Exhibit 99.1
FBL Financial Group Provides 2006 Earnings Guidance and Schedules
Fourth Quarter 2005 Earnings Release
WEST DES MOINES, Iowa--(BUSINESS WIRE)--Jan. 11, 2006--FBL
Financial Group, Inc. (NYSE:FFG) today announced its earnings guidance
for 2006 and scheduled its fourth quarter 2005 earnings release,
conference call and webcast. This earnings guidance is subject to
volatility resulting from a number of factors, including mortality
experience and investment results.
2006 Earnings Guidance. FBL expects full year 2006 net income and
operating income to be within a range of $2.40 to $2.50 per common
share. The earnings guidance for 2006 reflects 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 2006 earnings.
-- FBL subsidiary EquiTrust Life Insurance Company is expected to
further expand its independent distribution channel and grow
sales. Scale continues to build with 2005 premiums collected
of $902 million, a 91 percent increase over 2004 premiums
collected of $472 million, and a 2006 premiums collected
target of $1.2 billion. Results for this growing channel have
been in the breakeven range and are expected to be neutral to
earnings for 2005. Over time, it is anticipated that this unit
will add incrementally to earnings with income expected in
2006.
-- In connection with the 2005 closing of a processing unit and
certain workforce reductions, FBL expects to achieve pre-tax
annual savings of approximately $4,000,000, which is $0.09 per
share on an after-tax basis. A portion of these savings began
to emerge during the fourth quarter of 2005.
-- FBL's 2005 earnings results have been positively impacted by
investment fee income, which includes income from bond calls,
tender offers and mortgage loan prepayments. For the nine
months ended September 30, 2005, this fee income totaled $6.2
million. FBL expects less investment fee income in 2006 with
approximately $0.01 per share per quarter anticipated.
"We're optimistic about 2006 and FBL Financial Group's long-term
growth potential," said Bill Oddy, Chief Executive Officer. "Farm
Bureau Life continues to be focused on being as efficient as possible
while generating consistent, predictable and sustainable growth and
profits, and the development and growth of our independent
distribution channel through EquiTrust Life, which will contribute to
earnings in 2006, adds greater balance and diversification to our
organization."
FBL Financial Group most recently provided 2005 earnings guidance
in conjunction with its third quarter 2005 earnings announcements and
stated that it expects to exceed its already upwardly revised full
year 2005 net income and operating income guidance of $2.15 to $2.25
per share.
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/unrealized gains and
losses on investments and the change in net unrealized gains and
losses on derivatives. FBL uses operating income, in addition to net
income, to measure its performance since realized/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. This non-GAAP measure is used for goal setting,
determining company-wide bonuses and evaluating performance on a basis
comparable to that used by many in the investment community. Realized
gains or losses on investments and unrealized gains and losses on
derivatives are expected in 2006, but cannot reasonably be estimated
and are not included in FBL's 2006 earnings guidance.
Fourth Quarter 2005 Earnings Schedule. FBL Financial Group, Inc.
will announce its fourth quarter 2005 earnings after the close of
market on Monday, February 6, 2006. The fourth quarter earnings
release and financial supplement will be posted on the FBL Financial
Group Web site (www.fblfinancial.com) at that time.
FBL will hold a conference call to discuss fourth quarter 2005
earnings on Tuesday, February 7, 2006 at 11:00 a.m. ET. The conference
call will be webcast live on the Internet. Investors and interested
parties who wish to listen to the call on the Internet may do so at
www.fblfinancial.com. The call may also be accessed by telephone at
(800) 289-04943. A transcript of the prepared comments from the call,
as well as an audio replay, will be available shortly after the call
on FBL's Web site. An audio replay will also be available via telephone
through February 12, 2006 by calling (888) 203-1112 and inputting code
4253904 when prompted.
The statements in this release concerning FBL's prospects for the
future are forward-looking statements that involve certain risks and
uncertainties. The risks and uncertainties that could cause actual
results to differ materially are detailed in FBL's reports filed with
the Securities and Exchange Commission and include interest rate
changes, competitive factors, volatility of financial markets, the
ability to attract and retain sales agents and a decrease in ratings.
These forward-looking statements are based on assumptions which FBL
Financial Group believes to be reasonable. No assurance can be given
that the assumptions will prove to be correct.
FBL Financial Group 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) growth through its
traditional Farm Bureau Life distribution channel, (2) growth in
EquiTrust Life through independent and other distribution channels and
(3) acquisitions or consolidations.
FFG-1
CONTACT: FBL Financial Group, Inc., West Des Moines
Investor Relations:
Kathleen Till Stange, 515-226-6780
Kathleen.TillStange@FBLFinancial.com