EX-99.2 3 invsupp2020q4.htm EX-99.2 Document



FBL FINANCIAL GROUP, INC.
INVESTOR SUPPLEMENT
2020 Fourth Quarter



invsuppcover251.jpg






fblfgrgb960pxa021.jpg






Corporate HeadquartersFBL Financial Group, Inc.
5400 University Avenue
West Des Moines, Iowa 50266-5997
(515) 225-5400
Financial InquiriesFor more information contact:
Kathleen Till Stange
Vice President Corporate & Investor Relations
Kathleen.TillStange@FBLFinancial.com
(515) 226-6780
Internet InformationFBL Financial Group, Inc.
www.fblfinancial.com
Stock SymbolNYSE: FFG
Transfer AgentAmerican Stock Transfer & Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
http://www.astfinancial.com

















FBL Financial Group, Inc.
Financial Supplement (Unaudited)
December 31, 2020
Table of Contents/Notes
Consolidated Financial Statements:
Consolidated Balance Sheets
Consolidated Statements of Comprehensive Income
Consolidated Statements of Comprehensive Income (Loss), last five quarters
Net Income (Loss) to Adjusted Operating Income Reconciliation and Pre-tax Adjusted Operating Income by Segment, last five quarters
Financial Information by Segment:
Segment Information
Statements of Pre-tax Adjusted Operating Income, last five quarters:
Annuity Segment
Life Insurance Segment
Corporate and Other Segment
Deferred Acquisition Costs by Segment
Impact of Unlocking on Pre-tax Adjusted Operating Income
Collected Premiums, last five quarters
Other Information

NOTE 1: In addition to net income as determined using U.S. Generally Accepted Accounting Principles (GAAP), we have consistently used adjusted operating income (a measure of earnings not recognized under GAAP), a financial measure common in the life insurance industry, as a primary economic measure to evaluate our financial performance. Adjusted operating income for the periods presented consists of net income adjusted primarily to exclude realized gains and losses on investments and the change in fair value of derivatives and equity securities. Effective for 2020, we revised our adjusted operating income policy to exclude proposed acquisition transaction expenses, as these expenses are not reflective of our ongoing operations. See Form 8-K filed on January 11, 2021 for more information associated with our proposed go-private transaction.

We use adjusted operating income, in addition to net income, to measure our performance since realized gains and losses on investments and the change in fair value of derivatives and equities can fluctuate greatly from quarter to quarter. These fluctuations, along with the impact of expenses associated with the go-private transaction, make it difficult to analyze core operating trends. A view of our adjusted operating performance without the impact of these items enhances the analysis of our results. We use adjusted 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.

We analyze our segment results based on pre-tax adjusted operating income, which excludes the impact of certain items that are included in pre-tax net income. Pre-tax adjusted operating income is a basis allowed for segment reporting under GAAP. See Note 13 to our consolidated financial statements in Form 10-K for the year ended December 31, 2019 for further information regarding how we define our segments.
NOTE 2: Certain financial information presented herein may not add due to rounding.
1



FBL Financial Group, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
December 31,
2020
December 31,
2019
Assets
Investments:
Fixed maturities - available for sale, at fair value (amortized cost 2020 - $7,179,303; 2019 - $7,015,269; and allowance for credit losses 2020 - $4,882, 2019 - $0)$8,283,687 $7,702,628 
Equity securities at fair value (cost: 2020 - $82,999; 2019 - $95,269)88,281 100,228 
Mortgage loans (net of allowance for credit losses 2020 - $1,553, 2019 - $0)994,101 1,011,678 
Real estate955 955 
Policy loans195,666 201,589 
Short-term investments63,062 11,865 
Other investments (net of allowance for credit losses 2020 - $929, 2019 - $0)58,258 62,680 
Total investments9,684,010 9,091,623 
Cash and cash equivalents12,882 17,277 
Securities and indebtedness of related parties88,445 74,791 
Accrued investment income70,278 72,332 
Amounts receivable from affiliates3,257 4,357 
Reinsurance recoverable 115,168 107,498 
Deferred acquisition costs176,085 289,456 
Value of insurance in force acquired2,304 2,624 
Current income taxes recoverable16,732 6,427 
Other assets152,929 167,940 
Assets held in separate accounts674,182 645,881 
Total assets$10,996,272 $10,480,206 


2



FBL Financial Group, Inc.
Consolidated Balance Sheets (Continued)
(Dollars in thousands)
December 31,
2020
December 31,
2019
Liabilities and stockholders' equity
Liabilities:
Future policy benefits:
Interest sensitive products$5,725,725 $5,548,212 
Traditional life insurance and accident and health products1,890,547 1,845,337 
Other policy claims and benefits57,438 46,883 
Supplementary contracts without life contingencies274,469 296,915 
Advance premiums and other deposits271,082 253,458 
Amounts payable to affiliates406 1,218 
Long-term debt payable to non-affiliates97,000 97,000 
Deferred income taxes211,180 152,373 
Other liabilities102,127 107,013 
Liabilities related to separate accounts674,182 645,881 
Total liabilities9,304,156 8,994,290 
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 shares3,000 3,000 
Class A common stock, without par value - authorized 88,500,000 shares, issued and outstanding 24,384,109 in 2020 and 24,652,802 shares in 2019151,061 152,661 
Class B common stock, without par value - authorized 1,500,000 shares, issued and outstanding 11,413 shares in 2020 and 201972 72 
Accumulated other comprehensive income587,279 354,764 
Retained earnings950,687 975,260 
Total FBL Financial Group, Inc. stockholders' equity1,692,099 1,485,757 
Noncontrolling interest17 159 
Total stockholders' equity1,692,116 1,485,916 
Total liabilities and stockholders' equity$10,996,272 $10,480,206 


3



FBL Financial Group, Inc.
Consolidated Statements of Comprehensive Income (Unaudited)
(Dollars in thousands, except per share data)
Three months ended December 31,Year ended December 31,
2020201920202019
Revenues:
Interest sensitive product charges$32,473 $32,178 $132,522 $127,113 
Traditional life insurance premiums51,320 50,502 198,749 197,863 
Net investment income106,023 108,986 397,231 424,998 
Net realized capital gains (losses)(3,428)(2,707)(12,085)8,523 
Change in allowance for credit losses on investments6,656 — (4,199)— 
Other-than-temporary impairment losses— — — (919)
Other income5,400 4,602 20,047 17,103 
Total revenues198,444 193,561 732,265 774,681 
Benefits and expenses:
Interest sensitive product benefits78,944 73,507 282,201 276,473 
Traditional life insurance benefits49,592 43,142 186,441 174,654 
Policyholder dividends1,659 2,514 7,538 10,053 
Underwriting, acquisition and insurance expenses32,843 26,290 143,887 140,624 
Interest expense1,377 1,213 5,015 4,850 
Other expenses10,187 6,597 32,711 25,246 
Total benefits and expenses174,602 153,263 657,793 631,900 
23,842 40,298 74,472 142,781 
Income tax (2,174)(6,500)(8,061)(19,929)
Equity income, net of related income taxes6,144 1,033 5,906 3,456 
Net income 27,812 34,831 72,317 126,308 
Net (income) loss attributable to noncontrolling interest31 (92)196 (99)
Net income attributable to FBL Financial Group, Inc.$27,843 $34,739 $72,513 $126,209 
Comprehensive income (loss) attributable to FBL Financial Group, Inc.$86,035 $(16,672)$305,028 $389,655 
Earnings per common share$1.14 $1.40 $2.94 $5.09 
Earnings per common share - assuming dilution$1.14 $1.40 $2.94 $5.09 
Cash dividends per common share$0.50 $0.48 $2.00 $1.92 
Special cash dividend per common share$— $— $1.50 $1.50 

4



FBL Financial Group, Inc.
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - Quarterly
(Dollars in thousands, except per share data)
Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020
Revenues:
Interest sensitive product charges$32,178 $31,720 $32,909 $35,420 $32,473 
Traditional life insurance premiums50,502 49,308 50,329 47,792 51,320 
Net investment income108,986 74,917 110,435 105,856 106,023 
Net realized capital gains (losses)(2,707)(13,401)2,753 1,991 (3,428)
Change in allowance for credit losses on investments— (12,261)(497)1,903 6,656 
Other income4,602 4,980 4,784 4,883 5,400 
Total revenues193,561 135,263 200,713 197,845 198,444 
Benefits and expenses:
Interest sensitive product benefits73,507 44,351 79,103 79,803 78,944 
Traditional life insurance benefits43,142 46,208 45,112 45,529 49,592 
Policyholder dividends2,514 2,529 1,617 1,733 1,659 
Underwriting, acquisition and insurance expenses26,290 39,421 33,492 38,131 32,843 
Interest expense1,213 1,213 1,213 1,212 1,377 
Other expenses6,597 7,421 7,225 7,878 10,187 
Total benefits and expenses153,263 141,143 167,762 174,286 174,602 
40,298 (5,880)32,951 23,559 23,842 
Income tax benefit (expense)(6,500)3,081 (6,085)(2,883)(2,174)
Equity income (loss), net of related income taxes1,033 228 (743)277 6,144 
Net income (loss)34,831 (2,571)26,123 20,953 27,812 
Net (income) loss attributable to noncontrolling interest(92)56 88 21 31 
Net income (loss) attributable to FBL Financial Group, Inc.$34,739 $(2,515)$26,211 $20,974 $27,843 
Comprehensive income (loss) attributable to FBL Financial Group, Inc.$(16,672)$(98,857)$249,415 $68,435 $86,035 
Earnings (loss) per common share$1.40 $(0.10)$1.06 $0.85 $1.14 
Earnings (loss) per common share - assuming dilution$1.40 $(0.10)$1.06 $0.85 $1.14 
Cash dividends per common share$0.48 $0.50 $0.50 $0.50 $0.50 
Special cash dividend per common share$— $1.50 $— $— $ 
Weighted average common shares outstanding (in thousands):
Basic24,761 24,763 24,724 24,497 24,478 
Effect of dilutive securities— 1 
Diluted24,769 24,763 24,728 24,500 24,479 

5



FBL Financial Group, Inc.
Net Income (Loss) to Adjusted Operating Income Reconciliation and Pre-tax Adjusted Operating Income by Segment
(Dollars in thousands, except per share data)
Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020
Net income (loss) attributable to FBL Financial Group, Inc.$34,739 $(2,515)$26,211 $20,974 $27,843 
Net income adjustments:
Proposed acquisition transaction expenses (1)— — — — 2,147 
Realized gains/losses on investments (2)2,147 20,112 (1,709)(3,300)(2,808)
Change in net unrealized gains/losses on derivatives (2)(2,047)2,039 748 2,079 91 
Adjusted operating income (3)$34,839 $19,636 $25,250 $19,753 $27,273 
Adjusted operating income per common share - assuming dilution (3)$1.41$0.79$1.02$0.80$1.11
Adjusted operating return on equity, excluding AOCI - last twelve months10.7%10.2%9.6%9.1%8.4%
Adjusted operating return on equity, including AOCI - last twelve months8.6%8.0%7.2%6.6%6.0%
Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020
Impact of Adjustments on FBL Net Income
Proposed acquisition transaction expenses (1)$— $— $— $— $(2,147)
Realized gains (losses) on investments and change in fair value of equity securities and derivatives70 (28,069)426 780 3,176 
Offsets: (4)
Change in amortization61 (176)134 639 (247)
Reserve change on interest sensitive products(258)205 656 126 84 
Income tax27 5,889 (255)(324)(296)
Net impact of net income adjustments$(100)$(22,151)$961 $1,221 $570 
Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020
Pre-tax adjusted operating income by segment:
Annuity segment$14,414 $12,019 $14,917 $18,916 $15,181 
Life Insurance segment24,771 10,267 12,260 2,641 11,490 
Corporate and Other segment2,456 219 3,706 829 4,113 
Total pre-tax adjusted operating income41,641 22,505 30,883 22,386 30,784 
Income taxes on adjusted operating income(6,802)(2,869)(5,633)(2,633)(3,511)
Adjusted operating income (3)$34,839 $19,636 $25,250 $19,753 $27,273 

(1) Amount represents the transaction expenses relating to FBL Financial Group's proposed go-private transaction.
(2) Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves and deferred acquisition costs, as well as changes in interest sensitive product reserves and income taxes attributable to these items.
(3)    Adjusted operating income is a non-GAAP measure of earnings, see Note 1 on page 1 for additional information.
(4) The items excluded from adjusted operating income impact the amortization of deferred acquisition costs and unearned revenue reserve. Certain interest sensitive reserves as well as income taxes are also impacted.
6



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 and indexed annuities and supplementary contracts (some of which involve life contingencies). Fixed rate and indexed 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. With indexed 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, including indexed universal life. 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 includes (i) wealth management services; (ii) advisory services for the management of investments and other companies; (iii) marketing and distribution services for the sale of insurance products not issued by us; (iv) leasing services with affiliates; (v) closed blocks of variable annuity, variable life and accident and health products; (vi) interest expense and (vii) investments and related investment income not specifically allocated to our product segments.

We analyze our segment results based on pre-tax adjusted operating income. Accordingly, income taxes are not allocated to the segments. In addition, adjusted operating results are reported net of transactions between the segments.
7



FBL Financial Group, Inc.
Statements of Pre-tax Adjusted Operating Income
Annuity Segment
Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020
Pre-tax Adjusted Operating Income(Dollars in thousands)
Adjusted operating revenues:
Interest sensitive product charges$1,734 $1,886 $2,079 $1,776 $2,237 
Net investment income 52,618 52,768 51,458 51,576 51,934 
Total adjusted operating revenues54,352 54,654 53,537 53,352 54,171 
Adjusted operating benefits and expenses:
Interest sensitive product benefits30,980 33,883 30,518 25,652 30,938 
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals662 421 315 320 299 
Amortization of deferred acquisition costs2,763 2,646 2,397 3,384 2,439 
Amortization of value of insurance in force acquired164 175 175 175 164 
Other underwriting expenses 5,369 5,510 5,215 4,905 5,150 
Total underwriting, acquisition and insurance expenses8,958 8,752 8,102 8,784 8,052 
Total adjusted operating benefits and expenses39,938 42,635 38,620 34,436 38,990 
Pre-tax adjusted operating income$14,414 $12,019 $14,917 $18,916 $15,181 
Selected balance sheet data, securities at amortized cost:
Assets:
Investments$4,541,355 $4,635,897 $4,714,493 $4,662,809 $4,629,414 
Deferred acquisition costs88,295 88,257 87,622 87,104 86,289 
Value of insurance in force acquired2,198 2,022 1,847 1,672 1,507 
Liabilities and equity:
Liabilities:
Interest sensitive product reserves$4,105,054 $4,195,802 $4,260,316 $4,238,518 $4,191,493 
Other insurance reserves335,222 332,478 329,208 322,916 317,933 
Allocated equity, excluding AOCI253,096 239,999 243,245 241,756 239,000 
Other data:
Number of direct contracts51,536 50,948 50,533 50,217 49,895 
Portfolio yield net of assumed defaults4.35 %4.32 %4.28 %4.21 %4.14 %
Credited rate2.60 2.55 2.56 2.56 2.56 
Spread on individual annuities at end of quarter (1)1.75 %1.77 %1.72 %1.65 %1.58 %
Interest sensitive reserve activity:
Individual annuity reserve:
Balance, beginning of period$3,204,500 $3,221,385 $3,203,598 $3,209,679 $3,221,472 
Deposits63,532 55,266 34,973 43,119 42,142 
Withdrawals, surrenders and death benefits(63,065)(66,299)(51,605)(50,945)(65,422)
Net flows467 (11,033)(16,632)(7,826)(23,280)
Policyholder interest21,207 21,479 20,811 21,125 21,962 
Annuitizations and other(4,789)(28,233)1,902 (1,506)57 
Balance, end of period3,221,385 3,203,598 3,209,679 3,221,472 3,220,211 
Other interest sensitive reserves883,669 992,204 1,050,637 1,017,046 971,282 
Total interest sensitive product reserves$4,105,054 $4,195,802 $4,260,316 $4,238,518 $4,191,493 

(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.
8



FBL Financial Group, Inc.
Statements of Pre-tax Adjusted Operating Income
Life Insurance Segment
Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020
Pre-tax Adjusted Operating Income(Dollars in thousands)
Adjusted operating revenues:
Interest sensitive product charges$18,956 $20,379 $19,969 $23,243 $20,116 
Traditional life insurance premiums50,502 49,308 50,329 47,792 51,320 
Net investment income 40,204 37,575 39,271 40,198 40,454 
Other income(159)(47)(77)(63)(67)
Total adjusted operating revenues109,503 107,215 109,492 111,170 111,823 
Adjusted operating benefits and expenses:
Interest sensitive product benefits:
Interest and index credits 9,803 7,843 9,500 11,110 10,526 
Death benefits and other 15,513 16,371 16,846 22,958 17,251 
Total interest sensitive product benefits25,316 24,214 26,346 34,068 27,777 
Traditional life insurance benefits:
Death benefits22,878 26,098 23,584 25,579 31,998 
Surrender and other benefits9,548 10,142 7,383 7,835 8,380 
Increase in traditional life future policy benefits 10,716 9,970 14,144 12,113 9,214 
Total traditional life insurance benefits43,142 46,210 45,111 45,527 49,592 
Policyholder dividends2,514 2,529 1,617 1,733 1,659 
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals5,195 4,832 4,662 4,547 4,782 
Amortization of deferred acquisition costs(5,732)2,419 3,065 8,404 3,287 
Amortization of value of insurance in force acquired372 370 370 370 370 
Other underwriting expenses 14,950 16,749 15,078 14,179 15,217 
Total underwriting, acquisition and insurance expenses14,785 24,370 23,175 27,500 23,656 
Total adjusted operating benefits and expenses85,757 97,323 96,249 108,828 102,684 
$23,746 $9,892 $13,243 $2,342 $9,139 
Equity income (loss), before tax1,025 375 (983)299 2,351 
Pre-tax adjusted operating income$24,771 $10,267 $12,260 $2,641 $11,490 
Selected balance sheet data, securities at amortized cost:
Assets:
Investments$3,155,216 $3,174,890 $3,191,110 $3,228,619 $3,218,873 
Deferred acquisition costs341,143 346,585 350,092 346,776 353,626 
Value of insurance in force acquired12,924 12,554 12,184 11,814 11,444 
Liabilities and equity:
Liabilities: (1)
Interest sensitive reserves$1,039,335 $1,050,311 $1,067,132 $1,086,664 $1,103,666 
Other insurance reserves2,043,029 2,056,553 2,084,413 2,097,431 2,123,108 
Allocated equity, excluding AOCI480,489 504,451 514,602 520,220 528,358 

9



FBL Financial Group, Inc.
Statements of Pre-tax Adjusted Operating Income
Life Insurance Segment (Continued)
Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020
(Dollars in thousands)
Other data:
Number of direct policies - traditional life365,399 364,286 364,117 363,880 364,729 
Number of direct policies - universal life72,972 73,508 74,178 74,450 75,612 
Direct face amounts - traditional life$53,320,484 $53,509,739 $53,846,236 $54,192,288 $54,732,343 
Direct face amounts - universal life$8,245,749 $8,342,877 $8,442,603 $8,503,362 $8,673,699 
Portfolio yield net of assumed defaults4.85 %4.84 %4.80 %4.76 %4.69 %
Credited rate3.81 3.85 3.85 3.83 3.82 
Spread on universal life at end of quarter (2)1.04 %0.99 %0.95 %0.93 %0.87 %
Interest sensitive reserve activity: (1)
Balance, beginning of period$1,024,103 $1,039,335 $1,050,311 $1,067,132 $1,086,664 
Deposits30,962 33,118 30,903 30,888 33,115 
Withdrawals and surrenders(6,915)(7,205)(6,972)(7,675)(5,767)
Net flows24,047 25,913 23,931 23,213 27,348 
Policyholder interest9,165 7,156 8,971 9,444 9,910 
Policy charges(20,603)(21,774)(21,733)(21,666)(22,219)
Benefits and other2,623 (319)5,652 8,541 1,963 
Balance, end of period$1,039,335 $1,050,311 $1,067,132 $1,086,664 $1,103,666 

(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.
10



FBL Financial Group, Inc.
Statements of Pre-tax Adjusted Operating Income
Corporate and Other
Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020
Pre-tax Adjusted Operating Income (Dollars in thousands)
Adjusted operating revenues:
Interest sensitive product charges$10,757 $10,956 $10,282 $10,246 $10,028 
Net investment income 8,797 8,057 6,879 7,306 7,298 
Other income4,761 5,027 4,861 4,946 5,467 
Total adjusted operating revenues24,315 24,040 22,022 22,498 22,793 
Adjusted operating benefits and expenses:
Interest sensitive product benefits12,315 7,626 8,205 10,310 13,921 
Underwriting, acquisition and insurance expenses:
Commission expense, net of deferrals685 699 635 669 583 
Amortization of deferred acquisition costs5,055 (633)111 (1,368)
Other underwriting expenses1,231 1,777 1,802 1,562 1,584 
Total underwriting, acquisition and insurance expenses1,925 7,531 1,804 2,342 799 
Interest expense1,213 1,213 1,213 1,212 1,377 
Other expenses 6,597 7,421 7,225 7,878 8,040 
Total adjusted operating benefits and expenses22,050 23,791 18,447 21,742 24,137 
2,265 249 3,575 756 (1,344)
Net (income) loss attributable to noncontrolling interest(92)56 88 21 31 
Equity income (loss), before tax283 (86)43 52 5,426 
Pre-tax adjusted operating income $2,456 $219 $3,706 $829 $4,113 
Selected balance sheet data, securities at amortized cost:
Assets:
Investments$702,734 $652,607 $641,214 $692,965 $721,175 
Deferred acquisition costs60,245 55,656 55,912 55,381 56,659 
Separate account assets645,881 525,582 599,203 616,381 674,182 
Liabilities and equity:
Liabilities:
Interest sensitive reserves$369,454 $369,026 $368,870 $372,594 $376,114 
Other insurance reserves86,094 83,905 80,819 82,944 85,339 
Separate account liabilities645,881 525,582 599,203 616,381 674,182 
Allocated equity, excluding AOCI394,408 328,408 325,330 324,166 334,462 
Rollforward of separate account balances:
Beginning separate account balance$612,338 $645,881 $525,582 $599,203 $616,381 
Net premiums and transfers3,502 4,313 3,466 (771)(287)
Net investment income (loss)44,460 (107,413)86,556 37,130 75,522 
Charges, benefits and surrenders(14,419)(17,199)(16,401)(19,181)(17,434)
Ending separate account balance$645,881 $525,582 $599,203 $616,381 $674,182 
Other data:
Number of direct contracts - variable annuity8,676 8,543 8,407 8,260 8,153 
Number of direct policies - variable universal life33,383 32,943 32,618 32,298 31,953 
Direct face amounts - variable universal life$4,117,248 $4,043,188 $4,010,324 $3,971,325 $3,937,325 



11



FBL Financial Group, Inc.
Deferred Acquisition Costs by Segment
Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020
 (Dollars in thousands)
Annuity
Balance - beginning of period$88,266 $88,295 $88,257 $87,622 $87,104 
Cumulative effect of change in accounting principle related to current expected credit loss— 286 — —  
Capitalization:
    Commissions2,729 2,110 1,394 1,709 1,451 
    Expenses247 252 126 190 322 
         Total capitalization2,976 2,362 1,520 1,899 1,773 
Amortization - adjusted operating basis, before impact of unlocking(2,844)(2,730)(2,463)(2,245)(2,502)
Amortization - unlocking, adjusted operating basis— — — (1,132) 
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives and equities(103)44 308 960 (86)
Balance - end of period$88,295 $88,257 $87,622 $87,104 $86,289 
Life Insurance
Balance - beginning of period$323,609 $341,143 $346,585 $350,092 $346,776 
Cumulative effect of change in accounting principle related to current expected credit loss— 79 — —  
Capitalization:
    Commissions8,160 4,353 4,641 4,298 7,601 
    Expenses2,494 2,380 2,059 1,850 2,289 
    Deferral of sales inducements1,517 241 284 81 444 
         Total capitalization12,171 6,974 6,984 6,229 10,334 
Amortization - adjusted operating basis, before impact of unlocking(4,226)(2,514)(3,135)(2,895)(3,380)
Amortization - unlocking, adjusted operating basis10,000 — — (6,624) 
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives and equities(411)903 (342)(26)(104)
Balance - end of period$341,143 $346,585 $350,092 $346,776 $353,626 
Corporate and Other
Balance - beginning of period$60,346 $60,245 $55,656 $55,912 $55,381 
Cumulative effect of change in accounting principle related to current expected credit loss— 105 — —  
Capitalization:
    Commissions39 59 40 —  
    Deferral of sales inducements25 — 7 
         Total capitalization64 59 46 7 
Amortization - adjusted operating basis, before impact of unlocking(9)(5,132)620 15 1,421 
Amortization - unlocking, adjusted operating basis— — — (99) 
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives and equities(156)379 (410)(451)(150)
Balance - end of period$60,245 $55,656 $55,912 $55,381 $56,659 


12



FBL Financial Group, Inc.
Deferred Acquisition Costs by Segment (Continued)
Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020
 (Dollars in thousands)
Total
Balance - beginning of period$472,221 $489,683 $490,498 $493,626 $489,261 
Cumulative effect of change in accounting principle related to current expected credit loss— 470 — —  
Capitalization:
    Commissions10,928 6,522 6,075 6,007 9,052 
    Expenses2,741 2,632 2,185 2,040 2,611 
    Deferral of sales inducements1,542 241 290 85 451 
         Total capitalization15,211 9,395 8,550 8,132 12,114 
Amortization - adjusted operating basis, before impact of unlocking(7,079)(10,376)(4,978)(5,125)(4,461)
Amortization - unlocking, adjusted operating basis10,000 — — (7,855) 
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives and equities(670)1,326 (444)483 (340)
Balance - end of period489,683 490,498 493,626 489,261 496,574 
Impact of unrealized gains in AOCI (200,227)(152,526)(262,054)(288,239)(320,489)
Deferred acquisition costs$289,456 $337,972 $231,572 $201,022 $176,085 


13



FBL Financial Group, Inc.
Impact of Unlocking on Pre-tax Adjusted Operating Income
Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020
 (Dollars in thousands)
Annuity Segment
Amortization of deferred sales inducements reported in interest sensitive product benefits$— $— $— $57 $ 
Amortization of deferred acquisition costs— — — (1,189) 
Changes in reserves reported in interest sensitive product benefits— — — 5,358  
Increase to pre-tax adjusted operating income$— $— $— $4,226 $ 
Life Segment
Amortization of unearned revenue reserve reported in interest sensitive product charges and other income$— $— $— $3,772 $ 
Amortization of deferred sales inducements reported in interest sensitive product benefits— — — (1,207) 
Amortization of deferred sales inducements reported in traditional life insurance benefits183 — — 138  
Amortization of deferred acquisition costs9,817 — — (5,556) 
Changes in reserves reported in interest sensitive product benefits— — — (7,270) 
Increase (decrease) to pre-tax adjusted operating income $10,000 $— $— $(10,123)$ 
Corporate and Other Segment
Amortization of unearned revenue reserve reported in interest sensitive product charges$— $— $— $(62)$ 
Amortization of deferred sales inducements reported in interest sensitive product benefits— — — 51  
Amortization of deferred acquisition costs— — — (150) 
Changes in reserves reported in interest sensitive product benefits— — — (659) 
Decrease to pre-tax adjusted operating income $— $— $— $(820)$ 
Total impact of unlocking on pre-tax adjusted operating income$10,000 $— $— $(6,717)$ 

14



FBL Financial Group, Inc.
Collected Premiums (1)
Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020
 (Dollars in thousands)
Annuity
Individual:
Fixed rate:
First year$10,489 $5,370 $4,465 $13,866 $8,343 
Renewal13,428 17,483 14,072 8,888 10,275 
Total fixed rate23,917 22,853 18,537 22,754 18,618 
Index annuity41,177 32,641 16,436 20,647 23,524 
Total individual65,094 55,494 34,973 43,401 42,142 
Group1,643 2,605 832 1,862 1,008 
Total Annuity66,737 58,099 35,805 45,263 43,150 
Life Insurance
Direct:
Universal life:
First year7,129 8,106 5,870 6,336 6,706 
Renewal22,173 24,512 24,176 24,121 25,728 
Total universal life29,302 32,618 30,046 30,457 32,434 
Whole life:
First year2,335 1,789 1,882 2,141 3,257 
Renewal23,273 23,379 23,205 21,054 22,518 
Total whole life25,608 25,168 25,087 23,195 25,775 
Term life and other:
First year2,811 2,835 3,005 2,855 2,874 
Renewal27,382 28,302 28,329 27,636 29,302 
Total term life and other30,193 31,137 31,334 30,491 32,176 
Total direct life insurance85,103 88,923 86,467 84,143 90,385 
Reinsurance(6,818)(6,288)(7,994)(6,477)(6,940)
Total Life Insurance78,285 82,635 78,473 77,666 83,445 
Corporate and Other
Variable, net of reinsurance10,824 13,113 11,583 10,192 10,119 
Accident and health, net of reinsurance179 179 71 43 79 
Total Corporate and Other11,003 13,292 11,654 10,235 10,198 
Total collected premiums$156,025 $154,026 $125,932 $133,164 $136,793 

(1)Collected premiums is a measure of sales production not recognized under GAAP.


15



FBL Financial Group, Inc.
Other Information
December 31,March 31,June 30,September 30,December 31,
20192020202020202020
(Dollars in thousands, except per share data)
Capitalization:
Short-term debt$— $10,000 $— $— $ 
Trust preferred securities, due 204797,000 97,000 97,000 97,000 97,000 
Total debt97,000 107,000 97,000 97,000 97,000 
Preferred stock3,000 3,000 3,000 3,000 3,000 
Common stockholders' equity, excluding AOCI1,127,993 1,072,858 1,083,177 1,086,142 1,101,820 
Total capitalization, excluding AOCI1,227,993 1,182,858 1,183,177 1,186,142 1,201,820 
Accumulated other comprehensive income354,764 258,422 481,626 529,087 587,279 
Total capitalization, including AOCI$1,582,757 $1,441,280 $1,664,803 $1,715,229 $1,789,099 
Common shares outstanding24,664,215 24,642,190 24,544,001 24,394,523 24,395,522 
Book Value per Share:
Excluding AOCI$45.73 $43.54 $44.13 $44.52 $45.16 
Including AOCI60.12 54.02 63.76 66.21 69.24 
Debt-to-Capital Ratio:
Excluding AOCI7.9 %9.0 %8.2 %8.2 %8.1 %
Including AOCI6.1 7.4 5.8 5.7 5.4 
Debt-to-Capital Ratio with 50% Credit for Trust Preferred Securities:
Excluding AOCI3.9 %4.9 %4.1 %4.1 %4.0 %
Including AOCI3.1 4.1 2.9 2.8 2.7 
Class A Common Ownership:
Iowa Farm Bureau Federation59.9 %59.9 %60.2 %60.5 %60.5 %
Public40.1 40.1 39.8 39.5 39.5 
100.0 %100.0 %100.0 %100.0 %100.0 %

16



FBL Financial Group, Inc.
Other Information (Continued)
December 31,March 31,June 30,September 30,December 31,
20192020202020202020
Investment by Type:
Fixed maturity securities57.9 %57.1 %58.3 %58.6 %58.8 %
Residential mortgage-backed7.4 7.3 7.3 7.6 7.3 
Commercial mortgage-backed11.5 12.7 12.1 12.0 11.7 
Other asset-backed7.9 7.8 8.0 7.9 7.8 
Mortgage loans11.2 11.0 10.5 10.1 10.4 
Equity securities1.1 1.0 1.0 1.0 0.9 
Other3.0 3.1 2.8 2.8 3.1 
Quality of Fixed Maturity Securities:
AAA, AA, A68.2 %69.3 %67.9 %67.6 %65.7 %
BBB29.5 28.1 28.5 28.8 30.4 
BB1.6 1.9 2.7 2.7 3.1 
<BB0.7 0.7 0.9 0.9 0.8 
Agent Strength Totals:
Full time agents and agency managers:
8-state Farm Bureau Property & Casualty channel 1,197 1,167 1,109 1,040 953 
6 life partner states and Colorado661 664 661 663 661 
1,858 1,831 1,770 1,703 1,614 
FBL Financial Group, Inc.
Income Taxes
(Dollars in thousands)
Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020
Income tax benefit (expense) $(6,500)$3,081 $(6,085)$(2,883)$(2,174)
Tax benefit (expense) on equity income(275)(61)197 (74)(1,633)
Net income adjustments:
Income tax offset on net income adjustments(27)(5,889)255 324 296 
Income taxes on adjusted operating income$(6,802)$(2,869)$(5,633)$(2,633)$(3,511)
Income taxes on adjusted operating income before benefits of LIHTC investments$(7,653)$(3,752)$(6,557)$(3,493)$(4,379)
Amounts related to LIHTC investments851 883 924 860 868 
Income taxes on adjusted operating income$(6,802)$(2,869)$(5,633)$(2,633)$(3,511)

17