365 in 2007		46,635		49,164
Current income tax recoverable		22,360		7,412
Deferred income tax benefit		146,954		-
Goodwill		11,170		11,170
Collateral held for securities lending and other transactions		69,227		186,925
Other assets		25,526		32,458
Assets held in separate accounts		718,501		862,738
Total assets	$	14,388,434	$	13,927,859

2

FBL Financial Group, Inc. Consolidated Balance Sheets (Continued) (Dollars in thousands)
	September 30,		December 31,
	2008		2007
Liabilities and stockholders' equity
Liabilities:
Policy liabilities and accruals:
Future policy benefits:
Interest sensitive and index products	$	10,520,516	$	9,557,073
Traditional life insurance and accident and health products		1,317,897		1,284,068
Unearned revenue reserve		32,366		28,448
Other policy claims and benefits		42,472		31,069
		11,913,251		10,900,658
Other policyholders' funds:
Supplementary contracts without life contingencies		497,580		439,441
Advance premiums and other deposits		171,496		158,245
Accrued dividends		9,922		11,208
		678,998		608,894
Amounts payable to affiliates		110		35
Short-term notes payable to affiliate		20,000		-
Long-term debt		330,986		316,930
Deferred income taxes		-		28,188
Collateral payable for securities lending and other transactions		70,311		202,594
Other liabilities		100,275		104,840
Liabilities related to separate accounts		718,501		862,738
Total liabilities		13,832,432		13,024,877
Minority interest in subsidiaries		122		91
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 28,980,603 shares in 2008 and
28,826,738 shares in 2007		106,006		101,221
Class B common stock, without par value – authorized 1,500,000 shares,
issued and outstanding 1,192,990 shares		7,519		7,525
Accumulated other comprehensive loss		(377,151)		(36,345)
Retained earnings		816,506		827,490
Total stockholders’ equity		555,880		902,891
Total liabilities and stockholders’ equity	$	14,388,434	$	13,927,859

3

FBL Financial Group, Inc. Consolidated Statements of Income (Unaudited) (Dollars in thousands, except per share data)
		Three months ended September 30,				Nine months ended September 30,
		2008		2007		2008		2007
Revenues:
	Interest sensitive and index product charges	$	32,931	$	29,129	$	93,837	$	84,045
	Traditional life insurance premiums		36,282		34,751		111,184		108,263
	Net investment income		181,888		157,016		522,555		461,560
	Derivative income (loss)		(40,951)		6,327		(171,532)		47,276
	Realized/unrealized gains (losses) on investments		(27,156)		3,932		(130,524)		6,544
	Other income		6,545		6,513		19,365		20,055
	Total revenues		189,539		237,668		444,885		727,743
Benefits and expenses:
	Interest sensitive and index product benefits		111,074		121,999		320,312		337,400
	Change in value of index product embedded derivatives		(37,529)		10,195		(171,020)		6,427
	Traditional life insurance benefits		23,353		21,595		73,207		69,676
	Increase in traditional life future policy benefits		11,084		8,840		33,511		28,069
	Distributions to participating policyholders		4,813		4,866		15,106		16,114
	Underwriting, acquisition and insurance expenses		50,676		36,198		144,359		129,842
	Interest expense		4,464		4,437		13,363		12,236
	Other expenses		5,585		5,675		17,677		17,371
	Total benefits and expenses		173,520		213,805		446,515		617,135
			16,019		23,863		(1,630)		110,608
Income taxes			(4,904)		(7,904)		2,634		(37,251)
Minority interest in loss (earnings) of subsidiaries			15		2		31		(3)
Equity income, net of related income taxes			86		538		44		1,102
Net income			11,216		16,499		1,079		74,456
Dividends on Series B preferred stock			(37)		(37)		(112)		(112)
Net income applicable to common stock		$	11,179	$	16,462	$	967	$	74,344
Earnings per common share		$	0.37	$	0.55	$	0.03	$	2.50
Earnings per common share – assuming dilution		$	0.37	$	0.54	$	0.03	$	2.46
Cash dividends per common share		$	0.125	$	0.120	$	0.375	$	0.360

4

FBL Financial Group, Inc. Consolidated Statements of Operating Income (Loss) (Dollars in thousands, except per share data)
	Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008
Operating revenues:
Interest sensitive and index product charges	$	29,129		$	30,492		$	29,206		$	31,893		$	32,908
Traditional life insurance premiums		34,751			36,419			36,133			38,769			36,282
Net investment income		157,016			166,471			168,494			172,173			181,888
Derivative income (loss)		28,257			8,937			(17,926	)		(22,155	)		(24,610	)
Other income		6,513			6,484			5,865			6,955			6,545
Total operating revenues		255,666			248,803			221,772			227,635			233,013
Benefits and expenses:
Interest sensitive and index product benefits		128,428			118,064			99,147			100,766			106,454
Traditional life insurance		21,595			21,132			27,252			22,602			23,353
Increase in traditional life future policy benefits		8,840			9,613			11,390			11,037			11,084
Distributions to participating policyholders		4,866			5,306			5,270			5,023			4,813
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		3,455			3,398			3,401			3,348			3,100
Amortization of deferred policy acquisition costs		22,027			24,025			22,436			22,805			26,706
Amortization of value of insurance in force acquired		1,004			2,068			1,055			569			857
Other underwriting expenses		19,281			19,160			19,369			19,313			19,108
Total underwriting, acquisition and insurance expenses		45,767			48,651			46,261			46,035			49,771
Interest expense		4,437			4,430			4,451			4,448			4,464
Other expenses		5,675			6,389			5,955			6,137			5,585
Total benefits and expenses		219,608			213,585			199,726			196,048			205,524
		36,058			35,218			22,046			31,587			27,489
Income taxes		(12,172	)		(10,807	)		(7,104	)		(10,307	)		(8,918	)
Minority interest in loss of subsidiaries		2			52			9			7			15
Equity income (loss), net of related income taxes		538			433			117			(159	)		86
Dividends on Series B preferred stock		(37	)		(37	)		(38	)		(37	)		(37	)
Operating income applicable to common stock		24,389			24,859			15,030			21,091			18,635
Realized/unrealized gains (losses) on investments, net of offsets		2,392			(213	)		(12,165	)		(42,642	)		(12,726	)
Change in net unrealized gains/losses on derivatives, net of offsets		(10,319	)		(12,800	)		3,535			4,939			5,270
Net income (loss) applicable to common stock	$	16,462		$	11,846		$	6,400		$	(16,612	)	$	11,179
Operating income per common share - assuming dilution	$	0.81		$	0.82		$	0.50		$	0.70		$	0.62
Earnings (loss) per common share - assuming dilution	$	0.54		$	0.39		$	0.21		$	(0.56	)	$	0.37
Weighted average common shares outstanding, operating income basis (in thousands):
Basic		29,731			29,787			29,860			29,892			29,900
Effect of dilutive securities		551			626			348			210			151
Diluted		30,282			30,413			30,208			30,102			30,051
Weighted average common shares outstanding, net income basis (in thousands):
Basic		29,731			29,787			29,860			29,892			29,900
Effect of dilutive securities		551			626			348			-			151
Diluted		30,282			30,413			30,208			29,892			30,051
Operating return on equity, excluding AOCI - last twelve months		10.6	%		10.6	%		9.6	%		9.2	%		8.6	%
Operating return on equity, including AOCI - last twelve months		10.6	%		10.7	%		10.1	%		10.2	%		10.2	%

5

FBL Financial Group, Inc.

Segment Information

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

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

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

The Variable segment consists of variable universal life insurance and variable annuity contracts. These products are similar to universal life insurance and traditional annuity contracts, except the contract holder has the option to direct the cash value of the contract to a wide range of investment sub-accounts, thereby passing the investment risk to the contract holder.

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

- investments and related investment income not specifically allocated to our product segments;

- interest expense;

- accident and health insurance products, primarily a closed block of group policies;

- 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 generally reported net of any transactions between the segments.

6

FBL Financial Group, Inc. Consolidating Statements of Pre-tax Operating Income (Loss)
Quarter Ended September 30, 2008	Traditional			Traditional			Traditional
	Annuity -			Annuity -			& Universal						Corporate
	Exclusive			Independent			Life Insurance			Variable			& Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive and index product charges	$	190		$	8,754		$	12,229		$	11,735		$	-		$	32,908
Traditional life insurance premiums		-			-			36,282			-			-			36,282
Net investment income		36,634			103,273			36,060			3,565			2,356			181,888
Derivative loss		(1,081	)		(23,529	)		-			-			-			(24,610	)
Other income		23			-			(19	)		486			6,055			6,545
Total operating revenues		35,766			88,498			84,552			15,786			8,411			233,013
Benefits and expenses:
Interest sensitive and index product benefits		23,904			58,522			17,185			6,843			-			106,454
Traditional life insurance benefits		-			-			23,353			-			-			23,353
Increase in traditional life future policy benefits		-			-			11,084			-			-			11,084
Distributions to participating policyholders		-			-			4,813			-			-			4,813
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		-			-			2,520			760			-			3,280
Amortization of deferred policy acquisition costs		3,624			15,695			4,378			3,009			-			26,706
Amortization of value of insurance in force acquired		292			-			565			-			-			857
Other underwriting expenses		2,081			3,742			7,014			5,508			583			18,928
Total underwriting, acquisition and insurance expenses		5,997			19,437			14,477			9,277			583			49,771
Interest expense		-			-			-			-			4,464			4,464
Other expenses		-			-			-			176			5,409			5,585
Total benefits and expenses		29,901			77,959			70,912			16,296			10,456			205,524
		5,865			10,539			13,640			(510	)		(2,045	)		27,489
Minority interest in loss of subsidiaries		-			-			-			-			15			15
Equity income, before tax		-			-			-			-			132			132
Pre-tax operating income (loss)	$	5,865		$	10,539		$	13,640		$	(510	)	$	(1,898	)	$	27,636

Quarter Ended September 30, 2007	Traditional		Traditional		Traditional
	Annuity -		Annuity -		& Universal				Corporate
	Exclusive		Independent		Life Insurance		Variable		& Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive and index product charges	$	276	$	5,133	$	12,296	$	11,424	$	-		$	29,129
Traditional life insurance premiums		-		-		34,751		-		-			34,751
Net investment income		35,664		78,337		35,326		3,330		4,359			157,016
Derivative income		1,056		27,201		-		-		-			28,257
Other income		-		-		-		573		5,940			6,513
Total operating revenues		36,996		110,671		82,373		15,327		10,299			255,666
Benefits and expenses:
Interest sensitive and index product benefits		24,613		84,715		14,877		4,223		-			128,428
Traditional life insurance benefits		-		-		21,595		-		-			21,595
Increase in traditional life future policy benefits		-		-		8,840		-		-			8,840
Distributions to participating policyholders		-		-		4,866		-		-			4,866
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		-		-		2,676		779		-			3,455
Amortization of deferred policy acquisition costs		3,179		12,191		6,042		615		-			22,027
Amortization of value of insurance in force acquired		343		-		661		-		-			1,004
Other underwriting expenses		2,196		2,986		7,702		5,140		1,257			19,281
Total underwriting, acquisition and insurance expenses		5,718		15,177		17,081		6,534		1,257			45,767
Interest expense		-		-		-		-		4,437			4,437
Other expenses		-		-		-		189		5,486			5,675
Total benefits and expenses		30,331		99,892		67,259		10,946		11,180			219,608
		6,665		10,779		15,114		4,381		(881	)		36,058
Minority interest in earnings of subsidiaries		-		-		-		-		2			2
Equity income, before tax		-		-		-		-		828			828
Pre-tax operating income (loss)	$	6,665	$	10,779	$	15,114	$	4,381	$	(51	)	$	36,888

7

FBL Financial Group, Inc. Statements of Pre-tax Operating Income Traditional Annuity - Exclusive Distribution Segment
	Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008
Pre-tax Operating Income	(Dollars in thousands)
Operating revenues:
Interest sensitive and index product charges	$	276		$	259		$	265		$	201		$	190
Net investment income		35,664			36,861			35,538			35,670			36,634
Derivative income (loss):
Proceeds from option settlements		48			165			73			-			-
Cost of money for call options		(99	)		(98	)		(94	)		(113	)		(102	)
Proceeds from (cost of) interest rate swaps		1,107			832			(112	)		(869	)		(979	)
Total derivative income (loss)		1,056			899			(133	)		(982	)		(1,081	)
Other income		-			-			26			114			23
Total operating revenues		36,996			38,019			35,696			35,003			35,766
Benefits and expenses:
Interest sensitive and index product benefits		24,613			24,563			23,287			23,051			23,904
Underwriting, acquisition and insurance expenses:
Amortization of deferred policy acquisition costs		3,179			2,111			2,482			2,142			3,624
Amortization of value of insurance in force acquired		343			311			534			74			292
Other underwriting expenses		2,196			2,262			2,151			2,122			2,081
Total underwriting, acquisition and insurance expenses		5,718			4,684			5,167			4,338			5,997
Total benefits and expenses		30,331			29,247			28,454			27,389			29,901
Pre-tax operating income	$	6,665		$	8,772		$	7,242		$	7,614		$	5,865
Balance sheet data, securities at cost:
Assets:
Investments	$	2,334,881		$	2,315,044		$	2,350,332		$	2,364,870		$	2,417,666
Deferred policy acquisition costs		79,556			80,685			84,023			87,211			88,865
Value of insurance in force acquired		13,257			12,949			12,509			12,761			12,265
Other assets		44,747			51,155			50,485			67,063			64,513
Total assets	$	2,472,441		$	2,459,833		$	2,497,349		$	2,531,905		$	2,583,309
Liabilities and equity:
Liabilities:
Interest sensitive and index product reserves	$	1,824,221		$	1,825,325		$	1,842,844		$	1,887,174		$	1,943,188
Other insurance reserves		395,144			392,326			394,576			389,471			387,176
Other liabilities		21,260			15,362			36,711			27,407			24,514
Total liabilities		2,240,625			2,233,013			2,274,131			2,304,052			2,354,878
Allocated equity		231,816			226,820			223,218			227,853			228,431
Total liabilities and equity	$	2,472,441		$	2,459,833		$	2,497,349		$	2,531,905		$	2,583,309
Other data:
Number of direct contracts		51,769			51,311			50,926			50,912			51,258
Statutory portfolio yield net of assumed defaults		6.12	%		6.05	%		5.75	%		5.76	%		5.83	%
Credited rate		4.43	%		4.35	%		4.14	%		4.13	%		4.12	%
Spread on direct fixed annuities at end of quarter		1.69	%		1.70	%		1.61	%		1.63	%		1.71	%
Interest sensitive and index product reserve activity:
Individual deferred annuity reserve:
Balance, beginning of period	$	1,436,517		$	1,439,049		$	1,442,520		$	1,457,812		$	1,499,540
Deposits		23,978			24,045			43,164			61,848			68,871
Withdrawals, surrenders and death benefits		(22,702	)		(22,659	)		(24,090	)		(20,481	)		(18,710	)
Net flows		1,276			1,386			19,074			41,367			50,161
Policyholder interest/index credits		15,423			15,382			14,897			14,701			15,221
Annuitizations and other		(14,167	)		(13,297	)		(18,679	)		(14,340	)		(10,672	)
Balance, end of period		1,439,049			1,442,520			1,457,812			1,499,540			1,554,250
Other interest sensitive reserves		385,172			382,805			385,032			387,634			388,938
Total interest sensitive and index product reserves	$	1,824,221		$	1,825,325		$	1,842,844		$	1,887,174		$	1,943,188

8

FBL Financial Group, Inc. Statements of Pre-tax Operating Income Traditional Annuity - Independent Distribution Segment
	Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008
Pre-tax Operating Income	(Dollars in thousands)
Operating revenues:
Interest sensitive and index product charges	$	5,133		$	6,399		$	5,309		$	7,621		$	8,754
Net investment income		78,337			86,230			90,766			94,605			103,273
Derivative income (loss):
Proceeds from option settlements		55,258			38,717			14,341			11,734			8,903
Cost of money for call options		(28,057	)		(30,679	)		(32,134	)		(32,907	)		(32,432	)
Total derivative income (loss)		27,201			8,038			(17,793	)		(21,173	)		(23,529	)
Total operating revenues		110,671			100,667			78,282			81,053			88,498
Benefits and expenses:
Interest sensitive and index product benefits:
Interest sensitive product benefits		19,171			23,222			25,430			26,681			32,889
Index product benefits:
Interest credited		12,116			12,034			13,579			17,199			17,479
Index credits		53,428			39,465			14,525			10,774			8,154
Total index product benefits		65,544			51,499			28,104			27,973			25,633
Total interest sensitive and index product benefits		84,715			74,721			53,534			54,654			58,522
Underwriting, acquisition and insurance expenses:
Amortization of deferred policy acquisition costs		12,191			13,339			13,011			13,745			15,695
Other underwriting expenses		2,986			3,145			3,942			3,760			3,742
Total underwriting, acquisition and insurance expenses		15,177			16,484			16,953			17,505			19,437
Total benefits and expenses		99,892			91,205			70,487			72,159			77,959
Pre-tax operating income	$	10,779		$	9,462		$	7,795		$	8,894		$	10,539
Balance sheet data, securities at cost:
Assets:
Investments	$	5,841,363		$	6,249,207		$	6,393,489		$	6,817,989		$	7,187,159
Deferred policy acquisition costs		433,409			468,529			478,708			492,540			501,711
Deferred sales inducements		261,522			286,849			292,491			294,148			293,524
Other assets		153,391			142,582			167,015			188,946			155,091
Total assets	$	6,689,685		$	7,147,167		$	7,331,703		$	7,793,623		$	8,137,485
Liabilities and equity:
Liabilities:
Interest sensitive and index product reserves - direct	$	4,506,311		$	4,994,736		$	5,172,016		$	5,602,285		$	5,961,338
Interest sensitive and index product reserves - assumed		1,825,551			1,766,735			1,719,151			1,678,348			1,628,748
Other insurance reserves		48,829			64,242			89,362			113,368			138,950
Other liabilities		23,292			21,034			36,972			58,575			29,379
Total liabilities		6,403,983			6,846,747			7,017,501			7,452,576			7,758,415
Allocated equity		285,702			300,420			314,202			341,047			379,070
Total liabilities and equity	$	6,689,685		$	7,147,167		$	7,331,703		$	7,793,623		$	8,137,485
Other data:
Number of direct contracts		66,957			73,980			78,241			86,470			92,966
Fixed rate annuitites:
Statutory portfolio yield net of assumed defaults		5.80	%		5.80	%		5.83	%		5.85	%		5.89	%
Credited rate		4.83	%		4.86	%		4.85	%		4.86	%		4.88	%
Spread on direct fixed rate annuities at end of quarter		0.97	%		0.94	%		0.98	%		0.99	%		1.01	%
Index annutities:
Statutory portfolio yield net of assumed defaults		5.71	%		5.74	%		5.77	%		5.81	%		5.83	%
Credited rate/option cost		3.51	%		3.57	%		3.56	%		3.53	%		3.46	%
Spread on direct index annuities at end of quarter		2.20	%		2.17	%		2.21	%		2.28	%		2.37	%
Interest sensitive and index product reserve activity:
Individual deferred annuity reserve:
Balance, beginning of period	$	5,856,937		$	6,330,502		$	6,759,976		$	6,889,613		$	7,279,099
Deposits		474,385			485,878			303,676			512,448			467,069
Withdrawals, surrenders and death benefits		(109,068	)		(130,841	)		(134,517	)		(151,351	)		(181,175	)
Net flows		365,317			355,037			169,159			361,097			285,894
Policyholder interest/index credits		98,090			86,470			63,945			58,804			61,130
Derivative value change and other		10,158			(12,033	)		(103,467	)		(30,415	)		(37,574	)
Balance, end of period		6,330,502			6,759,976			6,889,613			7,279,099			7,588,549
Other interest sensitive reserves		1,360			1,495			1,554			1,534			1,537
Total interest sensitive and index product reserves	$	6,331,862		$	6,761,471		$	6,891,167		$	7,280,633		$	7,590,086

9

FBL Financial Group, Inc. Statements of Pre-tax Operating Income Traditional and Universal Life Insurance Segment
	Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008
Pre-tax Operating Income	(Dollars in thousands, except face amounts in millions)
Operating revenues:
Interest sensitive product charges	$	12,296		$	11,457		$	11,421		$	11,781		$	12,229
Traditional life insurance premiums		34,751			36,419			36,133			38,769			36,282
Net investment income		35,326			35,749			35,787			35,682			36,060
Other income		-			-			21			(14	)		(19	)
Total operating revenues		82,373			83,625			83,362			86,218			84,552
Benefits and expenses:
Interest sensitive product benefits:
Interest credited		9,046			9,146			9,140			9,208			9,230
Death benefits		5,831			5,092			7,245			8,106			7,955
Total interest sensitive product benefits		14,877			14,238			16,385			17,314			17,185
Traditional life insurance benefits:
Death benefits		12,883			12,582			18,433			12,510			14,747
Surrender and other benefits		8,712			8,550			8,819			10,092			8,606
Total traditional life insurance benefits		21,595			21,132			27,252			22,602			23,353
Increase in traditional life future policy benefits		8,840			9,613			11,390			11,037			11,084
Distributions to participating policyholders		4,866			5,306			5,270			5,023			4,813
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		2,676			2,461			2,579			2,461			2,520
Amortization of deferred policy acquisition costs		6,042			5,555			4,446			4,291			4,378
Amortization of value of insurance in force acquired		661			1,757			521			495			565
Other underwriting expenses		7,702			7,603			7,355			7,330			7,014
Total underwriting, acquisition and insurance expenses		17,081			17,376			14,901			14,577			14,477
Total benefits and expenses		67,259			67,665			75,198			70,553			70,912
Pre-tax operating income	$	15,114		$	15,960		$	8,164		$	15,665		$	13,640
Balance sheet data, securities at cost:
Assets:
Investments	$	2,225,049		$	2,216,803		$	2,228,639		$	2,247,695		$	2,254,593
Deferred policy acquisition costs		227,267			230,399			233,127			237,004			240,182
Deferred sales inducements		3,607			3,806			3,861			4,104			4,237
Value of insurance in force acquired		29,395			27,642			27,182			26,763			26,348
Other assets		61,655			66,256			78,837			82,331			87,204
Total assets	$	2,546,973		$	2,544,906		$	2,571,646		$	2,597,897		$	2,612,564
Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	766,769		$	768,066		$	768,141		$	769,503		$	770,527
Other insurance reserves		1,385,873			1,400,379			1,416,311			1,430,396			1,442,609
Other liabilities		88,892			66,566			65,445			62,681			66,038
Total liabilities		2,241,534			2,235,011			2,249,897			2,262,580			2,279,174
Allocated equity		305,439			309,895			321,749			335,317			333,390
Total liabilities and equity	$	2,546,973		$	2,544,906		$	2,571,646		$	2,597,897		$	2,612,564
Other data:
Number of direct policies - traditional life		330,209			332,494			332,538			332,545			333,723
Number of direct policies - universal life		55,439			55,218			54,787			54,834			54,648
Direct face amounts - traditional life	$	27,853		$	28,551		$	29,088		$	29,519		$	30,241
Direct face amounts - universal life	$	4,675		$	4,695		$	4,684		$	4,733		$	4,753
Statutory portfolio yield net of assumed defaults		6.30	%		6.32	%		6.30	%		6.34	%		6.34	%
Credited rate		4.39	%		4.40	%		4.40	%		4.40	%		4.41	%
Spread on direct universal life at end of quarter		1.91	%		1.92	%		1.90	%		1.94	%		1.93	%
Interest sensitive reserve activity:
Balance, beginning of period	$	767,304		$	766,769		$	768,066		$	768,141		$	769,503
Deposits		13,476			14,079			13,395			14,140			13,606
Withdrawals and surrenders		(7,814	)		(7,539	)		(7,439	)		(8,066	)		(7,214	)
Net flows		5,662			6,540			5,956			6,074			6,392
Policyholder interest credited		8,043			8,604			8,286			8,406			8,373
Policy charges		(11,120	)		(11,328	)		(11,263	)		(11,560	)		(11,790	)
Benefits and other		(3,120	)		(2,519	)		(2,904	)		(1,558	)		(1,951	)
Balance, end of period	$	766,769		$	768,066		$	768,141		$	769,503		$	770,527

10

FBL Financial Group, Inc.
Statements of Pre-tax Operating Income (Loss)
Variable Segment
	Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008
Pre-tax Operating Income (Loss)	(Dollars in thousands, except face amounts in millions)
Operating revenues:
Interest sensitive product charges:
Variable universal life product charges	$	9,200		$	9,936		$	9,913		$	9,924		$	9,550
Variable annuity product charges		2,224			2,441			2,298			2,366			2,185
Total interest sensitive product charges		11,424			12,377			12,211			12,290			11,735
Net investment income		3,330			3,352			3,341			3,638			3,565
Other income		573			201			383			633			486
Total operating revenues		15,327			15,930			15,935			16,561			15,786
Benefits and expenses:
Interest sensitive product benefits:
Interest credited		1,943			2,003			2,217			1,810			2,048
Death benefits		2,280			2,539			3,724			3,937			4,795
Total interest sensitive product benefits		4,223			4,542			5,941			5,747			6,843
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		779			852			822			790			760
Amortization of deferred policy acquisition costs		615			3,020			2,497			2,627			3,009
Other underwriting expenses		5,140			5,238			5,304			5,543			5,508
Total underwriting, acquisition and insurance expenses		6,534			9,110			8,623			8,960			9,277
Other expenses		189			176			203			174			176
Total benefits and expenses		10,946			13,828			14,767			14,881			16,296
Pre-tax operating income (loss)	$	4,381		$	2,102		$	1,168		$	1,680		$	(510	)
Balance sheet data, securities at cost:
Assets:
Investments	$	216,939		$	215,176		$	224,408		$	242,537		$	221,131
Deferred policy acquisition costs		154,059			156,055			156,980			157,825			157,849
Deferred sales inducements		2,208			2,369			2,379			2,449			2,449
Other assets		14,032			11,539			15,909			10,329			15,454
Separate account assets		865,557			862,738			802,225			794,846			718,501
Total assets	$	1,252,795		$	1,247,877		$	1,201,901		$	1,207,986		$	1,115,384
Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	201,586		$	202,211		$	204,965		$	208,607		$	216,715
Other insurance reserves		26,934			26,985			28,596			28,964			32,623
Other liabilities		46,226			39,290			38,249			70,265			33,221
Separate account liabilities		865,557			862,738			802,225			794,846			718,501
Total liabilities		1,140,303			1,131,224			1,074,035			1,102,682			1,001,060
Allocated equity		112,492			116,653			127,866			105,304			114,324
Total liabilities and equity	$	1,252,795		$	1,247,877		$	1,201,901		$	1,207,986		$	1,115,384
Rollforward of separate account balances:
Beginning separate account balance	$	838,190		$	865,557		$	862,738		$	802,225		$	794,846
Net premiums		29,257			35,594			27,019			28,398			15,721
Net investment gain (loss)		21,709			(14,608	)		(61,229	)		(8,707	)		(67,251	)
Charges, benefits and surrenders		(23,599	)		(23,805	)		(26,303	)		(27,070	)		(24,815	)
Ending separate account balance	$	865,557		$	862,738		$	802,225		$	794,846		$	718,501
Separate account balance:
Balance per financial statements	$	865,557		$	862,738		$	802,225		$	794,846		$	718,501
Less: alliance partners' share		(23,205	)		(22,301	)		(20,932	)		(19,934	)		(17,635	)
Add: alliance partner separate account assets on business assumed		77,110			79,150			79,212			76,143			67,685
	$	919,462		$	919,587		$	860,505		$	851,055		$	768,551
Other data:
Number of direct contracts - variable annuity		21,009			21,041			21,025			21,072			20,856
Number of direct policies - variable universal life		63,562			63,378			62,858			62,381			61,861
Direct face amounts - variable universal life	$	7,779		$	7,846		$	7,804		$	7,797		$	7,756

11

FBL Financial Group, Inc.
Statements of Pre-tax Operating Loss
Corporate and Other Segment
	Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008
Pre-tax Operating Loss	(Dollars in thousands)
Operating revenues:
Net investment income	$	4,359		$	4,279		$	3,062		$	2,578		$	2,356
Other income		5,940			6,283			5,435			6,222			6,055
Total operating revenues		10,299			10,562			8,497			8,800			8,411
Benefits and expenses:
Other underwriting and insurance expenses		1,257			997			617			655			583
Interest expense		4,437			4,430			4,451			4,448			4,464
Other expenses		5,486			6,213			5,752			5,963			5,409
Total benefits and expenses		11,180			11,640			10,820			11,066			10,456
		(881	)		(1,078	)		(2,323	)		(2,266	)		(2,045	)
Minority interest in loss of subsidiaries		2			52			9			7			15
Equity income, before tax		828			666			180			(245	)		132
Pre-tax operating loss	$	(51	)	$	(360	)	$	(2,134	)	$	(2,504	)	$	(1,898	)
Balance sheet data, securities at cost:
Assets:
Investments	$	260,628		$	280,864		$	188,101		$	153,796		$	146,690
Securities and indebtedness of related parties		19,511			19,954			20,040			19,602			19,108
Other assets		377,199			426,436			451,908			317,675			315,941
Total assets	$	657,338		$	727,254		$	660,049		$	491,073		$	481,739
Liabilities and equity:
Liabilities:
Insurance reserves	$	68,330		$	68,360		$	68,710		$	66,874		$	66,283
Debt		316,912			316,930			316,949			316,967			350,986
Other liabilities		279,425			356,423			316,923			191,243			186,532
Total liabilities		664,667			741,713			702,582			575,084			603,801
Minority interest in subsidiaries		143			91			129			130			122
Equity		(7,472	)		(14,550	)		(42,662	)		(84,141	)		(122,184	)
Total liabilities and equity	$	657,338		$	727,254		$	660,049		$	491,073		$	481,739

12

FBL Financial Group, Inc.
Deferred Policy Acquisition Costs by Segment
	Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008
	(Dollars in thousands)
Traditional Annuity - Exclusive Distribution
Deferred policy acquisition costs - beginning of period	$	78,932		$	79,556		$	80,685		$	84,023		$	87,211
Capitalization:
Commissions		1,791			1,844			2,774			2,798			2,532
Expenses		559			303			720			657			786
Total capitalization		2,350			2,147			3,494			3,455			3,318
Amortization - operating basis, before impact of unlocking		(1,953	)		(2,111	)		(2,482	)		(2,142	)		(3,026	)
Amortization - unlocking, operating basis		(1,226	)		-			-			-			(598	)
Amortization - realized gains/losses on investments and
unrealized gains/losses on derivatives		1,453			1,093			2,326			1,875			1,960
Deferred policy acquisition costs - end of period	$	79,556		$	80,685		$	84,023		$	87,211		$	88,865
Traditional Annuity - Independent Distribution
Deferred policy acquisition costs - beginning of period	$	404,756		$	433,409		$	468,529		$	478,708		$	492,540
Capitalization:
Commissions		30,087			31,001			24,478			29,263			26,412
Expenses		2,216			2,176			1,931			2,165			2,043
Total capitalization		32,303			33,177			26,409			31,428			28,455
Amortization - operating basis, before impact of unlocking		(12,191	)		(13,339	)		(13,011	)		(14,453	)		(15,695	)
Amortization - unlocking, operating basis		-			-			-			708			-
Amortization - realized gains/losses on investments and
unrealized gains/losses on derivatives		8,541			15,282			(3,219	)		(3,851	)		(3,589	)
Deferred policy acquisition costs - end of period	$	433,409		$	468,529		$	478,708		$	492,540		$	501,711
Traditional & Universal Life Insurance
Deferred policy acquisition costs - beginning of period	$	226,659		$	227,267		$	230,399		$	233,127		$	237,004
Capitalization:
Commissions		3,084			4,828			2,960			4,017			3,536
Expenses		3,573			3,850			3,818			3,722			3,531
Total capitalization		6,657			8,678			6,778			7,739			7,067
Amortization - operating basis, before impact of unlocking		(4,438	)		(5,555	)		(4,446	)		(4,464	)		(3,850	)
Amortization - unlocking, operating basis		(1,604	)		-			-			173			(528	)
Amortization - realized gains/losses on investments		(7	)		9			396			429			489
Deferred policy acquisition costs - end of period	$	227,267		$	230,399		$	233,127		$	237,004		$	240,182
Variable
Deferred policy acquisition costs - beginning of period	$	151,076		$	154,059		$	156,055		$	156,980		$	157,825
Capitalization:
Commissions		2,857			3,765			2,618			2,528			1,920
Expenses		1,156			969			893			755			825
Total capitalization		4,013			4,734			3,511			3,283			2,745
Amortization - operating basis, before impact of unlocking		(1,590	)		(4,277	)		(2,497	)		(2,925	)		(4,954	)
Amortization - unlocking, operating basis		975			1,257						298			1,945
Amortization - realized gains/losses on investments and
unrealized gains/losses on derivatives		(415	)		282			(89	)		189			288
Deferred policy acquisition costs - end of period	$	154,059		$	156,055		$	156,980		$	157,825		$	157,849
Total
Deferred policy acquisition costs - beginning of period	$	861,423		$	894,291		$	935,668		$	952,838		$	974,580
Capitalization:
Commissions		37,819			41,438			32,830			38,606			34,400
Expenses		7,504			7,298			7,362			7,299			7,185
Total capitalization		45,323			48,736			40,192			45,905			41,585
Amortization - operating basis, before impact of unlocking		(20,172	)		(25,282	)		(22,436	)		(23,984	)		(27,525	)
Amortization - unlocking, operating basis		(1,855	)		1,257			-			1,179			819
Amortization - realized gains/losses on investments and
unrealized gains/losses on derivatives		9,572			16,666			(586	)		(1,358	)		(852	)
Deferred policy acquisition costs - end of period		894,291			935,668			952,838			974,580			988,607
Impact of unrealized gains/losses on investments		49,872			55,487			136,506			186,953			279,825
Deferred policy acquisition costs	$	944,163		$	991,155		$	1,089,344		$	1,161,533		$	1,268,432

13

FBL Financial Group, Inc.
Collected Premiums
	Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008
	(Dollars in thousands)
Traditional Annuity - Exclusive Distribution
First year - individual	$	17,052		$	14,966		$	25,530		$	40,234		$	55,649
Renewal - individual		8,282			9,335			18,115			22,203			14,603
Group		2,514			2,621			1,703			1,988			3,415
Total Traditional Annuity - Exclusive Distribution		27,848			26,922			45,348			64,425			73,667
Traditional Annuity - Independent Distribution
Fixed rate annuities		275,866			283,563			120,928			378,209			348,886
Index annuities		213,254			221,033			205,758			159,998			147,229
Total direct		489,120			504,596			326,686			538,207			496,115
Reinsurance assumed		663			458			882			892			397
Total Traditional Annuity - Independent Distribution,
net of reinsurance		489,783			505,054			327,568			539,099			496,512
Traditional and Universal Life Insurance
Universal life:
First year		1,286			2,045			1,361			1,628			1,879
Renewal		9,178			9,920			9,919			10,271			9,167
Total		10,464			11,965			11,280			11,899			11,046
Participating whole life:
First year		3,660			3,271			2,848			2,860			3,024
Renewal		21,695			22,656			23,135			24,967			22,330
Total		25,355			25,927			25,983			27,827			25,354
Term life and other:
First year		2,326			2,503			2,595			2,365			2,680
Renewal		11,027			11,411			12,038			12,015			12,464
Total		13,353			13,914			14,633			14,380			15,144
Total Traditional and Universal Life Insurance - Exclusive Distribution		49,172			51,806			51,896			54,106			51,544
Reinsurance assumed		2,911			2,905			2,735			2,790			2,692
Reinsurance ceded		(4,157	)		(4,844	)		(4,637	)		(5,025	)		(4,457	)
Total Traditional and Universal Life Insurance, net of reinsurance		47,926			49,867			49,994			51,871			49,779
Variable
Variable annuities:
Exclusive distribution:
First year		13,923			19,254			13,217			12,394			9,340
Renewal		5,966			6,036			6,682			6,919			4,962
Total		19,889			25,290			19,899			19,313			14,302
Alliance channel:
First year (1)		7,493			7,480			6,385			4,398			3,046
Renewal (1)		1,121			1,078			1,435			1,524			737
Total		8,614			8,558			7,820			5,922			3,783
Total variable annuities		28,503			33,848			27,719			25,235			18,085
Variable universal life:
Exclusive distribution:
First year		904			2,039			1,756			1,118			1,200
Renewal		11,158			11,302			11,936			12,033			11,209
Total		12,062			13,341			13,692			13,151			12,409
Alliance channel:
First year (1)		236			152			122			96			115
Renewal (1)		510			529			541			578			514
Total		746			681			663			674			629
Total variable universal life		12,808			14,022			14,355			13,825			13,038
Total Variable		41,311			47,870			42,074			39,060			31,123
Reinsurance ceded		(202	)		(160	)		(153	)		(187	)		(180	)
Total Variable, net of reinsurance		41,109			47,710			41,921			38,873			30,943
Corporate and Other
Accident and health premiums collected, net of
reinsurance		24			234			63			30			27
	$	606,690		$	629,787		$	464,894		$	694,298		$	650,928
(1) Amounts are net of portion ceded to and include amounts assumed from alliance partners.

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FBL Financial Group, Inc.
Other Information
	September 30,			December 31,			March 31,			June 30,			September 30,
	2007			2007			2008			2008			2008
	(Dollars in thousands, except per share data)
Capitalization:
Revolving line of credit agreement	$	46,000		$	46,000		$	46,000		$	46,000		$	60,000
Senior notes, due 2014		75,365			75,353			75,341			75,329			75,317
Senior notes, due 2017		98,547			98,577			98,608			98,638			98,669
Trust preferred securities		97,000			97,000			97,000			97,000			97,000
Short-term note payable		-			-			-			-			20,000
Total debt		316,912			316,930			316,949			316,967			350,986
Preferred stock		3,000			3,000			3,000			3,000			3,000
Common stockholders' equity, excluding AOCL		924,976			936,236			941,372			922,375			930,031
Total capitalization, excluding AOCL		1,244,888			1,256,166			1,261,321			1,242,342			1,284,017
Accumulated other comprehensive income loss		(30,658)			(36,345)			(137,996)			(186,765)			(377,151)
Total capitalization, including AOCL	$	1,214,230		$	1,219,821		$	1,123,325		$	1,055,577		$	906,866
Common shares outstanding		29,986,157			30,019,728			30,162,058			30,163,927			30,173,593
Book Value per Share:
Excluding AOCL	$	30.85		$	31.19		$	31.21		$	30.58		$	30.82
Including AOCL		29.82			29.98			26.64			24.39			18.32
Debt-to-Capital Ratio:
Excluding AOCL		25.5	%		25.2	%		25.1	%		25.5	%		27.3	%
Including AOCL		26.1			26.0			28.2			30.0			38.7
Debt-to-Capital Ratio with 100% Credit for Trust
Preferred Securities:
Excluding AOCL		17.7	%		17.5	%		17.4	%		17.7	%		19.8	%
Including AOCL		18.1			18.0			19.6			20.8			28.0
Class A Common Ownership:
Iowa Farm Bureau Federation		51.0	%		51.0	%		50.7	%		50.7	%		53.1	%
Other Farm Bureau entities		9.0			9.0			8.9			8.7			8.7
Public		40.0			40.0			40.4			40.6			38.2
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Quality of Fixed Income Securities:
(AAA, AA, A)		63.4	%		63.6	%		62.0	%		61.7	%		61.7	%
(BBB)		32.5			32.6			34.1			34.4			34.6
(BB)		3.1			2.7			2.8			2.7			2.6
(<BB)		1.0			1.1			1.1			1.2			1.1
Investment by Type:
Fixed maturities		61.3	%		61.4	%		62.0	%		62.1	%		61.7	%
Residential mortgage-backed		17.0			16.7			16.1			15.9			16.0
Commercial mortgage-backed		4.3			5.1			5.9			6.5			6.5
Asset-backed		2.6			2.3			1.8			1.5			1.4
Mortgage loans		10.8			11.0			11.2			11.3			11.7
Equity securities		0.3			0.2			0.2			0.1			0.1
Other		3.7			3.3			2.8			2.6			2.6
Agent Strength Totals:
Farm Bureau Life channel:
8-state Farm Bureau Mutual channel		1,234			1,188			1,192			1,193			1,192
7 Life-only states		790			779			763			775			789
Total Farm Bureau Life channel		2,024			1,967			1,955			1,968			1,981
Percentage registered representatives:
Farm Bureau Life channel		88.3%			88.3%			88.6%			86.9%			86.4%
EquiTrust Life channel:
Independent Agents		18,902			19,781			20,726			22,361			23,651

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