FBL Financial (FFG) 8-K FBL Financial Group Reports Second Quarter 2009 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
June 30, 2009

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)

June 30, 2009

Table of Contents/Notes

Consolidated Financial Statements:
Consolidated Balance Sheets	2
Consolidated Statements of Operations	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/Deferred Sales Inducements by Segment	13
Collected Premiums, last five quarters	14
Parent Company Liquidity	15
Other Information	16
NOTE 1: In addition to net income (loss), FBL Financial Group has consistently utilized operating income (loss), a non-GAAP financial measure commonly used in the life insurance industry, as a primary economic measure to evaluate its financial performance. Operating income (loss) for the periods presented equals net income (loss) adjusted to eliminate the impact of realized and unrealized gains and losses on investments and changes in net unrealized gains and losses on derivatives.
We use operating income (loss), in addition to net income (loss), 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.  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 (loss).  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 non-recurring items enhances the analysis of our results.  We use operating income (loss) for goal setting, determining company-wide 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.

1

FBL Financial Group, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
	June 30,		December 31,
	2009		2008
Assets
Investments:
Fixed maturities - available for sale, at market (amortized cost:
2009 - $10,334,654; 2008 - $10,505,084)	$	9,256,407	$	8,965,443
Equity securities - available for sale, at market (cost: 2009- $62,369; 2008 - $51,958)		53,440		44,863
Mortgage loans on real estate		1,336,165		1,381,854
Derivative instruments		36,621		12,933
Investment real estate		2,559		2,559
Policy loans		185,393		182,421
Other long-term investments		1,679		1,527
Short-term investments		535,343		262,459
Total investments		11,407,607		10,854,059
Cash and cash equivalents		5,988		37,710
Securities and indebtedness of related parties		19,028		18,921
Accrued investment income		132,414		136,893
Amounts receivable from affiliates		7,426		15,791
Reinsurance recoverable		113,601		107,854
Deferred policy acquisition costs		1,320,993		1,365,609
Deferred sales inducements		440,874		420,147
Value of insurance in force acquired		51,373		63,121
Property and equipment, less allowances for depreciation of $62,765 in 2009 and $63,730 in 2008		19,682		23,074
Current income tax recoverable		13,478		14,389
Deferred income tax benefit		121,486		305,080
Goodwill		11,170		11,170
Collateral held for securities lending and other transactions		0		67,953
Other assets		91,782		41,623
Assets held in separate accounts		595,047		577,420
Total assets	$	14,351,949	$	14,060,814

2

FBL Financial Group, Inc.
Consolidated Balance Sheets (Continued)
(Dollars in thousands)
	June 30,			December 31,
	2009			2008
Liabilities and stockholders' equity
Liabilities:
Policy liabilities and accruals:
Future policy benefits:
Interest sensitive and index products	$	10,373,461		$	10,531,967
Traditional life insurance and accident and health products		1,350,597			1,328,506
Unearned revenue reserve		32,343			34,663
Other policy claims and benefits		29,199			38,256
		11,785,600			11,933,392
Other policyholders' funds:
Supplementary contracts without life contingencies		512,998			504,885
Advance premiums and other deposits		178,961			167,473
Accrued dividends		9,595			10,241
		701,554			682,599
Amounts payable to affiliates		1,671			247
Short-term debt		-			59,446
Long-term debt		271,044			271,005
Long-term debt payable to affiliates		100,000			100,000
Collateral payable for securities lending and other transactions		33			69,656
Other liabilities		303,101			108,588
Liabilities related to separate accounts		595,047			577,420
Total liabilities		13,758,050			13,802,353
Stockholders’ equity:
FBL Financial Group, Inc. stockholders' equity:
Preferred stock, without par value, at liquidation value – authorized
10,000,000 shares, issued and outstanding 5,000,000 Series B shares		3,000			3,000
Class A common stock, without par value – authorized 88,500,000 shares,
issued and outstanding 29,273,391 shares in 2009 and 28,975,889 shares in 2008		106,413			104,090
Class B common stock, without par value – authorized 1,500,000 shares,
issued and outstanding 1,192,990 shares		7,522			7,522
Accumulated other comprehensive loss		(349,526	)		(649,758	)
Retained earnings		826,403			793,511
Total FBL Financial Group, Inc. stockholders' equity		593,812			258,365
Noncontrolling interest		87			96
Total stockholders’ equity		593,899			258,461
Total liabilities and stockholders’ equity	$	14,351,949		$	14,060,814

3

FBL Financial Group, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share data)
	Three months ended June 30,						Six months ended June 30,
	2009			2008			2009			2008
Revenues:
Interest sensitive and index product charges	$	52,991		$	31,785		$	94,131		$	60,906
Traditional life insurance premiums		40,954			38,769			78,908			74,902
Net investment income		182,772			172,173			366,841			340,667
Derivative income (loss)		17,000			(31,685	)		(7,601	)		(130,581	)
Net realized capital gains on sales of investments		33,528			4,007			35,479			4,007
Total other-than-temporary impairment losses		(48,724	)		(78,028	)		(79,851	)		(107,375	)
Non-credit portion in other comprehensive loss		21,317			-			30,823			-
Net impairment loss recognized in earnings		(27,407	)		(78,028	)		(49,028	)		(107,375	)
Other income		4,661			6,955			9,247			12,820
Total revenues		304,499			143,976			527,977			255,346
Benefits and expenses:
Interest sensitive and index product benefits		109,402			104,477			223,838			209,238
Change in value of index product embedded derivatives		51,350			(30,321	)		42,681			(133,491	)
Traditional life insurance benefits		24,453			22,602			46,557			49,854
Increase in traditional life future policy benefits		10,110			11,037			19,828			22,427
Distributions to participating policyholders		5,057			5,023			9,978			10,293
Underwriting, acquisition and insurance expenses		56,203			46,992			128,166			93,683
Interest expense		6,116			4,448			13,048			8,899
Other expenses		5,550			6,137			10,480			12,092
Total benefits and expenses		268,241			170,395			494,576			272,995
		36,258			(26,419	)		33,401			(17,649	)
Income taxes		(11,982	)		9,996			(10,726	)		7,538
Equity income (loss), net of related income taxes		88			(159	)		161			(42	)
Net income (loss)		24,364			(16,582	)		22,836			(10,153	)
Net attributable to noncontrolling interest		54			7			92			16
Net income (loss) attributable to FBL Financial Group, Inc	$	24,418		$	(16,575	)	$	22,928		$	(10,137	)
Earnings (loss) per common share	$	0.81		$	(0.56	)	$	0.76		$	(0.34	)
Earnings (loss) per common share – assuming dilution	$	0.81		$	(0.56	)	$	0.76		$	(0.34	)
Cash dividends per common share	$	0.0625		$	0.1250		$	0.1875		$	0.2500

4

FBL Financial Group, Inc.
Consolidated Statements of Operating Income (Loss)
(Dollars in thousands, except per share data)
	Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009
Operating revenues:
Interest sensitive and index product charges	$	31,893		$	32,908		$	33,350		$	41,150		$	53,131
Traditional life insurance premiums		38,769			36,282			38,002			37,954			40,954
Net investment income		172,173			181,888			185,317			184,069			182,772
Derivative loss		(22,155	)		(24,610	)		(30,401	)		(32,091	)		(31,005	)
Other income		6,955			6,545			5,945			4,586			4,661
Total operating revenues		227,635			233,013			232,213			235,668			250,513
Benefits and expenses:
Interest sensitive and index product benefits		100,766			106,454			114,096			110,405			108,750
Traditional life insurance		22,602			23,353			23,677			22,104			24,453
Increase in traditional life future policy benefits		11,037			11,084			9,744			9,718			10,110
Distributions to participating policyholders		5,023			4,813			4,958			4,921			5,057
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		3,348			3,280			3,581			3,573			3,620
Amortization of deferred policy acquisition costs		22,805			26,706			51,911			40,590			29,695
Amortization of value of insurance in force acquired		569			857			1,044			746			652
Other underwriting expenses		19,313			18,928			19,353			20,209			18,118
Total underwriting, acquisition and insurance expenses		46,035			49,771			75,889			65,118			52,085
Interest expense		4,448			4,464			6,204			6,932			6,116
Other expenses		6,137			5,585			6,426			4,930			5,550
Total benefits and expenses		196,048			205,524			240,994			224,128			212,121
		31,587			27,489			(8,781	)		11,540			38,392
Income taxes		(10,307	)		(8,918	)		3,513			(3,783	)		(12,729	)
Net loss attributable to noncontrolling interest		7			15			40			38			54
Equity income (loss), net of related income taxes		(159	)		86			(48	)		73			88
Operating income (loss)		21,128			18,672			(5,276	)		7,868			25,805
Realized gains/losses on investments, net of offsets		(42,642	)		(12,726	)		(12,009	)		(11,040	)		(62	)
Change in net unrealized gains/losses on derivatives, net of offsets		4,939			5,270			(1,943	)		1,682			(1,325	)
Net income (loss)	$	(16,575	)	$	11,216		$	(19,228	)	$	(1,490	)	$	24,418
Operating income (loss) per common share - assuming dilution.	$	0.70		$	0.62		$	(0.18	)	$	0.26		$	0.86
Earnings (loss) per common share - assuming dilution	$	(0.56	)	$	0.37		$	(0.64	)	$	(0.05	)	$	0.81
Weighted average common shares outstanding, operating income (loss) basis (in thousands):
Basic		29,892			29,900			29,926			29,958			30,007
Effect of dilutive securities		210			151			-			126			18
Diluted		30,102			30,051			29,926			30,084			30,025
Weighted average common shares outstanding, net income (loss) basis (in thousands):
Basic		29,892			29,900			29,926			29,958			30,007
Effect of dilutive securities		-			151			-			-			18
Diluted		29,892			30,051			29,926			29,958			30,025
Operating return on equity, excluding AOCL - last twelve months		9.2	%		8.6	%		5.3	%		4.6	%		5.1	%
Operating return on equity, including AOCL - last twelve months		10.2	%		10.2	%		7.6	%		8.1	%		9.8	%

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 June 30, 2009							Traditional
	Traditional			Traditional			& Universal
	Annuity -			Annuity -			Life						Corporate
	Exclusive			Independent			Insurance			Variable			& Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive and index product charges	$	210		$	28,965		$	12,484		$	11,472		$	-		$	53,131
Traditional life insurance premiums		-			-			40,954			-			-			40,954
Net investment income		38,543			102,447			35,629			4,085			2,068			182,772
Derivative loss		(1,269	)		(29,245	)		-			-			(491	)		(31,005	)
Other income		36			-			(13	)		789			3,849			4,661
Total operating revenues		37,520			102,167			89,054			16,346			5,426			250,513
Benefits and expenses:
Interest sensitive and index product benefits		23,726			63,235			16,265			5,524			-			108,750
Traditional life insurance benefits		-			-			24,453			-			-			24,453
Increase in traditional life future policy benefits		-			-			10,110			-			-			10,110
Distributions to participating policyholders		-			-			5,057			-			-			5,057
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		-			-			2,855			765			-			3,620
Amortization of deferred policy acquisition costs		3,449			22,649			4,585			(986	)		-			29,697
Amortization of value of insurance in force acquired		282			-			368			-			-			650
Other underwriting expenses		1,889			4,169			6,476			5,148			436			18,118
Total underwriting, acquisition and insurance expenses		5,620			26,818			14,284			4,927			436			52,085
Interest expense		-			-			-			-			6,116			6,116
Other expenses		-			-			-			137			5,413			5,550
Total benefits and expenses		29,346			90,053			70,169			10,588			11,965			212,121
		8,174			12,114			18,885			5,758			(6,539	)		38,392
Net loss attributable to noncontrolling interest		-			-			-			-			54			54
Equity income, before tax		-			-			-			-			136			136
Pre-tax operating income (loss)	$	8,174		$	12,114		$	18,885		$	5,758		$	(6,349	)	$	38,582
Quarter Ended June 30, 2008							Traditional
	Traditional			Traditional			& Universal
	Annuity -			Annuity -			Life						Corporate
	Exclusive			Independent			Insurance			Variable			& Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive and index product charges	$	201		$	7,621		$	11,781		$	12,290		$	-		$	31,893
Traditional life insurance premiums		-			-			38,769			-			-			38,769
Net investment income		35,670			94,605			35,682			3,638			2,578			172,173
Derivative loss		(982	)		(21,173	)		-			-			-			(22,155	)
Other income		114			-			(14	)		633			6,222			6,955
Total operating revenues		35,003			81,053			86,218			16,561			8,800			227,635
Benefits and expenses:
Interest sensitive and index product benefits		23,051			54,654			17,314			5,747			-			100,766
Traditional life insurance benefits		-			-			22,602			-			-			22,602
Increase in traditional life future policy benefits		-			-			11,037			-			-			11,037
Distributions to participating policyholders		-			-			5,023			-			-			5,023
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		-			-			2,558			790			-			3,348
Amortization of deferred policy acquisition costs		2,142			13,745			4,291			2,627			-			22,805
Amortization of value of insurance in force acquired		74			-			495			-			-			569
Other underwriting expenses		2,122			3,760			7,233			5,543			655			19,313
Total underwriting, acquisition and insurance expenses		4,338			17,505			14,577			8,960			655			46,035
Interest expense		-			-			-			-			4,448			4,448
Other expenses		-			-			-			174			5,963			6,137
Total benefits and expenses		27,389			72,159			70,553			14,881			11,066			196,048
		7,614			8,894			15,665			1,680			(2,266	)		31,587
Net loss attributable to noncontrolling interest		-			-			-			-			7			7
Equity loss, before tax		-			-			-			-			(245	)		(245	)
Pre-tax operating income (loss)	$	7,614		$	8,894		$	15,665		$	1,680		$	(2,504	)	$	31,349

7

FBL Financial Group, Inc.
Statements of Pre-tax Operating Income
Traditional Annuity - Exclusive Distribution Segment
	Q2 2008			Q3 2008			Q4 2008			Q1 2009				Q2 2009
Pre-tax Operating Income	(Dollars in thousands)
Operating revenues:
Interest sensitive and index product charges	$	201		$	190		$	338		$	204			$	210
Net investment income		35,670			36,634			37,467			37,669				38,543
Derivative loss:
Cost of money for call options		(113	)		(102	)		(93	)		(77	)			(77	)
Cost of interest rate swaps		(869	)		(979	)		(570	)		(1,180	)			(1,192	)
Total derivative loss		(982	)		(1,081	)		(663	)		(1,257	)			(1,269	)
Other income		114			23			104			44				36
Total operating revenues		35,003			35,766			37,246			36,660				37,520
Benefits and expenses:
Interest sensitive and index product benefits		23,051			23,904			23,573			23,038				23,726
Underwriting, acquisition and insurance expenses:
Amortization of deferred policy acquisition costs		2,142			3,624			3,698			4,067				3,449
Amortization of value of insurance in force acquired		74			292			612			299				282
Other underwriting expenses		2,122			2,081			2,138			2,430				1,889
Total underwriting, acquisition and insurance expenses		4,338			5,997			6,448			6,796				5,620
Total benefits and expenses		27,389			29,901			30,021			29,834				29,346
Pre-tax operating income	$	7,614		$	5,865		$	7,225		$	6,826			$	8,174
Balance sheet data, securities at cost:
Assets:
Investments	$	2,364,870		$	2,417,666		$	2,356,310		$	2,489,600			$	2,537,576
Deferred policy acquisition costs		87,211			88,865			89,714			88,007				87,990
Value of insurance in force acquired		12,761			12,265			11,982			11,588				11,304
Other assets		67,063			64,513			135,170			93,265				75,365
Total assets	$	2,531,905		$	2,583,309		$	2,593,176		$	2,682,460			$	2,712,235
Liabilities and equity:
Liabilities:
Interest sensitive and index product reserves	$	1,887,174		$	1,943,188		$	1,971,218		$	2,030,117			$	2,075,464
Other insurance reserves		389,471			387,176			381,838			378,680				377,827
Other liabilities		27,407			24,514			19,626			26,515				32,361
Total liabilities		2,304,052			2,354,878			2,372,682			2,435,312				2,485,652
Allocated equity, excluding AOCL		227,853			228,431			220,494			247,148				226,583
Total liabilities and equity	$	2,531,905		$	2,583,309		$	2,593,176		$	2,682,460			$	2,712,235
Other data:
Number of direct contracts		50,912			51,258			51,439			52,333				52,910
Statutory portfolio yield net of assumed defaults		5.76	%		5.83	%		5.61	%		5.61	%			5.52	%
Credited rate		4.13	%		4.12	%		4.04	%		4.04	%			3.92	%
Spread on direct fixed annuities at end of quarter		1.63	%		1.71	%		1.57	%		1.57	%	(A)		1.60	%
Interest sensitive and index product reserve activity:
Individual deferred annuity reserve:
Balance, beginning of period	$	1,457,812		$	1,499,540		$	1,554,250		$	1,586,141			$	1,653,077
Deposits		61,848			68,871			62,278			91,509				70,889
Withdrawals, surrenders and death benefits		(20,481	)		(18,710	)		(32,827	)		(28,109	)			(23,908	)
Net flows		41,367			50,161			29,451			63,400				46,981
Policyholder interest/index credits		14,701			15,221			15,211			15,721				16,322
Annuitizations and other		(14,340	)		(10,672	)		(12,771	)		(12,185	)			(11,883	)
Balance, end of period		1,499,540			1,554,250			1,586,141			1,653,077				1,704,497
Other interest sensitive reserves		387,634			388,938			385,077			377,040				370,967
Total interest sensitive and index product reserves	$	1,887,174		$	1,943,188		$	1,971,218		$	2,030,117			$	2,075,464
(A) Point-in-time spread at March 31, 2009 does not include the impact of holding higher-than-average cash balance. Impact of cash position during the first quarter of 2009 is estimated to be 15 basis points.

8

FBL Financial Group, Inc.
Statements of Pre-tax Operating Income (Loss)
Traditional Annuity - Independent Distribution Segment
	Q2 2008			Q3 2008			Q4 2008			Q1 2009				Q2 2009
Pre-tax Operating Income (Loss)	(Dollars in thousands)
Operating revenues:
Interest sensitive and index product charges	$	7,621		$	8,754		$	8,783		$	16,892			$	28,965
Net investment income		94,605			103,273			106,483			104,705				102,447
Derivative income (loss):
Proceeds from option settlements		11,734			8,903			902			201				260
Cost of money for call options		(32,907	)		(32,432	)		(30,640	)		(30,665	)			(29,505	)
Total derivative loss		(21,173	)		(23,529	)		(29,738	)		(30,464	)			(29,245	)
Total operating revenues		81,053			88,498			85,528			91,133				102,167
Benefits and expenses:
Interest sensitive and index product benefits:
Fixed rate annuities:
Interest credited and other		26,252			32,133			33,341			34,113				35,817
Amortization of deferred sales inducements		391			755			2,012			1,481				945
Total fixed annuity product benefits		26,643			32,888			35,353			35,594				36,762
Index annuities:
Interest credited		8,360			9,182			10,376			10,354				11,012
Amortization of deferred sales inducements		8,879			8,297			20,257			13,825				13,594
Index credits		10,774			8,155			2,016			1,345				1,867
Total index product benefits		28,013			25,634			32,649			25,524				26,473
Total interest sensitive and index product benefits		54,656			58,522			68,002			61,118				63,235
Underwriting, acquisition and insurance expenses:
Amortization of deferred policy acquisition costs		13,745			15,695			35,764			25,781				22,649
Other underwriting expenses		3,760			3,742			3,629			4,361				4,169
Total underwriting, acquisition and insurance expenses		17,505			19,437			39,393			30,142				26,818
Total benefits and expenses		72,159			77,959			107,396			91,260				90,053
Pre-tax operating income (loss)	$	8,894		$	10,539		$	(21,868	)	$	(127	)		$	12,114
Balance sheet data, securities at cost:
Assets:
Investments	$	6,817,989		$	7,187,159		$	7,202,047		$	6,999,727			$	6,811,958
Deferred policy acquisition costs		492,540			501,711			479,288			468,436				455,323
Deferred sales inducements		294,148			293,524			277,836			271,054				266,059
Other assets		188,946			155,091			157,133			323,320				477,748
Total assets	$	7,793,623		$	8,137,485		$	8,116,304		$	8,062,537			$	8,011,088
Liabilities and equity:
Liabilities:
Interest sensitive and index product reserves - direct	$	5,602,285		$	5,961,338		$	5,979,633		$	5,953,606			$	5,776,892
Interest sensitive and index product reserves - assumed		1,678,348			1,628,748			1,583,754			1,536,390				1,523,893
Other insurance reserves		113,368			138,950			145,036			148,880				156,295
Other liabilities		58,575			29,379			28,658			52,700				172,476
Total liabilities		7,452,576			7,758,415			7,737,081			7,691,576				7,629,556
Allocated equity, excluding AOCL		341,047			379,070			379,223			370,961				381,532
Total liabilities and equity	$	7,793,623		$	8,137,485		$	8,116,304		$	8,062,537			$	8,011,088
Other data:
Number of direct contracts		86,470			92,966			93,769			93,507				90,820
Fixed rate annuitites:
Statutory portfolio yield net of assumed defaults		5.85	%		5.89	%		5.89	%		5.89	%			5.74	%
Credited rate		4.86	%		4.88	%		4.89	%		4.94	%			4.95	%
Spread on direct fixed rate annuities at end of quarter		0.99	%		1.01	%		1.00	%		0.95	%			0.79	%
Index annutities:
Statutory portfolio yield net of assumed defaults		5.81	%		5.83	%		5.83	%		5.83	%			5.84	%
Credited rate/option cost		3.53	%		3.46	%		3.54	%		3.53	%			3.55	%
Spread on direct index annuities at end of quarter		2.28	%		2.37	%		2.29	%		2.30	%	(A)		2.29	%
Interest sensitive and index product reserve activity:
Individual deferred annuity reserve:
Balance, beginning of period	$	6,889,613		$	7,279,099		$	7,588,549		$	7,561,689			$	7,488,024
Deposits		512,448			467,069			187,024			314,278				188,946
Withdrawals, surrenders and death benefits		(151,351	)		(181,175	)		(251,863	)		(436,142	)			(511,580	)
Net flows		361,097			285,894			(64,839	)		(121,864	)			(322,634	)
Policyholder interest/index credits		58,804			61,130			56,490			56,540				56,891
Derivative value change and other		(30,415	)		(37,574	)		(18,511	)		(8,341	)			51,448
Balance, end of period		7,279,099			7,588,549			7,561,689			7,488,024				7,273,729
Other interest sensitive reserves		1,534			1,537			1,698			1,972				27,056
Total interest sensitive and index product reserves	$	7,280,633		$	7,590,086		$	7,563,387		$	7,489,996			$	7,300,785
(A) Point-in-time spread at March 31, 2009 does not include the impact of holding higher-than-average cash balance. Impact of cash position during the first quarter of 2009 is estimated to be 18 basis points on the direct business.

9

FBL Financial Group, Inc.
Statements of Pre-tax Operating Income
Traditional and Universal Life Insurance Segment
	Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009
Pre-tax Operating Income	(Dollars in thousands, except face amounts in millions)
Operating revenues:
Interest sensitive product charges	$	11,781		$	12,229		$	12,256		$	12,126		$	12,484
Traditional life insurance premiums		38,769			36,282			38,002			37,954			40,954
Net investment income		35,682			36,060			35,795			35,991			35,629
Other income		(14	)		(19	)		(21	)		61			(13	)
Total operating revenues		86,218			84,552			86,032			86,132			89,054
Benefits and expenses:
Interest sensitive product benefits:
Interest credited		9,208			9,230			9,092			9,102			9,069
Death benefits		8,106			7,955			7,076			9,396			7,196
Total interest sensitive product benefits		17,314			17,185			16,168			18,498			16,265
Traditional life insurance benefits:
Death benefits		12,510			14,747			14,885			12,679			13,981
Surrender and other benefits		10,092			8,606			8,792			9,425			10,472
Total traditional life insurance benefits		22,602			23,353			23,677			22,104			24,453
Increase in traditional life future policy benefits		11,037			11,084			9,744			9,718			10,110
Distributions to participating policyholders		5,023			4,813			4,958			4,921			5,057
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		2,461			2,520			2,831			2,782			2,855
Amortization of deferred policy acquisition costs		4,291			4,378			5,041			5,290			4,585
Amortization of value of insurance in force acquired		495			565			432			447			368
Other underwriting expenses		7,330			7,014			7,590			6,929			6,476
Total underwriting, acquisition and insurance expenses		14,577			14,477			15,894			15,448			14,284
Total benefits and expenses		70,553			70,912			70,441			70,689			70,169
Pre-tax operating income	$	15,665		$	13,640		$	15,591		$	15,443		$	18,885
Balance sheet data, securities at cost:
Assets:
Investments	$	2,247,695		$	2,254,593		$	2,266,936		$	2,252,649		$	2,244,685
Deferred policy acquisition costs		237,004			240,182			245,020			247,571			251,199
Deferred sales inducements		4,104			4,237			5,582			5,987			6,187
Value of insurance in force acquired		26,763			26,348			25,904			25,427			25,060
Other assets		82,331			87,204			76,235			97,706			133,693
Total assets	$	2,597,897		$	2,612,564		$	2,619,677		$	2,629,340		$	2,660,824
Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	769,503		$	770,527		$	771,823		$	769,229		$	769,618
Other insurance reserves		1,430,396			1,442,609			1,455,515			1,468,638			1,478,950
Other liabilities		62,681			66,038			88,361			54,765			72,797
Total liabilities		2,262,580			2,279,174			2,315,699			2,292,632			2,321,365
Allocated equity, excluding AOCL		335,317			333,390			303,978			336,708			339,459
Total liabilities and equity	$	2,597,897		$	2,612,564		$	2,619,677		$	2,629,340		$	2,660,824
Other data:
Number of direct policies - traditional life		332,545			333,723			335,505			336,230			337,903
Number of direct policies - universal life		54,834			54,648			55,094			55,255			55,408
Direct face amounts - traditional life	$	29,519		$	30,241		$	30,998		$	31,514		$	32,221
Direct face amounts - universal life	$	4,733		$	4,753		$	4,817		$	4,864		$	4,917
Statutory portfolio yield net of assumed defaults		6.34	%		6.34	%		6.30	%		6.28	%		6.20	%
Credited rate		4.40	%		4.41	%		4.41	%		4.37	%		4.37	%
Spread on direct universal life at end of quarter		1.94	%		1.93	%		1.89	%		1.91	%		1.83	%
Interest sensitive reserve activity:
Balance, beginning of period	$	768,141		$	769,503		$	770,527		$	771,823		$	769,044
Deposits		14,140			13,606			15,013			14,375			14,861
Withdrawals and surrenders		(8,066	)		(7,214	)		(8,423	)		(8,522	)		(8,282	)
Net flows		6,074			6,392			6,590			5,853			6,579
Policyholder interest credited		8,406			8,373			8,225			8,269			8,211
Policy charges		(11,560	)		(11,790	)		(12,042	)		(12,047	)		(12,381	)
Benefits and other		(1,558	)		(1,951	)		(1,477	)		(4,854	)		(1,835	)
Balance, end of period	$	769,503		$	770,527		$	771,823		$	769,044		$	769,618

10

FBL Financial Group, Inc.
Statements of Pre-tax Operating Income (Loss)
Variable Segment
	Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009
Pre-tax Operating Income (Loss)	(Dollars in thousands, except face amounts in millions)
Operating revenues:
Interest sensitive product charges	$	12,290		$	11,735		$	11,973		$	11,928		$	11,472
Net investment income		3,638			3,565			3,713			3,891			4,085
Other income		633			486			416			326			789
Total operating revenues		16,561			15,786			16,102			16,145			16,346
Benefits and expenses:
Interest sensitive product benefits:
Interest credited		1,810			2,048			2,522			2,229			2,196
Death benefits		3,937			4,795			3,830			5,522			3,328
Total interest sensitive product benefits		5,747			6,843			6,352			7,751			5,524
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		790			760			750			791			765
Amortization of deferred policy acquisition costs		2,627			3,009			7,408			5,452			(986	)
Other underwriting expenses		5,543			5,508			5,403			5,819			5,148
Total underwriting, acquisition and insurance expenses		8,960			9,277			13,561			12,062			4,927
Other expenses		174			176			111			157			137
Total benefits and expenses		14,881			16,296			20,024			19,970			10,588
Pre-tax operating income (loss)	$	1,680		$	(510	)	$	(3,922	)	$	(3,825	)	$	5,758
Balance sheet data, securities at cost:
Assets:
Investments	$	242,537		$	221,131		$	242,222		$	260,633		$	233,804
Deferred policy acquisition costs		157,825			157,849			153,396			149,866			152,826
Deferred sales inducements		2,449			2,449			2,572			2,610			2,609
Other assets		10,329			15,454			9,262			4,591			28,433
Separate account assets		794,846			718,501			577,420			522,591			595,047
Total assets	$	1,207,986		$	1,115,384		$	984,872		$	940,291		$	1,012,719
Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	208,607		$	216,715		$	225,539		$	231,035		$	227,594
Other insurance reserves		28,964			32,623			30,382			31,723			32,546
Other liabilities		70,265			33,221			32,067			51,318			56,099
Separate account liabilities		794,846			718,501			577,420			522,591			595,047
Total liabilities		1,102,682			1,001,060			865,408			836,667			911,286
Allocated equity, excluding AOCL		105,304			114,324			119,464			103,624			101,433
Total liabilities and equity	$	1,207,986		$	1,115,384		$	984,872		$	940,291		$	1,012,719
Rollforward of separate account balances:
Beginning separate account balance	$	802,225		$	794,846		$	718,501		$	577,420		$	522,591
Net premiums		28,398			15,721			7,507			10,945			18,260
Net investment income (loss)		(8,707	)		(67,251	)		(127,551	)		(45,184	)		73,553
Charges, benefits and surrenders		(27,070	)		(24,815	)		(21,037	)		(20,590	)		(19,357	)
Ending separate account balance	$	794,846		$	718,501		$	577,420		$	522,591		$	595,047
Separate account balance:
Balance per financial statements	$	794,846		$	718,501		$	577,420		$	522,591		$	595,047
Less: alliance partners' share		(19,934	)		(17,635	)		(13,940	)		(13,750	)		(14,453	)
Add: alliance partner separate account assets on business assumed		76,143			67,685			53,614			51,852			54,814
	$	851,055		$	768,551		$	617,094		$	560,693		$	635,408
Other data:
Number of direct contracts - variable annuity		21,072			20,856			20,624			20,384			20,242
Number of direct policies - variable universal life		62,381			61,861			61,319			60,631			59,812
Direct face amounts - variable universal life	$	7,797		$	7,756		$	7,698		$	7,614		$	7,515

11

FBL Financial Group, Inc.
Statements of Pre-tax Operating Loss
Corporate and Other Segment
	Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009
Pre-tax Operating Loss	(Dollars in thousands)
Operating revenues:
Net investment income	$	2,578		$	2,356		$	1,859		$	1,813		$	2,068
Derivative loss		-			-			-			(370	)		(491	)
Other income		6,222			6,055			5,446			4,155			3,849
Total operating revenues		8,800			8,411			7,305			5,598			5,426
Benefits and expenses:
Other underwriting and insurance expenses		655			583			593			670			436
Interest expense		4,448			4,464			6,204			6,932			6,116
Other expenses		5,963			5,409			6,315			4,773			5,413
Total benefits and expenses		11,066			10,456			13,112			12,375			11,965
		(2,266	)		(2,045	)		(5,807	)		(6,777	)		(6,539	)
Net loss attributable to noncontrolling interest		7			15			40			38			54
Equity income (loss), before tax		(245	)		132			(74	)		111			136
Pre-tax operating loss	$	(2,504	)	$	(1,898	)	$	(5,841	)	$	(6,628	)	$	(6,349	)
Balance sheet data, securities at cost:
Assets:
Investments	$	153,796		$	146,690		$	333,281		$	460,604		$	666,760
Securities and indebtedness of related parties		19,602			19,108			18,919			18,968			19,024
Other assets		317,675			315,941			245,271			216,565			159,784
Total assets	$	491,073		$	481,739		$	597,471		$	696,137		$	845,568
Liabilities and equity:
Liabilities:
Insurance reserves	$	66,874		$	66,283		$	64,319		$	63,471		$	63,617
Debt		316,967			350,986			430,451			371,025			371,044
Other liabilities		191,243			186,532			217,637			400,050			516,491
Total liabilities		575,084			603,801			712,407			834,546			951,152
Minority interest in subsidiaries		130			122			96			99			87
Equity, excluding AOCL		(84,141	)		(122,184	)		(115,032	)		(138,508	)		(105,671	)
Total liabilities and equity	$	491,073		$	481,739		$	597,471		$	696,137		$	845,568

12

FBL Financial Group, Inc.
Deferred Policy Acquisition Costs/Deferred Sales Inducements by Segment
	Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009
	(Dollars in thousands)
Traditional Annuity - Exclusive Distribution
Balance - beginning of period	$	84,023		$	87,211		$	88,865		$	89,714		$	88,007
Impact of reclassification of realized losses to AOCL		-			-			-			(1,461	)		-
Capitalization:
Commissions		2,798			2,543			2,572			3,121			3,198
Expenses		657			786			835			918			717
Total capitalization		3,455			3,329			3,407			4,039			3,915
Amortization - operating basis, before impact of unlocking		(2,142	)		(3,027	)		(3,699	)		(4,067	)		(3,449	)
Amortization - unlocking, operating basis		-			(596	)		-			-			-
Amortization - realized gains/losses on investments and
unrealized gains/losses on derivatives		1,875			1,948			1,141			(218	)		(483	)
Balance - end of period	$	87,211		$	88,865		$	89,714		$	88,007		$	87,990
Traditional Annuity - Independent Distribution
Balance - beginning of period	$	771,199		$	786,688		$	795,235		$	757,124		$	739,490
Impact of reclassification of realized losses to AOCL		-			-			-			(1,709	)		-
Capitalization:
Commissions		29,264			26,398			14,880			21,533			12,343
Expenses		2,165			2,043			1,566			1,232			1,045
Deferral of sales inducements		14,650			13,059			12,604			13,156			10,207
Total capitalization		46,079			41,500			29,050			35,921			23,595
Amortization - operating basis, before impact of unlocking		(22,200	)		(24,744	)		(30,149	)		(41,087	)		(34,488	)
Amortization - unlocking, operating basis		(815	)		-			(27,885	)		-			(2,700	)
Amortization - realized gains/losses on investments and
unrealized gains/losses on derivatives		(7,575	)		(8,209	)		(9,127	)		(10,759	)		(4,515	)
Balance - end of period	$	786,688		$	795,235		$	757,124		$	739,490		$	721,382
Traditional & Universal Life Insurance
Balance - beginning of period	$	236,988		$	241,104		$	244,420		$	250,602		$	253,558
Impact of reclassification of realized losses to AOCL		-			-			-			(254	)		-
Capitalization:
Commissions		4,017			3,534			5,222			4,368			4,532
Expenses		3,722			3,531			4,669			3,684			3,857
Deferral of sales inducements		265			162			1,407			436			275
Total capitalization		8,004			7,227			11,298			8,488			8,664
Amortization - operating basis, before impact of unlocking		(4,503	)		(3,885	)		(5,105	)		(5,316	)		(5,435	)
Amortization - unlocking, operating basis		173			(528	)		-			-			775
Amortization - realized gains/losses on investments and
unrealized gains/losses on derivatives		442			502			(11	)		38			(176	)
Balance - end of period	$	241,104		$	244,420		$	250,602		$	253,558		$	257,386
Variable
Balance - beginning of period	$	159,359		$	160,274		$	160,298		$	155,968		$	152,476
Impact of reclassification of realized losses to AOCL		-			-			-			(37	)		-
Capitalization:
Commissions		2,528			1,922			1,728			1,439			1,217
Expenses		755			825			714			462			362
Deferral of sales inducements		83			23			181			62			17
Total capitalization		3,366			2,770			2,623			1,963			1,596
Amortization - operating basis, before impact of unlocking		(2,938	)		(4,980	)		(7,467	)		(5,476	)		268
Amortization - unlocking, operating basis		298			1,947			-			-			690
Amortization - realized gains/losses on investments and
unrealized gains/losses on derivatives		189			287			514			58			405
Balance - end of period	$	160,274		$	160,298		$	155,968		$	152,476		$	155,435
Total
Balance - beginning of period	$	1,251,569		$	1,275,277		$	1,288,818		$	1,253,408		$	1,233,531
Impact of reclassification of realized losses to AOCL		-			-			-			(3,461	)		-
Capitalization:
Commissions		38,607			34,397			24,402			30,461			21,290
Expenses		7,299			7,185			7,784			6,296			5,981
Deferral of sales inducements		14,998			13,244			14,192			13,654			10,499
Total capitalization		60,904			54,826			46,378			50,411			37,770
Amortization - operating basis, before impact of unlocking		(31,783	)		(36,636	)		(46,420	)		(55,946	)		(43,104	)
Amortization - unlocking, operating basis		(344	)		823			(27,885	)		-			(1,235	)
Amortization - realized gains/losses on investments and
unrealized gains/losses on derivatives		(5,069	)		(5,472	)		(7,483	)		(10,881	)		(4,769	)
Balance - end of period		1,275,277			1,288,818			1,253,408			1,233,531			1,222,193
Impact of realized/unrealized gains/losses in AOCL		264,815			378,794			532,348			573,695			539,674
Deferred acquisition costs/Deferred sales inducements	$	1,540,092		$	1,667,612		$	1,785,756		$	1,807,226		$	1,761,867

13

FBL Financial Group, Inc.
Collected Premiums
	Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009
	(Dollars in thousands)
Traditional Annuity - Exclusive Distribution
First year - individual	$	40,234		$	55,649		$	49,262		$	75,148		$	49,565
Renewal - individual		22,203			14,603			14,256			18,989			22,841
Group		1,988			3,415			2,081			2,231			995
Total Traditional Annuity - Exclusive Distribution		64,425			73,667			65,599			96,368			73,401
Traditional Annuity - Independent Distribution
Fixed rate annuities		378,209			348,886			67,820			213,332			99,782
Index annuities		159,998			147,229			136,427			111,367			99,499
Total direct		538,207			496,115			204,247			324,699			199,281
Reinsurance assumed		892			397			210			358			513
Total Traditional Annuity - Independent Distribution,
net of reinsurance		539,099			496,512			204,457			325,057			199,794
Traditional and Universal Life Insurance
Universal life:
First year		1,628			1,879			1,804			2,040			2,311
Renewal		10,271			9,167			9,981			10,307			10,407
Total		11,899			11,046			11,785			12,347			12,718
Participating whole life:
First year		2,860			3,024			3,357			2,681			2,752
Renewal		24,967			22,330			22,946			23,704			25,182
Total		27,827			25,354			26,303			26,385			27,934
Term life and other:
First year		2,365			2,680			2,774			2,767			3,058
Renewal		12,015			12,464			12,618			13,430			13,323
Total		14,380			15,144			15,392			16,197			16,381
Total Traditional and Universal Life Insurance		54,106			51,544			53,480			54,929			57,033
Reinsurance assumed		2,790			2,692			2,696			2,507			2,565
Reinsurance ceded		(5,025	)		(4,457	)		(4,975	)		(5,069	)		(5,449	)
Total Traditional and Universal Life Insurance, net of reinsurance		51,871			49,779			51,201			52,367			54,149
Variable
Variable annuities:
Exclusive distribution:
First year		12,394			9,340			5,791			5,064			3,743
Renewal		6,919			4,962			4,484			5,521			5,152
Total		19,313			14,302			10,275			10,585			8,895
Alliance channel:
First year (1)		4,398			3,046			1,856			1,443			1,131
Renewal (1)		1,524			737			721			941			1,030
Total		5,922			3,783			2,577			2,384			2,161
Total variable annuities		25,235			18,085			12,852			12,969			11,056
Variable universal life:
Exclusive distribution:
First year		1,118			1,200			856			644			588
Renewal		12,033			11,209			11,096			12,103			11,822
Total		13,151			12,409			11,952			12,747			12,410
Alliance channel:
First year (1)		96			115			82			52			40
Renewal (1)		578			514			564			584			490
Total		674			629			646			636			530
Total variable universal life		13,825			13,038			12,598			13,383			12,940
Total Variable		39,060			31,123			25,450			26,352			23,996
Reinsurance ceded		(187	)		(180	)		(216	)		(172	)		(207	)
Total Variable, net of reinsurance		38,873			30,943			25,234			26,180			23,789
Corporate and Other
Accident and health premiums collected, net of reinsurance		30			27			258			71			38
	$	694,298		$	650,928		$	346,749		$	500,043		$	351,171
(1) Amounts are net of portion ceded to and include amounts assumed from alliance partners.

14

FBL Financial Group, Inc.
Parent Company Liquidity
	January - June			July - December
	Actual			Projected			Total
	2009			2009 (3)			2009
	(Dollars in thousands)
Total cash and invested assets, beginning of period	$	83,473		$	11,336		$	83,473
Sources:
Dividends from insurance subsidiaries		5,000			10,000			15,000
Dividends from noninsurance subsidiaries		-			2,800			2,800
Investment income		35			248			283
Management fees from subsidiaries and affiliates		4,237			3,640			7,877
Total sources		9,272			16,688			25,960
Uses:
Interest		(13,084	)		(12,181	)		(25,265	)
Stockholders' dividends (1)		(5,677	)		(3,819	)		(9,496	)
General expenses		(4,671	)		(3,022	)		(7,693	)
Total uses		(23,432	)		(19,022	)		(42,454	)
Pay off Line of Credit		(60,000	)		-			(60,000	)
Other, net (2)		2,023			-			2,023
Total cash and invested assets, end of period	$	11,336		$	9,002		$	9,002
(1) The projected dividends are based on quarterly rates of $0.0075 per Series B redeemable preferred share and $0.0625 per common share. The common stock dividend rate is pending board of directors approval for the third quarter and will be reevaluated for the fourth quarter.
(2) Primarily due to settling amounts due to/from affiliates and external parties, which may fluctuate from period to period due to timing.
(3) Based on best estimates at June 30, 2009, actual results may differ materially.

15

FBL Financial Group, Inc.
Other Information
	June 30,				September 30,				December 31,				March 31,				June 30,
	2008				2008				2008				2009				2009
	(Dollars in thousands, except per share data)
Capitalization:
Senior Notes, due 2011	$	-			$	-			$	100,000			$	100,000			$	100,000
Senior notes, due 2014		75,329				75,317				75,305				75,292				75,279
Senior notes, due 2017		98,638				98,669				98,700				98,733				98,765
Trust preferred securities, due 2047		97,000				97,000				97,000				97,000				97,000
Revolving line of credit agreement		46,000				60,000				59,446				-				-
Short-term note payable		-				20,000				-				-				-
Total debt		316,967				350,986				430,451				371,025				371,044
Preferred stock		3,000				3,000				3,000				3,000				3,000
Common stockholders' equity, excluding AOCL		922,375				930,031				905,123				916,972				940,338
Total capitalization, excluding AOCL		1,242,342				1,284,017				1,338,574				1,290,997				1,314,382
Accumulated other comprehensive income loss		(186,765	)			(377,151	)			(649,758	)			(648,469	)			(349,526	)
Total capitalization, including AOCL	$	1,055,577			$	906,866			$	688,816			$	642,528			$	964,856
Common shares outstanding		30,163,927				30,173,593				30,168,879				30,365,265				30,466,381
Book Value per Share:
Excluding AOCL	$	30.58			$	30.82			$	30.00			$	30.20			$	30.86
Including AOCL		24.39				18.32				8.46				8.84				19.39
Debt-to-Capital Ratio:
Excluding AOCL		25.5		%		27.3		%		32.2		%		28.7		%		28.2		%
Including AOCL		30.0				38.7				62.5				57.7				38.5
Debt-to-Capital Ratio with 100% Credit for Trust
Preferred Securities:
Excluding AOCL		17.7		%		19.8		%		24.9		%		21.2		%		20.8		%
Including AOCL		20.8				28.0				48.4				42.6				28.4
Class A Common Ownership:
Iowa Farm Bureau Federation		50.7		%		53.1		%		53.1		%		52.7		%		52.6		%
Other Farm Bureau entities		8.7				8.7				8.7				8.7				8.6
Public		40.6				38.2				38.2				38.6				38.8
		100.0		%		100.0		%		100.0		%		100.0		%		100.0		%
Quality of Fixed Income Securities:
(AAA, AA, A)		61.7		%		61.7		%		60.0		%		58.8		%		56.0		%
(BBB)		34.4				34.6				36.2				36.1				37.5
(BB)		2.7				2.6				2.7				3.4				4.8
(<BB)		1.2				1.1				1.1				1.7				1.7
Investment by Type:
Fixed maturities		62.1		%		61.7		%		58.9		%		58.1		%		58.5		%
Residential mortgage-backed		15.9				16.0				16.5				16.5				16.2
Commercial mortgage-backed		6.5				6.5				5.9				6.0				5.4
Other asset-backed		1.5				1.4				1.3				1.1				1.0
Mortgage loans		11.3				11.7				12.8				12.6				11.7
Equity securities		0.1				0.1				0.4				0.4				0.5
Other		2.6				2.6				4.2				5.3				6.7
Agent Strength Totals:
Farm Bureau Life channel:
8-state Farm Bureau Mutual channel		1,193				1,192				1,176				1,191				1,194
7 Life-only states		775				789				786				794				800
Total Farm Bureau Life channel		1,968				1,981				1,962				1,985				1,994
Percentage registered representatives:
Farm Bureau Life channel		86.9	%			86.4	%			83.9	%			82.9	%			81.2	%
EquiTrust Life channel:
Independent Agents		22,361				23,651				19,098				20,158				20,023

16