EXHIBIT 99.1
FBL Financial Group Provides 2007 Earnings Guidance and Schedules
Fourth Quarter 2006 Earnings Release
WEST DES MOINES, Iowa--(BUSINESS WIRE)--Jan. 18, 2007--FBL
Financial Group, Inc. (NYSE:FFG) today announced its earnings guidance
for 2007 and scheduled its fourth quarter 2006 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.
2007 Earnings Guidance. FBL expects full year 2007 net income and
operating income to be within a range of $2.80 to $2.95 per common
share. The net income and operating income guidance for 2007 reflects
the following expectations by FBL:
-- FBL subsidiary Farm Bureau Life Insurance Company is expected
to continue to be a significant source of earnings for FBL. It
is anticipated that the volume of business in force with Farm
Bureau Life will continue to grow, with an emphasis on
cross-selling and agent growth.
-- FBL subsidiary EquiTrust Life Insurance Company is expected to
further expand its independent distribution channel. Earnings
from this unit are expected to continue to increase and be a
positive contributor to the increase in 2007 earnings.
-- FBL's net investment income yield for 2007 is expected to be
6.1%, comparable to the yield in 2006.
-- Realized gains or losses on investments and unrealized gains
and losses on derivatives are expected in 2007, but cannot
reasonably be estimated and are not included in FBL's 2007
earnings guidance.
"I am excited about FBL Financial Group's prospects in 2007 and in
the longer term as we move forward with our companies," said Jim
Noyce, Chief Executive Officer. "We are well positioned with our
subsidiaries Farm Bureau Life Insurance Company and EquiTrust Life
Insurance Company. We expect Farm Bureau Life to continue its steady
growth and provide FBL with an attractive niche marketplace, great
strength, a great foundation and very loyal customers. We expect
continued sales of annuity products under our EquiTrust Life brand to
add to the growth of FBL and improve our economies of scale."
FBL Financial Group most recently provided 2006 earnings guidance
in conjunction with its third quarter 2006 earnings announcement and
stated that it expects to exceed both its 2006 net income guidance of
$2.75 to $2.85 per share and its 2006 operating income guidance of
$2.50 to $2.60 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, the change in net unrealized gains and losses
on derivatives and for 2006, a lawsuit settlement. 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, and the lawsuit settlement in second quarter
of 2006 is a nonrecurring item. 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.
Fourth Quarter 2006 Earnings Schedule. FBL Financial Group, Inc.
will announce its fourth quarter 2006 earnings after the close of
market on Tuesday, February 6, 2007. The fourth quarter earnings
release and financial supplement will be posted on the FBL Financial
Group website (www.fblfinancial.com) at that time.
FBL will hold a conference call to discuss fourth quarter 2006
earnings on Wednesday, February 7, 2007 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) 811-8845 or (913) 981-4905. 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 website. An audio replay
will also be available via telephone through February 12, 2007 by
calling (888) 203-1112 or (719) 457-0820 and inputting code 9941087
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.
For more information, please visit www.fblfinancial.com.
FFG-1
CONTACT: FBL Financial Group, Inc., West Des Moines
Kathleen Till Stange, 515-226-6780
Investor Relations Vice President
Kathleen.TillStange@FBLFinancial.com