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8-K - FBL FINANCIAL GROUP, INC. 8-K - FBL FINANCIAL GROUP INC | a6232937.htm |
EX-99.1 - EXHIBIT 99.1 - FBL FINANCIAL GROUP INC | a6232937ex99-1.htm |
Exhibit 99.2
2009 Annual Report Transcript and Materials
FBL Financial Group, Inc.
Overcoming Adversity
2009 Annual Report
FBL Financial Group, headquartered in West Des Moines, Iowa, is a holding company whose primary operating subsidiaries are Farm Bureau Life Insurance Company and EquiTrust Life Insurance Company. Please access our 2009 Annual Report, Proxy Statement and Form 10-K by clicking on the button below.
Forward-Looking Statements
Certain statements made in this annual report and on this website concerning FBL Financial Group’s prospects for the future are forward-looking statements intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act. These statements generally can be identified by their context, including terms such as “believes,” “anticipates,” “expects,” or similar words.
These statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statement. These risks and uncertainties are detailed in FBL Financial Group’s reports filed with the Securities and Exchange Commission and include, but are not limited to, difficult conditions in financial markets and the economy, lack of liquidity and access to capital, investment valuations, interest rate changes, competitive factors, 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; however, no assurance can be given that the assumptions will prove to be correct. These important risks and uncertainties should be considered in evaluating any statement contained herein.
Investors should not place undue reliance upon any forward-looking statements included in this annual report, as they are only as of the date they were posted, March 31, 2010. FBL disclaims any obligation to update forward-looking statements after the date that this annual report is posted. Further, FBL Financial Group assumes no responsibility for any inaccuracies or misstatements which occur as a result of the review of dated material. For FBL Financial Group’s most current information, please reference FBL Financial Group’s current SEC filings, which may be found on FBL Financial Group’s website under Financial Information, SEC Filings (http://www.fblfinancial.com/sec.cfm).
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Letter to Shareholders – Jim Hohmann, Chief Executive Officer
Hello. I’m Jim Hohmann, CEO of FBL Financial Group. I’m pleased to address you - my fellow shareholders - in this, my first annual report with FBL.
I think of 2009 as a year of overcoming adversity. FBL is in the business of helping others who face adversity, but in 2009 we also helped ourselves and our company to overcome the significant challenges of the global financial crisis.
I joined FBL Financial Group on April 29, during a turbulent time in the economy – it was a very challenging period. Capital markets were constrained and equity markets were extremely volatile, coming off their lowest point in two decades. I was charged with bringing new strategies and accountabilities to improve our balance sheet, products, operations and distribution.
Early on I identified two top priorities: capital strength and the reinvention of EquiTrust Life.
We focused immediate attention on conserving and strengthening capital. We repositioned our investment portfolio, improved our asset liability position and completed a reinsurance transaction.
The EquiTrust Life reinvention plan is well underway, and we’re developing a consumer-focused life insurance business in cooperation with independent marketing intermediaries. This reinvention embodies innovative strategies, diversified products and more focused attention on our distribution partners and customers.
As I moved through the year, I added a third priority to reorganize and clarify accountabilities around our new value drivers. In September, I announced a redesigned organizational structure for the management of FBL Financial Group. This redesign and these new reporting relationships allow us to build upon our success with more focused accountability in the areas of investment performance, product and risk management, operations and distribution.
Our keen focus on these three priorities has resulted in improved earnings throughout 2009, with net income of $2.31 per share and operating income of $2.98 per share. Substantial book value was restored and increased by 237% and we ended the year with a 20% gain in our stock price. We are very proud of our progress.
Let me share my impressions about FBL Financial Group as a company. First and foremost, I find the caliber of employees and agents to be very high. They truly embody the corporate values of integrity, leadership, accountability, teamwork and passion.
Another observation is around our flagship consumer brand. The Farm Bureau brand is extremely strong in rural America and serves an important niche on the American landscape. Farm Bureau Life provides a solid foundation for our company, with strong people, brand and products.
Our collective efforts in 2009 have enhanced shareholder value, and we have further refined our business strategies around several key priorities to drive value in 2010 and beyond.
We are intent on growing in the coming year, and will drive that through excellent operations, risk management, and products that are competitive and relevant to consumers. There is a tremendous amount of opportunity ahead for FBL. We are poised to move forward, toward greater strength and shared success.
Questions and Answers
- What is FBL Financial Group’s relationship with the Farm Bureau organizations?
- Will you continue the focus on building capital strength in 2010?
- What are your priorities in 2010?
- Could you describe the quality of your investment portfolio?
- What does the EquiTrust reinvention include?
- What are your thoughts on your current financial strength ratings?
Q: What is FBL Financial Group’s relationship with the Farm
Bureau organizations?
A: (Hohmann) We have a
collaborative and supportive relationship with Farm Bureau, and our two
organizations share core values: to improve the financial well-being and
the quality of life for our clients and members. This is the foundation
of Farm Bureau – to serve American farmers and ranchers. Today, Farm
Bureau’s 6.3 million member families come from all walks of life, and we
provide insurance and financial products to those in our 15-state market
territory. We market these products using the "Farm Bureau" name and
"FB" trademarks. In addition to using the Farm Bureau name, we manage
two Farm Bureau property-casualty companies for a management fee.
Q: Will you continue the focus on building capital strength in
2010?
A: (Brannen) Strengthening our capital base was a
top priority last year, and we benefited from asset repositioning,
strong operating results, a gain from a reinsurance transaction and
enhanced asset liability management. Our Farm Bureau Life company action
level RBC ended 2009 at 441%, clearly exceeding our 350% target, and
EquiTrust Life’s year end company action level RBC ended 2009 at 376%,
also exceeding our target. For 2010 we continue to focus on the
efficient use of capital and plan to maintain a strong capital position
going forward.
Q: What are your priorities in 2010?
A: (Hohmann)
In 2010 we are concentrating on several key areas. We continue work to
optimize our balance sheet and reinvent EquiTrust, but we are also
expanding that agenda to grow both our business and our profits. We
intend to accomplish that by introducing new products, streamlining our
Farm Bureau operations, increasing our agent and customer bases, and
enhancing our cross-sell.
Q: Could you describe the quality of your investment portfolio?
A:
(Brannen) We have a high quality, liquid investment portfolio,
with 94.4% of our fixed maturity securities being investment grade as of
year end. Also, our portfolio contains 11% of commercial mortgage loans,
which were underwritten by FBL’s well-seasoned mortgage loan
specialists. We are confident in our commercial mortgage loan portfolio
and have a long history of low delinquency rates. Our investments are
all managed internally and are well-diversified by individual issue,
industry and asset class. Our strategy in 2009 was to reposition our
investment portfolio by selling lower rated securities and investing
proceeds in higher rated securities. As we upgraded the portfolio’s
quality, we also improved our cash flow management, which enhanced our
asset liability management profile.
Q: What does the EquiTrust reinvention include?
A: (Hohmann)
During 2009 we completed rigorous analysis and defined what we call the
EquiTrust Reinvention. This reinvention embodies innovative strategies,
diversified products, and more focused attention to distribution
partners and target customers. At the same time it builds on the
existing strengths of EquiTrust Life as an organization that is very
nimble and agile, effectively developing products, processing business
and engaging with the distributors. In 2010 EquiTrust Life will
introduce a wealth transfer product. Over time, we plan to expand the
life portfolio to complement a more focused fixed annuity business.
Q: What are your thoughts on your current financial strength
ratings?
A: (Brannen) We are very positive about the
progress we made in 2009 to strengthen our capital base and to improve
our risk position. We believe these actions and improved risk based
capital ratios are consistent with higher ratings and an improved
outlook, so we will continue our strategy of sustained strength as the
right one for restoring our companies’ ratings.
Financial Review – Jim Brannen, Chief Financial Officer
Net income (loss) per common share
Operating income per
common share
Capitalization
Statutory capital
Book
value per common share
Total assets
Investments by
type
Investments by quality
I’m Jim Brannen, Chief Financial Officer of FBL Financial Group.
2009 was a year of challenge, but also one of progress. We faced challenges in the early months of 2009, with tumbling financial markets causing record unrealized losses in our investment portfolio, and new lows in U.S. treasury rates driving increased surrenders at our EquiTrust Life subsidiary. However, we made much progress in the last three quarters of 2009, with steps we took and are still taking to improve our risk profile, strengthen our capital base and optimize our investment portfolio. Because of these actions, we delivered strong earnings results. We ended 2009 on solid financial footing. I’m confident about the long term success of FBL Financial Group.
Some of the more significant financial metrics are highlighted here. I invite you to click on the metrics to the left to get a better sense for the results of each item. And of course you can find more detailed information in our Form 10-K.
Net income (loss) per common share - This chart illustrates our net income or loss per common share. Despite a rough beginning in 2009, we were able to end the year with solid net income of $69.8 million, or $2.31 per share. The net loss in 2008 reflects realized investment losses from other-than-temporary impairments of bonds in our investment portfolio.
Operating income per common share – After a difficult 2008, our 2009 operating income totaled a solid $90.1 million, or $2.98 per share. This reflects continued strong results from our Farm Bureau Life business, gains due to a reinsurance transaction, the refinement of reserve estimates and higher earnings in our variable segment due to recovering equity markets.
Capitalization - During 2009, much of our attention was focused
on strengthening our capital base and I’m pleased to say that we were
successful with total capitalization increasing to $1.2 billion at year
end 2009 from $689 million at year end 2008. Our debt-to-total
capitalization ratio, with equity credit for our trust preferreds, was
20.1% at year end with securities at cost, a level we’re comfortable
with.
Statutory capital - Our companies are well-capitalized and, despite the challenges in the financial markets during the year, we were able to strengthen our capital position. At year end 2009, Farm Bureau Life had total statutory adjusted capital of $451 million and EquiTrust Life had $442 million. Company action level risk based capital, or RBC, was 441% for Farm Bureau Life and 376% for EquiTrust Life, both improving significantly in 2009 and both exceeding our 350% target. These increases reflect our strong financial results and actions to reposition our investment portfolio, reinsure a closed block of business and restructure our EquiTrust Life product portfolio so that sales are capital neutral.
Book value per common share - Our book value per share is shown
here both with and without accumulated other comprehensive income/loss,
or AOCI(L). For us, AOCI(L) is largely the marking of fixed income
securities to market value. Book value per share as of yearend 2009
increased a remarkable 237% to $28.49. This reflects our strong 2009
financial results and an increase in the market value of investments due
to the recovery of the financial markets and our portfolio repositioning.
Total assets – Assets totaled $14.3 billion at year-end 2009, an increase from $14.1 billion at year-end 2008 and an increase from $10.2 billion at year-end 2005. Spreads earned on this growth in assets was a factor in our increase in both net income and operating income in 2009.
Investments by type – At December 31, 2009, we had
total investments of $11.7 billion. Our investments are managed
internally and are well-diversified by individual issue, industry and
asset class. We manage our credit exposure on an enterprise-wide basis
and have limits in place for each credit exposure. During 2009, we had
several opportunities to reposition a portion of our investment
portfolio, which allowed us to improve the overall portfolio liquidity,
enhance the aggregate credit profile of the portfolio, and further
diversify the overall portfolio across asset classes, sectors and
individual issuers.
Investments by quality –The quality of our portfolio is high with more than 94% of our fixed maturity securities being investment grade. With our portfolio repositioning in 2009, we were able to enhance the aggregate credit profile of the portfolio by reducing our holdings in BBB securities. Without this repositioning, our allocation to BBBs would have grown due to ratings downgrades that were prevalent during 2009. As we move forward in 2010, we’ll continue to focus on improving the quality of our investment portfolio by concentrating new investments on higher rated securities.
About FBL: Company Profile
EquiTrust Life Insurance Company
FBL Financial Group’s
EquiTrust Life Insurance Company subsidiary is national in scope and
sells traditional fixed rate and index annuities through more than
20,000 independent agents. EquiTrust Life is currently undergoing a
reinvention process to diversify its business by product and channel and
expects to introduce its first life insurance product in 2010.
Farm Bureau Life Insurance Company
FBL Financial Group’s Farm
Bureau Life Insurance Company subsidiary has 2,020 exclusive agents and
managers in 15 Midwestern and Western states. Farm Bureau Life, which
originated in 1945, serves the niche marketplace of Farm Bureau members
with a comprehensive line of life insurance and annuity products.
Farm Bureau Property & Casualty Insurance Company
Western
Agricultural Insurance Company
FBL Financial Group manages all
aspects of two Farm Bureau affiliated property-casualty insurance
companies: Farm Bureau Property & Casualty Insurance Company and Western
Agricultural Insurance Company, which operate predominantly in eight
states. FBL Financial Group receives a management fee from these
companies and underwriting results do not impact FBL Financial Group’s
results.
About FBL: Management Team
James E. Hohmann, Chief Executive Officer
James P. Brannen, Chief
Financial Officer, Chief Administrative Officer and Treasurer
Charles
T. Happel, Executive Vice President – Chief Investment Officer
Richard
J. Kypta, Executive Vice President – Farm Bureau Life
David A.
McNeill, Vice President, General Counsel and Secretary
Kevin R.
Slawin, Executive Vice President – Marketing & Distribution
Bruce
A. Trost, Executive Vice President – Operations
Russell J.
Wiltgen, Chief Actuary
Douglas W. Gumm, Vice President – Information
Technology
Thomas L. May, Vice President – EquiTrust
Lori K.
Strottman, Vice President – Human Resources
David T. Sebastian,
Vice President – Strategy & Business Development
Donald J.
Seibel, Vice President – Finance
James E. Hohmann
Chief Executive Officer
James E.
(Jim) Hohmann was named chief executive officer of FBL Financial Group
in January 2010, after eight months as interim CEO. He has more than 30
years of experience in the financial services industry. Prior to FBL
Financial Group, he was president and CEO of Allstate Financial with
executive accountabilities for 15 Allstate affiliates. Prior to that,
Hohmann was president and chief operating officer at Conseco, Inc.;
president and CEO of XL Life and Annuity; and president, Financial
Institutions, for Zurich Kemper Life. He is a Fellow of the Society of
Actuaries and a member of the American Academy of Actuaries. Hohmann
earned a bachelor's degree in mathematics from Northwestern University
and an MBA from the University of Chicago. He is a former member of the
board of directors of the American Council of Life Insurers, and serves
on the board of OMNI Youth Services in Chicago.
James P. Brannen
Chief Financial Officer, Chief
Administrative Officer and Treasurer
James P. (Jim) Brannen,
chief financial officer, chief administrative officer and treasurer of
FBL Financial Group, is a graduate of the University of Iowa with a
major in accounting. He joined FBL in 1991 and held various positions in
the tax and accounting areas prior to being named to vice president -
finance in 2000 and to his current position in 2007. Prior to joining
FBL, Brannen managed corporate tax matters for insurance companies at
Ernst & Young. He is a certified public accountant and is a member of
the American Institute of Certified Public Accountants and the Iowa
Society of Certified Public Accountants. Brannen is also active in
several civic and industry organizations.
Charles T. Happel
Executive Vice President - Chief
Investment Officer
Charles T. (Charlie) Happel is chief
investment officer of FBL Financial Group. He joined the company in 1984
as a Farm Bureau Financial Services agent, moving to the corporate
office in 1986. Over the next 15 years, he held various positions in
investments, as securities analyst and portfolio manager. Happel became
securities vice president in 2001, vice president - investments in
August 2008, and was named chief investment officer in September 2009.
He is a graduate of the University of Northern Iowa and earned an MBA
from Drake University. He is a Chartered Financial Analyst (CFA), and
holds a number of industry designations, including CFP, FLMI, ChFC, CLU,
and CPCU. He is a member of the Iowa Society for Financial Analysts, the
Association for Investment Management and Research (AIMR), Chicago
Municipal Analysts Forum, and the National Federation of Municipal
Analysts (NFMA).
Thomas L. May
Vice President – EquiTrust
Thomas
L. (Tom) May is vice president, EquiTrust, a subsidiary of FBL Financial
Group. May joined FBL in 2002 as alliance marketing vice president. He
served as vice president, sales and marketing of the EquiTrust Life
Strategic Business Unit from its inception in 2003 until assuming his
current position in September 2009. Prior to joining FBL, May held
positions in actuarial, marketing and finance areas at Equitable Life of
Iowa and Central Life Assurance Company. May was part of the management
team of USG Annuity & Life, a start up annuity operation launched in
1990, eventually becoming executive vice president and chief marketing
officer. May earned a bachelor's degree in mathematics from the
University of Nebraska in Lincoln and a master's degree in actuarial
science. He is a Fellow of the Society of Actuaries and a member of the
American Academy of Actuaries.
David A. McNeill
Vice President, General Counsel and
Secretary
David A. McNeill, vice president, general counsel and
secretary of FBL Financial Group, joined FBL’s legal department in 1989.
He held various positions in the legal department before being named to
his current position in 2009. Prior to joining FBL, McNeill was in
private practice as an attorney in the Des Moines law firm of Davis,
Hockenberg, Wine, Brown, Koehn & Shors (now Davis Brown) and an attorney
with Miller & Sanford law firm (now Lathrop & Gage) in Springfield,
Missouri. McNeill also held several editorial positions before receiving
his law degree. McNeill received his Juris Doctorate degree, with
honors, from Drake University Law School in 1985 and his bachelor's
degree from Simpson College in 1979. McNeill is the companies'
representative to the Federation of Iowa Insurers, and serves as a
director of the Kansas Life & Health Insurance Guaranty Association and
the Colorado Life and Health Insurance Protection Association.
Kevin R. Slawin
Executive Vice President – Marketing &
Distribution
Kevin R. Slawin, executive vice president – marketing
& distribution, joined FBL Financial Group in October 2009. He is
responsible for all aspects of the organization's marketing and
distribution functions including business development, brand management,
sales management and agent recruiting and retention. Slawin has more
than 30 years of experience in the financial services industry. Over the
past 14 years, he has held a number of senior management positions at
Allstate Financial including CEO, Allstate Bank; senior vice president,
operations and technology; and senior vice president, chief financial
officer. Most recently, he served as president, distribution. Slawin
holds a Masters of Management degree from the J. L. Kellogg Graduate
School of Management at Northwestern University and a BS degree in
accounting from Indiana University. Slawin serves on the board of
directors of the Insurance Market Standards Association (IMSA).
Bruce A. Trost
Executive Vice President – Operations
Bruce
A. Trost was named executive vice president – operations of
FBL Financial Group in September, 2009. Trost joined FBL in 2004 and was
responsible for FBL's managed property-casualty companies from
2004-2009. Prior to FBL, Trost was the executive vice president and
chief executive officer of Nodak Mutual Insurance Company, Fargo, North
Dakota. Trost began his Farm Bureau insurance career in 1976 with
COUNTRY Insurance Company in Illinois. He held various positions
including Illinois state claims manager, returning in 1999 as vice
president of the property casualty companies. He was with United Farm
Family Mutual Insurance Company from 1994-1999. Trost holds a bachelor's
degree in business from Southern Illinois University. He also completed
various insurance and advanced management courses through the Wharton
School of Business, Drake University, IBM, and the American Educational
Institute, where he received a Senior Claims Law Associate designation.
Russell J. Wiltgen
Chief Actuary
Russell J. Wiltgen
joined FBL Financial Group as chief actuary in February, 2010. He is
responsible for actuarial matters and enterprise risk management.
Wiltgen comes to FBL Financial Group with nearly 30 years of experience
in the financial services, with expertise in strategic business
planning, risk management, product development and management,
distribution expansion and field engagement. Prior to joining FBL, he
was with the UNIFI Companies in Lincoln, and where he most recently
served as vice president-individual annuity product management. He also
worked for the Mutual of Omaha Companies for 17 years where he held
various actuarial management positions including vice president and
chief product actuary risk life. Wiltgen holds a bachelor's degree in
actuarial science from the University of Iowa. He is a Fellow of the
Society of Actuaries and a member of the American Academy of Actuaries.
Richard J. Kypta
Executive Vice President – Farm Bureau Life
Richard
J. (Rich) Kypta is executive vice president – Farm Bureau Life. He
joined the company in August 2007 and served as senior vice president
and general counsel through March 2008. Kypta also served as the
secretary of FBL Financial Group through April 2009. Prior to joining
FBL, Kypta held a number of legal, finance, and operations positions
within Aviva USA Corporation and Aegon Insurance Group. He started his
career with the public accounting firm of PricewaterhouseCoopers. Kypta
holds a BS degree from Georgetown University, an MS degree from Johns
Hopkins University and a J.D. degree from the University of Maryland's
School of Law. He is a certified public accountant; a member of the
American Institute of Certified Public Accountants, American Bar
Association and Maryland State Bar Association; and a Fellow of the Life
Management Institute. Kypta currently serves as a director of the Iowa
and Wyoming Life and Health Guaranty Associations and as a trustee of
the Hospice of Central Iowa Foundation.
Douglas W. Gumm
Vice President – Information Technology
Douglas
W. (Doug) Gumm is vice president – information technology
for FBL Financial Group, Inc. He is responsible for the company’s data
center operations, local and wide-area network services, database
administration, desktop computing, help desk support, information
security and application development. Gumm joined FBL Financial Group,
Inc. in 1999 as information systems vice president and was named vice
president – information technology in 2001. Gumm has 35
years of management experience in information systems. Before joining
FBL, he worked in several capacities at Principal Financial Group. He is
the current chair of the Technology Association of Iowa executive
committee, first past chair of the PCIAA Technology Committee and past
president of the Iowa CIO Forum.
Lori K. Strottman
Vice President – Human Resources
Lori
Strottman joined the companies in 1986 and has served in a number of
human resources capacities over the past 24 years. She was director of
corporate recruitment and employment from 1995 until 2003, when she when
she became employment services vice president. She was named to her
current position in March 2010. Strottman graduated from the University
of Northern Iowa with a bachelor's degree in management (human resources
emphasis). She has earned numerous human resources and insurance
industry designations including Senior Professional Human Resources
(SPHR), Certified Employee Benefits Specialist (CEBS), Group Benefits
Administrator (GBA), Certified Compensation Professional (CCP) and
Fellow Life Management Institute (FLMI). She is past president of the
Society for Human Resource Management's central Iowa chapter and
continues to serve the organization as a board member.
David T. Sebastian
Vice President – Strategy & Business
Development
David T. Sebastian was named vice president -
strategy and business development in June of 2008, having served as vice
president in various sales and marketing capacities since joining FBL
Financial Group in 2004. Sebastian was a consultant to the companies on
sales, marketing and business matters beginning in 1995. Prior to
joining FBL Sebastian was an independent consultant to clients in
financial services, professional services, manufacturing, consumer
products and education for more than 20 years.
Donald J. Seibel
Vice President – Finance
Donald
J. Seibel, vice president – finance, joined FBL in 1996 to help lead
accounting efforts necessary for FBL Financial Group’s initial public
offering. He became GAAP accounting vice president in 1998 and vice
president − accounting in 2002 and was named to his current position in
2007. Prior to joining FBL, Seibel worked for 11 years at public
accounting firm Ernst & Young. He is responsible for departments
providing financial and tax reporting for FBL, investor relations,
employee benefits and certain corporate services. Seibel holds a
bachelor’s degree in accounting from Iowa State University, is a
certified public accountant, and holds the Fellow Life Office Management
Institute (FLMI) certification. Seibel is a board member of the Iowa
Society of CPAs and is active in civic organizations.
About FBL: Board of Directors
Craig A. Lang, Chairman of the Board
Craig A. Lang is the
chairman of the board and chair of the Executive Committee. He has been
a director of the Iowa Farm Bureau Federation since 1992. In December
2001 he was elected president of the Iowa Farm Bureau Federation and
director and president of its subsidiary, Farm Bureau Management
Corporation. In 2003 Lang was elected to the board of directors of the
American Farm Bureau Federation. He is also a director of FB BanCorp. He
served as the Iowa governor's appointed chairman of the Grow Iowa Values
Fund, within the Iowa Department of Economic Development, in 2003 and
2006. Lang was named a member of the Iowa Board of Regents in April
2007. Lang is the lead director of Iowa Telecom, and chairman of its
Compensation Committee. Lang has farmed since 1973 in partnership with
his father and brother on 1,200 acres near Brooklyn, Iowa.
Steve L. Baccus
Steve L. Baccus was named a Class B director
in May 2002 after being named president of the Kansas Farm Bureau. He is
also chairman of the board of directors of Farm Bureau Property &
Casualty and a director of Farm Bureau Life, EquiTrust Life, Western Ag
and FB BanCorp. In 2004 Baccus was elected to the board of directors of
the American Farm Bureau Federation. His family farm in Ottawa County,
Kansas produces wheat, milo, soybeans, sunflower and irrigated corn.
Baccus earned bachelor’s and master’s degrees in psychology from
Washburn University and Chapman College, respectively.
Roger K. Brooks
Roger K. Brooks was named a Class A director
in May 2009, filling a board vacancy. Brooks is the retired chief
executive officer and chairman of AmerUs Group. He retired from AmerUs
in 2005, after nearly 50 years of service. Brooks has served on numerous
community boards and is a member of the Iowa Insurance Hall of Fame and
Iowa Business Hall of Fame. He is also a Fellow of the Society of
Actuaries. Brooks graduated magna cum laude with a bachelor's degree in
mathematics from the University of Iowa. He also participated in
Stanford University's Executive Program.
Jerry L. Chicoine
Jerry L. Chicoine, Class A director since
1996, is the lead director of the independent directors, vice chairman
of the board, and serves on the Executive Committee and the Management
Development and Compensation Committee. Chicoine retired effective
January 1, 2001 as chairman and chief executive officer of Pioneer
Hi-Bred International, Inc. He had served in those capacities since
1999, and was Pioneer's executive vice president and chief operating
officer since 1997. From 1988 to 1997 he had served as senior vice
president and chief financial officer. He was named a director of
Pioneer Hi-Bred in March 1998. He was named Outstanding CPA in Business
and Industry by the Iowa Society of CPAs in 1998. He was a partner in
the accounting firm of McGladrey & Pullen from 1969 to 1986 and also
holds a law degree. He is a member of the Board of Directors of several
non-public companies, including Ruan Holdings, The Weitz Company and
Bankers Trust Company N.A. of Phoenix.
Tim H. Gill
Tim H. Gill, Class A director since 2004, has
served as president and chief executive officer of Montana Livestock Ag
Credit, Inc. since 1986. The company specializes in agricultural finance
throughout the state of Montana, underwrites long term real estate loans
and has its own investment offerings. Gill is on the finance committee
of Montana Stockgrowers; a trustee and finance chairman of the Montana
Stockgrowers Research and Education Foundation; a member of the tax and
credit committee of the National Cattlemen's Beef Association; a
director and past chairman of the Montana Council on Economic Education;
a director of the Carroll College Athletic Association, and past
chairman of the Animal Bio-Science Committee for Montana State
University College of Agriculture. He is chair of the Class A Nominating
and Governance Committee.
Robert H. Hanson
Robert H. Hanson, Class A director since
2004, served as investment banker with Merrill Lynch, Pierce Fenner &
Smith in New York from 1965 to 1989, since 1972 as a vice president,
specializing in providing corporate finance services to the regulated
utilities and telecommunications industries. In 1990 he relocated to
Cody, Wyoming, where he was employed by Dean Witter Reynolds, Inc. as an
account executive, and later by D.A. Davidson & Co., as vice president
and office manager of that firm's Cody office. In 1993 he joined GST
Telecommunications, Inc., initially as senior vice president–corporate
development, and subsequently as chief financial officer, retiring from
those positions in 1999. Hanson is a past member of the Wyoming
Telecommunications Council and current president of the Boys & Girls
Club of Park County, Wyoming. In addition, he is a director and trustee
of two national conservation organizations, for which he has the
responsibility for financial and investment management. Hanson is a
graduate of Yale University. He is chair of the Finance Committee.
Craig D. Hill
Craig D. Hill was elected a Class B director in
February 2007 and previously served as a Class B director from 2002 to
2004. He is vice president of the Iowa Farm Bureau Federation and has
served on its Board of Directors since 1989. He has served on the boards
of Farm Bureau Life from 1989 to 2007, Property & Casualty since 1989,
and also serves on the boards of Western Agricultural and Crop1
Insurance. Hill farms 1,000 acres of row crops and has a swine operation
near Milo, Iowa.
James E. Hohmann
James E. (Jim) Hohmann was named chief
executive officer of FBL Financial Group in January 2010, after eight
months as interim CEO. He has more than 30 years of experience in the
financial services industry. Prior to FBL Financial Group, he was
president and CEO of Allstate Financial with executive accountabilities
for 15 Allstate affiliates. Prior to that, Hohmann was president and
chief operating officer at Conseco, Inc.; president and CEO of XL Life
and Annuity; and president, Financial Institutions, for Zurich Kemper
Life. He is a Fellow of the Society of Actuaries and a member of the
American Academy of Actuaries. Hohmann earned a bachelor's degree in
mathematics from Northwestern University and an MBA from the University
of Chicago. He is a former member of the board of directors of the
American Council of Life Insurers, and serves on the board of OMNI Youth
Services in Chicago.
Paul E. Larson
Paul E. Larson, Class A director since 2004, is
the chair of the Audit Committee. He has been named by the Board of
Directors as one of our "Audit Committee financial experts." He retired
in 1999 as president of Equitable Life of Iowa and its subsidiary, USG
Annuity and Life, after 22 years with the companies. Larson holds both a
law degree and a certified public accountant designation. He was named
Outstanding CPA in Business and Industry by the Iowa Society of CPA's in
1999, and inducted into the American Institute of CPA's Business and
Industry Hall of Fame in 2000. He is a member of the Board of Directors
of non-public companies Wellmark, Inc., GuideOne Mutual Insurance
Company and GuideOne Specialty Mutual Insurance Company. He was also a
board member of EquiTrust Mutual Funds (which is managed by one of our
subsidiaries), where he was chair of the Audit Committee and the
committee's financial expert. He resigned from the EquiTrust Mutual
Funds board upon election to the FBL Financial Group board in 2004.
Edward W. Mehrer
Edward W. Mehrer, Class A director since
2004, is currently a member of the board of directors, and the audit and
compensation committees of NovaStar Financial. He served as interim
chief executive officer of CyDex, Inc., a drug delivery company, from
late 2002 to mid 2003, and as its chief financial officer from November
1996 to December 2003. Prior to joining CyDex in 1996, Mehrer was
executive vice president and chief financial and administrative officer
of Marion Merrell Dow and a director and member of its executive
committee. From 1976 to 1986, Mehrer served as partner-in-charge of
audit and accounting for KPMG Peat Marwick in Kansas City, Missouri. The
Board of Directors has named him as one of our “Audit Committee
financial experts.”
Keith R. Olsen
Keith R. Olsen has served as a Class B director
since May 2007. He previously served as a Class B director from 2002 to
2004. He is chairman of the Class B Nominating Committee. Olsen was
elected president of the Nebraska Farm Bureau Federation in 2002, and
has been a member of its Board of Directors since 1992. He was elected
to the Board of Directors of the American Farm Bureau Federation in
2004. He is also a director of Farm Bureau Life, Farm Bureau Property &
Casualty, and Western Agricultural Insurance Company. In February 2003
he became a director of Blue Cross-Blue Shield of Nebraska. Olsen holds
a Bachelor of Science in Agricultural Economics and has farmed 3,000
acres in southwest Nebraska for more than four decades.
Kevin G. Rogers
Kevin G. Rogers has served as a Class B
director since February 2008. He has been president of the Arizona Farm
Bureau Federation since 2004. He also serves on the board of American
Farm Bureau Federation and its executive committee, the National Cotton
Council, the Cotton Board (treasurer) and is a member of the USDA's Air
Quality Task Force. Rogers is also a director of Farm Bureau Life and
Farm Bureau Property & Casualty Insurance Company, and president and a
director of Western Agricultural Insurance Company. His family farms
7,000 acres in the Phoenix metropolitan area.
John E. Walker
John E. Walker, Class A director since 1996, is
the chair of the Management Development and Compensation Committee. He
retired January 1, 1996 from Business Men's Assurance (BMA), Kansas
City, Missouri, where he had been the managing director of Reinsurance
Operations since 1979. He had been a member of the Board of Directors of
BMA for 11 years prior to his retirement, and a member of its executive
committee.
Company Timeline
Early 1900s
When county and state Farm Bureaus began forming
in the years around World War I, farming was becoming increasingly
complex and capital intensive, a trend that has continued and
intensified. Unfortunately, given their urban market focus, few
insurance companies at that time understood the unique needs of farmers.
1939
The Iowa Farm Bureau Federation formed its own company to
meet the needs of its farmer members. Farm Bureau Mutual Insurance Company
began by offering auto insurance, and expanded into farm liability
products and fire protection.. By the early 1960s, it was a full line
multi-state casualty insurer.
1945
FBL's principal subsidiary, Farm Bureau Life Insurance
Company (originally known as Iowa Life Insurance Company) was organized
on October 30, 1944 and opened for business on January 24, 1945. From
the beginning, Farm Bureau Life experienced record-breaking growth.
During its charter period, more than 9,000 applications were received
for $22 million of life insurance volume. In its first year of
operation, $29 million was issued, a record for life insurance companies.
1949
A record was set when Farm Bureau Life achieved $100
million of life insurance in force in just 56 months. Several other
state Farm Bureaus recognize the opportunity to provide expanded
services to members through insurance products while achieving economies
of scale. Farm Bureau Life was invited to offer its products in states
other than Iowa, expanding into Nebraska in 1951 and Minnesota in 1954.
1971
The company introduced the sale of its mutual funds.
Today these funds are managed by FBL's subsidiary, EquiTrust Investment
Management Services.
1984
Farm Bureau Life acquired Utah Farm Bureau Insurance
Company and Utah Farm Bureau Life. In 1988, Utah Farm Bureau Life was
merged into Farm Bureau Life. The assets of Utah Farm Bureau Insurance
Company were dividended up to its parent company and it was dissolved in
1998.
1987
Farm Bureau Life expanded into South Dakota at the
request of the South Dakota Farm Bureau Federation. South Dakota Farm
Bureau Mutual became a managed operation until it was merged into Farm
Bureau Mutual in 1999.
1993
In 1993, Farm Bureau Life became the majority owner of
Rural Security Life, which was formed in 1949 by the Wisconsin Farm
Bureau Federation. Rural Security Life was merged into Farm Bureau Life
in 1994.
1994
In January, the shareholders of Farm Bureau Life
Insurance Company and Western Farm Bureau Life Insurance Company approve
a plan to consolidate operations. Western Farm Bureau Life operated in
Arizona, Colorado, Idaho, Montana, New Mexico, Oklahoma, North Dakota
and Wyoming. Western Farm Bureau Life was merged into Farm Bureau Life
in 1999.
1995
FBL Financial Group entered into a variable product
strategic alliance with Kansas Farm Bureau Life Insurance Company
allowing FBL variable products to be sold in Kansas through Kansas Farm
Bureau Life's agency force.
1996
FBL Financial Group began managing Western Agricultural
Insurance Company (Arizona) and Western Farm Bureau Mutual Insurance
Company (New Mexico).
1996
FBL Financial Group went public at a split-adjusted
initial public offering price of $8.75. Today FBL Financial Group is
traded on the New York Stock Exchange under the ticker symbol FFG.
1997
EquiTrust Life was purchased by FBL in 1997 as a shell
company to underwrite business outside of FBL's niche Farm Bureau
marketplace.
2001
FBL expanded its core marketing territory to 15 states
through the acquisition of Kansas Farm Bureau Life Insurance Company.
FBL entered into coinsurance agreements with National Travelers Life
Company and American Equity Investment Life Insurance Company.
2003
Farm Bureau Mutual Insurance Company merged with the
Nebraska Farm Bureau Insurance Company and Farm Bureau Mutual Insurance
Company of Kansas. FBL, which still manages Farm Bureau Mutual, now
manages property-casualty operations in eight states.
2009-10
In 2009, Farm Bureau Mutual Insurance Company formed a
mutual holding company named Farm Bureau Mutual Holding Company. Farm
Bureau Mutual Insurance Company was renamed Farm Bureau Property &
Casualty Insurance Company, effective January 1, 2010.
Today
FBL Financial Group is a holding company whose primary
operating subsidiaries are Farm Bureau Life Insurance Company and
EquiTrust Life Insurance Company. FBL Financial Group underwrites,
markets and distributes life insurance, annuities and mutual funds to
individuals and small businesses. In addition, FBL manages all aspects
of two Farm Bureau affiliated property-casualty insurance companies for
a management fee.