FBL Financial (FFG) 8-K FBL Financial Group Reports Fourth 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

December 31, 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) December 31, 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, the instruments 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: Results for the fourth quarter of 2009 were impacted by a reinsurance transaction where EMC National Life Company recaptured a block of annuities and life insurance policies with reserves totaling $246.8 million. The pre-tax gain from this transaction totaling $11.1 million is reported as other income in the Traditional and Universal Life Insurance and Traditional Annuity – Independent segments. We also made refinements to reserve estimates, including related adjustments to deferred policy acquisition costs and other offsets in the fourth quarter of 2009, which increased pre-tax operating income $11.4 million for the Traditional and Universal Life Insurance segment, primarily due to a $10.3 million reduction in interest credited. These refinements also increased operating income for the Variable segment $1.2 million and decreased operating income for the Traditional Annuity – Exclusive Distribution segment $1.8 million.
NOTE 3: Certain financial information presented herein may not add due to rounding.

1

FBL Financial Group, Inc. Consolidated Balance Sheets (Unaudited) (Dollars in thousands)
	December 31, 2009		December 31, 2008
Assets
Investments:
Fixed maturities - available for sale, at market (amortized cost: 2009 - $10,338,670; 2008 - $10,505,084)
	$	9,864,601	$	8,965,443
Equity securities - available for sale, at market (cost: 2009 - $62,271; 2008 - $51,958)
		60,154		44,863
Mortgage loans on real estate		1,293,936		1,381,854
Derivative instruments		44,023		12,933
Real estate		16,563		2,559
Policy loans		168,736		182,421
Other long-term investments		1,882		1,527
Short-term investments		203,142		262,459
Total investments		11,653,037		10,854,059
Cash and cash equivalents		11,690		37,710
Securities and indebtedness of related parties		46,518		18,921
Accrued investment income		131,655		136,893
Amounts receivable from affiliates		8,311		15,791
Reinsurance recoverable		126,918		107,854
Deferred policy acquisition costs		1,101,233		1,365,609
Deferred sales inducements		359,771		420,147
Value of insurance in force acquired		38,781		63,121
Property and equipment, less allowances for depreciation of $62,895 in 2009 and $63,730 in 2008
		17,335		23,074
Current income tax recoverable		16,955		14,389
Deferred income tax benefit		-		305,080
Goodwill		11,170		11,170
Collateral held for securities lending and other transactions		-		67,953
Other assets		33,894		41,623
Assets held in separate accounts		702,073		577,420
Total assets	$	14,259,341	$	14,060,814

2

FBL Financial Group, Inc. Consolidated Balance Sheets (Continued) (Dollars in thousands)
	December 31, 2009			December 31, 2008
Liabilities and stockholders' equity
Liabilities:
Policy liabilities and accruals:
Future policy benefits:
Interest sensitive and index products	$	10,149,505		$	10,531,967
Traditional life insurance and accident and health products		1,318,834			1,328,506
Unearned revenue reserve		27,500			34,663
Other policy claims and benefits		22,185			38,256
		11,518,024			11,933,392
Other policyholders' funds:
Supplementary contracts without life contingencies		502,553			504,885
Advance premiums and other deposits		169,108			167,473
Accrued dividends		9,656			10,241
		681,317			682,599
Amounts payable to affiliates		759			247
Short-term debt		-			59,446
Long-term debt payable to affiliates		100,000			100,000
Long-term debt		271,084			271,005
Deferred income taxes		27,506			-
Collateral payable for securities lending and other transactions		-			69,656
Other liabilities		87,301			108,588
Liabilities related to separate accounts		702,073			577,420
Total liabilities		13,388,064			13,802,353
Stockholders’ equity:
FBL Financial Group 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 29,282,989 shares in 2009 and 28,975,889 shares in 2008
		109,877			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		(118,730	)		(649,758	)
Retained earnings		869,487			793,511
Total FBL Financial Group, Inc. stockholders' equity		871,156			258,365
Noncontrolling interest		121			96
Total stockholders’ equity		871,277			258,461
Total liabilities and stockholders’ equity	$	14,259,341		$	14,060,814

3

FBL Financial Group, Inc. Consolidated Statements of Operations (Unaudited) (Dollars in thousands, except per share data)
	Three months ended December 31,						Year ended December 31,
	2009			2008			2009			2008
Revenues:
Interest sensitive and index product charges	$	29,827		$	33,362		$	158,873		$	127,199
Traditional life insurance premiums		39,191			38,002			155,675			149,186
Net investment income		177,644			185,317			724,653			707,872
Derivative income (loss)		25,690			(37,261	)		67,515			(208,793	)
Net realized capital gains (losses) on sales of investments		9,078			(1,183	)		47,051			1,910
Total other-than-temporary impairment losses		(17,007	)		(24,602	)		(105,439	)		(158,219	)
Non-credit portion in other comprehensive loss		(257	)		-			37,523			-
Net impairment loss recognized in earnings		(17,264	)		(24,602	)		(67,916	)		(158,219	)
Other income		14,900			5,945			28,735			25,310
Total revenues		279,066			199,580			1,114,586			644,465
Benefits and expenses:
Interest sensitive and index product benefits		118,072			120,118			437,270			440,430
Change in value of index product embedded derivatives		9,865			(18,334	)		148,917			(189,354	)
Traditional life insurance benefits		23,820			23,677			93,784			96,884
Increase in traditional life future policy benefits		5,947			9,744			35,766			43,255
Distributions to participating policyholders		4,678			4,958			19,416			20,064
Underwriting, acquisition and insurance expenses		61,031			77,034			233,088			221,393
Interest expense		6,116			6,204			25,280			19,567
Other expenses		4,321			6,427			18,904			24,104
Total benefits and expenses		233,850			229,828			1,012,425			676,343
		45,216			(30,248	)		102,161			(31,878	)
Income taxes		(14,691	)		11,028			(33,219	)		13,662
Equity income (loss), net of related income taxes		449			(48	)		750			(4	)
Net income (loss)		30,974			(19,268	)		69,692			(18,220	)
Net loss attributable to noncontrolling interest		18			40			143			71
Net income (loss) attributable to FBL Financial Group, Inc	$	30,992		$	(19,228	)	$	69,835		$	(18,149	)
Earnings (loss) per common share	$	1.03		$	(0.64	)	$	2.32		$	(0.61	)
Earnings (loss) per common share – assuming dilution	$	1.02		$	(0.64	)	$	2.31		$	(0.61	)
Cash dividends per common share	$	0.0625		$	0.1250		$	0.3125		$	0.5000

4

FBL Financial Group, Inc.
Consolidated Statements of Operating Income (Loss)
(Dollars in thousands, except per share data)
	Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Operating revenues:
Interest sensitive and index product charges	$	33,350		$	41,150		$	53,131		$	34,910		$	29,748
Traditional life insurance premiums		38,002			37,954			40,954			37,576			39,191
Net investment income		185,317			184,069			182,772			180,168			177,644
Derivative income (loss)		(30,401	)		(32,091	)		(31,005	)		(27,752	)		1,535
Other income		5,945			4,586			4,661			4,588			14,900
Total operating revenues		232,213			235,668			250,513			229,490			263,018
Benefits and expenses:
Interest sensitive and index product benefits		114,096			110,405			108,750			100,516			114,468
Traditional life insurance benefits		23,677			22,104			24,453			23,407			23,820
Increase in traditional life future policy benefits		9,744			9,718			10,110			9,991			5,947
Distributions to participating policyholders		4,958			4,921			5,057			4,760			4,678
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		3,581			3,573			3,620			3,708			3,179
Amortization of deferred policy acquisition costs		51,911			40,590			29,695			20,679			31,041
Amortization of value of insurance in force acquired		1,044			746			652			808			417
Other underwriting expenses		19,353			20,209			18,118			20,946			20,074
Total underwriting, acquisition and insurance expenses		75,889			65,118			52,085			46,141			54,711
Interest expense		6,204			6,932			6,116			6,116			6,116
Other expenses		6,426			4,930			5,550			4,103			4,321
Total benefits and expenses		240,994			224,128			212,121			195,034			214,061
		(8,781	)		11,540			38,392			34,456			48,957
Income taxes		3,513			(3,783	)		(12,729	)		(11,621	)		(16,001	)
Net loss attributable to noncontrolling interest		40			38			54			33			18
Equity income (loss), net of related income taxes		(48	)		73			88			140			449
Operating income (loss)		(5,276	)		7,868			25,805			23,008			33,423
Realized gains/losses on investments, net of offsets		(12,009	)		(11,040	)		(62	)		(1,853	)		(5,105	)
Change in net unrealized gains/losses on derivatives, net of offsets		(1,943	)		1,682			(1,325	)		(5,240	)		2,674
Net income (loss)	$	(19,228	)	$	(1,490	)	$	24,418		$	15,915		$	30,992
Operating income (loss) per common share - assuming dilution	$	(0.18	)	$	0.26		$	0.86		$	0.76		$	1.10
Earnings (loss) per common share - assuming dilution	$	(0.64	)	$	(0.05	)	$	0.81		$	0.53		$	1.02
Weighted average common shares outstanding, operating income (loss) basis (in thousands):
Basic		29,926			29,958			30,007			30,090			30,179
Effect of dilutive securities		-			126			18			120			231
Diluted		29,926			30,084			30,025			30,210			30,410
Weighted average common shares outstanding, net income (loss) basis (in thousands):
Basic		29,926			29,958			30,007			30,090			30,179
Effect of dilutive securities		-			-			18			120			231
Diluted		29,926			29,958			30,025			30,210			30,410
Operating return on equity, excluding AOCL - last twelve months		5.3	%		4.6	%		5.1	%		5.5	%		9.6	%
Operating return on equity, including AOCL - last twelve months		7.6	%		8.1	%		9.8	%		10.2	%		15.9	%

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 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. 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 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 December 31, 2009	Traditional Annuity - Exclusive			Traditional Annuity - Independent			Traditional & Universal Life Insurance			Variable			Corporate & Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive and index product charges	$	188		$	7,476		$	10,367		$	11,717		$	-		$	29,748
Traditional life insurance premiums		-			-			39,191			-			-			39,191
Net investment income		39,355			97,904			32,562			3,941			3,882			177,644
Derivative income (loss)		(1,163	)		3,222			-			-			(524	)		1,535
Other income		-			2,777			8,431			388			3,304			14,900
Total operating revenues		38,380			111,379			90,551			16,046			6,662			263,018
Benefits and expenses:
Interest sensitive and index product benefits		23,910			80,495			3,813			6,250			-			114,468
Traditional life insurance benefits		-			-			23,820			-			-			23,820
Increase in traditional life future policy benefits		-			-			5,947			-			-			5,947
Distributions to participating policyholders		-			-			4,678			-			-			4,678
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		-			-			2,484			695			-			3,179
Amortization of deferred policy acquisition costs		4,181			19,898			6,228			734			-			31,041
Amortization of value of insurance in force acquired		(359	)		-			776			-			-			417
Other underwriting expenses		2,277			4,338			7,872			5,033			554			20,074
Total underwriting, acquisition and insurance expenses		6,099			24,236			17,360			6,462			554			54,711
Interest expense		-			-			-			-			6,116			6,116
Other expenses		-			-			-			195			4,126			4,321
Total benefits and expenses		30,009			104,731			55,618			12,907			10,796			214,061
		8,371			6,648			34,933			3,139			(4,134	)		48,957
Net loss attributable to noncontrolling interest		-			-			-			-			18			18
Equity income, before tax		-			-			-			-			691			691
Pre-tax operating income (loss)	$	8,371		$	6,648		$	34,933		$	3,139		$	(3,425	)	$	49,666
Quarter Ended December 31, 2008	Traditional Annuity - Exclusive			Traditional Annuity - Independent			Traditional & Universal Life Insurance			Variable			Corporate & Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive and index product charges	$	338		$	8,783		$	12,256		$	11,973		$	-		$	33,350
Traditional life insurance premiums		-			-			38,002			-			-			38,002
Net investment income		37,467			106,483			35,795			3,713			1,859			185,317
Derivative loss		(663	)		(29,738	)		-			-			-			(30,401	)
Other income		104			-			(21	)		416			5,446			5,945
Total operating revenues		37,246			85,528			86,032			16,102			7,305			232,213
Benefits and expenses:
Interest sensitive and index product benefits		23,573			68,003			16,168			6,352			-			114,096
Traditional life insurance benefits		-			-			23,677			-			-			23,677
Increase in traditional life future policy benefits		-			-			9,744			-			-			9,744
Distributions to participating policyholders		-			-			4,958			-			-			4,958
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		-			-			2,831			750			-			3,581
Amortization of deferred policy acquisition costs		3,698			35,764			5,041			7,408			-			51,911
Amortization of value of insurance in force acquired		612			-			432			-			-			1,044
Other underwriting expenses		2,138			3,629			7,590			5,403			593			19,353
Total underwriting, acquisition and insurance expenses		6,448			39,393			15,894			13,561			593			75,889
Interest expense		-			-			-			-			6,204			6,204
Other expenses		-			-			-			111			6,315			6,426
Total benefits and expenses		30,021			107,396			70,441			20,024			13,112			240,994
		7,225			(21,868	)		15,591			(3,922	)		(5,807	)		(8,781	)
Net loss attributable to noncontrolling interest		-			-			-			-			40			40
Equity loss, before tax		-			-			-			-			(74	)		(74	)
Pre-tax operating income (loss)	$	7,225		$	(21,868	)	$	15,591		$	(3,922	)	$	(5,841	)	$	(8,815	)

7

FBL Financial Group, Inc. Statements of Pre-tax Operating Income Traditional Annuity - Exclusive Distribution Segment
	Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Pre-tax Operating Income	(Dollars in thousands)
Operating revenues:
Interest sensitive and index product charges	$	338		$	204		$	210		$	210		$	188
Net investment income		37,467			37,669			38,543			39,610			39,355
Derivative loss:
Cost of money for call options		(93	)		(77	)		(77	)		(79	)		(76	)
Cost of interest rate swaps		(570	)		(1,180	)		(1,192	)		(1,223	)		(1,087	)
Total derivative loss		(663	)		(1,257	)		(1,269	)		(1,302	)		(1,163	)
Other income		104			44			36			-			-
Total operating revenues		37,246			36,660			37,520			38,518			38,380
Benefits and expenses:
Interest sensitive and index product benefits		23,573			23,038			23,726			24,159			23,910
Underwriting, acquisition and insurance expenses:
Amortization of deferred policy acquisition costs		3,698			4,067			3,449			(759	)		4,181
Amortization of value of insurance in force acquired		612			299			282			398			(359	)
Other underwriting expenses		2,138			2,430			1,889			2,106			2,277
Total underwriting, acquisition and insurance expenses		6,448			6,796			5,620			1,745			6,099
Total benefits and expenses		30,021			29,834			29,346			25,904			30,009
Pre-tax operating income	$	7,225		$	6,826		$	8,174		$	12,614		$	8,371
Selected balance sheet data, securities at cost:
Assets:
Investments	$	2,356,310		$	2,489,600		$	2,537,576		$	2,564,785		$	2,598,540
Deferred policy acquisition costs		89,714			88,007			87,990			92,253			90,762
Value of insurance in force acquired		11,982			11,588			11,304			10,919			11,246
Liabilities and equity:
Liabilities:
Interest sensitive and index product reserves	$	1,971,218		$	2,030,117		$	2,075,464		$	2,124,100		$	2,160,705
Other insurance reserves		381,838			378,680			377,827			372,266			367,712
Allocated equity, excluding AOCL		220,494			247,148			226,583			241,199			228,767
Other data:
Number of direct contracts		51,439			52,333			52,910			53,090			53,116
Statutory portfolio yield net of assumed defaults		5.61	%		5.61	%		5.52	%		5.60	%		5.65	%
Credited rate		4.04	%		4.04	%		3.92	%		3.90	%		3.77	%
Spread on direct fixed annuities at end of quarter		1.57	%		1.57	%		1.60	%		1.70	%		1.88	%
Interest sensitive and index product reserve activity:
Individual deferred annuity reserve:
Balance, beginning of period	$	1,554,250		$	1,586,141		$	1,653,077		$	1,704,497		$	1,759,026
Deposits		62,278			91,509			70,889			67,131			60,222
Withdrawals, surrenders and death benefits		(32,827	)		(28,109	)		(23,908	)		(21,512	)		(26,551	)
Net flows		29,451			63,400			46,981			45,619			33,671
Policyholder interest/index credits		15,211			15,721			16,322			16,425			16,367
Annuitizations and other		(12,771	)		(12,185	)		(11,883	)		(7,515	)		(8,418	)
Balance, end of period		1,586,141			1,653,077			1,704,497			1,759,026			1,800,646
Other interest sensitive reserves		385,077			377,040			370,967			365,074			360,059
Total interest sensitive and index product reserves	$	1,971,218		$	2,030,117		$	2,075,464		$	2,124,100		$	2,160,705

8

FBL Financial Group, Inc. Statements of Pre-tax Operating Income (Loss) Traditional Annuity - Independent Distribution Segment
	Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Pre-tax Operating Income (Loss)	(Dollars in thousands)
Operating revenues:
Interest sensitive and index product charges	$	8,783		$	16,892		$	28,965		$	10,444		$	7,476
Net investment income		106,483			104,705			102,447			99,600			97,904
Derivative income (loss):
Proceeds from option settlements		902			201			260			349			26,899
Cost of money for call options		(30,640	)		(30,665	)		(29,505	)		(26,385	)		(23,677	)
Total derivative income (loss)		(29,738	)		(30,464	)		(29,245	)		(26,036	)		3,222
Other income		-			-			-			-			2,777
Total operating revenues		85,528			91,133			102,167			84,008			111,379
Benefits and expenses:
Interest sensitive and index product benefits:
Fixed rate annuities:
Interest credited and other		33,341			34,113			35,817			36,250			35,788
Amortization of deferred sales inducements		2,012			1,481			945			924			1,147
Total fixed annuity product benefits		35,353			35,594			36,762			37,174			36,935
Index annuities:
Interest credited		10,376			10,354			11,012			11,385			9,729
Amortization of deferred sales inducements		20,257			13,825			13,594			7,665			8,973
Index credits		2,016			1,345			1,867			1,578			24,858
Total index product benefits		32,649			25,524			26,473			20,628			43,560
Total interest sensitive and index product benefits		68,002			61,118			63,235			57,802			80,495
Underwriting, acquisition and insurance expenses:
Amortization of deferred policy acquisition costs		35,764			25,781			22,649			15,235			19,898
Other underwriting expenses		3,629			4,361			4,169			6,363			4,338
Total underwriting, acquisition and insurance expenses		39,393			30,142			26,818			21,598			24,236
Total benefits and expenses		107,396			91,260			90,053			79,400			104,731
Pre-tax operating income (loss)	$	(21,868	)	$	(127	)	$	12,114		$	4,608		$	6,648
Selected balance sheet data, securities at cost:
Assets:
Investments	$	7,202,047		$	6,999,727		$	6,811,958		$	6,853,156		$	6,798,158
Deferred policy acquisition costs		479,288			468,436			455,323			445,130			421,508
Deferred sales inducements		277,836			271,054			266,059			265,894			254,603
Liabilities and equity:
Liabilities:
Interest sensitive and index product reserves - direct	$	5,979,633		$	5,953,606		$	5,776,892		$	5,757,358		$	5,746,517
Interest sensitive and index product reserves - assumed		1,583,754			1,536,390			1,523,893			1,496,131			1,382,082
Other insurance reserves		145,036			148,880			156,295			154,737			152,169
Allocated equity, excluding AOCL		379,223			370,961			381,532			423,603			345,014
Other data:
Number of direct contracts		93,769			93,507			90,820			89,472			88,486
Fixed rate annuitites:
Statutory portfolio yield net of assumed defaults		5.89	%		5.89	%		5.74	%		5.73	%		5.80	%
Credited rate		4.89	%		4.94	%		4.95	%		4.94	%		4.94	%
Spread on direct fixed rate annuities at end of quarter		1.00	%		0.95	%		0.79	%		0.79	%		0.86	%
Index annutities:
Statutory portfolio yield net of assumed defaults		5.83	%		5.83	%		5.84	%		5.84	%		5.84	%
Credited rate/option cost		3.54	%		3.53	%		3.55	%		3.51	%		3.41	%
Spread on direct index annuities at end of quarter		2.29	%		2.30	%		2.29	%		2.33	%		2.43	%
Interest sensitive and index product reserve activity:
Individual deferred annuity reserve:
Balance, beginning of period	$	7,588,549		$	7,561,689		$	7,488,024		$	7,273,729		$	7,225,663
Deposits		187,024			314,278			188,946			43,216			34,989
Withdrawals, surrenders and death benefits		(251,863	)		(436,142	)		(511,580	)		(237,865	)		(188,304	)
Net flows		(64,839	)		(121,864	)		(322,634	)		(194,649	)		(153,315	)
Policyholder interest/index credits		56,490			56,540			56,891			50,265			70,234
Derivative value change and other		(18,511	)		(8,341	)		51,448			96,318			(42,127	)
Balance, end of period		7,561,689			7,488,024			7,273,729			7,225,663			7,100,455
Other interest sensitive reserves		1,698			1,972			27,056			27,826			28,144
Total interest sensitive and index product reserves	$	7,563,387		$	7,489,996		$	7,300,785		$	7,253,489		$	7,128,599

9

FBL Financial Group, Inc. Statements of Pre-tax Operating Income Traditional and Universal Life Insurance Segment
	Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Pre-tax Operating Income	(Dollars in thousands, except face amounts in millions)
Operating revenues:
Interest sensitive product charges	$	12,256		$	12,126		$	12,484		$	12,943		$	10,367
Traditional life insurance premiums		38,002			37,954			40,954			37,576			39,191
Net investment income		35,795			35,991			35,629			35,542			32,562
Other income		(21	)		61			(13	)		273			8,431
Total operating revenues		86,032			86,132			89,054			86,334			90,551
Benefits and expenses:
Interest sensitive product benefits:
Interest credited		9,092			9,102			9,069			9,136			(3,499	)
Death benefits		7,076			9,396			7,196			5,434			7,312
Total interest sensitive product benefits		16,168			18,498			16,265			14,570			3,813
Traditional life insurance benefits:
Death benefits		14,885			12,679			13,981			14,492			13,804
Surrender and other benefits		8,792			9,425			10,472			8,915			10,016
Total traditional life insurance benefits		23,677			22,104			24,453			23,407			23,820
Increase in traditional life future policy benefits		9,744			9,718			10,110			9,991			5,947
Distributions to participating policyholders		4,958			4,921			5,057			4,760			4,678
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		2,831			2,782			2,855			2,945			2,484
Amortization of deferred policy acquisition costs		5,041			5,290			4,585			6,639			6,228
Amortization of value of insurance in force acquired		432			447			368			410			776
Other underwriting expenses		7,590			6,929			6,476			6,934			7,872
Total underwriting, acquisition and insurance expenses		15,894			15,448			14,284			16,928			17,360
Total benefits and expenses		70,441			70,689			70,169			69,656			55,618
Pre-tax operating income	$	15,591		$	15,443		$	18,885		$	16,678		$	34,933
Selected balance sheet data, securities at cost:
Assets:
Investments	$	2,266,936		$	2,252,649		$	2,244,685		$	2,268,086		$	2,085,371
Deferred policy acquisition costs		245,020			247,571			251,199			251,482			237,665
Deferred sales inducements		5,582			5,987			6,187			6,110			6,626
Value of insurance in force acquired		25,904			25,427			25,060			24,660			23,877
Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	771,823		$	769,229		$	769,618		$	770,952		$	628,363
Other insurance reserves		1,455,515			1,468,638			1,478,950			1,487,392			1,436,162
Allocated equity, excluding AOCL		303,978			336,708			339,459			344,665			294,875
Other data:
Number of direct policies - traditional life		335,505			336,230			337,903			339,190			342,791
Number of direct policies - universal life		55,094			55,255			55,408			55,297			55,729
Direct face amounts - traditional life	$	30,998		$	31,514		$	32,221		$	32,781		$	33,685
Direct face amounts - universal life	$	4,817		$	4,864		$	4,917		$	4,923		$	4,980
Statutory portfolio yield net of assumed defaults		6.30	%		6.28	%		6.20	%		6.27	%		6.25	%
Credited rate		4.41	%		4.37	%		4.37	%		4.37	%		4.34	%
Spread on direct universal life at end of quarter		1.89	%		1.91	%		1.83	%		1.90	%		1.91	%
Interest sensitive reserve activity:
Balance, beginning of period	$	770,527		$	771,823		$	769,044		$	769,618		$	770,952
Deposits		15,013			14,375			14,861			13,899			12,858
Withdrawals and surrenders		(8,423	)		(8,522	)		(8,282	)		(6,896	)		(6,662	)
Net flows		6,590			5,853			6,579			7,003			6,196
Policyholder interest credited		8,225			8,269			8,211			8,239			(4,234	)
Policy charges		(12,042	)		(12,047	)		(12,381	)		(12,305	)		(10,794	)
Benefits and other		(1,477	)		(4,854	)		(1,835	)		(1,603	)		(133,757	)
Balance, end of period	$	771,823		$	769,044		$	769,618		$	770,952		$	628,363

10

FBL Financial Group, Inc. Statements of Pre-tax Operating Income (Loss) Variable Segment
	Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Pre-tax Operating Income (Loss)	(Dollars in thousands, except face amounts in millions)
Operating revenues:
Interest sensitive product charges	$	11,973		$	11,928		$	11,472		$	11,313		$	11,717
Net investment income		3,713			3,891			4,085			3,924			3,941
Other income		416			326			789			466			388
Total operating revenues		16,102			16,145			16,346			15,703			16,046
Benefits and expenses:
Interest sensitive product benefits:
Interest credited		2,522			2,229			2,196			2,218			863
Death benefits		3,830			5,522			3,328			1,767			5,387
Total interest sensitive product benefits		6,352			7,751			5,524			3,985			6,250
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals		750			791			765			763			695
Amortization of deferred policy acquisition costs		7,408			5,452			(986	)		(436	)		734
Other underwriting expenses		5,403			5,819			5,148			5,062			5,033
Total underwriting, acquisition and insurance expenses		13,561			12,062			4,927			5,389			6,462
Other expenses		111			157			137			156			195
Total benefits and expenses		20,024			19,970			10,588			9,530			12,907
Pre-tax operating income (loss)	$	(3,922	)	$	(3,825	)	$	5,758		$	6,173		$	3,139
Selected balance sheet data, securities at cost:
Assets:
Investments	$	242,222		$	260,633		$	233,804		$	246,173		$	254,507
Deferred policy acquisition costs		153,396			149,866			152,826			154,985			155,221
Deferred sales inducements		2,572			2,610			2,609			2,564			2,601
Separate account assets		577,420			522,591			595,047			677,142			702,073
Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	225,539		$	231,035		$	227,594		$	226,842		$	231,838
Other insurance reserves		30,382			31,723			32,546			32,796			30,595
Separate account liabilities		577,420			522,591			595,047			677,142			702,073
Allocated equity, excluding AOCL		119,464			103,624			101,433			113,930			97,379
Rollforward of separate account balances:
Beginning separate account balance	$	718,501		$	577,420		$	522,591		$	595,047		$	677,142
Net premiums		7,507			10,945			18,260			18,146			14,169
Net investment income (loss)		(127,551	)		(45,184	)		73,553			83,227			31,156
Charges, benefits and surrenders		(21,037	)		(20,590	)		(19,357	)		(19,278	)		(20,394	)
Ending separate account balance	$	577,420		$	522,591		$	595,047		$	677,142		$	702,073
Separate account balance:
Balance per financial statements	$	577,420		$	522,591		$	595,047		$	677,142		$	702,073
Less: alliance partners' share		(13,940	)		(13,750	)		(14,453	)		(16,200	)		(16,825	)
Add: alliance partner separate account assets on business assumed		53,614			51,852			54,814			64,288			67,808
	$	617,094		$	560,693		$	635,408		$	725,230		$	753,056
Other data:
Number of direct contracts - variable annuity		20,624			20,384			20,242			20,034			19,827
Number of direct policies - variable universal life		61,319			60,631			59,812			59,090			58,429
Direct face amounts - variable universal life	$	7,698		$	7,614		$	7,515		$	7,427		$	7,360

11

FBL Financial Group, Inc. Statements of Pre-tax Operating Loss Corporate and Other Segment
	Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Pre-tax Operating Loss	(Dollars in thousands)
Operating revenues:
Net investment income	$	1,859		$	1,813		$	2,068		$	1,492		$	3,882
Derivative loss		-			(370	)		(491	)		(414	)		(524	)
Other income		5,446			4,155			3,849			3,849			3,304
Total operating revenues		7,305			5,598			5,426			4,927			6,662
Benefits and expenses:
Other underwriting and insurance expenses		593			670			436			481			554
Interest expense		6,204			6,932			6,116			6,116			6,116
Other expenses		6,315			4,773			5,413			3,947			4,126
Total benefits and expenses		13,112			12,375			11,965			10,544			10,796
		(5,807	)		(6,777	)		(6,539	)		(5,617	)		(4,134	)
Net loss attributable to noncontrolling interest		40			38			54			33			18
Equity income (loss), before tax		(74	)		111			136			216			691
Pre-tax operating loss	$	(5,841	)	$	(6,628	)	$	(6,349	)	$	(5,368	)	$	(3,425	)
Selected balance sheet data, securities at cost:
Assets:
Investments	$	333,281		$	460,604		$	666,760		$	391,225		$	392,648
Securities and indebtedness of related parties		18,919			18,968			19,024			19,145			46,520
Liabilities and equity:
Liabilities:
Insurance reserves	$	64,319		$	63,471		$	63,617		$	62,905		$	61,706
Debt		430,451			371,025			371,044			371,064			371,084
Equity, excluding AOCL		(115,032	)		(138,508	)		(105,671	)		(164,191	)		23,850

12

FBL Financial Group, Inc. Deferred Policy Acquisition Costs/Deferred Sales Inducements by Segment
	Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
	(Dollars in thousands)
Traditional Annuity - Exclusive Distribution
Balance - beginning of period	$	88,865		$	89,714		$	88,007		$	87,990		$	92,253
Impact of reclassification of realized losses to AOCL		-			(1,461	)		-			-			-
Capitalization:
Commissions		2,572			3,121			3,198			2,696			3,035
Expenses		835			918			717			761			523
Total capitalization		3,407			4,039			3,915			3,457			3,558
Amortization - operating basis, before impact of unlocking		(3,699	)		(4,067	)		(3,449	)		(2,703	)		(4,181	)
Amortization - unlocking, operating basis		-			-			-			3,462			-
Amortization - realized gains/losses on investments and
unrealized gains/losses on derivatives		1,141			(218	)		(483	)		47			(868	)
Balance - end of period	$	89,714		$	88,007		$	87,990		$	92,253		$	90,762
Traditional Annuity - Independent Distribution
Balance - beginning of period	$	795,235		$	757,124		$	739,490		$	721,382		$	711,024
Impact of reclassification of realized losses to AOCL		-			(1,709	)		-			-			-
Capitalization:
Commissions		14,880			21,533			12,343			2,202			1,541
Expenses		1,566			1,232			1,045			481			979
Deferral of sales inducements		12,604			13,156			10,207			3,267			2,430
Total capitalization		29,050			35,921			23,595			5,950			4,950
Amortization - operating basis, before impact of unlocking		(30,149	)		(41,087	)		(34,488	)		(23,824	)		(24,087	)
Amortization - unlocking, operating basis		(27,885	)		-			(2,700	)		-			(5,931	)
Amortization - realized gains/losses on investments and
unrealized gains/losses on derivatives		(9,127	)		(10,759	)		(4,515	)		7,516			(8,150	)
Reinsurance recapture		-			-			-			-			(1,695	)
Balance - end of period	$	757,124		$	739,490		$	721,382		$	711,024		$	676,111
Traditional & Universal Life Insurance
Balance - beginning of period	$	244,420		$	250,602		$	253,558		$	257,386		$	257,592
Impact of reclassification of realized losses to AOCL		-			(254	)		-			-			-
Capitalization:
Commissions		5,222			4,368			4,532			3,012			5,655
Expenses		4,669			3,684			3,857			3,939			4,600
Deferral of sales inducements		1,407			436			275			40			578
Total capitalization		11,298			8,488			8,664			6,991			10,833
Amortization - operating basis, before impact of unlocking		(5,105	)		(5,316	)		(5,435	)		(6,076	)		(6,293	)
Amortization - unlocking, operating basis		-			-			775			(681	)		-
Amortization - realized gains/losses on investments and
unrealized gains/losses on derivatives		(11	)		38			(176	)		(28	)		(13	)
Reinsurance recapture		-			-			-			-			(17,828	)
Balance - end of period	$	250,602		$	253,558		$	257,386		$	257,592		$	244,291
Variable
Balance - beginning of period	$	160,298		$	155,968		$	152,476		$	155,435		$	157,549
Impact of reclassification of realized losses to AOCL		-			(37	)		-			-			-
Capitalization:
Commissions		1,728			1,439			1,217			1,326			1,462
Expenses		714			462			362			547			357
Deferral of sales inducements		181			62			17			3			41
Total capitalization		2,623			1,963			1,596			1,876			1,860
Amortization - operating basis, before impact of unlocking		(7,467	)		(5,476	)		268			793			(731	)
Amortization - unlocking, operating basis		-			-			690			(404	)		-
Amortization - realized gains/losses on investments and
unrealized gains/losses on derivatives		514			58			405			(151	)		(857	)
Balance - end of period	$	155,968		$	152,476		$	155,435		$	157,549		$	157,821
Total
Balance - beginning of period	$	1,288,818		$	1,253,408		$	1,233,531		$	1,222,193		$	1,218,418
Impact of reclassification of realized losses to AOCL		-			(3,461	)		-			-			-
Capitalization:
Commissions		24,402			30,461			21,290			9,236			11,693
Expenses		7,784			6,296			5,981			5,728			6,459
Deferral of sales inducements		14,192			13,654			10,499			3,310			3,049
Total capitalization		46,378			50,411			37,770			18,274			21,201
Amortization - operating basis, before impact of unlocking		(46,420	)		(55,946	)		(43,104	)		(31,810	)		(35,292	)
Amortization - unlocking, operating basis		(27,885	)		-			(1,235	)		2,377			(5,931	)
Amortization - realized gains/losses on investments and
unrealized gains/losses on derivatives		(7,483	)		(10,881	)		(4,769	)		7,384			(9,888	)
Reinsurance recapture		-			-			-			-			(19,523	)
Balance - end of period		1,253,408			1,233,531			1,222,193			1,218,418			1,168,985
Impact of realized/unrealized gains/losses in AOCL		532,348			573,695			539,674			257,896			292,019
Deferred acquisition costs/Deferred sales inducements	$	1,785,756		$	1,807,226		$	1,761,867		$	1,476,314		$	1,461,004

13

FBL Financial Group, Inc.
Collected Premiums
	Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
	(Dollars in thousands)
Traditional Annuity - Exclusive Distribution
First year - individual	$	49,262		$	75,148		$	49,565		$	49,308		$	34,407
Renewal - individual		14,256			18,989			22,841			19,495			25,538
Group		2,081			2,231			995			4,235			2,928
Total Traditional Annuity - Exclusive Distribution		65,599			96,368			73,401			73,038			62,873
Traditional Annuity - Independent Distribution
Fixed rate annuities		67,820			213,332			99,782			16,021			15,637
Index annuities		136,427			111,367			99,499			31,396			24,078
Total direct		204,247			324,699			199,281			47,417			39,715
Reinsurance assumed		210			358			513			284			209
Total Traditional Annuity - Independent Distribution,
net of reinsurance		204,457			325,057			199,794			47,701			39,924
Traditional and Universal Life Insurance
Universal life:
First year		1,804			2,040			2,311			2,032			2,140
Renewal		9,981			10,307			10,407			9,558			10,203
Total		11,785			12,347			12,718			11,590			12,343
Participating whole life:
First year		3,357			2,681			2,752			2,959			2,825
Renewal		22,946			23,704			25,182			22,415			23,440
Total		26,303			26,385			27,934			25,374			26,265
Term life and other:
First year		2,774			2,767			3,058			2,870			3,335
Renewal		12,618			13,430			13,323			13,635			13,972
Total		15,392			16,197			16,381			16,505			17,307
Total Traditional and Universal Life Insurance		53,480			54,929			57,033			53,469			55,915
Reinsurance assumed		2,696			2,507			2,565			2,633			-
Reinsurance ceded		(4,975	)		(5,069	)		(5,449	)		(4,360	)		(5,108	)
Total Traditional and Universal Life Insurance, net of reinsurance		51,201			52,367			54,149			51,742			50,807
Variable
Variable annuities:
Exclusive distribution:
First year		5,791			5,064			3,743			7,875			7,176
Renewal		4,484			5,521			5,152			4,012			5,012
Total		10,275			10,585			8,895			11,887			12,188
Alliance channel:
First year (1)		1,856			1,443			1,131			2,310			2,409
Renewal (1)		721			941			1,030			603			637
Total		2,577			2,384			2,161			2,913			3,046
Total variable annuities		12,852			12,969			11,056			14,800			15,234
Variable universal life:
Exclusive distribution:
First year		856			644			588			449			340
Renewal		11,096			12,103			11,822			11,347			10,826
Total		11,952			12,747			12,410			11,796			11,166
Alliance channel:
First year (1)		82			52			40			61			40
Renewal (1)		564			584			490			433			423
Total		646			636			530			494			463
Total variable universal life		12,598			13,383			12,940			12,290			11,629
Total Variable		25,450			26,352			23,996			27,090			26,863
Reinsurance ceded		(216	)		(172	)		(207	)		(281	)		(228	)
Total Variable, net of reinsurance		25,234			26,180			23,789			26,809			26,635
Corporate and Other
Accident and health premiums collected, net of reinsurance		258			71			38			30			254
	$	346,749		$	500,043		$	351,171		$	199,320		$	180,493
(1) Amounts are net of portion ceded to and include amounts assumed from alliance partners.

14

	FBL Financial Group, Inc.
	Parent Company Liquidity
		Actual			Projected
		2009			2010 (3)
		(Dollars in thousands)
	Total cash and invested assets, beginning of period	$	83,473		$	17,040
	Sources:
	Dividends from insurance subsidiaries		15,000			20,000
	Dividends from noninsurance subsidiaries		3,100			4,200
	Investment income, including interest rate swap income (expense)		(2,165	)		486
	Management fees from subsidiaries and affiliates		7,581			6,707
	Total sources		23,516			31,433
	Uses:
	Interest		(25,265	)		(24,363	)
	Stockholders' dividends (1)		(9,500	)		(7,720	)
	General expenses		(7,626	)		(6,856	)
	Total uses		(42,391	)		(38,939	)
	Pay off Line of Credit		(60,000	)		-
	Other, net (2)		12,442			11,000
	Total cash and invested assets, end of period	$	17,040		$	20,534
(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 for 2010 is pending quarterly board of directors approval.
(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 December 31, 2009, actual results may differ materially.

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FBL Financial Group, Inc. Other Information
	December 31,				March 31,				June 30,				September 30,				December 31,
	2008				2009				2009				2009				2009
	(Dollars in thousands, except per share data)
Capitalization:
Senior Notes, due 2011	$	100,000			$	100,000			$	100,000			$	100,000			$	100,000
Senior notes, due 2014		75,305				75,292				75,279				75,267				75,253
Senior notes, due 2017		98,700				98,733				98,765				98,797				98,831
Trust preferred securities, due 2047		97,000				97,000				97,000				97,000				97,000
Revolving line of credit agreement		59,446				-				-				-				-
Total debt		430,451				371,025				371,044				371,064				371,084
Preferred stock		3,000				3,000				3,000				3,000				3,000
Common stockholders' equity, excluding AOCL		905,123				916,972				940,338				956,206				986,886
Total capitalization, excluding AOCL		1,338,574				1,290,997				1,314,382				1,330,270				1,360,970
Accumulated other comprehensive income loss		(649,758	)			(648,469	)			(349,526	)			(116,996	)			(118,730	)
Total capitalization, including AOCL	$	688,816			$	642,528			$	964,856			$	1,213,274			$	1,242,240
Common shares outstanding		30,168,879				30,365,265				30,466,381				30,452,023				30,475,979
Book Value per Share:
Excluding AOCL	$	30.00			$	30.20			$	30.86			$	31.40			$	32.38
Including AOCL		8.46				8.84				19.39				27.56				28.49
Debt-to-Capital Ratio:
Excluding AOCL		32.2		%		28.7		%		28.2		%		27.9		%		27.3		%
Including AOCL		62.5				57.7				38.5				30.6				29.9
Debt-to-Capital Ratio with 100% Credit for Trust
Preferred Securities:
Excluding AOCL		24.9		%		21.2		%		20.8		%		20.6		%		20.1		%
Including AOCL		48.4				42.6				28.4				22.6				22.1
Class A Common Ownership:
Iowa Farm Bureau Federation		53.1		%		52.7		%		52.6		%		52.6		%		52.5		%
Other Farm Bureau entities		8.7				8.7				8.6				8.7				8.6
Public		38.2				38.6				38.8				38.7				38.9
		100.0		%		100.0		%		100.0		%		100.0		%		100.0		%
Quality of Fixed Income Securities:
(AAA, AA, A)		60.0		%		58.8		%		56.0		%		56.8		%		60.0		%
(BBB)		36.2				36.1				37.5				36.4				34.4
(BB)		2.7				3.4				4.8				4.3				4.1
(<BB)		1.1				1.7				1.7				2.5				1.5
Investment by Type:
Fixed maturities		58.9		%		58.1		%		58.5		%		60.3		%		61.3		%
Residential mortgage-backed		16.5				16.5				16.2				16.1				16.1
Commercial mortgage-backed		5.9				6.0				5.4				6.1				6.2
Other asset-backed		1.3				1.1				1.0				1.1				1.1
Mortgage loans		12.8				12.6				11.7				11.0				11.1
Equity securities		0.4				0.4				0.5				0.5				0.5
Other		4.2				5.3				6.7				4.9				3.7
Agent Strength Totals:
Farm Bureau Life channel:
8-state Farm Bureau Mutual channel		1,176				1,191				1,194				1,234				1,219
7 Life-only states		786				794				800				805				801
Total Farm Bureau Life channel		1,962				1,985				1,994				2,039				2,020
Percentage registered representatives:
Farm Bureau Life channel		83.9	%			82.9	%			81.2	%			78.5	%			77.3	%
EquiTrust Life channel:
Independent agents		19,098				20,158				20,023				20,129				20,195

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