2011 Annual Report
2011 Annual Report
Letter To Shareholders
To My Fellow Shareholders,
FBL Financial Group experienced a year of change and growth in 2011. We successfully completed our largest-
ever business transaction, strengthened our capital position and were recognized by Fortune magazine for
business growth.
On December 30, 2011 we closed the sale of FBL’s EquiTrust Life Insurance subsidiary for $465.3 million in
cash. With this sale, we were able to reduce the risk of the overall enterprise, increase our financial flexibility
and enable capital management. As a result, in the fourth quarter we increased our dividend rate and began
to repurchase FBL stock. In addition, we reduced debt with the redemption of $50 million of affiliated senior
notes at the end of the year and the redemption of $175 million of public debt at the end of January 2012.
The divestiture of EquiTrust Life allows us to have greater focus on our very attractive Farm Bureau niche. This
focus is opportune as our Farm Bureau Life business continues to produce consistent growth, even through
uncertain times.
Continued on next page >>
1
2011 Annual Report
Living Our Values
Our policyholders’ stories confirm that we are fulfilling our purpose: to protect livelihoods and
futures. This purpose is built upon our values of integrity, leadership, accountability, teamwork
and passion. These values provide the foundation for the relationships we have with agents and
associates, as we work to make our customers’ lives simpler and more secure.
Serving Our Customers
From our deep roots in Midwestern soil to seeds we’ve planted in western states, we proudly
serve customers in a 14-state area. Our Farm Bureau Life subsidiary serves a niche farmer
and rancher market of Farm Bureau members as well as others with financial needs. Just as
agriculture is sophisticated and innovative, so too is Farm Bureau Life, which designs state-of-
the-art applications, delivers outstanding customer service and develops new products to meet
twenty-first century needs.
Our cross-sell rate is industry-leading, and we see opportunity for further growth. Farm Bureau
Life continues to build upon its rural market leadership through superior market knowledge,
product design and customer service.
Driving Results
We look back on 2011 as a year of success, with a significant business transaction and improved
financial strength. We celebrate being named to Fortune magazine’s list of 100 Fastest Growing
Companies, an acknowledgment of our growth in revenue, earnings per share, and total return to
shareholders. Despite the impact of the sale of EquiTrust Life, we reported solid financial results
for 2011, with net income of $1.00 per share and operating income of $2.61 per share. FBL’s book
value per share increased 13 percent to $41.60 and FBL’s stock price gained 19 percent to close
the year at $34.02.
As we move forward in 2012, FBL Financial Group is a more focused organization with attractive
growth opportunities in its niche market. This solid foundation, coupled with ongoing capital
management action, position us well for the future.
Sincerely,
James E. Hohmann
Chief Executive Officer
2
2011 Annual Report
Questions and Answers with CEO Jim Hohmann
Q: What facet of FBL are you most proud of as you reflect on 2011?
A: 2011 was a transformative year for FBL Financial Group, and there were several notable accomplishments.
I am very proud of our FBL team that worked so diligently to complete the sale of EquiTrust Life. Farm
Bureau Life had another record sales year, and I’m proud of its excellent operations and customer service.
We increased our shareholder dividend by 60 percent. We retired $225 million of debt, reducing our leverage
and risk. I’m grateful for our agents and associates, who serve our customers and their communities.
I’m proud of FBL employees and their community service. We invest our time and resources in many
organizations, including United Way, JDRF, various hunger awareness entities, and many more. Finally, I’m
pleased that FBL’s stock significantly outperformed industry averages. In 2011, life insurance stock indices
were decidedly negative while FBL stock was up nearly 19%.
Q: Why did you decide to sell EquiTrust Life?
A: Our primary opportunity at FBL Financial Group is serving the niche Farm Bureau customer base. We
viewed the EquiTrust Life business, with its different focus, as complementary to our Farm Bureau Life
business. However, as demonstrated during the financial crisis, this business also brought increased risk to
the organization. The divestiture of EquiTrust allowed FBL Financial Group to reduce risk, increase its financial
flexibility and enable capital management while at the same time allowing greater focus on our very attractive
Farm Bureau niche.
Over the past few years, we have executed a number of financial and business initiatives to strengthen our
financial foundation, to sharpen our focus and to grow our business and profits. This transaction builds upon
that work from a strategic perspective and follows our decisions in recent years to discontinue our own
underwritten variable products and to discontinue manufacturing EquiTrust mutual funds.
Q: How would you describe capital management strategies for 2012?
A: We’ve been active from a capital management perspective as the sale of EquiTrust Life freed up capital
and allowed us to execute several strategies. We increased our quarterly stockholder dividend by 60% and
redeemed $225 million of debt. In 2011 we repurchased $14 million worth of FBL stock under our $200
million buyback authorization, and in 2012 announced a tender offer and repurchase for up to $175 million.
Our capital levels are excellent, with Farm Bureau Life increasing its risk based capital ratio again in 2011
to 465%.
3
2011 Year In Review
2011 Annual Report
4
2011 Annual Report
Financial Review
2011 was a very successful and eventful year for FBL Financial Group. We completed several significant
transactions, most notably the sale of EquiTrust Life. We delivered strong results, even as the economy
continued to face headwinds. We are successfully navigating the challenging low interest rate environment.
Our investment portfolio continues to perform very well, with improved valuations over the past year. We are
well capitalized and remain highly rated by the rating agencies.
We made tremendous progress in 2011 and took actions to de-risk our organization, increase our financial
flexibility and execute on our capital management strategies. We’re a more focused organization and have
sound strategies in place to build the future of FBL Financial Group and increase shareholder value.
Some of the more significant financial metrics are highlighted on the following pages. And of course you can
find more detailed information in our Form 10-K.
5
2011 Annual Report
Net Income per common share
Net income in 2011 includes a loss of $90.1 million,
or $2.93 per share, related to the sale of EquiTrust
Life Insurance Company and related debt redemption.
This subsidiary was sold to reduce risk of the overall
enterprise, increase financial flexibility and enable
capital management.
Operating Income per common share
Operating income remained strong in 2011, growing
5% to $81.8 million, or $2.61 per share, reflecting the
sound fundamentals and growing business of Farm
Bureau Life.
Capitalization
FBL’s total capitalization is nearly $1.6 billion. Senior notes were redeemed on January 30, 2012, resulting in a pro forma
debt-to-total capitalization ratio, with equity credit for trust preferreds, of 3.9%.
6
Statutory Capital
Farm Bureau Life is well-capitalized with excellent
company action level risk based capital, or RBC, of
465%, an improvement from 2010 and well above
target levels.
Book Value per common share
GAAP book value grew by 13% in 2011 reflecting solid
earnings and improving investment valuations.
Investments By Type
At December 31, 2011, FBL’s investments totaled $6.4
billion and are well diversified by individual issue and
industry.
Investments By Quality
FBL’s investment portfolio quality is high with 95% of
the securities being investment grade.
2011 Annual Report
7
GAAP to Non-GAAP Reconciliation
For the year ended December 31, 2011
(dollars in thousands, except per share data)
2009
2010
2011
Net income
$
69,835
$
120,653
$
31,276
Adjustments:
Loss on redemption of debt (a)
Net impact of discontinued operations (a)
Net realized/unrealized (gains) losses on investments (a)
Net change in unrealized gains/losses on derivatives (a)
Operating Income (b)
-
(19,344)
20,025
-
(36,252)
(5,899)
21,564
24,042
5,825
(1,732)
68,784
$
(2,293)
76,209
$
(931)
81,776
$
Operating income per common share
assuming dilution (b)
Book value
Less: Per share impact of accumulated
other comprehensive income (loss)
Book value, excluding accumulated
other comprehensive income/loss (c)
$
2.28
$
2.48
$
2.61
$
28.49
$
36.95
$
41.60
(3.89)
1.29
4.88
$
32.38
$
35.66
$
36.72
(a) Net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, value of insurance in force acquired and income taxes attributable to these
items.
(b)
In addition to net income FBL Financial Group has consistently utilized operating income, a non-GAAP financial measure commonly used in the life insurance industry, as a primary
economic measure to evaluate its financial performance. Operating income equals net income attributable to FBL adjusted to eliminate the impact of realized gains and losses on
investments, the change in net unrealized gains and losses on derivatives, the impact of discontinued operations and the loss on debt redemption. FBL uses operating income, in addition
to net income, to measure its 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. Also, the discontinued operations and loss on debt redemption are nonrecurring items. 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.
(c) Book value per share excluding accumulated other comprehensive income (loss) is a non-GAAP financial measure. Since accumulated other comprehensive income (loss) fluctuates from
quarter to quarter due to unrealized changes in the fair market value of investments caused principally by changes in market interest rates, FBL Financial Group believes this non-GAAP
financial measure provides useful supplemental information.
FBL Financial Group, Inc.
www.fblfinancial.com
FBL Management Team
2011 Annual Report
(Standing, left to right)
Richard J. Kypta, Executive Vice President – Farm Bureau Life
Raymond W. Wasilewski, Vice President – Information Technology
Charles T. Happel, Executive Vice President – Chief Investment Officer
David A. McNeill, Vice President, General Counsel and Secretary
James P. Brannen, Chief Financial Officer, Chief Administrative Officer and Treasurer
James E. Hohmann, Chief Executive Officer
Lori K. Strottman, Vice President – Human Resources
Donald J. Seibel, Vice President – Finance
Kevin R. Slawin, Executive Vice President – Marketing & Distribution
David T. Sebastian, Vice President – Strategy & Business Development
Russell J. Wiltgen, Chief Actuary
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2011 Annual Report
Richard J. Kypta
Executive Vice President – Farm Bureau Life
Richard J. (Rich) Kypta is executive vice president – Farm Bureau Life. He
joined the company in August 2007 and served as senior vice president and
general counsel through March 2008. Kypta also served as the secretary of FBL
Financial Group through April 2009. Prior to joining FBL, Kypta held a number
of legal, finance, and operations positions within Aviva USA Corporation and
Aegon Insurance Group. He started his career with the public accounting firm of
PricewaterhouseCoopers.
Kypta holds a BS degree from Georgetown University, an MS degree from Johns
Hopkins University and a J.D. degree from the University of Maryland’s School of
Law. He is a certified public accountant; a member of the American Institute of
Certified Public Accountants, American Bar Association and Maryland State Bar
Association; and a Fellow of the Life Management Institute. Kypta currently serves
as a director of the Iowa and Wyoming Life and Health Guaranty Associations, a
director of the Life Insurers Council, a Council of LOMA and as a trustee of the
HCI Foundation.
Raymond W. Wasilewski
Vice President – Information Technology
Raymond W. (Ray) Wasilewski was named vice president, information technology
for FBL Financial Group in August 2011. In his previous position as vice president
technology, Wasilewski was responsible for Life and P/C applications delivery and
led the Enterprise Architecture team. Wasilewski holds a bachelor’s degree in
Vocational Education from Southern Illinois University and a master’s degree in
Computer Information Systems from Nova Southeastern University. Before joining
FBL Financial Group he was a consultant, a commercial software designer, a
computer science and electronics instructor at Alaska Junior College and served in
the U.S. Navy for 17 years in the cryptography field. Wasilewski serves on the PCI
Information Technology Committee, CSC Insurance Cybersecurity Council, and is
on the board of The Technology Association of Iowa.
Charles T. Happel
Executive Vice President - Chief Investment Officer
Charles T. (Charlie) Happel is executive vice president - chief investment officer of
FBL Financial Group. He joined the company in 1984 as a Farm Bureau Financial
Services agent, moving to the corporate office in 1986. Over the next 15 years, he
held various positions in investments, as securities analyst and portfolio manager.
Happel became securities vice president in 2001, vice president - investments in
August 2008, and was named executive vice president - chief investment officer
in September 2009. He is a graduate of the University of Northern Iowa and
earned an MBA from Drake University. He is a Chartered Financial Analyst (CFA),
and holds a number of industry designations, including CFP, FLMI, ChFC, CLU,
and CPCU. He is a member of the Iowa Society for Financial Analysts and the
Association for Investment Management and Research (AIMR).
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2011 Annual Report
David A. McNeill
Vice President, General Counsel and Secretary
David A. McNeill, vice president, general counsel and secretary of FBL Financial
Group, joined FBL’s legal department in 1989. He held various positions in the
legal department before being named to his current position in 2009. Prior to
joining FBL, McNeill was in private practice as an attorney in the Des Moines law
firm of Davis, Hockenberg, Wine, Brown, Koehn & Shors (now Davis Brown) and
an attorney with Miller & Sanford law firm (now Lathrop & Gage) in Springfield,
Missouri. McNeill received his Juris Doctorate degree, with honors, from Drake
University Law School in 1985 and his bachelor’s degree from Simpson College
in 1979. McNeill serves on several civic and industry organizations, including the
Kansas Life & Health Insurance Guaranty Association, the Iowa Chapter of the
American Parkinson Disease Association and serves on the Board of Governors of
the Iowa College Foundation.
James P. Brannen
Chief Financial Officer, Chief Administrative Officer and Treasurer
James P. (Jim) Brannen, chief financial officer, chief administrative officer and
treasurer of FBL Financial Group, is a graduate of the University of Iowa with
a major in accounting. He joined FBL in 1991 and held various positions in the
tax and accounting areas prior to being named to vice president - finance in
2000 and to his current position in 2007. Prior to joining FBL, Brannen managed
corporate tax matters for insurance companies at Ernst & Young. He is a certified
public accountant and is a member of the American Institute of Certified Public
Accountants and the Iowa Society of Certified Public Accountants. Brannen serves
in several civic and industry organizations, including the board of directors of
United Way of Central Iowa.
James E. Hohmann
Chief Executive Officer
James E. (Jim) Hohmann was named chief executive officer of FBL Financial
Group in January 2010. He has more than 30 years of experience in the financial
services industry. Prior to FBL Financial Group, he was president and CEO of
Allstate Financial; president and chief operating officer at Conseco, Inc.; president
and CEO of XL Life and Annuity; and president, Financial Institutions, for Zurich
Kemper Life. He is a Fellow of the Society of Actuaries and a member of the
American Academy of Actuaries.
Hohmann earned a bachelor’s degree in mathematics from Northwestern
University and an MBA from the University of Chicago, graduating with high
honors. Hohmann is a member of the board of governors of the Property Casualty
Insurers Association of America, serves on the American Agricultural Insurance
Company advisory committee and is a former member of the board of directors
of the American Council of Life Insurers. He also serves on the boards of Bankers
Trust, the Greater Des Moines Partnership, and OMNI Youth Services in Chicago.
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2011 Annual Report
Lori K. Strottman
Vice President – Human Resources
Lori Strottman joined the companies in 1986 and has served in a number
of human resources capacities over the past 25 years. She was director of
corporate recruitment and employment from 1995 until 2003, when she became
employment services vice president. She was named to her current position in
March 2010. Strottman graduated from the University of Northern Iowa with a
bachelor’s degree in management (human resources emphasis). She has earned
numerous human resources and insurance industry designations including Senior
Professional Human Resources (SPHR), Certified Employee Benefits Specialist
(CEBS), Group Benefits Administrator (GBA), Certified Compensation Professional
(CCP) and Fellow Life Management Institute (FLMI). She is past president of the
Society for Human Resource Management’s central Iowa chapter and currently
serves on the board for the Iowa Senior Olympics.
Donald J. Seibel
Vice President – Finance
Donald J. (Don) Seibel, vice president – finance, joined FBL in 1996 to help lead
accounting efforts necessary for FBL Financial Group’s initial public offering. He
became GAAP accounting vice president in 1998 and vice president − accounting
in 2002 and was named to his current position in 2007. Prior to joining FBL, Seibel
worked for 11 years at public accounting firm Ernst & Young. He is responsible
for departments providing financial and tax reporting for FBL, investor relations,
employee benefits and certain corporate services. Seibel holds a bachelor’s
degree in accounting from Iowa State University, is a certified public accountant,
and holds the Fellow Life Office Management Institute (FLMI) certification. Seibel
is a board member of the Iowa Society of CPAs and is active in civic organizations.
Kevin R. Slawin
Executive Vice President – Marketing & Distribution
Kevin R. Slawin, executive vice president – marketing & distribution, joined
FBL Financial Group in October 2009. He is responsible for all aspects of
the organization’s marketing and distribution functions including business
development, brand management, sales management and agent recruiting and
retention. Slawin has more than 30 years of experience in the financial services
industry. Prior to FBL Financial Group, he held a number of senior executive
positions at Allstate Financial including president of distribution where he was
responsible for Lincoln Benefit Life Co., American Heritage Life Co. and sales of
financial products through captive agents, banks and broker dealers. He also held
roles as CEO, Allstate Bank; senior vice president, operations and technology;
and senior vice president, chief financial officer. He began his career in public
accounting, spending seven years with Touche Ross & Co. (now Deloitte). Slawin,
a certified public accountant, holds a Masters of Management degree from the J.
L. Kellogg Graduate School of Management at Northwestern University and a BS
degree in accounting from Indiana University. He serves and has served on many
corporate and charitable committees and boards of directors.
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2011 Annual Report
David T. Sebastian
Vice President – Strategy & Business Development
David T. Sebastian was named vice president - strategy and business development
in June of 2008, having served as vice president in various sales and marketing
capacities since joining FBL Financial Group in 2004. Sebastian was a consultant to
the companies on sales, marketing and business matters beginning in 1995. Prior
to joining FBL, Sebastian was an independent consultant to clients in financial
services, professional services, manufacturing, consumer products and education
for more than 20 years.
Russell J. Wiltgen
Chief Actuary
Russell J. (Russ) Wiltgen joined FBL Financial Group as chief actuary in February
2010. He is responsible for actuarial matters and enterprise risk management.
Wiltgen came to FBL Financial Group with 30 years of experience in the financial
services, with expertise in strategic business planning, risk management, product
development and management, distribution expansion and field engagement.
Prior to joining FBL, he was with the UNIFI Companies in Lincoln, where he most
recently served as vice president-individual annuity product management. He also
worked for the Mutual of Omaha Companies for 17 years where he held various
actuarial management positions including vice president and chief product actuary
risk life. Wiltgen holds a bachelor’s degree in actuarial science from the University
of Iowa. He is a Fellow of the Society of Actuaries, a member of the American
Academy of Actuaries and serves on the board of Greater Des Moines Habitat for
Humanity.
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Board of Directors
2011 Annual Report
Craig D. Hill, Chairman of the Board
Craig D. Hill, 56, is the Chairman of the Board and chair of the Executive
Committee. He was elected President of the Iowa Farm Bureau Federation and
its subsidiary, Farm Bureau Management Corporation, in December 2011 and has
served on its board of directors since 1989. He was its Vice President from 2001
to 2011. He served as a Class B director from 2002 to 2004 and since 2007. He
has served on the board of Farm Bureau Life from 1989 to 2007, and on the board
of Farm Bureau Property & Casualty since 1989, and also serves on the boards of
Western Agricultural and Crop1 Insurance. Hill farms 1,000 acres of row crops and
has a swine operation near Milo, Iowa.
Steve L. Baccus
Steve L. Baccus, 62, became a Class B director in May 2002 after being named
President of the Kansas Farm Bureau. He is also chairman of the board of directors
of Farm Bureau Property & Casualty, and a director of Farm Bureau Life, Western
Ag and FB BanCorp. In 2004 Mr. Baccus was elected to the board of directors of
the American Farm Bureau Federation. His family farm in Ottawa County, Kansas
produces wheat, milo, soybeans, sunflower and irrigated corn. Baccus earned
bachelor’s and master’s degrees in psychology from Washburn University and
Chapman College, respectively.
Roger K. Brooks
Roger K. Brooks, 74, became a Class A director in May 2009. He serves on the
Finance Committee and the Management Development and Compensation
Committee. Brooks is the retired chief executive officer and chairman of AmerUs
Group. He retired from AmerUs in 2005, after nearly 50 years of service. Brooks
has served on numerous community boards and is a member of the Iowa
Insurance Hall of Fame and Iowa Business Hall of Fame. He is also a Fellow of the
Society of Actuaries. Brooks graduated magna cum laude with a bachelor’s degree
in mathematics from the University of Iowa. He also participated in Stanford
University’s Executive Program.
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2011 Annual Report
Jerry L. Chicoine
Jerry L. Chicoine, 69, Class A director since 1996, is the lead director of the
independent directors, vice chairman of the board, and serves on the Executive
Committee and the Management Development and Compensation Committee.
Chicoine retired effective January 1, 2001 as chairman and chief executive officer
of Pioneer Hi-Bred International, Inc. He had served in those capacities since
1999, and was Pioneer’s executive vice president and chief operating officer since
1997. From 1988 to 1997 he had served as senior vice president and chief financial
officer. He was named a director of Pioneer Hi-Bred in March 1998. He was
named Outstanding CPA in Business and Industry by the Iowa Society of CPAs in
1998. He was a partner in the accounting firm of McGladrey & Pullen from 1969 to
1986 and also holds a law degree. He is a member of the Board of Directors of The
Weitz Company.
Tim H. Gill
Tim H. Gill, 59, Class A director since 2004, has served as president and chief
executive officer of Montana Livestock Ag Credit, Inc. since 1986. The company
specializes in agricultural finance throughout the state of Montana, underwrites
long term real estate loans and has its own investment offerings. Gill is on the
finance committee of Montana Stockgrowers; a trustee and finance chairman of
the Montana Stockgrowers Research and Education Foundation; a member of the
tax and credit committee of the National Cattlemen’s Beef Association; a director
and past chairman of the Montana Council on Economic Education; a director
of the Carroll College Athletic Association. He is chair of the Management
Development and Compensation Committee.
Robert H. Hanson
Robert H. Hanson, 70, Class A director since 2004, served as investment banker
with Merrill Lynch, Pierce Fenner & Smith in New York from 1965 to 1989, since
1972 as a vice president, specializing in providing corporate finance services to
the regulated utilities and telecommunications industries. In 1990 he relocated
to Cody, Wyoming, where he was employed by Dean Witter Reynolds, Inc. as an
account executive, and later by D.A. Davidson & Co., as vice president and office
manager of that firm’s Cody office. In 1993 he joined GST Telecommunications,
Inc., initially as senior vice president–corporate development, and subsequently
as chief financial officer, retiring from those positions in 1999. Hanson is a past
member of the Wyoming Telecommunications Council and current president
of the Boys & Girls Club of Park County, Wyoming. In addition, he is a director
and trustee of two national conservation organizations, for which he has the
responsibility for financial and investment management. Hanson is a graduate of
Yale University. He is chair of the Finance Committee, and has been named by the
Board of Directors as one of our “Audit Committee financial experts.”
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2011 Annual Report
James E. Hohmann
James E. (Jim) Hohmann, 56, was named chief executive officer of FBL Financial
Group in January 2010. He has over 30 years of experience in the financial
services industry. Prior to FBL Financial Group, he was president and CEO
of Allstate Financial; president and chief operating officer at Conseco, Inc.;
president and CEO of XL Life and Annuity; and president, Financial Institutions,
for Zurich Kemper Life. He is a Fellow of the Society of Actuaries and a member
of the American Academy of Actuaries. Hohmann earned a bachelor’s degree
in mathematics from Northwestern University and an MBA from the University
of Chicago, graduating with high honors. Hohmann is a member of the board of
governors of the Property Casualty Insurers Association of America and is a former
member of the board of directors of the American Council of Life Insurers. He also
serves on the boards of Bankers Trust, the Greater Des Moines Partnership, and
OMNI Youth Services in Chicago.
Paul E. Larson
Paul E. Larson, 59, Class A director since 2004, has been named by the Board of
Directors as one of our “Audit Committee financial experts.” He retired in 1999 as
president of Equitable Life of Iowa and its subsidiary, USG Annuity and Life, after
22 years with the companies. Larson holds both a law degree and a certified public
accountant designation. He was named Outstanding CPA in Business and Industry
by the Iowa Society of CPA’s in 1999, and inducted into the American Institute of
CPA’s Business and Industry Hall of Fame in 2000. He is a member of the Board of
Directors of non-public companies Wellmark, Inc., Wellmark of South Dakota, Inc.,
GuideOne Mutual Insurance Company and GuideOne Specialty Mutual Insurance
Company. He was also a board member of EquiTrust Mutual Funds (which was
then managed by one of our subsidiaries), where he was chair of the Audit
Committee and the committee’s financial expert. He resigned from the EquiTrust
Mutual Funds board upon election to the FBL Financial Group board in 2004.
Edward W. Mehrer
Edward W. Mehrer, 73, Class A director since 2004, is the chair of the Audit
Committee and has been named by the Board of Directors as one of our “Audit
Committee financial experts.” He is currently a member of the board of directors,
and the audit and compensation committees of NovaStar Financial. He served
as interim chief executive officer of CyDex, Inc., a drug delivery company, from
late 2002 to mid 2003, and as its chief financial officer from November 1996
to December 2003. Prior to joining CyDex in 1996, Mehrer was executive vice
president and chief financial and administrative officer of Marion Merrell Dow and
a director and member of its executive committee. From 1976 to 1986, Mehrer
served as partner-in-charge of audit and accounting for KPMG Peat Marwick in
Kansas City, Missouri.
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2011 Annual Report
Denny J. Presnall
Denny J. Presnall, 58, became a Class B director in January 2012, filling
a vacancy. Since 2007, he has been the executive director and secretary-
treasurer of the Iowa Farm Bureau Federation and a director of its Farm Bureau
Management Corporation. He joined Iowa Farm Bureau in 1982. He is also senior
vice president and secretary of Farm Bureau Life and of Farm Bureau Property &
Casualty. He is a director of Valley Bank and chair of the Board of Ambassadors
for Coaches vs. Cancer. He is past president of the Ankeny, Iowa school board
and former chairman of the Iowa High School Athletic Association board of
control.
Kevin G. Rogers
Kevin G. Rogers, 51, has served as a Class B director since February 2008. He
has been president of the Arizona Farm Bureau Federation since 2003. Rogers is
also a director of Farm Bureau Life, the vice chairman of Farm Bureau Property
& Casualty and a director of Western Agricultural. He is a board member of Farm
Bureau Bank. Rogers is an officer of the Arizona Cotton Growers Association
and serves on the National Cotton Council, the United States Department
of Agriculture (USDA) Cotton Board on the USDA Air Quality Task Force. He
served on the American Farm Bureau Board of Directors and on its five-member
executive committee for six years (2005-2010). His family farms more than 7,000
acres in the Phoenix metropolitan area and produces cotton, alfalfa, wheat, barley
and corn.
Scott E. VanderWal
Scott E. VanderWal, 48, was elected a Class B director in May 2011. VanderWal
has been president of the South Dakota Farm Bureau Federation since 2004, and
a member of its board of directors since 1997. He is also a member of the boards
of directors of Farm Bureau Property & Casualty (since 2004), Farm Bureau Life
(since 2004), American Farm Bureau Federation (since 2006) and a member of a
number of American Farm Bureau task forces. VanderWal received a bachelor’s
degree in General Agriculture, with a Plant Science minor, from South Dakota
State University in 1985. His family farm operation in Volga, South Dakota includes
corn, soybeans, custom cattle feeding and custom harvesting.
John E. Walker
John E. Walker, 73, Class A director since 1996, is chair of the Class A Nominating
and Corporate Governance Committee. He retired January 1, 1996 from Business
Men’s Assurance (BMA), Kansas City, Missouri, where he had been the managing
director of Reinsurance Operations since 1979. He had been a member of the
Board of Directors of BMA for 11 years prior to his retirement, and a member of
its executive committee. Mr. Walker was a director of LabOne, Inc., a publicly
traded testing laboratory, and its predecessor, for close to 20 years until the
company was acquired by merger in late 2005. He serves on a variety of nonprofit
community boards.
17
2011 Annual Report
Living Our Values
OUR PURPOSE
We protect livelihoods and futures.
OUR VALUES
INTEGRITY
LEADERSHIP
We operate in a manner consistent with the highest
professional and ethical standards.
We lead courageously and inspire people by living
our purpose and values; by doing what is best for the
organization and the people in it.
• We are trustworthy and we trust each other.
• We make decisions that support our purpose
and values.
• We make decisions for the right reasons and
communicate effectively.
• We adhere to high ethical standards and report
completely – including bad news.
• We hold ourselves and each other accountable.
• We set clear, understandable objectives and
enable people to accomplish them and
celebrate achievements.
• We take action and have the courage to make
difficult decisions.
• We respect each other.
• We give credit where credit is due and take
personal responsibility for the team’s performance.
• We delegate and empower others.
• We acknowledge and leverage the differences
within our workforce.
ACCOUNTABILITY
TEAMWORK
We focus on outcomes, report results honestly and
provide constructive feedback.
We work together to achieve common goals.
• We make and keep our commitments.
• We establish and communicate clear goals and
hold ourselves accountable for results.
• We measure results against objectives and
• We commit to an inclusive and team-oriented
management process.
• We collaborate and cooperate across
the enterprise.
• We place the company and the team’s interest
continuously look for ways to improve outcomes.
ahead of our own.
• We take ownership regardless of role,
• We encourage and constructively challenge
responsibility or position.
each other.
• We own our outcomes and do not make excuses.
• We help each other succeed.
• We embrace a culture of coaching and
personal development.
PASSION
We are fully engaged, operate with a deep sense of ownership and demonstrate a high-level of personal commitment.
• We are fully present in mind and body.
• We apply energy, urgency, enthusiasm and a relentless focus to everything we do.
• We perpetuate an atmosphere of continuous improvement throughout the enterprise.
• We view the outcome of our actions as a learning opportunity.
• We deliver excellence to all who depend on us.
• We recognize success and celebrate our accomplishments.
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2011 Annual Report
Serving Our Customers
From our deep roots in Midwestern soil to seeds we’ve planted in western states, we proudly serve
customers in a 14-state area. Our Farm Bureau Life subsidiary serves a niche market of Farm Bureau
members, many of whom are farmers and ranchers. Just as agriculture is sophisticated and innovative,
so too is Farm Bureau Life, which designs state-of-the-art applications, delivers outstanding customer
service and develops new products to meet twenty-first century needs.
FBL Financial Group’s primary operating subsidiary, Farm Bureau Life Insurance Company, serves a
target market of Farm Bureau members and “Middle America” in its 14-state territory. Farm Bureau Life
traditionally has been very strong in rural and small town markets and is growing its presence in small
and mid-metro markets where there are significant life and annuity opportunities. This target market
represents a relatively financially conservative and stable customer base. The financial needs of this
target market tend to focus on security, insurance needs and retirement savings.
Farm Bureau Life Insurance Company
FBL Financial Group’s Farm Bureau Life Insurance Company subsidiary has 1,937 exclusive agents and
managers in 14 Midwestern and Western states. Farm Bureau Life, which originated in 1945, serves the niche
marketplace of Farm Bureau members with a comprehensive line of life insurance and annuity products.
Farm Bureau Property & Casualty Insurance Company
Western Agricultural Insurance Company
FBL Financial Group manages all aspects of two Farm Bureau affiliated property-casualty insurance
companies: Farm Bureau Property & Casualty Insurance Company and Western Agricultural Insurance
Company, which operate predominantly in eight states. FBL Financial Group receives a management
fee from these companies and underwriting results do not impact FBL Financial Group’s results.
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5400 University Avenue • West Des Moines, Iowa 50266 • 515-225-5400
www.fblfinancial.com