Exhibit 99.1
FBL Financial Group Provides Earnings Guidance
WEST DES MOINES, Iowa--(BUSINESS WIRE)--Dec. 21, 2004--FBL
Financial Group, Inc. (NYSE:FFG) today announced fourth quarter 2004
and full year 2004 and 2005 earnings guidance. These earnings
estimates are subject to volatility resulting from a number of
factors, including mortality experience and investment results.
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Earnings Guidance Earnings per common share
(assuming dilution):
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Net Income Operating Income(a)
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Fourth Quarter 2004E $0.61-$0.66 $0.47-$0.52
Full Year 2004E $2.00-$2.05 $1.85-$1.90
Full Year 2005E $2.00-$2.10 $2.00-$2.10
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Fourth Quarter and Full Year 2004 Earnings Guidance. FBL is
narrowing its 2004 operating income guidance to a range of $1.85 to
$1.90 per common share, from $1.80 to $1.90 per share, reflecting
estimated fourth quarter 2004 operating income of $0.47 to $0.52 per
share. Including the impact of realized gains and losses on
investments, FBL expects 2004 net income to be a range of $2.00 to
$2.05 per common share, reflecting estimated fourth quarter 2004 net
income of $0.61 to $0.66 per share.
FBL is narrowing its 2004 operating income guidance to the high
end of its previous range based on events to date in the quarter and
an expected benefit from the reversal of a tax accrual.
FBL's fourth quarter 2004 net income guidance includes the impact
of realized gains from certain known real estate transactions.
2005 Earnings Guidance. FBL expects full year 2005 net income and
operating income to be within a range of $2.00 to $2.10 per common
share. The increased operating earnings in 2005 reflect the following
expectations by FBL:
-- It is anticipated that the volume of business in force with
FBL subsidiary Farm Bureau Life Insurance Company will
continue to grow and be a positive contributor to the increase
in 2005 earnings.
-- FBL subsidiary EquiTrust Life Insurance Company is expected to
further expand its independent distribution channel and grow
sales. Following an expected loss in 2004, the growing
EquiTrust Life independent channel is expected to add slightly
to 2005 earnings. For this channel, premium volume
expectations are $465 million for 2004 and $750 million for
2005.
-- FBL's full year 2004 earnings results have been and are
expected to be positively impacted by the release of tax
accruals that were deemed to no longer be necessary. This is a
non-recurring item.
"We're optimistic about 2005 and expect our Farm Bureau Life
channel to continue to deliver steady and reliable results as we
further leverage our Farm Bureau brand and franchise," said Bill Oddy,
Chief Executive Officer. "We are also pleased that EquiTrust Life is
developing ahead of plan and will add further long-term growth
potential and diversification to our organization."
(a) In addition to net income, FBL Financial Group has
consistently utilized operating income, a non-GAAP financial measure
commonly used in the life insurance industry, as a primary economic
measure to evaluate its financial performance. Operating income equals
net income adjusted to eliminate the impact of realized gains and
losses on investments. Because realized gains and losses on
investments may fluctuate greatly from quarter to quarter, FBL
believes a measure excluding their impact is useful in analyzing core
operating trends. FBL believes the combined presentation and
evaluation of operating income, together with net income, provides
information that may enhance an investor's understanding of FBL's
underlying results and profitability. Realized gains or losses on
investments are expected in 2005, but cannot reasonably be estimated
and are not included in FBL's 2005 earnings guidance.
The statements in this release concerning FBL's prospects for the
future are forward-looking statements that involve certain risks and
uncertainties, including the continued acceptance of FBL's insurance
products by customers, the continued success of FBL's marketing
efforts, the marketing success of FBL's alliance partners, and
fluctuations in mortality experience and investment results. These
forward-looking statements are based on assumptions which FBL
Financial Group believe to be reasonable. No assurance can be given
that the assumptions will prove to be correct, and the difference
between assumptions and actual results could be material.
FBL Financial Group (www.fblfinancial.com) is a holding company
whose primary operating subsidiaries are Farm Bureau Life Insurance
Company and EquiTrust Life Insurance Company. FBL underwrites, markets
and distributes life insurance, annuities and mutual funds to
individuals and small businesses. In addition, FBL manages all aspects
of three Farm Bureau affiliated property-casualty insurance companies
for a management fee. FBL's three-pronged growth strategy includes (1)
internal growth within its traditional Farm Bureau distribution
network, (2) alliances and other distribution channels and (3)
consolidations.
FFG-1
CONTACT: FBL Financial Group, Inc., West Des Moines
Investor Relations:
Kathleen Till Stange, 515-226-6780
ktillstange@fbfs.com