FBL FINANCIAL GROUP INC - FORM 8-K - EX-99.1 - INVESTOR SUPPLEMENT

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8-K - 8-K - FBL FINANCIAL GROUP INC	pressrelease8k2014q1.htm
EX-99.2 - NEWS RELEASE - FBL FINANCIAL GROUP INC	exh991newsrelease2014q1.htm

Financial Supplement

2014 First Quarter Report




Corporate Headquarters	FBL Financial Group, Inc.
	5400 University Avenue
	West Des Moines, Iowa 50266-5997
	(515) 225-5400
Financial Inquiries	For more information contact:
	Jim Brannen
	Chief Executive Officer
	Jim.Brannen@FBLFinancial.com
	(515) 225-5631

	Don Seibel
	Chief Financial Officer
	Don.Seibel@FBLFinancial.com
	(515) 226-6399

	Kathleen Till Stange
	Corporate & Investor Relations Vice President
	Kathleen.TillStange@FBLFinancial.com
	(515) 226-6780
Internet Information	FBL Financial Group, Inc.
	www.fblfinancial.com
Stock Symbol	NYSE: FFG
Transfer Agent	American Stock Transfer & Trust Company, LLC
	6201 15th Avenue
	Brooklyn, NY 11219
	http://www.amstock.com



FBL Financial Group, Inc.
Financial Supplement (Unaudited)
March 31, 2014
Table of Contents/Notes

Consolidated Financial Statements:
Consolidated Balance Sheets		2
Consolidated Statements of Comprehensive Income		4
Consolidated Statements of Operating Income, last five quarters		5
Financial Information by Segment:
Segment Information		6
Consolidating Statements of Pre-tax Operating Income		7
Statements of Pre-tax Operating Income, last five quarters:
Annuity Segment		9
Life Insurance Segment		10
Corporate and Other Segment		12
Deferred Acquisition Costs by Segment		13
Collected Premiums, last five quarters		15
Other Information		16

NOTE 1: In addition to net income, we have consistently used operating income, a non-GAAP financial measure common in the life insurance industry, as a primary economic measure to evaluate our financial performance. Operating income for the periods presented equals net income adjusted to eliminate the impact of realized gains and losses on investments and changes in net unrealized gains and losses on derivatives.

We use operating income, in addition to net income, to measure our performance since realized 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. A view of our operating performance without the impact of these mismatches and nonrecurring items enhances the analysis of our results. We use operating income for goal setting, determining short-term incentive compensation and evaluating performance on a basis comparable to that used by many in the investment community.

NOTE 2: Certain financial information presented herein may not add due to rounding.

FBL Financial Group, Inc.

Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)



	March 31, 2014		December 31, 2013
Assets
Investments:
Fixed maturities - available for sale, at fair value (amortized cost: 2014 - $5,931,034; 2013 - $5,828,539)	$	6,342,428	$	6,081,753
Equity securities - available for sale, at fair value (cost: 2014 - $96,061; 2013 - $90,071)	100,384		91,555
Mortgage loans	586,021		575,861
Real estate	4,075		4,084
Policy loans	178,692		176,993
Short-term investments	67,593		108,677
Other investments	1,648		1,079
Total investments	7,280,841		7,040,002

Cash and cash equivalents	32,221		6,370
Securities and indebtedness of related parties	117,212		116,305
Accrued investment income	81,397		75,186
Amounts receivable from affiliates	3,708		3,145
Reinsurance recoverable	100,626		100,001
Deferred acquisition costs	287,758		335,514
Value of insurance in force acquired	18,691		23,579
Other assets	72,199		67,266
Assets held in separate accounts	694,570		693,955








Total assets	$	8,689,223	$	8,461,323

FBL Financial Group, Inc.

Consolidated Balance Sheets (Continued)

(Dollars in thousands)



	March 31, 2014		December 31, 2013
Liabilities and stockholders' equity
Liabilities:
Future policy benefits:
Interest sensitive products	$	4,357,708	$	4,278,871
Traditional life insurance and accident and health products	1,529,062		1,515,139
Other policy claims and benefits	36,451		45,530
Supplementary contracts without life contingencies	346,070		349,761
Advance premiums and other deposits	249,954		240,441
Amounts payable to affiliates	—		408
Long-term debt payable to non-affiliates	97,000		97,000
Current income taxes	2,657		1,499
Deferred income taxes	163,417		122,839
Other liabilities	88,538		71,089
Liabilities related to separate accounts	694,570		693,955
Total liabilities	7,565,427		7,416,532

Stockholders' equity:
FBL Financial Group, Inc. 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 24,690,439 shares in 2014 and 24,742,942 shares in 2013	139,969		134,993
Class B common stock, without par value - authorized 1,500,000 shares, issued and outstanding 11,413 shares in 2014 and 2013	72		72
Accumulated other comprehensive income	188,547		119,067
Retained earnings	792,172		787,609
Total FBL Financial Group, Inc. stockholders' equity	1,123,760		1,044,741
Noncontrolling interest	36		50
Total stockholders' equity	1,123,796		1,044,791
Total liabilities and stockholders' equity	$	8,689,223	$	8,461,323

FBL Financial Group, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

(Dollars in thousands, except per share data)



	Three months ended March 31,
	2014			2013
Revenues:
Interest sensitive product charges	$	27,091		$	25,304
Traditional life insurance premiums	45,492			44,934
Net investment income	92,631			90,810
Net realized capital gains (losses) on sales of investments	(540		)	3,932

Total other-than-temporary impairment losses	—			(646		)
Non-credit portion in other comprehensive income	—			—
Net impairment losses recognized in earnings	—			(646		)
Other income	3,861			3,714
Total revenues	168,535			168,048

Benefits and expenses:
Interest sensitive product benefits	53,380			48,292
Traditional life insurance benefits	41,497			39,806
Policyholder dividends	3,345			3,358
Underwriting, acquisition and insurance expenses	33,444			35,024
Interest expense	1,212			1,975
Other expenses	4,128			4,384
Total benefits and expenses	137,006			132,839
	31,529			35,209
Income taxes	(10,228		)	(11,583		)
Equity income, net of related income taxes	1,648			1,312
Net income	22,949			24,938
Net loss attributable to noncontrolling interest	43			28
Net income attributable to FBL Financial Group, Inc.	$	22,992		$	24,966

Comprehensive income attributable to FBL Financial Group, Inc.	$	92,472		$	30,870

Earnings per common share	$	0.92		$	0.97
Earnings per common share - assuming dilution	$	0.91		$	0.96

Cash dividends per common share	$	0.35		$	0.11



FBL Financial Group, Inc.
Consolidated Statements of Operating Income
(Dollars in thousands, except per share data)

	Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014
Operating revenues:
Interest sensitive product charges	$	25,292		$	26,848		$	32,177		$	27,216		$	27,091
Traditional life insurance premiums	44,934			46,058			43,883			46,069			45,492
Net investment income	91,402			93,579			94,449			93,226			92,321
Other income	3,714			3,696			3,288			3,808			3,861
Total operating revenues	165,342			170,181			173,797			170,319			168,765

Benefits and expenses:
Interest sensitive product benefits	48,509			48,721			53,438			53,222			53,501
Traditional life insurance benefits	39,798			40,263			39,726			40,675			41,497
Policyholder dividends	3,358			3,395			3,244			3,322			3,345
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	8,184			7,391			5,696			6,139			5,653
Amortization of deferred acquisition costs	6,102			9,462			7,978			6,810			7,947
Amortization of value of insurance in force acquired	537			782			632			549			449
Other underwriting expenses	20,105			19,183			19,857			19,232			19,364
Total underwriting, acquisition and insurance expenses	34,928			36,818			34,163			32,730			33,413
Interest expense	1,975			1,838			1,833			1,217			1,212
Other expenses	4,384			4,818			5,037			4,175			4,128
Total benefits and expenses	132,952			135,853			137,441			135,341			137,096
	32,390			34,328			36,356			34,978			31,669
Income taxes	(10,596		)	(11,253		)	(11,694		)	(11,491		)	(10,276		)
Net loss attributable to noncontrolling interest	28			34			68			35			43
Equity income, net of related income taxes	1,312			2,528			1,829			1,741			1,648
Operating income	23,134			25,637			26,559			25,263			23,084

Realized gains/losses on investments, net of offsets	1,895			4,413			406			1,492			(328		)
Change in net unrealized gains/losses on derivatives, net of offsets	(63		)	(463		)	88			197			236
Net income attributable to FBL Financial Group, Inc.	$	24,966		$	29,587		$	27,053		$	26,952		$	22,992

Operating income per common share - assuming dilution	$	0.89		$	0.98		$	1.02		$	1.00		$	0.92
Earnings per common share - assuming dilution	$	0.96		$	1.13		$	1.04		$	1.07		$	0.91

Weighted average common shares outstanding (in thousands):
Basic	25,598			25,833			25,770			24,896			24,937
Effect of dilutive securities	272			243			260			233			180
Diluted	25,870			26,076			26,030			25,129			25,117

Operating return on equity, excluding AOCI - last twelve months	9.3		%	9.8		%	10.7		%	10.8		%	10.8		%
Operating return on equity, including AOCI - last twelve months	7.3		%	7.7		%	8.5		%	8.9		%	9.0		%

FBL Financial Group, Inc.

Segment Information

We analyze operations by reviewing financial information regarding our primary products that are aggregated into the Annuity and Life Insurance product segments. In addition, our Corporate and Other segment includes various support operations, corporate capital and other product lines that are not currently underwritten by the Company.

The Annuity segment primarily consists of fixed rate annuities and supplementary contracts (some of which involve life contingencies). 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. Our multi-line distribution channel began selling index annuities in late 2012. 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 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 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;
•		closed blocks of variable annuity, variable universal life insurance and accident and health insurance products;
•		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. Accordingly, income taxes are not allocated to the segments. In addition, operating results are reported net of transactions between the segments.

FBL Financial Group, Inc.

Consolidating Statements of Pre-tax Operating Income



Quarter Ended March 31, 2014	Annuity		Life Insurance			Corporate & Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive product charges	$	554	$	14,760		$	11,777		$	27,091
Traditional life insurance premiums	—		45,492			—			45,492
Net investment income	49,025		35,650			7,646			92,321
Other income	—		(85		)	3,946			3,861
Total operating revenues	49,579		95,817			23,369			168,765

Benefits and expenses:
Interest sensitive product benefits	26,755		19,412			7,334			53,501
Traditional life insurance benefits	—		41,497			—			41,497
Policyholder dividends	—		3,345			—			3,345
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	454		4,152			1,047			5,653
Amortization of deferred policy acquisition costs	2,461		3,831			1,655			7,947
Amortization of value of insurance in force acquired	143		306			—			449
Other underwriting expenses	4,319		13,182			1,863			19,364
Total underwriting, acquisition and insurance expenses	7,377		21,471			4,565			33,413
Interest expense	—		—			1,212			1,212
Other expenses	—		—			4,128			4,128
Total benefits and expenses	34,132		85,725			17,239			137,096
	15,447		10,092			6,130			31,669
Net loss attributable to noncontrolling interest	—		—			43			43
Equity loss, before tax	—		—			(1,580		)	(1,580		)
Pre-tax operating income	$	15,447	$	10,092		$	4,593		$	30,132

FBL Financial Group, Inc.

Consolidating Statements of Pre-tax Operating Income (Continued)



Quarter Ended March 31, 2013	Annuity		Life Insurance			Corporate & Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive product charges	$	313	$	13,737		$	11,242		$	25,292
Traditional life insurance premiums	—		44,934			—			44,934
Net investment income	47,794		34,729			8,879			91,402
Other income	—		(62		)	3,776			3,714
Total operating revenues	48,107		93,338			23,897			165,342

Benefits and expenses:
Interest sensitive product benefits	24,679		17,323			6,507			48,509
Traditional life insurance benefits	—		39,798			—			39,798
Policyholder dividends	—		3,358			—			3,358
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	937		6,100			1,147			8,184
Amortization of deferred acquisition costs	2,821		3,022			259			6,102
Amortization of value of insurance in force acquired	164		373			—			537
Other underwriting expenses	4,825		13,432			1,848			20,105
Total underwriting, acquisition and insurance expenses	8,747		22,927			3,254			34,928
Interest expense	—		—			1,975			1,975
Other expenses	—		—			4,384			4,384
Total benefits and expenses	33,426		83,406			16,120			132,952
	14,681		9,932			7,777			32,390
Net loss attributable to noncontrolling interest	—		—			28			28
Equity loss, before tax	—		—			(707		)	(707		)
Pre-tax operating income	$	14,681	$	9,932		$	7,098		$	31,711



FBL Financial Group, Inc.
Statements of Pre-tax Operating Income
Annuity Segment

	Q1 2013				Q2 2013			Q3 2013			Q4 2013			Q1 2014
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	313			$	344		$	279		$	300		$	554
Net investment income	47,794				48,889			50,156			49,464			49,025
Total operating revenues	48,107				49,233			50,435			49,764			49,579

Benefits and expenses:
Interest sensitive product benefits	24,679				25,399			25,754			26,476			26,755
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	937				595			458			564			454
Amortization of deferred acquisition costs	2,821				1,160			2,748			2,693			2,461
Amortization of value of insurance in force acquired	164				369			208			166			143
Other underwriting expenses	4,825				4,637			4,840			4,454			4,319
Total underwriting, acquisition and insurance expenses	8,747				6,761			8,254			7,877			7,377
Total benefits and expenses	33,426				32,160			34,008			34,353			34,132
Pre-tax operating income	$	14,681			$	17,073		$	16,427		$	15,411		$	15,447

Selected balance sheet data, securities at amortized cost:
Assets:
Investments	$	3,498,745			$	3,642,460		$	3,639,855		$	3,645,736		$	3,713,165
Deferred acquisition costs	82,653				83,352			82,734			82,404			82,901
Value of insurance in force acquired	9,133				8,737			8,531			8,364			8,224

Liabilities and equity:
Liabilities:
Interest sensitive product reserves	$	3,053,711			$	3,136,084		$	3,162,323		$	3,172,598		$	3,232,193
Other insurance reserves	382,600				380,612			377,388			376,879			375,232
Allocated equity, excluding AOCI	261,160				267,269			269,018			269,760			266,949

Other data:
Number of direct contracts	53,594				53,265			53,232			53,252			53,179

Portfolio yield net of assumed defaults	5.26		%		5.18		%	5.14		%	5.11		%	5.07		%
Credited rate	3.00				2.99			2.99			2.99			2.97
Spread on fixed annuities at end of quarter (1)	2.26		%		2.19		%	2.15		%	2.12		%	2.10		%

Interest sensitive reserve activity:
Individual deferred annuity reserve:
Balance, beginning of period	$	2,338,272			$	2,376,892		$	2,398,586		$	2,424,202		$	2,460,609
Deposits	77,115				60,470			56,325			64,936			85,207
Withdrawals, surrenders and death benefits	(40,111		)		(46,431		)	(37,407		)	(36,221		)	(43,079		)
Net flows	37,004				14,039			18,918			28,715			42,128

Policyholder interest	17,230				17,382			17,478			17,836			17,946
Annuitizations and other	(15,614		)		(9,727		)	(10,780		)	(10,144		)	(12,014		)
Balance, end of period	2,376,892				2,398,586			2,424,202			2,460,609			2,508,669
Other interest sensitive reserves	676,819				737,498			738,121			711,989			723,524
Total interest sensitive product reserves	$	3,053,711			$	3,136,084		$	3,162,323		$	3,172,598		$	3,232,193


(1)	Point-in-time spread at the balance sheet date used by management for decision making, which differs from the spread earned during the reporting period disclosed in the Form 10Q or 10K.



FBL Financial Group, Inc.
Statements of Pre-tax Operating Income
Life Insurance Segment

	Q1 2013				Q2 2013			Q3 2013			Q4 2013			Q1 2014
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	13,737			$	14,500		$	20,831		$	15,136		$	14,760
Traditional life insurance premiums	44,934				46,058			43,883			46,069			45,492
Net investment income	34,729				35,064			35,210			35,507			35,650
Other income	(62		)		(69		)	(73		)	(129		)	(85		)
Total operating revenues	93,338				95,553			99,851			96,583			95,817

Benefits and expenses:
Interest sensitive product benefits:
Interest credited	7,448				7,731			8,057			8,093			8,002
Death benefits and other	9,875				9,631			11,582			8,982			11,410
Total interest sensitive product benefits	17,323				17,362			19,639			17,075			19,412
Traditional life insurance benefits:
Death benefits	18,368				15,680			18,740			17,917			19,754
Surrender and other benefits	9,101				9,064			8,263			8,690			9,009
Increase in traditional life future policy benefits	12,329				15,519			12,723			14,068			12,734
Total traditional life insurance benefits	39,798				40,263			39,726			40,675			41,497
Policyholder dividends	3,358				3,395			3,244			3,322			3,345
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	6,100				5,866			4,407			4,622			4,152
Amortization of deferred acquisition costs	3,022				4,385			4,667			3,686			3,831
Amortization of value of insurance in force acquired	373				413			424			383			306
Other underwriting expenses	13,432				12,866			13,481			13,204			13,182
Total underwriting, acquisition and insurance expenses	22,927				23,530			22,979			21,895			21,471
Total benefits and expenses	83,406				84,550			85,588			82,967			85,725
Pre-tax operating income	$	9,932			$	11,003		$	14,263		$	13,616		$	10,092

Selected balance sheet data, securities at amortized cost:
Assets:
Investments	$	2,341,579			$	2,404,847		$	2,462,296		$	2,473,047		$	2,526,787
Deferred acquisition costs	205,065				209,078			210,818			216,743			219,974
Value of insurance in force acquired	22,796				22,381			21,957			21,571			21,266

Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	707,123			$	736,341		$	761,236		$	774,614		$	787,436
Other insurance reserves	1,633,287				1,649,913			1,660,841			1,679,942			1,695,142
Allocated equity, excluding AOCI	279,656				286,444			292,699			298,612			290,063



FBL Financial Group, Inc.
Statements of Pre-tax Operating Income
Life Insurance Segment (Continued)

	Q1 2013				Q2 2013			Q3 2013			Q4 2013			Q1 2014
				(Dollars in thousands)
Other data:
Number of direct policies - traditional life	356,408				357,192			356,605			358,924			359,299
Number of direct policies - universal life	60,150				60,533			60,518			61,250			61,219
Direct face amounts - traditional life	$	41,017,541			$	41,696,782		$	42,030,894		$	42,865,933		$	43,359,093
Direct face amounts - universal life	$	5,904,084			$	6,007,750		$	6,062,960		$	6,189,967		$	6,235,767

Portfolio yield net of assumed defaults	5.58		%		5.53		%	5.49		%	5.48		%	5.47		%
Credited rate	4.10				4.08			4.04			3.93			3.93
Spread on universal life at end of quarter (1)	1.48		%		1.45		%	1.45		%	1.55		%	1.54		%

Interest sensitive reserve activity:
Balance, beginning of period	$	686,067			$	707,123		$	736,341		$	761,236		$	774,614
Deposits	33,049				40,014			33,649			24,838			27,289
Withdrawals and surrenders	(4,347		)		(5,064		)	(4,206		)	(4,115		)	(6,541		)
Net flows	28,702				34,950			29,443			20,723			20,748

Policyholder interest	6,773				6,950			7,193			7,405			7,370
Policy charges	(14,714		)		(15,202		)	(15,050		)	(15,668		)	(15,631		)
Benefits and other	295				2,520			3,309			918			335
Balance, end of period	$	707,123			$	736,341		$	761,236		$	774,614		$	787,436


(1)	Point-in-time spread at the balance sheet date used by management for decision making with universal life (excluding products with a secondary guarantee) differs from the spread earned during the reporting period disclosed in the Form 10Q or 10K.



FBL Financial Group, Inc.
Statements of Pre-tax Operating Income
Corporate and Other

	Q1 2013				Q2 2013			Q3 2013			Q4 2013			Q1 2014
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	11,242			$	12,004		$	11,067		$	11,780		$	11,777
Net investment income	8,879				9,626			9,083			8,255			7,646
Other income	3,776				3,765			3,361			3,937			3,946
Total operating revenues	23,897				25,395			23,511			23,972			23,369

Benefits and expenses:
Interest sensitive product benefits	6,507				5,960			8,045			9,671			7,334
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	1,147				930			831			953			1,047
Amortization of deferred acquisition costs	259				3,917			563			431			1,655
Other underwriting expenses	1,848				1,680			1,536			1,574			1,863
Total underwriting, acquisition and insurance expenses	3,254				6,527			2,930			2,958			4,565
Interest expense	1,975				1,838			1,833			1,217			1,212
Other expenses	4,384				4,818			5,037			4,175			4,128
Total benefits and expenses	16,120				19,143			17,845			18,021			17,239
	7,777				6,252			5,666			5,951			6,130
Net loss attributable to noncontrolling interest	28				34			68			35			43
Equity loss, before tax	(707		)		(245		)	(1,325		)	(1,362		)	(1,580		)
Pre-tax operating income	$	7,098			$	6,041		$	4,409		$	4,624		$	4,593

Selected balance sheet data, securities at amortized cost:
Assets:
Investments	$	720,919			$	693,058		$	645,686		$	666,521		$	625,172
Deferred acquisition costs	95,286				91,361			92,225			91,917			90,434
Separate account assets	651,474				641,248			665,252			693,955			694,570

Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	322,497			$	326,726		$	329,495		$	328,702		$	331,594
Other insurance reserves	98,270				95,402			95,213			96,840			97,534
Separate account liabilities	651,474				641,248			665,252			693,955			694,570
Allocated equity, excluding AOCI	402,358				414,728			336,539			354,302			375,201

Rollforward of separate account balances:
Beginning separate account balance	$	618,809			$	651,474		$	641,248		$	665,252		$	693,955
Net premiums	5,847				8,214			5,114			5,262			8,413
Net investment income	47,848				2,112			36,448			44,798			10,797
Charges, benefits and surrenders	(21,030		)		(20,552		)	(17,558		)	(21,357		)	(18,595		)
Ending separate account balance	$	651,474			$	641,248		$	665,252		$	693,955		$	694,570

Other data:
Number of direct contracts - variable annuity	13,643				13,458			13,138			12,941			12,735
Number of direct policies - variable universal life	46,311				45,714			45,208			44,690			44,155
Direct face amounts - variable universal life	$	5,750,019			$	5,678,574		$	5,603,017		$	5,547,580		$	5,473,919



FBL Financial Group, Inc.
Deferred Acquisition Costs by Segment

	Q1 2013				Q2 2013			Q3 2013			Q4 2013			Q1 2014
				(Dollars in thousands)
Annuity
Balance - beginning of period	$	82,396			$	82,653		$	83,352		$	82,734		$	82,404
Capitalization:
Commissions	2,909				1,976			1,868			2,222			2,655
Expenses	297				220			233			137			270
Total capitalization	3,206				2,196			2,101			2,359			2,925
Amortization - operating basis, before impact of unlocking	(2,821		)		(2,790		)	(2,748		)	(2,691		)	(2,461		)
Amortization - unlocking, operating basis	—				1,630			—			—			—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(128		)		(337		)	29			2			33
Balance - end of period	$	82,653			$	83,352		$	82,734		$	82,404		$	82,901

Life Insurance
Balance - beginning of period	$	199,266			$	205,065		$	209,078		$	210,818		$	216,743
Capitalization:
Commissions	5,682				5,024			4,027			6,392			3,797
Expenses	3,014				3,134			2,725			2,680			3,055
Deferral of sales inducements	393				319			70			655			244
Total capitalization	9,089				8,477			6,822			9,727			7,096
Amortization - operating basis, before impact of unlocking	(3,080		)		(3,573		)	(4,896		)	(3,773		)	(3,865		)
Amortization - unlocking, operating basis	—				(959		)	—			—			—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(210		)		68			(186		)	(29		)	—
Balance - end of period	$	205,065			$	209,078		$	210,818		$	216,743		$	219,974

Corporate and Other
Balance - beginning of period	$	94,984			$	95,286		$	91,361		$	92,225		$	91,917
Capitalization:
Commissions	313				238			144			217			267
Deferral of sales inducements	8				5			1			25			2
Total capitalization	321				243			145			242			269
Amortization - operating basis, before impact of unlocking	(283		)		(3,036		)	(499		)	(477		)	(1,685		)
Amortization - unlocking, operating basis	—				(926		)	—			—			—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	264				(206		)	1,218			(73		)	(67		)
Balance - end of period	$	95,286			$	91,361		$	92,225		$	91,917		$	90,434



FBL Financial Group, Inc.
Deferred Acquisition Costs by Segment (Continued)

	Q1 2013				Q2 2013			Q3 2013			Q4 2013			Q1 2014
				(Dollars in thousands)
Total
Balance - beginning of period	$	376,646			$	383,004		$	383,791		$	385,777		$	391,064
Capitalization:
Commissions	8,904				7,238			6,039			8,831			6,719
Expenses	3,311				3,354			2,958			2,817			3,325
Deferral of sales inducements	401				324			71			680			246
Total capitalization	12,616				10,916			9,068			12,328			10,290
Amortization - operating basis, before impact of unlocking	(6,184		)		(9,399		)	(8,143		)	(6,941		)	(8,011		)
Amortization - unlocking, operating basis	—				(255		)	—			—			—
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(74		)		(475		)	1,061			(100		)	(34		)
Balance - end of period	383,004				383,791			385,777			391,064			393,309
Impact of realized/unrealized gains/losses in AOCI	(153,936		)		(83,327		)	(67,211		)	(55,550		)	(105,551		)
Deferred acquisition costs	$	229,068			$	300,464		$	318,566		$	335,514		$	287,758



FBL Financial Group, Inc.
Collected Premiums

	Q1 2013				Q2 2013			Q3 2013			Q4 2013			Q1 2014
				(Dollars in thousands)
Annuity
Individual:
Fixed rate:
First year	$	38,958			$	26,752		$	27,567		$	22,538		$	31,211
Renewal	36,113				29,367			23,172			22,910			32,374
Total fixed rate	75,071				56,119			50,739			45,448			63,585
Index annuity	2,205				3,495			5,932			11,732			21,219
Total individual	77,276				59,614			56,671			57,180			84,804
Group	1,988				2,760			1,706			2,271			1,448
Total Annuity	79,264				62,374			58,377			59,451			86,252

Life Insurance
Direct:
Universal life:
First year	17,944				24,123			19,113			9,290			10,318
Renewal	14,217				14,899			13,815			14,762			16,468
Total universal life	32,161				39,022			32,928			24,052			26,786
Participating whole life:
First year	3,202				2,817			2,922			2,968			2,513
Renewal	24,119				24,968			23,342			24,103			25,067
Total participating whole life	27,321				27,785			26,264			27,071			27,580
Term life and other:
First year	2,915				2,879			2,678			2,880			2,714
Renewal	19,476				19,889			19,992			20,584			21,455
Total term life and other	22,391				22,768			22,670			23,464			24,169
Total direct life insurance	81,873				89,575			81,862			74,587			78,535
Reinsurance	(5,220		)		(5,113		)	(4,915		)	(5,175		)	(5,697		)
Total Life Insurance	76,653				84,462			76,947			69,412			72,838

Corporate and Other
Variable, net of reinsurance	19,478				18,680			14,809			15,334			19,569
Accident and health, net of reinsurance	59				39			32			275			64
Total Corporate and Other	19,537				18,719			14,841			15,609			19,633

Total collected premiums	$	175,454			$	165,555		$	150,165		$	144,472		$	178,723



FBL Financial Group, Inc.
Other Information

	March 31,				June 30,			September 30,			December 31,			March 31,
	2013				2013			2013			2013			2014
				(Dollars in thousands, except per share data)

Capitalization:
Short-term debt	$	—			$	—		$	25,000		$	—		$	—
Senior notes with affiliates	50,000				50,000			—			—			—
Trust preferred securities, due 2047	97,000				97,000			97,000			97,000			97,000
Total debt	147,000				147,000			122,000			97,000			97,000

Preferred stock	3,000				3,000			3,000			3,000			3,000
Common stockholders' equity, excluding AOCI	943,174				968,441			898,256			922,674			932,213
Total capitalization, excluding AOCI	1,093,174				1,118,441			1,023,256			1,022,674			1,032,213

Accumulated other comprehensive income	295,757				164,788			135,316			119,067			188,547
Total capitalization, including AOCI	$	1,388,931			$	1,283,229		$	1,158,572		$	1,141,741		$	1,220,760

Common shares outstanding	25,563,170				25,614,196			24,717,212			24,754,355			24,701,852

Book Value per Share:
Excluding AOCI	$	36.90			$	37.81		$	36.34		$	37.27		$	37.74
Including AOCI	48.47				44.24			41.82			42.08			45.37

Debt-to-Capital Ratio:
Excluding AOCI	13.4		%		13.1		%	11.9		%	9.5		%	9.4		%
Including AOCI	10.6				11.5			10.5			8.5			7.9

Debt-to-Capital Ratio with 100% Credit for Trust Preferred Securities:
Excluding AOCI	4.6		%		4.5		%	2.4		%	—		%	—		%
Including AOCI	3.6				3.9			2.2			—			—

Class A Common Ownership:
Iowa Farm Bureau Federation	60.4		%		60.3		%	59.7		%	59.7		%	59.8		%
Other Farm Bureau entities	5.7				5.7			5.9			5.7			6.3
Public	33.9				34.0			34.4			34.6			33.9
	100.0		%		100.0		%	100.0		%	100.0		%	100.0		%



FBL Financial Group, Inc.
Other Information (Continued)

	March 31,				June 30,			September 30,			December 31,			March 31,
	2013				2013			2013			2013			2014

Quality of Fixed Maturity Securities:
AAA, AA, A	62.2		%		62.7		%	61.9		%	61.3		%	61.8		%
BBB	32.8				32.9			33.5			34.3			33.8
BB	3.0				2.6			2.8			2.7			2.7
<BB	2.0				1.8			1.8			1.7			1.7

Investment by Type:
Fixed maturity securities	65.5		%		66.2		%	66.9		%	66.8		%	67.4		%
Residential mortgage-backed	9.0				8.4			7.7			7.4			7.3
Commercial mortgage-backed	6.7				6.3			6.1			5.7			6.0
Other asset-backed	6.3				6.5			6.6			6.5			6.4
Mortgage loans	7.7				8.1			8.1			8.2			8.0
Equity securities	1.1				1.1			1.2			1.3			1.4
Other	3.7				3.4			3.4			4.1			3.5

Agent Strength Totals:
Full time agents
8-state Farm Bureau Property & Casualty channel	1,129				1,111			1,088			1,121			1,117
7 life partner states (1)	686				682			681			680			677
	1,815				1,793			1,769			1,801			1,794

Reserve agents (2)	—				—			—			—			6

(1) Includes Greenfields Life Insurance Company agents in Colorado.
(2) Our reserve agent program allows individuals to work on a trial basis with the goal of becoming full time agents.

	Q1 2013				Q2 2013			Q3 2013			Q4 2013			Q1 2014
Equity Income (Loss), net of related income taxes				(Dollars in thousands)
Equity income (loss):
Low income housing tax credit partnerships	$	(1,346	)		$	(1,540	)	$	(1,473	)	$	(1,914	)	$	(1,761	)
Other equity method investments	639				1,295			148			552			181
	(707		)		(245		)	(1,325		)	(1,362		)	(1,580		)
Income taxes:
Taxes on equity income (loss)	247				87			463			477			566
Investment tax credits	1,772				2,686			2,691			2,626			2,662
Equity income (loss), net of related income taxes	$	1,312			$	2,528		$	1,829		$	1,741		$	1,648

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FBL FINANCIAL GROUP INC Reports