FBL Financial Group, Inc. |
(Exact name of registrant as specified in its charter) |
Iowa | 1-11917 | 42-1411715 |
(State of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
5400 University Avenue, West Des Moines, Iowa | 50266-5997 | |
(Address of principal executive offices) | (Zip Code) |
(515) 225-5400 |
(Registrant's telephone number, including area code) |
FOR IMMEDIATE RELEASE | CONTACT: |
Thursday, May 3, 2012 | Kathleen Till Stange, Investor Relations Vice President |
(515) 226-6780, Kathleen.TillStange@FBLFinancial.com |
Three months ended March 31, | ||||||||
2012 | 2011 | |||||||
Net income attributable to FBL | $ | 16,587 | $ | 25,051 | ||||
Net income from continuing operations | 19,499 | 18,782 | ||||||
Operating income | 19,916 | 18,824 | ||||||
Earnings per common share (assuming dilution): | ||||||||
Net income | 0.53 | 0.80 | ||||||
Net income from continuing operations | 0.63 | 0.60 | ||||||
Operating income | 0.64 | 0.60 |
Three months ended March 31, | |||||||
2012 | 2011 | ||||||
Revenues: | |||||||
Interest sensitive product charges | $ | 25,232 | $ | 24,129 | |||
Traditional life insurance premiums | 43,123 | 41,387 | |||||
Net investment income | 86,888 | 83,785 | |||||
Net realized capital gains on sales of investments | 879 | 2,260 | |||||
Total other-than-temporary impairment losses | (11,301 | ) | (5,727 | ) | |||
Non-credit portion in other comprehensive income | 9,779 | 3,575 | |||||
Net impairment loss recognized in earnings | (1,522 | ) | (2,152 | ) | |||
Other income | 5,005 | 4,999 | |||||
Total revenues | 159,605 | 154,408 | |||||
Benefits and expenses: | |||||||
Interest sensitive product benefits | 49,082 | 46,621 | |||||
Traditional life insurance benefits | 39,111 | 36,598 | |||||
Policyholder dividends | 4,244 | 4,300 | |||||
Underwriting, acquisition and insurance expenses | 32,727 | 33,251 | |||||
Interest expense | 1,982 | 2,388 | |||||
Loss on debt redemption | 33 | — | |||||
Other expenses | 5,790 | 4,881 | |||||
Total benefits and expenses | 132,969 | 128,039 | |||||
26,636 | 26,369 | ||||||
Income taxes | (8,758 | ) | (8,318 | ) | |||
Equity income, net of related income taxes | 1,621 | 731 | |||||
Net income from continuing operations | 19,499 | 18,782 | |||||
Discontinued operations: | |||||||
Loss on sale of subsidiary, net of tax benefit | (2,252 | ) | — | ||||
Income (loss) from discontinued operations, net of tax | (680 | ) | 6,267 | ||||
Total income (loss) from discontinued operations | (2,932 | ) | 6,267 | ||||
Net income | 16,567 | 25,049 | |||||
Net loss attributable to noncontrolling interest | 20 | 2 | |||||
Net income attributable to FBL Financial Group, Inc. | $ | 16,587 | $ | 25,051 | |||
Earnings per common share - assuming dilution | $ | 0.53 | $ | 0.80 | |||
Weighted average common shares | 30,527,369 | 30,611,961 | |||||
Effect of dilutive securities | 478,413 | 510,446 | |||||
Weighted average common shares - diluted | 31,005,782 | 31,122,407 | |||||
Three months ended March 31, | |||||||
2012 | 2011 | ||||||
(Dollars in thousands, except per share data) | |||||||
Net income attributable to FBL | $ | 16,587 | $ | 25,051 | |||
Adjustments: | |||||||
Loss on debt redemption(a) | 22 | — | |||||
Net impact of discontinued operations (a) | 2,932 | (6,267 | ) | ||||
Net realized gains/losses on investments (a) | 249 | 243 | |||||
Change in net unrealized gains/losses on derivatives (a) | 126 | (203 | ) | ||||
Operating income | $ | 19,916 | $ | 18,824 | |||
Operating income per common share - assuming dilution | $ | 0.64 | $ | 0.60 | |||
March 31, 2012 | December 31, 2011 | ||||||
Book value per share | $ | 40.07 | $ | 39.13 | |||
Less: Per share impact of accumulated other comprehensive income | 6.53 | 5.80 | |||||
Book value per share, excluding accumulated other comprehensive income | $ | 33.54 | $ | 33.33 |
March 31, 2012 | December 31, 2011 | ||||||
Assets | |||||||
Investments | $ | 6,538,727 | $ | 6,397,195 | |||
Cash and cash equivalents | 302,836 | 296,339 | |||||
Deferred acquisition costs | 248,751 | 260,256 | |||||
Other assets | 373,769 | 340,048 | |||||
Restricted debt defeasance trust assets | — | 211,627 | |||||
Assets held in separate accounts | 655,755 | 603,903 | |||||
Total assets | $ | 8,119,838 | $ | 8,109,368 | |||
Liabilities and stockholders' equity | |||||||
Liabilities | |||||||
Future policy benefits | $ | 5,265,388 | $ | 5,146,852 | |||
Other policy funds, claims and benefits | 622,639 | 611,724 | |||||
Debt | 146,971 | 321,226 | |||||
Stock repurchase obligation | 112,538 | — | |||||
Other liabilities | 203,779 | 223,234 | |||||
Liabilities related to separate accounts | 655,755 | 603,903 | |||||
Total liabilities | 7,007,070 | 6,906,939 | |||||
Stockholders' equity | |||||||
FBL Financial Group, Inc. stockholders' equity: | |||||||
Preferred stock | 3,000 | 3,000 | |||||
Class A common stock | 122,238 | 129,684 | |||||
Class B common stock | 7,522 | 7,522 | |||||
Accumulated other comprehensive income | 180,839 | 177,845 | |||||
Retained earnings | 799,074 | 884,263 | |||||
Total FBL Financial Group, Inc. stockholders' equity | 1,112,673 | 1,202,314 | |||||
Noncontrolling interest | 95 | 115 | |||||
Total stockholders' equity | 1,112,768 | 1,202,429 | |||||
Total liabilities and stockholders' equity | $ | 8,119,838 | $ | 8,109,368 | |||
Common shares outstanding | 27,695,759 | 30,650,634 |
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 Financial Officer | |
Jim.Brannen@FBLFinancial.com | |
(515) 225-5631 | |
Don Seibel | |
Vice President - Finance | |
Don.Seibel@FBLFinancial.com | |
(515) 226-6399 | |
Kathleen Till Stange | |
Investor Relations Vice President | |
Kathleen.TillStange@FBLFinancial.com | |
(515) 226-6780 | |
Internet Information | FBL Financial Group, Inc. |
www.fblfinancial.com | |
Stock Symbol | NYSE: FFG |
Transfer Agent | Computershare/BNY Mellon |
c/o Computershare/BNY Mellon Shareowner Services | |
Shareholder Relations Department | |
P.O. Box 358015 | |
Jersey City, NJ 07310-1900 | |
www.bnymellon.com/shareowner | |
FBL Financial Group, Inc. | ||
Financial Supplement (Unaudited) | ||
March 31, 2012 | ||
Table of Contents/Notes | ||
Consolidated Financial Statements: | ||
Consolidated Balance Sheets | ||
Consolidated Statements of Comprehensive Income | ||
Consolidated Statements of Operating Income, last five quarters | ||
Financial Information by Segment: | ||
Segment Information | ||
Consolidating Statements of Pre-tax Operating Income | ||
Statements of Pre-tax Operating Income (Loss), last five quarters: | ||
Annuity Segment | ||
Life Insurance Segment | ||
Corporate and Other Segment | ||
Deferred Acquisition Costs by Segment | ||
Collected Premiums, last five quarters | ||
Parent Company Liquidity | ||
Other Information |
March 31, 2012 | December 31, 2011 | ||||||
Assets | |||||||
Investments: | |||||||
Fixed maturity securities - available for sale, at fair value (amortized cost: 2012 - $5,341,307; 2011 - $5,189,994) | $ | 5,742,044 | $ | 5,570,550 | |||
Equity securities - available for sale, at fair value (cost: 2012 - $51,448; 2011 - $55,697) | 54,221 | 57,432 | |||||
Mortgage loans | 532,555 | 552,359 | |||||
Real estate | 4,672 | 2,541 | |||||
Policy loans | 173,277 | 172,368 | |||||
Short-term investments | 31,590 | 41,756 | |||||
Other investments | 368 | 189 | |||||
Total investments | 6,538,727 | 6,397,195 | |||||
Cash and cash equivalents | 302,836 | 296,339 | |||||
Restricted debt defeasance trust assets | — | 211,627 | |||||
Securities and indebtedness of related parties | 73,898 | 64,516 | |||||
Accrued investment income | 73,355 | 67,200 | |||||
Amounts receivable from affiliates | 5,885 | 3,942 | |||||
Reinsurance recoverable | 100,393 | 94,685 | |||||
Deferred acquisition costs | 248,751 | 260,256 | |||||
Value of insurance in force acquired | 26,442 | 25,781 | |||||
Current income taxes recoverable | 13,273 | 16,334 | |||||
Other assets | 80,523 | 67,590 | |||||
Assets held in separate accounts | 655,755 | 603,903 | |||||
Total assets | $ | 8,119,838 | $ | 8,109,368 |
March 31, 2012 | December 31, 2011 | ||||||
Liabilities and stockholders' equity | |||||||
Liabilities: | |||||||
Future policy benefits: | |||||||
Interest sensitive products | $ | 3,850,220 | $ | 3,744,857 | |||
Traditional life insurance and accident and health products | 1,415,168 | 1,401,995 | |||||
Other policy claims and benefits | 43,170 | 40,488 | |||||
Supplementary contracts without life contingencies | 361,890 | 359,663 | |||||
Advance premiums and other deposits | 217,579 | 211,573 | |||||
Amounts payable to affiliates | 631 | 713 | |||||
Short-term debt payable to non-affiliates | — | 174,258 | |||||
Long-term debt payable to affiliates | 49,971 | 49,968 | |||||
Long-term debt payable to non-affiliates | 97,000 | 97,000 | |||||
Stock repurchase obligation | 112,538 | — | |||||
Deferred income taxes | 103,909 | 100,341 | |||||
Other liabilities | 99,239 | 122,180 | |||||
Liabilities related to separate accounts | 655,755 | 603,903 | |||||
Total liabilities | 7,007,070 | 6,906,939 | |||||
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 26,502,769 shares in 2012 and 29,457,644 shares in 2011 | 122,238 | 129,684 | |||||
Class B common stock, without par value - authorized 1,500,000 shares, issued and outstanding 1,192,990 shares | 7,522 | 7,522 | |||||
Accumulated other comprehensive income | 180,839 | 177,845 | |||||
Retained earnings | 799,074 | 884,263 | |||||
Total FBL Financial Group, Inc. stockholders' equity | 1,112,673 | 1,202,314 | |||||
Noncontrolling interest | 95 | 115 | |||||
Total stockholders' equity | 1,112,768 | 1,202,429 | |||||
Total liabilities and stockholders' equity | $ | 8,119,838 | $ | 8,109,368 |
Three months ended March 31, | |||||||
2012 | 2011 | ||||||
Revenues: | |||||||
Interest sensitive product charges | $ | 25,232 | $ | 24,129 | |||
Traditional life insurance premiums | 43,123 | 41,387 | |||||
Net investment income | 86,888 | 83,785 | |||||
Net realized capital gains on sales of investments | 879 | 2,260 | |||||
Total other-than-temporary impairment losses | (11,301 | ) | (5,727 | ) | |||
Non-credit portion in other comprehensive income | 9,779 | 3,575 | |||||
Net impairment losses recognized in earnings | (1,522 | ) | (2,152 | ) | |||
Other income | 5,005 | 4,999 | |||||
Total revenues | 159,605 | 154,408 | |||||
Benefits and expenses: | |||||||
Interest sensitive product benefits | 49,082 | 46,621 | |||||
Traditional life insurance benefits | 39,111 | 36,598 | |||||
Policyholder dividends | 4,244 | 4,300 | |||||
Underwriting, acquisition and insurance expenses | 32,727 | 33,251 | |||||
Interest expense | 1,982 | 2,388 | |||||
Loss on debt redemption | 33 | — | |||||
Other expenses | 5,790 | 4,881 | |||||
Total benefits and expenses | 132,969 | 128,039 | |||||
26,636 | 26,369 | ||||||
Income taxes | (8,758 | ) | (8,318 | ) | |||
Equity income, net of related income taxes | 1,621 | 731 | |||||
Net income from continuing operations | 19,499 | 18,782 | |||||
Discontinued operations: | |||||||
Loss on sale of subsidiary | (2,252 | ) | — | ||||
Income (loss) from discontinued operations, net of tax | (680 | ) | 6,267 | ||||
Total income (loss) from discontinued operations | (2,932 | ) | 6,267 | ||||
Net income | 16,567 | 25,049 | |||||
Net loss attributable to noncontrolling interest | 20 | 2 | |||||
Net income attributable to FBL Financial Group, Inc. | $ | 16,587 | $ | 25,051 | |||
Comprehensive income | $ | 19,561 | $ | 41,795 | |||
Earnings per common share: | |||||||
Income from continuing operations | $ | 0.64 | $ | 0.61 | |||
Income (loss) from discontinued operations | (0.10 | ) | 0.20 | ||||
Earnings per common share | $ | 0.54 | $ | 0.81 | |||
Earnings per common share - assuming dilution: | |||||||
Income from continuing operations | $ | 0.63 | $ | 0.60 | |||
Income (loss) from discontinued operations | (0.10 | ) | 0.20 | ||||
Earnings per common share - assuming dilution | $ | 0.53 | $ | 0.80 | |||
Cash dividends per common share | $ | 0.1000 | $ | 0.0625 |
FBL Financial Group, Inc. | |||||||||||||||||||
Consolidated Statements of Operating Income | |||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 | |||||||||||||||
Operating revenues: | |||||||||||||||||||
Interest sensitive product charges | $ | 24,112 | $ | 24,053 | $ | 24,792 | $ | 24,136 | $ | 25,139 | |||||||||
Traditional life insurance premiums | 41,387 | 44,139 | 40,342 | 42,651 | 43,123 | ||||||||||||||
Net investment income | 83,706 | 86,685 | 85,987 | 86,485 | 86,412 | ||||||||||||||
Other income | 4,999 | 3,980 | 4,856 | 3,866 | 5,005 | ||||||||||||||
Total operating revenues | 154,204 | 158,857 | 155,977 | 157,138 | 159,679 | ||||||||||||||
Benefits and expenses: | |||||||||||||||||||
Interest sensitive product benefits | 46,685 | 48,261 | 49,369 | 47,765 | 49,079 | ||||||||||||||
Traditional life insurance benefits | 36,598 | 37,717 | 35,598 | 39,053 | 39,319 | ||||||||||||||
Policyholder dividends | 4,300 | 4,356 | 4,109 | 4,265 | 4,244 | ||||||||||||||
Underwriting, acquisition and insurance expenses: | |||||||||||||||||||
Commission expense, net of deferrals | 6,361 | 6,596 | 5,150 | 5,844 | 5,699 | ||||||||||||||
Amortization of deferred acquisition costs | 8,376 | 7,980 | 11,452 | 7,115 | 7,486 | ||||||||||||||
Amortization of value of insurance in force acquired | 360 | (6,172 | ) | 1,405 | (297 | ) | 687 | ||||||||||||
Other underwriting expenses | 17,824 | 18,727 | 17,885 | 19,638 | 18,147 | ||||||||||||||
Total underwriting, acquisition and insurance expenses | 32,921 | 27,131 | 35,892 | 32,300 | 32,019 | ||||||||||||||
Interest expense | 2,388 | 2,153 | 1,983 | 2,008 | 1,982 | ||||||||||||||
Other expenses | 4,881 | 6,001 | 4,886 | 4,884 | 5,790 | ||||||||||||||
Total benefits and expenses | 127,773 | 125,619 | 131,837 | 130,275 | 132,433 | ||||||||||||||
26,431 | 33,238 | 24,140 | 26,863 | 27,246 | |||||||||||||||
Income taxes | (8,340 | ) | (9,907 | ) | (8,122 | ) | (6,766 | ) | (8,971 | ) | |||||||||
Net loss (income) attributable to noncontrolling interest | 2 | 18 | 1 | (27 | ) | 20 | |||||||||||||
Equity income, net of related income taxes | 731 | 57 | 231 | 265 | 1,621 | ||||||||||||||
Operating income | 18,824 | 23,406 | 16,250 | 20,335 | 19,916 | ||||||||||||||
Realized gains/losses on investments, net of offsets | (243 | ) | 111 | (820 | ) | (5,031 | ) | (249 | ) | ||||||||||
Change in net unrealized gains/losses on derivatives, net of offsets | 203 | 725 | 285 | (281 | ) | (126 | ) | ||||||||||||
Net impact of discontinued operations | 6,267 | 11,997 | 11,354 | (41,079 | ) | (2,932 | ) | ||||||||||||
Loss on debt redemption | — | — | — | (21,564 | ) | (22 | ) | ||||||||||||
Net income (loss) attributable to FBL Financial Group, Inc. | $ | 25,051 | $ | 36,239 | $ | 27,069 | $ | (47,620 | ) | $ | 16,587 | ||||||||
Operating income per common share - assuming dilution | $ | 0.60 | $ | 0.75 | $ | 0.52 | $ | 0.65 | $ | 0.64 | |||||||||
Earnings (loss) per common share - assuming dilution | $ | 0.80 | $ | 1.16 | $ | 0.86 | $ | (1.55 | ) | $ | 0.53 | ||||||||
Weighted average common shares outstanding (in thousands): | |||||||||||||||||||
Basic | 30,612 | 30,733 | 30,803 | 30,746 | 30,527 | ||||||||||||||
Effect of dilutive securities | 510 | 474 | 463 | 509 | 479 | ||||||||||||||
Diluted | 31,122 | 31,207 | 31,266 | 31,255 | 31,006 | ||||||||||||||
Operating return on equity, excluding AOCI - last twelve months (1) | 10.7 | % | 11.5 | % | 10.7 | % | 7.6 | % | 7.8 | % | |||||||||
Operating return on equity, including AOCI - last twelve months (1) | 10.2 | % | 10.8 | % | 9.8 | % | 6.8 | % | 6.8 | % |
• | 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. |
Quarter Ended March 31, 2012 | Annuity | Life Insurance | Corporate & Other | Consolidated | |||||||||||
(Dollars in thousands) | |||||||||||||||
Operating revenues: | |||||||||||||||
Interest sensitive product charges | $ | 206 | $ | 13,189 | $ | 11,744 | $ | 25,139 | |||||||
Traditional life insurance premiums | — | 43,123 | — | 43,123 | |||||||||||
Net investment income | 45,978 | 33,846 | 6,588 | 86,412 | |||||||||||
Other income | 3 | (53 | ) | 5,055 | 5,005 | ||||||||||
Total operating revenues | 46,187 | 90,105 | 23,387 | 159,679 | |||||||||||
Benefits and expenses: | |||||||||||||||
Interest sensitive product benefits | 25,535 | 15,385 | 8,159 | 49,079 | |||||||||||
Traditional life insurance benefits | — | 39,319 | — | 39,319 | |||||||||||
Policyholder dividends | — | 4,244 | — | 4,244 | |||||||||||
Underwriting, acquisition and insurance expenses: | |||||||||||||||
Commission expense, net of deferrals | 718 | 4,019 | 962 | 5,699 | |||||||||||
Amortization of deferred policy acquisition costs | 2,293 | 5,246 | (53 | ) | 7,486 | ||||||||||
Amortization of value of insurance in force acquired | 33 | 654 | — | 687 | |||||||||||
Other underwriting expenses | 4,873 | 11,875 | 1,399 | 18,147 | |||||||||||
Total underwriting, acquisition and insurance expenses | 7,917 | 21,794 | 2,308 | 32,019 | |||||||||||
Interest expense | — | — | 1,982 | 1,982 | |||||||||||
Other expenses | — | — | 5,790 | 5,790 | |||||||||||
Total benefits and expenses | 33,452 | 80,742 | 18,239 | 132,433 | |||||||||||
12,735 | 9,363 | 5,148 | 27,246 | ||||||||||||
Net loss attributable to noncontrolling interest | — | — | 20 | 20 | |||||||||||
Equity income, before tax | — | — | 111 | 111 | |||||||||||
Pre-tax operating income | $ | 12,735 | $ | 9,363 | $ | 5,279 | $ | 27,377 |
Quarter Ended March 31, 2011 | Annuity | Life Insurance | Corporate & Other | Consolidated | |||||||||||
(Dollars in thousands) | |||||||||||||||
Operating revenues: | |||||||||||||||
Interest sensitive product charges | $ | 161 | $ | 11,945 | $ | 12,006 | $ | 24,112 | |||||||
Traditional life insurance premiums | — | 41,387 | — | 41,387 | |||||||||||
Net investment income | 43,460 | 33,776 | 6,470 | 83,706 | |||||||||||
Other income | — | 97 | 4,902 | 4,999 | |||||||||||
Total operating revenues | 43,621 | 87,205 | 23,378 | 154,204 | |||||||||||
Benefits and expenses: | |||||||||||||||
Interest sensitive product benefits | 24,717 | 15,100 | 6,868 | 46,685 | |||||||||||
Traditional life insurance benefits | — | 36,598 | — | 36,598 | |||||||||||
Policyholder dividends | — | 4,300 | — | 4,300 | |||||||||||
Underwriting, acquisition and insurance expenses: | |||||||||||||||
Commission expense, net of deferrals | 1,072 | 3,937 | 1,352 | 6,361 | |||||||||||
Amortization of deferred acquisition costs | 1,804 | 5,533 | 1,039 | 8,376 | |||||||||||
Amortization of value of insurance in force acquired | (150 | ) | 510 | — | 360 | ||||||||||
Other underwriting expenses | 2,802 | 10,654 | 4,368 | 17,824 | |||||||||||
Total underwriting, acquisition and insurance expenses | 5,528 | 20,634 | 6,759 | 32,921 | |||||||||||
Interest expense | — | — | 2,388 | 2,388 | |||||||||||
Other expenses | — | — | 4,881 | 4,881 | |||||||||||
Total benefits and expenses | 30,245 | 76,632 | 20,896 | 127,773 | |||||||||||
13,376 | 10,573 | 2,482 | 26,431 | ||||||||||||
Net loss attributable to noncontrolling interest | — | — | 2 | 2 | |||||||||||
Equity income, before tax | — | — | 1,124 | 1,124 | |||||||||||
Pre-tax operating income | $ | 13,376 | $ | 10,573 | $ | 3,608 | $ | 27,557 |
FBL Financial Group, Inc. | ||||||||||||||||||||
Statements of Pre-tax Operating Income | ||||||||||||||||||||
Annuity Segment | ||||||||||||||||||||
Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 | ||||||||||||||||
Pre-tax Operating Income | (Dollars in thousands) | |||||||||||||||||||
Operating revenues: | ||||||||||||||||||||
Interest sensitive product charges | $ | 161 | $ | 154 | $ | 182 | $ | 167 | $ | 206 | ||||||||||
Net investment income | 43,460 | 46,506 | 45,635 | 46,373 | 45,978 | |||||||||||||||
Other income | — | 1 | — | 1 | 3 | |||||||||||||||
Total operating revenues | 43,621 | 46,661 | 45,817 | 46,541 | 46,187 | |||||||||||||||
Benefits and expenses: | ||||||||||||||||||||
Interest sensitive product benefits | 24,717 | 25,200 | 25,336 | 25,234 | 25,535 | |||||||||||||||
Underwriting, acquisition and insurance expenses: | ||||||||||||||||||||
Commission expense, net of deferrals | 1,072 | 892 | 740 | 724 | 718 | |||||||||||||||
Amortization of deferred acquisition costs | 1,804 | 2,365 | 2,004 | 2,743 | 2,293 | |||||||||||||||
Amortization of value of insurance in force acquired | (150 | ) | 317 | 440 | (363 | ) | 33 | |||||||||||||
Other underwriting expenses | 2,802 | 2,863 | 2,768 | 2,869 | 4,873 | |||||||||||||||
Total underwriting, acquisition and insurance expenses | 5,528 | 6,437 | 5,952 | 5,973 | 7,917 | |||||||||||||||
Total benefits and expenses | 30,245 | 31,637 | 31,288 | 31,207 | 33,452 | |||||||||||||||
Pre-tax operating income | $ | 13,376 | $ | 15,024 | $ | 14,529 | $ | 15,334 | $ | 12,735 | ||||||||||
Selected balance sheet data, securities at cost: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Investments | $ | 3,136,065 | $ | 3,248,310 | $ | 3,297,875 | $ | 3,298,442 | $ | 3,405,435 | ||||||||||
Deferred acquisition costs | 74,565 | 76,154 | 77,416 | 78,102 | 80,766 | |||||||||||||||
Value of insurance in force acquired | 12,269 | 11,952 | 11,496 | 11,852 | 11,819 | |||||||||||||||
Liabilities and equity: | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Interest sensitive product reserves | $ | 2,674,844 | $ | 2,748,421 | $ | 2,784,995 | $ | 2,812,666 | $ | 2,906,991 | ||||||||||
Other insurance reserves | 371,179 | 374,781 | 376,592 | 378,319 | 379,977 | |||||||||||||||
Allocated equity, excluding AOCI | 242,997 | 249,218 | 252,082 | 254,602 | 256,383 | |||||||||||||||
Other data: | ||||||||||||||||||||
Number of direct contracts | 53,608 | 53,881 | 53,839 | 53,894 | 54,091 | |||||||||||||||
Portfolio yield net of assumed defaults | 5.70 | % | 5.75 | % | 5.72 | % | 5.65 | % | 5.55 | % | ||||||||||
Credited rate | 3.43 | 3.42 | 3.32 | 3.32 | 3.32 | |||||||||||||||
Spread on fixed annuities at end of quarter (1) | 2.27 | % | 2.33 | % | 2.40 | % | 2.33 | % | 2.23 | % | ||||||||||
Interest sensitive reserve activity: | ||||||||||||||||||||
Individual deferred annuity reserve: | ||||||||||||||||||||
Balance, beginning of period | $ | 1,974,661 | $ | 2,043,957 | $ | 2,102,447 | $ | 2,143,378 | $ | 2,182,809 | ||||||||||
Deposits | 116,089 | 99,347 | 68,463 | 65,867 | 107,172 | |||||||||||||||
Withdrawals, surrenders and death benefits | (41,443 | ) | (37,930 | ) | (28,773 | ) | (29,344 | ) | (33,066 | ) | ||||||||||
Net flows | 74,646 | 61,417 | 39,690 | 36,523 | 74,106 | |||||||||||||||
Policyholder interest | 16,895 | 17,104 | 17,367 | 17,403 | 17,729 | |||||||||||||||
Annuitizations and other | (22,245 | ) | (20,031 | ) | (16,126 | ) | (14,495 | ) | (22,069 | ) | ||||||||||
Balance, end of period | 2,043,957 | 2,102,447 | 2,143,378 | 2,182,809 | 2,252,575 | |||||||||||||||
Other interest sensitive reserves | 630,887 | 645,974 | 641,617 | 629,857 | 654,416 | |||||||||||||||
Total interest sensitive product reserves | $ | 2,674,844 | $ | 2,748,421 | $ | 2,784,995 | $ | 2,812,666 | $ | 2,906,991 |
(1) Point-in-time spread at the balance sheet date used by management for decision making, which differs from the spread earned during the reporting period disclosed in the Form 10Q or 10K. |
FBL Financial Group, Inc. | |||||||||||||||||||
Statements of Pre-tax Operating Income | |||||||||||||||||||
Life Insurance Segment | |||||||||||||||||||
Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 | |||||||||||||||
Pre-tax Operating Income | (Dollars in thousands) | ||||||||||||||||||
Operating revenues: | |||||||||||||||||||
Interest sensitive product charges | $ | 11,945 | $ | 12,103 | $ | 12,474 | $ | 12,624 | $ | 13,189 | |||||||||
Traditional life insurance premiums | 41,387 | 44,139 | 40,342 | 42,651 | 43,123 | ||||||||||||||
Net investment income | 33,776 | 33,842 | 33,979 | 33,402 | 33,846 | ||||||||||||||
Other income | 97 | 60 | 124 | 11 | (53 | ) | |||||||||||||
Total operating revenues | 87,205 | 90,144 | 86,919 | 88,688 | 90,105 | ||||||||||||||
Benefits and expenses: | |||||||||||||||||||
Interest sensitive product benefits: | |||||||||||||||||||
Interest credited | 7,613 | 7,682 | 7,211 | 7,213 | 7,141 | ||||||||||||||
Death benefits | 7,487 | 8,024 | 9,320 | 7,814 | 8,244 | ||||||||||||||
Total interest sensitive product benefits | 15,100 | 15,706 | 16,531 | 15,027 | 15,385 | ||||||||||||||
Traditional life insurance benefits: | |||||||||||||||||||
Death benefits | 17,713 | 16,023 | 16,531 | 19,212 | 18,406 | ||||||||||||||
Surrender and other benefits | 10,216 | 9,123 | 8,543 | 7,978 | 8,657 | ||||||||||||||
Increase in traditional life future policy benefits | 8,669 | 12,571 | 10,524 | 11,863 | 12,256 | ||||||||||||||
Total traditional life insurance benefits | 36,598 | 37,717 | 35,598 | 39,053 | 39,319 | ||||||||||||||
Policyholder dividends | 4,300 | 4,356 | 4,109 | 4,265 | 4,244 | ||||||||||||||
Underwriting, acquisition and insurance expenses: | |||||||||||||||||||
Commission expense, net of deferrals | 3,937 | 4,540 | 3,442 | 4,155 | 4,019 | ||||||||||||||
Amortization of deferred acquisition costs | 5,533 | 3,609 | 4,877 | 4,023 | 5,246 | ||||||||||||||
Amortization of value of insurance in force acquired | 510 | (6,489 | ) | 965 | 66 | 654 | |||||||||||||
Other underwriting expenses | 10,654 | 11,383 | 10,863 | 12,026 | 11,875 | ||||||||||||||
Total underwriting, acquisition and insurance expenses | 20,634 | 13,043 | 20,147 | 20,270 | 21,794 | ||||||||||||||
Total benefits and expenses | 76,632 | 70,822 | 76,385 | 78,615 | 80,742 | ||||||||||||||
Pre-tax operating income | $ | 10,573 | $ | 19,322 | $ | 10,534 | $ | 10,073 | $ | 9,363 | |||||||||
Selected balance sheet data, securities at cost: | |||||||||||||||||||
Assets: | |||||||||||||||||||
Investments | $ | 2,175,151 | $ | 2,208,177 | $ | 2,212,936 | $ | 2,224,280 | $ | 2,215,738 | |||||||||
Deferred acquisition costs | 177,597 | 181,208 | 182,384 | 187,113 | 190,953 | ||||||||||||||
Value of insurance in force acquired | 20,751 | 27,241 | 26,275 | 26,210 | 25,597 | ||||||||||||||
Liabilities and equity: | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Interest sensitive reserves | $ | 632,454 | $ | 636,791 | $ | 642,362 | $ | 647,711 | $ | 652,427 | |||||||||
Other insurance reserves | 1,502,695 | 1,516,521 | 1,533,024 | 1,549,886 | 1,566,750 | ||||||||||||||
Allocated equity, excluding AOCI | 271,429 | 273,434 | 280,450 | 286,067 | 277,192 |
FBL Financial Group, Inc. | |||||||||||||||||||
Statements of Pre-tax Operating Income | |||||||||||||||||||
Life Insurance Segment (Continued) | |||||||||||||||||||
Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Other data: | |||||||||||||||||||
Number of direct policies - traditional life | 348,942 | 350,219 | 350,372 | 352,274 | 352,336 | ||||||||||||||
Number of direct policies - universal life | 57,320 | 57,498 | 57,520 | 58,115 | 58,618 | ||||||||||||||
Direct face amounts - traditional life | $ | 36,474,946 | $ | 37,090,827 | $ | 37,586,036 | $ | 38,235,322 | $ | 38,552,018 | |||||||||
Direct face amounts - universal life | $ | 5,305,213 | $ | 5,387,097 | $ | 5,392,760 | $ | 5,481,755 | $ | 5,538,683 | |||||||||
Portfolio yield net of assumed defaults | 6.13 | % | 6.08 | % | 6.06 | % | 5.97 | % | 5.93 | % | |||||||||
Credited rate | 4.29 | 4.29 | 4.30 | 4.26 | 4.16 | ||||||||||||||
Spread on universal life at end of quarter (1) | 1.84 | % | 1.79 | % | 1.76 | % | 1.71 | % | 1.77 | % | |||||||||
Interest sensitive reserve activity: | |||||||||||||||||||
Balance, beginning of period | $ | 630,956 | $ | 632,454 | $ | 636,791 | $ | 642,362 | $ | 647,711 | |||||||||
Deposits | 14,840 | 16,677 | 15,745 | 16,492 | 17,363 | ||||||||||||||
Withdrawals and surrenders | (6,115 | ) | (5,683 | ) | (5,651 | ) | (4,634 | ) | (6,531 | ) | |||||||||
Net flows | 8,725 | 10,994 | 10,094 | 11,858 | 10,832 | ||||||||||||||
Policyholder interest | 6,476 | 6,482 | 6,450 | 6,469 | 6,370 | ||||||||||||||
Policy charges | (12,261 | ) | (12,660 | ) | (12,840 | ) | (13,187 | ) | (12,898 | ) | |||||||||
Benefits and other | (1,442 | ) | (479 | ) | 1,867 | 209 | 412 | ||||||||||||
Balance, end of period | $ | 632,454 | $ | 636,791 | $ | 642,362 | $ | 647,711 | $ | 652,427 |
(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 (Loss) | ||||||||||||||||||||
Corporate and Other | ||||||||||||||||||||
Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 | ||||||||||||||||
Pre-tax Operating Income (Loss) | (Dollars in thousands) | |||||||||||||||||||
Operating revenues: | ||||||||||||||||||||
Interest sensitive product charges | $ | 12,006 | $ | 11,796 | $ | 12,136 | $ | 11,345 | $ | 11,744 | ||||||||||
Net investment income | 6,470 | 6,337 | 6,373 | 6,710 | 6,588 | |||||||||||||||
Other income | 4,902 | 3,919 | 4,732 | 3,854 | 5,055 | |||||||||||||||
Total operating revenues | 23,378 | 22,052 | 23,241 | 21,909 | 23,387 | |||||||||||||||
Benefits and expenses: | ||||||||||||||||||||
Interest sensitive product benefits | 6,868 | 7,355 | 7,502 | 7,504 | 8,159 | |||||||||||||||
Underwriting, acquisition and insurance expenses: | ||||||||||||||||||||
Commission expense, net of deferrals | 1,352 | 1,164 | 968 | 965 | 962 | |||||||||||||||
Amortization of deferred acquisition costs | 1,039 | 2,007 | 4,572 | 349 | (53 | ) | ||||||||||||||
Other underwriting expenses | 4,368 | 4,481 | 4,254 | 4,743 | 1,399 | |||||||||||||||
Total underwriting, acquisition and insurance expenses | 6,759 | 7,652 | 9,794 | 6,057 | 2,308 | |||||||||||||||
Interest expense | 2,388 | 2,153 | 1,983 | 2,008 | 1,982 | |||||||||||||||
Other expenses | 4,881 | 6,001 | 4,886 | 4,884 | 5,790 | |||||||||||||||
Total benefits and expenses | 20,896 | 23,161 | 24,165 | 20,453 | 18,239 | |||||||||||||||
2,482 | (1,109 | ) | (924 | ) | 1,456 | 5,148 | ||||||||||||||
Net loss (income) attributable to noncontrolling interest | 2 | 18 | 1 | (27 | ) | 20 | ||||||||||||||
Equity income (loss), before tax | 1,124 | 88 | (409 | ) | (409 | ) | 111 | |||||||||||||
Pre-tax operating income (loss) | $ | 3,608 | $ | (1,003 | ) | $ | (1,332 | ) | $ | 1,020 | $ | 5,279 | ||||||||
Selected balance sheet data, securities at cost: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Investments | $ | 523,074 | $ | 469,288 | $ | 472,571 | $ | 492,182 | $ | 514,044 | ||||||||||
Deferred acquisition costs | 105,364 | 103,849 | 100,150 | 99,916 | 99,542 | |||||||||||||||
Separate account assets | 695,777 | 681,996 | 574,374 | 603,903 | 655,755 | |||||||||||||||
Liabilities and equity: | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Interest sensitive reserves | $ | 257,953 | $ | 262,501 | $ | 277,215 | $ | 284,480 | $ | 290,802 | ||||||||||
Other insurance reserves | 93,489 | 96,617 | 94,716 | 93,826 | 99,256 | |||||||||||||||
Separate account liabilities | 695,777 | 681,996 | 574,374 | 603,903 | 655,755 | |||||||||||||||
Allocated equity, excluding AOCI | 503,595 | 532,684 | 549,722 | 480,800 | 395,259 | |||||||||||||||
Rollforward of separate account balances: | ||||||||||||||||||||
Beginning separate account balance | $ | 675,586 | $ | 695,777 | $ | 681,996 | $ | 574,374 | $ | 603,903 | ||||||||||
Net premiums | 8,659 | 8,616 | (3,178 | ) | 2,881 | 5,061 | ||||||||||||||
Net investment income (loss) | 32,281 | 2,014 | (84,033 | ) | 44,758 | 65,617 | ||||||||||||||
Charges, benefits and surrenders | (20,749 | ) | (24,411 | ) | (20,411 | ) | (18,110 | ) | (18,826 | ) | ||||||||||
Ending separate account balance | $ | 695,777 | $ | 681,996 | $ | 574,374 | $ | 603,903 | $ | 655,755 | ||||||||||
Other data: | ||||||||||||||||||||
Number of direct contracts - variable annuity | 18,199 | 17,805 | 17,442 | 14,915 | 14,627 | |||||||||||||||
Number of direct policies - variable universal life | 54,667 | 53,897 | 53,119 | 49,198 | 48,794 | |||||||||||||||
Direct face amounts - variable universal life | $ | 6,876,212 | $ | 6,762,676 | $ | 6,661,581 | $ | 6,061,761 | $ | 6,065,488 |
FBL Financial Group, Inc. | |||||||||||||||||||
Deferred Acquisition Costs by Segment | |||||||||||||||||||
Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Annuity | |||||||||||||||||||
Balance - beginning of period | $ | 71,842 | $ | 74,565 | $ | 76,154 | $ | 77,416 | $ | 78,102 | |||||||||
Capitalization: | |||||||||||||||||||
Commissions | 4,557 | 3,839 | 2,889 | 3,039 | 4,537 | ||||||||||||||
Expenses | 348 | 327 | 266 | 373 | 426 | ||||||||||||||
Total capitalization | 4,905 | 4,166 | 3,155 | 3,412 | 4,963 | ||||||||||||||
Amortization - operating basis, before impact of unlocking | (1,804 | ) | (2,365 | ) | (2,410 | ) | (2,743 | ) | (2,293 | ) | |||||||||
Amortization - unlocking, operating basis | — | — | 406 | — | — | ||||||||||||||
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives | (378 | ) | (212 | ) | 111 | 17 | (6 | ) | |||||||||||
Balance - end of period | $ | 74,565 | $ | 76,154 | $ | 77,416 | $ | 78,102 | $ | 80,766 | |||||||||
Life Insurance | |||||||||||||||||||
Balance - beginning of period | $ | 176,419 | $ | 177,597 | $ | 181,208 | $ | 182,384 | $ | 187,113 | |||||||||
Capitalization: | |||||||||||||||||||
Commissions | 4,372 | 4,538 | 3,950 | 5,445 | 5,924 | ||||||||||||||
Expenses | 2,059 | 2,373 | 2,015 | 2,791 | 2,507 | ||||||||||||||
Deferral of sales inducements | 682 | 247 | 105 | 587 | 578 | ||||||||||||||
Total capitalization | 7,113 | 7,158 | 6,070 | 8,823 | 9,009 | ||||||||||||||
Amortization - operating basis, before impact of unlocking | (5,670 | ) | (3,790 | ) | (3,155 | ) | (4,094 | ) | (5,340 | ) | |||||||||
Amortization - unlocking, operating basis | — | — | (1,763 | ) | — | — | |||||||||||||
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives | (265 | ) | 243 | 24 | — | 171 | |||||||||||||
Balance - end of period | $ | 177,597 | $ | 181,208 | $ | 182,384 | $ | 187,113 | $ | 190,953 | |||||||||
Corporate and Other | |||||||||||||||||||
Balance - beginning of period | $ | 105,369 | $ | 105,364 | $ | 103,849 | $ | 100,150 | $ | 99,916 | |||||||||
Capitalization: | |||||||||||||||||||
Commissions | 736 | 612 | 373 | 240 | 315 | ||||||||||||||
Deferral of sales inducements | 36 | 4 | 2 | 15 | 12 | ||||||||||||||
Total capitalization | 772 | 616 | 375 | 255 | 327 | ||||||||||||||
Amortization - operating basis, before impact of unlocking | (1,060 | ) | (1,182 | ) | (5,406 | ) | (366 | ) | 8 | ||||||||||
Amortization - unlocking, operating basis | — | (850 | ) | 819 | — | — | |||||||||||||
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives | 283 | (99 | ) | 513 | (123 | ) | (709 | ) | |||||||||||
Balance - end of period | $ | 105,364 | $ | 103,849 | $ | 100,150 | $ | 99,916 | $ | 99,542 |
FBL Financial Group, Inc. | |||||||||||||||||||
Deferred Acquisition Costs by Segment (Continued) | |||||||||||||||||||
Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Total | |||||||||||||||||||
Balance - beginning of period | $ | 353,630 | $ | 357,526 | $ | 361,211 | $ | 359,950 | $ | 365,131 | |||||||||
Capitalization: | |||||||||||||||||||
Commissions | 9,665 | 8,989 | 7,212 | 8,724 | 10,776 | ||||||||||||||
Expenses | 2,407 | 2,700 | 2,281 | 3,164 | 2,933 | ||||||||||||||
Deferral of sales inducements | 718 | 251 | 107 | 602 | 590 | ||||||||||||||
Total capitalization | 12,790 | 11,940 | 9,600 | 12,490 | 14,299 | ||||||||||||||
Amortization - operating basis, before impact of unlocking | (8,534 | ) | (7,337 | ) | (10,971 | ) | (7,203 | ) | (7,625 | ) | |||||||||
Amortization - unlocking, operating basis | — | (850 | ) | (538 | ) | — | — | ||||||||||||
Amortization - realized gains/losses on investments and unrealized gains/losses on derivatives | (360 | ) | (68 | ) | 648 | (106 | ) | (544 | ) | ||||||||||
Balance - end of period | 357,526 | 361,211 | 359,950 | 365,131 | 371,261 | ||||||||||||||
Impact of realized/unrealized gains/losses in AOCI | (34,371 | ) | (54,698 | ) | (107,099 | ) | (104,875 | ) | (122,510 | ) | |||||||||
Deferred acquisition costs | $ | 323,155 | $ | 306,513 | $ | 252,851 | $ | 260,256 | $ | 248,751 |
FBL Financial Group, Inc. | |||||||||||||||||||
Collected Premiums | |||||||||||||||||||
Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Annuity | |||||||||||||||||||
Individual: | |||||||||||||||||||
First year | $ | 73,715 | $ | 64,225 | $ | 39,907 | $ | 38,866 | $ | 57,802 | |||||||||
Renewal | 42,915 | 36,515 | 29,742 | 27,362 | 49,716 | ||||||||||||||
Total individual | 116,630 | 100,740 | 69,649 | 66,228 | 107,518 | ||||||||||||||
Group | 2,844 | 4,045 | 5,586 | 3,434 | 2,298 | ||||||||||||||
Total Annuity | 119,474 | 104,785 | 75,235 | 69,662 | 109,816 | ||||||||||||||
Life Insurance | |||||||||||||||||||
Direct: | |||||||||||||||||||
Universal life: | |||||||||||||||||||
First year | 2,711 | 4,015 | 4,526 | 3,636 | 4,014 | ||||||||||||||
Renewal | 11,747 | 12,417 | 10,992 | 12,155 | 13,109 | ||||||||||||||
Total universal life | 14,458 | 16,432 | 15,518 | 15,791 | 17,123 | ||||||||||||||
Participating whole life: | |||||||||||||||||||
First year | 2,839 | 3,300 | 2,461 | 2,863 | 3,061 | ||||||||||||||
Renewal | 24,105 | 25,480 | 22,857 | 23,800 | 24,520 | ||||||||||||||
Total participating whole life | 26,944 | 28,780 | 25,318 | 26,663 | 27,581 | ||||||||||||||
Term life and other: | |||||||||||||||||||
First year | 2,688 | 2,970 | 2,694 | 2,892 | 2,976 | ||||||||||||||
Renewal | 16,559 | 17,093 | 17,176 | 17,795 | 18,075 | ||||||||||||||
Total term life and other | 19,247 | 20,063 | 19,870 | 20,687 | 21,051 | ||||||||||||||
Total direct life insurance | 60,649 | 65,275 | 60,706 | 63,141 | 65,755 | ||||||||||||||
Reinsurance | (5,311 | ) | (5,095 | ) | (4,901 | ) | (4,996 | ) | (5,406 | ) | |||||||||
Total Life Insurance | 55,338 | 60,180 | 55,805 | 58,145 | 60,349 | ||||||||||||||
Corporate and Other | |||||||||||||||||||
Variable, net of reinsurance | 23,822 | 20,446 | 19,451 | 16,147 | 19,974 | ||||||||||||||
Accident and health, net of reinsurance | 69 | 34 | 39 | 261 | 58 | ||||||||||||||
Total Corporate and Other | 23,891 | 20,480 | 19,490 | 16,408 | 20,032 | ||||||||||||||
Collected premiums from continuing operations | 198,703 | 185,445 | 150,530 | 144,215 | 190,197 | ||||||||||||||
Collected premiums from discontinued operations | 186,528 | 190,628 | 142,429 | 149,292 | — | ||||||||||||||
Total collected premiums | $ | 385,231 | $ | 376,073 | $ | 292,959 | $ | 293,507 | $ | 190,197 | |||||||||
FBL Financial Group, Inc. | |||||||||||
Parent Company Liquidity | |||||||||||
January - March 2012 | April - December 2012 | ||||||||||
Actual | Projected (4) | Total | |||||||||
(Dollars in thousands) | |||||||||||
Total cash and invested assets, beginning of period | $ | 239,440 | $ | 220,564 | $ | 239,440 | |||||
Sources: | |||||||||||
Investment income | 53 | 1,000 | 1,053 | ||||||||
Management fees from subsidiaries and affiliates | 1,208 | 3,600 | 4,808 | ||||||||
Total sources | 1,261 | 4,600 | 5,861 | ||||||||
Uses: | |||||||||||
Repurchase of common stock | (212 | ) | (112,500 | ) | (112,712 | ) | |||||
Net cost from EquiTrust Life sale (1) | — | (9,300 | ) | (9,300 | ) | ||||||
Interest expense | (5,458 | ) | (5,900 | ) | (11,358 | ) | |||||
Stockholders' dividends (2) | (3,100 | ) | (8,100 | ) | (11,200 | ) | |||||
General expenses | (2,595 | ) | (7,300 | ) | (9,895 | ) | |||||
Total uses | (11,365 | ) | (143,100 | ) | (154,465 | ) | |||||
Other, net (3) | (8,772 | ) | 4,200 | (4,572 | ) | ||||||
Total cash and invested assets, end of period | $ | 220,564 | $ | 86,264 | $ | 86,264 |
(1) | Net cost represents settlement of the final purchase price from the estimated cash transferred at December 30, 2011 due to post-closing adjustments based on a final statutory net worth reconciliation. |
(2) | The projected dividends are based on quarterly rates of $0.0075 per Series B redeemable preferred share and $0.10 per common share. The common stock dividend rate must be approved quarterly by the Board of Directors. |
(3) | Other fluctuates from period to period are primarily due to the issuance of shares of company stock, primarily from option exercises, and the timing of settlements of amounts due to/from affiliates and external parties. |
(4) | Based on best estimates at March 31, 2012; actual results may differ materially. Projected sources and uses for the remainder of 2012 exclude the impact of additional stock repurchases or long-term investment of the EquiTrust Life sale proceeds. |
FBL Financial Group, Inc. | |||||||||||||||||||
Other Information | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | |||||||||||||||
2011 | 2011 | 2011 | 2011 | 2012 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
Capitalization: | |||||||||||||||||||
Senior notes with affiliates, due 2015 | $ | 100,000 | $ | 99,927 | $ | 99,932 | $ | 49,968 | $ | 49,971 | |||||||||
Senior notes, due 2014 | 75,185 | 75,171 | 75,156 | 75,142 | — | ||||||||||||||
Senior notes, due 2017 | 99,006 | 99,041 | 99,079 | 99,116 | — | ||||||||||||||
Trust preferred securities, due 2047 | 97,000 | 97,000 | 97,000 | 97,000 | 97,000 | ||||||||||||||
Total debt | 371,191 | 371,139 | 371,167 | 321,226 | 146,971 | ||||||||||||||
Preferred stock | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | ||||||||||||||
Common stockholders' equity, excluding AOCI | 1,018,021 | 1,055,336 | 1,082,254 | 1,021,469 | 928,834 | ||||||||||||||
Total capitalization, excluding AOCI | 1,392,212 | 1,429,475 | 1,456,421 | 1,345,695 | 1,078,805 | ||||||||||||||
Accumulated other comprehensive income | 63,435 | 120,041 | 230,174 | 177,845 | 180,839 | ||||||||||||||
Total capitalization, including AOCI | $ | 1,455,647 | $ | 1,549,516 | $ | 1,686,595 | $ | 1,523,540 | $ | 1,259,644 | |||||||||
Common shares outstanding | 31,134,662 | 31,206,396 | 31,237,734 | 30,650,634 | 27,695,759 | ||||||||||||||
Book Value per Share: | |||||||||||||||||||
Excluding AOCI | $ | 32.70 | $ | 33.82 | $ | 34.65 | $ | 33.33 | $ | 33.54 | |||||||||
Including AOCI | 34.73 | 37.66 | 42.01 | 39.13 | 40.07 | ||||||||||||||
Debt-to-Capital Ratio: | |||||||||||||||||||
Excluding AOCI | 26.7 | % | 26.0 | % | 25.5 | % | 23.9 | % | 13.6 | % | |||||||||
Including AOCI | 25.5 | 24.0 | 22.0 | 21.1 | 11.7 | ||||||||||||||
Debt-to-Capital Ratio with 100% Credit for Trust Preferred Securities: | |||||||||||||||||||
Excluding AOCI | 19.7 | % | 19.2 | % | 18.8 | % | 16.7 | % | 4.6 | % | |||||||||
Including AOCI | 18.8 | 17.7 | 16.3 | 14.7 | 4.0 | ||||||||||||||
Class A Common Ownership: | |||||||||||||||||||
Iowa Farm Bureau Federation | 51.4 | % | 51.3 | % | 51.3 | % | 52.2 | % | 55.7 | % | |||||||||
Other Farm Bureau entities | 7.3 | 7.3 | 7.3 | 7.5 | 5.8 | ||||||||||||||
Public | 41.3 | 41.4 | 41.4 | 40.3 | 38.5 | ||||||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
FBL Financial Group, Inc. | ||||||||||||||
Other Information (Continued) | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | ||||||||||
2011 | 2011 | 2011 | 2011 | 2012 | ||||||||||
Quality of Fixed Maturity Securities: (1) | ||||||||||||||
AAA, AA, A | 62.4 | % | 63.3 | % | 64.6 | % | 64.2 | % | 64.0 | % | ||||
BBB | 30.9 | 30.4 | 29.6 | 30.8 | 31.2 | |||||||||
BB | 4.1 | 3.9 | 3.7 | 2.7 | 2.5 | |||||||||
<BB | 2.6 | 2.4 | 2.1 | 2.3 | 2.3 | |||||||||
Investment by Type: (1) | ||||||||||||||
Fixed maturity securities | 59.9 | % | 60.6 | % | 61.1 | % | 63.1 | % | 63.1 | % | ||||
Residential mortgage-backed | 14.9 | 15.4 | 14.9 | 10.6 | 10.7 | |||||||||
Commercial mortgage-backed | 8.0 | 8.1 | 8.4 | 7.7 | 7.5 | |||||||||
Other asset-backed | 3.8 | 4.1 | 4.1 | 5.7 | 6.5 | |||||||||
Mortgage loans | 9.3 | 9.1 | 8.9 | 8.6 | 8.1 | |||||||||
Equity securities | 0.6 | 0.6 | 0.6 | 0.9 | 0.8 | |||||||||
Other | 3.5 | 2.1 | 2.0 | 3.4 | 3.3 | |||||||||
Agent Strength Totals: | ||||||||||||||
8-state Farm Bureau Property & Casualty channel | 1,187 | 1,190 | 1,258 | 1,225 | 1,226 | |||||||||
7 life-only states | 793 | 707 | 713 | 712 | 709 | |||||||||
Total | 1,980 | 1,897 | 1,971 | 1,937 | 1,935 | |||||||||
(1) Periods prior to December 31, 2011 have not been restated for impact of the EquiTrust Life sale. |