FBL FINANCIAL GROUP INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

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8-K - 8-K - FBL FINANCIAL GROUP INC	pressrelease8k2015q3.htm
EX-99.1 - EXHIBIT 99.1 - FBL FINANCIAL GROUP INC	exh991newsrelease2015q3.htm

FBL FINANCIAL GROUP, INC.

INVESTOR SUPPLEMENT

2015 Third Quarter




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
	Vice President Corporate & Investor Relations
	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)
September 30, 2015
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 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)



	September 30, 2015		December 31, 2014
Assets
Investments:
Fixed maturities - available for sale, at fair value (amortized cost: 2015 - $6,332,977; 2014 - $6,111,433)	$	6,720,128	$	6,700,698
Equity securities - available for sale, at fair value (cost: 2015 - $116,822; 2014 - $107,410)	120,543		112,623
Mortgage loans	694,069		629,296
Real estate	3,438		3,622
Policy loans	185,353		182,502
Short-term investments	17,314		48,585
Other investments	1,075		3,644
Total investments	7,741,920		7,680,970

Cash and cash equivalents	32,637		76,632
Securities and indebtedness of related parties	141,089		129,872
Accrued investment income	83,959		76,445
Amounts receivable from affiliates	5,436		2,666
Reinsurance recoverable	102,845		101,247
Deferred acquisition costs	292,450		220,760
Value of insurance in force acquired	21,053		22,497
Other assets	74,235		70,286
Assets held in separate accounts	617,172		683,033








Total assets	$	9,112,796	$	9,064,408

FBL Financial Group, Inc.

Consolidated Balance Sheets (Continued)

(Dollars in thousands)



	September 30, 2015		December 31, 2014
Liabilities and stockholders' equity
Liabilities:
Future policy benefits:
Interest sensitive products	$	4,722,977	$	4,543,980
Traditional life insurance and accident and health products	1,620,174		1,581,138
Other policy claims and benefits	39,645		34,895
Supplementary contracts without life contingencies	342,260		341,955
Advance premiums and other deposits	256,973		248,679
Amounts payable to affiliates	679		188
Long-term debt payable to non-affiliates	97,000		97,000
Current income taxes	13,514		2,764
Deferred income taxes	153,028		205,698
Other liabilities	82,065		72,196
Liabilities related to separate accounts	617,172		683,033
Total liabilities	7,945,487		7,811,526

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 24,766,512 in 2015 and 24,703,903 shares in 2014	148,016		144,625
Class B common stock, without par value - authorized 1,500,000 shares, issued and outstanding 11,413 shares in 2015 and 2014	72		72
Accumulated other comprehensive income	169,560		258,410
Retained earnings	846,630		846,737
Total FBL Financial Group, Inc. stockholders' equity	1,167,278		1,252,844
Noncontrolling interest	31		38
Total stockholders' equity	1,167,309		1,252,882
Total liabilities and stockholders' equity	$	9,112,796	$	9,064,408

FBL Financial Group, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

(Dollars in thousands, except per share data)



	Three months ended September 30,						Nine months ended September 30,
	2015			2014			2015			2014
Revenues:
Interest sensitive product charges	$	29,856		$	27,633		$	86,250		$	82,085
Traditional life insurance premiums	46,719			45,020			142,758			137,956
Net investment income	95,882			95,744			292,144			283,590
Net realized capital gains (losses) on sales of investments	(93		)	1,273			7,509			3,539

Total other-than-temporary impairment losses	(559		)	(273		)	(719		)	(273		)
Non-credit portion in other comprehensive income	146			—			146			—
Net impairment losses recognized in earnings	(413		)	(273		)	(573		)	(273		)
Other income	3,543			4,023			12,097			10,895
Total revenues	175,494			173,420			540,185			517,792

Benefits and expenses:
Interest sensitive product benefits	53,940			53,002			163,121			158,145
Traditional life insurance benefits	41,604			38,375			131,967			121,863
Policyholder dividends	2,885			2,834			8,802			9,086
Underwriting, acquisition and insurance expenses	36,176			34,829			107,535			103,547
Interest expense	1,213			1,197			3,637			3,495
Other expenses	4,277			3,488			13,425			11,999
Total benefits and expenses	140,095			133,725			428,487			408,135
	35,399			39,695			111,698			109,657
Income taxes	(11,520		)	(12,535		)	(36,057		)	(35,102		)
Equity income, net of related income taxes	2,761			2,992			6,932			7,171
Net income	26,640			30,152			82,573			81,726
Net loss attributable to noncontrolling interest	19			7			49			67
Net income attributable to FBL Financial Group, Inc.	$	26,659		$	30,159		$	82,622		$	81,793

Comprehensive income (loss) attributable to FBL Financial Group, Inc.	$	24,018		$	22,186		$	(6,228	)	$	197,087

Earnings per common share	$	1.07		$	1.21		$	3.31		$	3.28
Earnings per common share - assuming dilution	$	1.06		$	1.21		$	3.30		$	3.26

Cash dividends per common share	$	0.40		$	0.35		$	1.20		$	1.05
Special cash dividend per common share	$	—		$	—		$	2.00		$	—



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

	Q3 2014			Q4 2014			Q1 2015			Q2 2015			Q3 2015
Operating revenues:
Interest sensitive product charges	$	27,633		$	27,686		$	28,121		$	28,270		$	29,861
Traditional life insurance premiums	45,020			45,344			47,148			48,891			46,719
Net investment income	95,375			98,344			98,935			98,218			98,253
Other income	4,023			3,954			4,270			4,284			3,543
Total operating revenues	172,051			175,328			178,474			179,663			178,376

Benefits and expenses:
Interest sensitive product benefits	52,647			53,193			55,825			53,573			55,516
Traditional life insurance benefits	38,371			41,013			45,709			44,653			41,604
Policyholder dividends	2,834			2,926			2,961			2,956			2,885
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	6,227			4,790			6,137			5,348			5,243
Amortization of deferred acquisition costs	8,674			9,746			8,458			8,609			9,504
Amortization of value of insurance in force acquired	564			1,786			581			594			667
Other underwriting expenses	19,427			18,465			20,532			21,012			21,108
Total underwriting, acquisition and insurance expenses	34,892			34,787			35,708			35,563			36,522
Interest expense	1,197			1,212			1,212			1,212			1,213
Other expenses	3,488			4,446			4,530			4,618			4,277
Total benefits and expenses	133,429			137,577			145,945			142,575			142,017
	38,622			37,751			32,529			37,088			36,359
Income taxes	(12,158		)	(12,341		)	(10,504		)	(11,694		)	(11,855		)
Net loss attributable to noncontrolling interest	7			5			21			9			19
Equity income, net of related income taxes	2,992			2,932			1,769			2,402			2,761
Operating income	29,463			28,347			23,815			27,805			27,284

Realized gains/losses on investments, net of offsets	597			(220		)	(247		)	4,975			(307		)
Change in net unrealized gains/losses on derivatives, net of offsets	99			21			23			(408		)	(318		)
Net income attributable to FBL Financial Group, Inc.	$	30,159		$	28,148		$	23,591		$	32,372		$	26,659

Operating income per common share - assuming dilution	$	1.18		$	1.13		$	0.95		$	1.11		$	1.09
Earnings per common share - assuming dilution	$	1.21		$	1.13		$	0.94		$	1.29		$	1.06

Weighted average common shares outstanding (in thousands):
Basic	24,858			24,830			24,899			24,951			24,923
Effect of dilutive securities	131			132			110			88			80
Diluted	24,989			24,962			25,009			25,039			25,003

Operating return on equity, excluding AOCI - last twelve months	11.1		%	11.2		%	11.2		%	11.3		%	10.9		%
Operating return on equity, including AOCI - last twelve months	9.3		%	9.2		%	8.9		%	9.0		%	8.9		%

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. The annuity segment also includes index annuities. 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 September 30, 2015	Annuity		Life Insurance			Corporate & Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive product charges	$	542	$	16,998		$	12,321		$	29,861
Traditional life insurance premiums	—		46,719			—			46,719
Net investment income	52,873		37,743			7,637			98,253
Other income	—		(29		)	3,572			3,543
Total operating revenues	53,415		101,431			23,530			178,376

Benefits and expenses:
Interest sensitive product benefits	26,490		19,548			9,478			55,516
Traditional life insurance benefits	—		41,604			—			41,604
Policyholder dividends	—		2,885			—			2,885
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	441		4,065			737			5,243
Amortization of deferred policy acquisition costs	1,477		147			7,880			9,504
Amortization of value of insurance in force acquired	288		379			—			667
Other underwriting expenses	4,957		14,448			1,703			21,108
Total underwriting, acquisition and insurance expenses	7,163		19,039			10,320			36,522
Interest expense	—		—			1,213			1,213
Other expenses	—		—			4,277			4,277
Total benefits and expenses	33,653		83,076			25,288			142,017
	19,762		18,355			(1,758		)	36,359
Net loss attributable to noncontrolling interest	—		—			19			19
Equity loss, before tax	—		—			(1,035		)	(1,035		)
Pre-tax operating income	$	19,762	$	18,355		$	(2,774	)	$	35,343

FBL Financial Group, Inc.

Consolidating Statements of Pre-tax Operating Income (Continued)



Quarter Ended September 30, 2014	Annuity		Life Insurance			Corporate & Other			Consolidated
	(Dollars in thousands)
Operating revenues:
Interest sensitive product charges	$	327	$	15,653		$	11,653		$	27,633
Traditional life insurance premiums	—		45,020			—			45,020
Net investment income	50,743		37,350			7,282			95,375
Other income	—		(88		)	4,111			4,023
Total operating revenues	51,070		97,935			23,046			172,051

Benefits and expenses:
Interest sensitive product benefits	25,896		20,195			6,556			52,647
Traditional life insurance benefits	—		38,371			—			38,371
Policyholder dividends	—		2,834			—			2,834
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	560		4,753			914			6,227
Amortization of deferred acquisition costs	2,685		3,776			2,213			8,674
Amortization of value of insurance in force acquired	183		381			—			564
Other underwriting expenses	4,775		13,002			1,650			19,427
Total underwriting, acquisition and insurance expenses	8,203		21,912			4,777			34,892
Interest expense	—		—			1,197			1,197
Other expenses	—		—			3,488			3,488
Total benefits and expenses	34,099		83,312			16,018			133,429
	16,971		14,623			7,028			38,622
Net loss attributable to noncontrolling interest	—		—			7			7
Equity loss, before tax	—		—			(246		)	(246		)
Pre-tax operating income	$	16,971	$	14,623		$	6,789		$	38,383



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

	Q3 2014				Q4 2014			Q1 2015			Q2 2015			Q3 2015
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	327			$	535		$	613		$	655		$	542
Net investment income	50,743				52,797			52,146			52,809			52,873
Total operating revenues	51,070				53,332			52,759			53,464			53,415

Benefits and expenses:
Interest sensitive product benefits	25,896				26,971			27,453			28,162			26,490
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	560				463			546			435			441
Amortization of deferred acquisition costs	2,685				2,591			2,729			2,751			1,477
Amortization of value of insurance in force acquired	183				1,405			202			250			288
Other underwriting expenses	4,775				3,913			4,741			5,035			4,957
Total underwriting, acquisition and insurance expenses	8,203				8,372			8,218			8,471			7,163
Total benefits and expenses	34,099				35,343			35,671			36,633			33,653
Pre-tax operating income	$	16,971			$	17,989		$	17,088		$	16,831		$	19,762

Selected balance sheet data, securities at amortized cost:
Assets:
Investments	$	3,821,291			$	3,851,301		$	3,937,926		$	3,990,319		$	4,042,178
Deferred acquisition costs	82,882				82,778			83,295			83,156			85,271
Value of insurance in force acquired	7,449				6,044			5,841			5,585			5,299

Liabilities and equity:
Liabilities:
Interest sensitive product reserves	$	3,310,214			$	3,370,109		$	3,437,635		$	3,485,448		$	3,516,729
Other insurance reserves	372,840				372,244			368,921			373,611			373,950
Allocated equity, excluding AOCI	272,546				276,934			255,039			258,557			260,675

Other data:
Number of direct contracts	52,938				52,938			52,738			52,652			52,999

Portfolio yield net of assumed defaults	4.97		%		4.94		%	4.92		%	4.90		%	4.87		%
Credited rate	2.88				2.87			2.85			2.80			2.79
Spread on fixed annuities at end of quarter (1)	2.09		%		2.07		%	2.07		%	2.10		%	2.08		%

Interest sensitive reserve activity:
Individual annuity reserve:
Balance, beginning of period	$	2,549,318			$	2,584,236		$	2,609,792		$	2,641,380		$	2,667,088
Deposits	65,482				56,322			73,480			67,730			97,494
Withdrawals, surrenders and death benefits	(37,656		)		(38,551		)	(47,920		)	(45,482		)	(38,006		)
Net flows	27,826				17,771			25,560			22,248			59,488

Policyholder interest	17,574				18,830			18,650			18,799			18,088
Annuitizations and other	(10,482		)		(11,045		)	(12,622		)	(15,339		)	(14,773		)
Balance, end of period	2,584,236				2,609,792			2,641,380			2,667,088			2,729,891
Other interest sensitive reserves	725,978				760,317			796,255			818,360			786,838
Total interest sensitive product reserves	$	3,310,214			$	3,370,109		$	3,437,635		$	3,485,448		$	3,516,729


(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

	Q3 2014				Q4 2014			Q1 2015			Q2 2015			Q3 2015
Pre-tax Operating Income				(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	15,653			$	15,549		$	15,905		$	16,017		$	16,998
Traditional life insurance premiums	45,020				45,344			47,148			48,891			46,719
Net investment income	37,350				37,212			39,044			37,637			37,743
Other income	(88		)		(85		)	(87		)	(89		)	(29		)
Total operating revenues	97,935				98,020			102,010			102,456			101,431

Benefits and expenses:
Interest sensitive product benefits:
Interest credited	8,348				8,038			8,185			8,065			8,692
Death benefits and other	11,847				9,183			12,515			10,119			10,856
Total interest sensitive product benefits	20,195				17,221			20,700			18,184			19,548
Traditional life insurance benefits:
Death benefits	14,120				16,853			24,375			21,054			21,768
Surrender and other benefits	7,025				7,343			7,282			7,044			7,242
Increase in traditional life future policy benefits	17,226				16,817			14,052			16,555			12,594
Total traditional life insurance benefits	38,371				41,013			45,709			44,653			41,604
Policyholder dividends	2,834				2,926			2,961			2,956			2,885
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	4,753				3,676			4,627			4,123			4,065
Amortization of deferred acquisition costs	3,776				4,708			3,966			4,049			147
Amortization of value of insurance in force acquired	381				381			379			344			379
Other underwriting expenses	13,002				13,170			13,883			14,503			14,448
Total underwriting, acquisition and insurance expenses	21,912				21,935			22,855			23,019			19,039
Total benefits and expenses	83,312				83,095			92,225			88,812			83,076
Pre-tax operating income	$	14,623			$	14,925		$	9,785		$	13,644		$	18,355

Selected balance sheet data, securities at amortized cost:
Assets:
Investments	$	2,584,470			$	2,620,522		$	2,659,002		$	2,680,504		$	2,727,032
Deferred acquisition costs	227,849				232,020			235,395			238,647			245,016
Value of insurance in force acquired	20,773				20,392			20,013			19,669			19,291

Liabilities and equity:
Liabilities: (1)
Interest sensitive reserves	$	813,652			$	824,964		$	834,736		$	844,306		$	850,808
Other insurance reserves	1,735,299				1,750,822			1,778,288			1,788,634			1,797,249
Allocated equity, excluding AOCI	301,323				307,062			321,009			325,051			327,310



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

	Q3 2014				Q4 2014			Q1 2015			Q2 2015			Q3 2015
				(Dollars in thousands)
Other data:
Number of direct policies - traditional life	360,695				362,519			364,134			364,835			364,194
Number of direct policies - universal life	61,800				62,020			62,147			62,082			62,045
Direct face amounts - traditional life	$	44,605,483			$	45,294,950		$	46,059,311		$	46,641,997		$	46,960,976
Direct face amounts - universal life	$	6,382,181			$	6,435,869		$	6,474,505		$	6,535,614		$	6,515,708

Portfolio yield net of assumed defaults	5.40		%		5.35		%	5.27		%	5.25		%	5.22		%
Credited rate	3.86				3.86			3.81			3.82			3.81
Spread on universal life at end of quarter (2)	1.54		%		1.49		%	1.46		%	1.43		%	1.41		%

Interest sensitive reserve activity: (1)
Balance, beginning of period	$	801,942			$	813,652		$	824,964		$	834,736		$	844,306
Deposits	23,853				23,550			24,959			24,413			22,828
Withdrawals and surrenders	(4,578		)		(5,001		)	(6,131		)	(6,170		)	(7,868		)
Net flows	19,275				18,549			18,828			18,243			14,960

Policyholder interest	7,573				7,392			7,477			7,365			7,794
Policy charges	(16,041		)		(16,081		)	(16,553		)	(16,544		)	(16,647		)
Benefits and other	903				1,452			20			506			395
Balance, end of period	$	813,652			$	824,964		$	834,736		$	844,306		$	850,808


(1)	Reserves on riders in interest sensitive life insurance products are included in Other insurance reserves.


(2)	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

	Q3 2014				Q4 2014			Q1 2015			Q2 2015			Q3 2015
Pre-tax Operating Income (Loss)				(Dollars in thousands)

Operating revenues:
Interest sensitive product charges	$	11,653			$	11,602		$	11,603		$	11,598		$	12,321
Net investment income	7,282				8,335			7,745			7,772			7,637
Other income	4,111				4,039			4,357			4,373			3,572
Total operating revenues	23,046				23,976			23,705			23,743			23,530

Benefits and expenses:
Interest sensitive product benefits	6,556				9,001			7,672			7,227			9,478
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals	914				651			964			790			737
Amortization of deferred acquisition costs	2,213				2,447			1,763			1,809			7,880
Other underwriting expenses	1,650				1,382			1,908			1,474			1,703
Total underwriting, acquisition and insurance expenses	4,777				4,480			4,635			4,073			10,320
Interest expense	1,197				1,212			1,212			1,212			1,213
Other expenses	3,488				4,446			4,530			4,618			4,277
Total benefits and expenses	16,018				19,139			18,049			17,130			25,288
	7,028				4,837			5,656			6,613			(1,758		)
Net loss attributable to noncontrolling interest	7				5			21			9			19
Equity loss, before tax	(246		)		(325		)	(2,181		)	(1,671		)	(1,035		)
Pre-tax operating income (loss)	$	6,789			$	4,517		$	3,496		$	4,951		$	(2,774	)

Selected balance sheet data, securities at amortized cost:
Assets:
Investments	$	618,631			$	614,669		$	584,707		$	590,971		$	581,838
Deferred acquisition costs	87,725				85,506			83,937			82,450			74,943
Separate account assets	686,218				683,033			688,194			676,045			617,172

Liabilities and equity:
Liabilities:
Interest sensitive reserves	$	333,910			$	337,725		$	336,598		$	341,076		$	345,069
Other insurance reserves	94,564				95,062			98,643			94,455			97,130
Separate account liabilities	686,218				683,033			688,194			676,045			617,172
Allocated equity, excluding AOCI	397,156				407,438			382,181			397,652			406,733

Rollforward of separate account balances:
Beginning separate account balance	$	712,533			$	686,218		$	683,033		$	688,194		$	676,045
Net premiums	5,340				3,061			8,609			7,218			3,455
Net investment income	(11,995		)		12,069			16,201			(1,088		)	(45,356		)
Charges, benefits and surrenders	(19,660		)		(18,315		)	(19,649		)	(18,279		)	(16,972		)
Ending separate account balance	$	686,218			$	683,033		$	688,194		$	676,045		$	617,172

Other data:
Number of direct contracts - variable annuity	12,287				12,128			11,936			11,771			11,455
Number of direct policies - variable universal life	43,139				42,651			42,139			41,653			41,148
Direct face amounts - variable universal life	$	5,359,184			$	5,289,986		$	5,219,147		$	5,166,219		$	5,089,925



FBL Financial Group, Inc.
Deferred Acquisition Costs by Segment

	Q3 2014				Q4 2014			Q1 2015			Q2 2015			Q3 2015
				(Dollars in thousands)
Annuity
Balance - beginning of period	$	82,838			$	82,882		$	82,778		$	83,295		$	83,156
Capitalization:
Commissions	2,278				2,112			2,779			2,660			3,132
Expenses	248				281			196			239			248
Deferral of sales inducements	69				71			85			42			132
Total capitalization	2,595				2,464			3,060			2,941			3,512
Amortization - operating basis, before impact of unlocking	(2,690		)		(2,598		)	(2,741		)	(2,761		)	(2,909		)
Amortization - unlocking, operating basis	—				—			—			—			1,419
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	139				30			198			(319		)	93
Balance - end of period	$	82,882			$	82,778		$	83,295		$	83,156		$	85,271

Life Insurance
Balance - beginning of period	$	224,374			$	227,849		$	232,020		$	235,395		$	238,647
Capitalization:
Commissions	4,447				5,472			5,009			4,923			4,392
Expenses	2,704				3,134			2,131			2,275			2,077
Deferral of sales inducements	215				419			336			263			125
Total capitalization	7,366				9,025			7,476			7,461			6,594
Amortization - operating basis, before impact of unlocking	(3,803		)		(4,255		)	(4,101		)	(4,180		)	(4,637		)
Amortization - unlocking, operating basis	—				(600		)	—			—			4,400
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	(88		)		1			—			(29		)	12
Balance - end of period	$	227,849			$	232,020		$	235,395		$	238,647		$	245,016

Corporate and Other
Balance - beginning of period	$	89,814			$	87,725		$	85,506		$	83,937		$	82,450
Capitalization:
Commissions	128				187			239			242			139
Deferral of sales inducements	10				12			20			7			1
Total capitalization	138				199			259			249			140
Amortization - operating basis, before impact of unlocking	(2,235		)		(1,571		)	(1,798		)	(1,833		)	(3,513		)
Amortization - unlocking, operating basis	—				(892		)	—			—			(4,375		)
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	8				45			(30		)	97			241
Balance - end of period	$	87,725			$	85,506		$	83,937		$	82,450		$	74,943



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

	Q3 2014				Q4 2014			Q1 2015			Q2 2015			Q3 2015
				(Dollars in thousands)
Total
Balance - beginning of period	$	397,026			$	398,456		$	400,304		$	402,627		$	404,253
Capitalization:
Commissions	6,853				7,771			8,027			7,825			7,663
Expenses	2,952				3,415			2,327			2,514			2,325
Deferral of sales inducements	294				502			441			312			258
Total capitalization	10,099				11,688			10,795			10,651			10,246
Amortization - operating basis, before impact of unlocking	(8,728		)		(8,424		)	(8,640		)	(8,774		)	(11,059		)
Amortization - unlocking, operating basis	—				(1,492		)	—			—			1,444
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives	59				76			168			(251		)	346
Balance - end of period	398,456				400,304			402,627			404,253			405,230
Impact of realized/unrealized gains/losses in AOCI	(148,900		)		(179,544		)	(197,928		)	(111,878		)	(112,780		)
Deferred acquisition costs	$	249,556			$	220,760		$	204,699		$	292,375		$	292,450



FBL Financial Group, Inc.
Collected Premiums

	Q3 2014				Q4 2014			Q1 2015			Q2 2015			Q3 2015
				(Dollars in thousands)
Annuity
Individual:
Fixed rate:
First year	$	22,494			$	15,842		$	20,180		$	21,630		$	55,743
Renewal	23,581				19,677			32,014			26,084			19,868
Total fixed rate	46,075				35,519			52,194			47,714			75,611
Index annuity	19,646				20,867			21,930			20,583			22,351
Total individual	65,721				56,386			74,124			68,297			97,962
Group	2,035				3,063			2,211			1,727			4,009
Total Annuity	67,756				59,449			76,335			70,024			101,971

Life Insurance
Direct:
Universal life:
First year	7,991				6,763			6,645			6,486			6,377
Renewal	14,942				16,212			17,528			17,350			15,632
Total universal life	22,933				22,975			24,173			23,836			22,009
Participating whole life:
First year	3,173				2,905			3,113			3,533			3,726
Renewal	23,252				24,057			24,759			24,783			22,964
Total participating whole life	26,425				26,962			27,872			28,316			26,690
Term life and other:
First year	2,809				2,816			3,166			2,980			2,827
Renewal	21,192				22,139			22,892			22,732			22,607
Total term life and other	24,001				24,955			26,058			25,712			25,434
Total direct life insurance	73,359				74,892			78,103			77,864			74,133
Reinsurance	(5,702		)		(6,875		)	(6,888		)	(6,777		)	(5,974		)
Total Life Insurance	67,657				68,017			71,215			71,087			68,159

Corporate and Other
Variable, net of reinsurance	13,910				14,456			18,578			16,959			13,838
Accident and health, net of reinsurance	52				226			120			34			38
Total Corporate and Other	13,962				14,682			18,698			16,993			13,876

Total collected premiums	$	149,375			$	142,148		$	166,248		$	158,104		$	184,006



FBL Financial Group, Inc.
Other Information

	September 30,				December 31,			March 31,			June 30,			September 30,
	2014				2014			2015			2015			2015
				(Dollars in thousands, except per share data)

Capitalization:
Trust preferred securities, due 2047	97,000				97,000			97,000			97,000			97,000
Total debt	97,000				97,000			97,000			97,000			97,000

Preferred stock	3,000				3,000			3,000			3,000			3,000
Common stockholders' equity, excluding AOCI	971,025				991,434			958,229			981,260			994,718
Total capitalization, excluding AOCI	1,071,025				1,091,434			1,058,229			1,081,260			1,094,718

Accumulated other comprehensive income	234,361				258,410			287,828			172,201			169,560
Total capitalization, including AOCI	$	1,305,386			$	1,349,844		$	1,346,057		$	1,253,461		$	1,264,278

Common shares outstanding	24,672,812				24,715,316			24,796,884			24,814,581			24,777,925

Book Value per Share:
Excluding AOCI	$	39.36			$	40.11		$	38.64		$	39.54		$	40.15
Including AOCI	48.85				50.57			50.25			46.48			46.99

Debt-to-Capital Ratio:
Excluding AOCI	9.1		%		8.9		%	9.2		%	9.0		%	8.9		%
Including AOCI	7.4				7.2			7.2			7.7			7.7

Debt-to-Capital Ratio with 50% Credit for Trust Preferred Securities:
Excluding AOCI	4.5		%		4.4		%	4.6		%	4.5		%	4.4		%
Including AOCI	3.7				3.6			3.6			3.9			3.8

Class A Common Ownership:
Iowa Farm Bureau Federation	59.9		%		59.7		%	59.6		%	59.5		%	59.6		%
Public	40.1				40.3			40.4			40.5			40.4
	100.0		%		100.0		%	100.0		%	100.0		%	100.0		%



FBL Financial Group, Inc.
Other Information (Continued)

	September 30,				December 31,			March 31,			June 30,			September 30,
	2014				2014			2015			2015			2015

Quality of Fixed Maturity Securities:
AAA, AA, A	62.7		%		63.5		%	63.2		%	63.3		%	64.4		%
BBB	33.5				32.9			32.9			32.6			31.7
BB	2.5				2.5			2.7			2.9			2.8
<BB	1.3				1.1			1.2			1.2			1.1

Investment by Type:
Fixed maturity securities	67.1		%		67.1		%	66.9		%	65.8		%	66.0		%
Residential mortgage-backed	6.7				6.4			6.2			6.2			6.0
Commercial mortgage-backed	6.7				6.9			6.9			6.9			7.2
Other asset-backed	6.6				6.8			7.1			7.6			7.5
Mortgage loans	8.3				8.2			8.6			9.0			9.0
Equity securities	1.5				1.5			1.6			1.6			1.6
Other	3.1				3.1			2.7			2.9			2.7

Agent Strength Totals:
Full time agents and agency managers:
8-state Farm Bureau Property & Casualty channel	1,119				1,141			1,126			1,154			1,176
6 life partner states and Colorado	667				654			656			656			662
	1,786				1,795			1,782			1,810			1,838

	Q3 2014				Q4 2014			Q1 2015			Q2 2015			Q3 2015
Equity Income (Loss), net of related income taxes				(Dollars in thousands)
Equity income (loss):
Low income housing tax credit partnerships	$	(1,355	)		$	(1,626	)	$	(1,845	)	$	(1,997	)	$	(1,554	)
Other equity method investments	1,109				1,301			(336		)	326			519
	(246		)		(325		)	(2,181		)	(1,671		)	(1,035		)
Income taxes:
Taxes on equity income (loss)	93				126			763			585			362
Investment tax credits	3,145				3,131			3,187			3,488			3,434
Equity income, net of related income taxes	$	2,992			$	2,932		$	1,769		$	2,402		$	2,761

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FBL FINANCIAL GROUP INC Reports