FBL Financial Group Inc.
Annual Report 2010

Plain-text annual report

Protecting Livelihoods and Futures. 2010 Annual Report Financial Highlights Net Income (Loss) (per common share) Results in 2010 continue a strong growth trend with 2010 net income of $120.7 million, or $3.92 per share. The net loss in 2008 reflects realized investment losses from other-than-temporary impairments of bonds in the investment portfolio. $3.01 $2.84 $3.92 $2.31 -$0.61 2006 2007 2008 2009 2010 Operating Income (per common share) Operating income remained strong in 2010, totaling $105.2 million – a record $3.42 per share - reflecting sound fundamentals of both Farm Bureau Life and EquiTrust Life. $3.15 $2.78 $3.42 $2.98 $1.64 2006 2007 2008 2009 2010 NOTE: Operating income excludes the impact of unrealized/realized gains and losses on investments, the impact of the change in net unrealized gains and losses on derivatives, the cumulative effect of changes in accounting principles, and a lawsuit settlement in 2006. Results as of December 31, 2010 © FBL Financial Group, Inc. www.fblfinancial.com 1 Capitalization FBL’s total capitalization exceeds $1.5 billion, an increase from $1.2 billion at year end 2009. The debt-to-total capitalization ratio, with equity credit for trust preferreds, was 18.6% at year end with securities at cost. Long-Term Debt Senior notes, 5.85%, due 2014 Senior notes, 5.875%, due 2017 Notes payable to affiliates, 9.25%, due 2011 Trust preferred securities, 5%, due 2047 Total Debt Preferred stock Common stockholder’s equity, excluding AOCI Total capitalization, excluding AOCI Accumulated other comprehensive income (AOCI) Total Capitalization, Including AOCI Debt/Total Capitalization As of Dec. 31, 2008 (thousands) $ 75,199 98,969 100,000 97,000 371,168 3,000 1,103,427 1,477,595 39,895 $ 1,517,490 Excluding AOCI, including equity credit for trust preferred securities 18.6% Statutory Capital Farm Bureau Life and EquiTrust Life are well-capitalized with excellent company action level risk based capital ratios of 457% for Farm Bureau Life and 425% for EquiTrust Life. Farm Bureau Life Risk Based Capital* EquiTrust Life Risk Based Capital* 441% 457% 416% 425% 376% 300% 2008 2009 2010 2008 2009 2010 *Company Action Level Results as of December 31, 2010 © FBL Financial Group, Inc. www.fblfinancial.com 2 Book Value (per common share) GAAP book value grew by 30% in 2010 reflecting strong earnings and improving investment valuations. $28.64 $29.59 $31.19 $29.98 $30.00 $32.38 $28.49 $35.66 $36.95 $8.46 2006 2007 2008 2009 2010 Book Value excluding AOCI(L) Book Value Investments By Type At December 31, 2010, FBL’s investments totaled $13.1 billion and are well diversified by individual issue and industry. 1% 1% 3% 10% 42% 18% 25% Corporate Securities Mortgage & Asset-backed Securities Government Commercial Mortgage Loans Short-term Investments Policy Loans Other Results as of December 31, 2010 © FBL Financial Group, Inc. www.fblfinancial.com 3 Investments By Quality FBL’s investment portfolio quality is high with 94% of the securities being investment grade. 6% 63% 31% A or higher BBB Below investment grade Results as of December 31, 2010 © FBL Financial Group, Inc. www.fblfinancial.com 4

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