Statutory Insurance Information

The statutory financial statements of Farm Bureau Life and Greenfields are prepared in accordance with the accounting practices prescribed or permitted by the Insurance Division of the state of Iowa and the Colorado Division of Insurance, respectively. Those insurance divisions have adopted the accounting guidance contained in the National Association of Insurance Commissioners (NAIC) Accounting Practices and Procedures Manual (the Manual) as the prescribed accounting practice for insurance companies domiciled in their state. The insurance divisions may permit accounting practices that differ from those prescribed by the Manual. None of our statutory accounting practices differed materially from those prescribed by the Manual. Several differences exist between GAAP and statutory accounting practices. Principally, under statutory accounting, deferred acquisition costs are not capitalized, fixed maturity securities are generally carried at amortized cost, insurance liabilities are presented net of reinsurance, contract holder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted.



Statutory Information of our Insurance Subsidiaries

	Year ended December 31,
	2016			2015			2014
	(Dollars in thousands)
Farm Bureau Life:
Net gain from operations (excludes impact of realized gains and losses on investments)	$	106,143		$	100,013		$	97,799
Net income	100,657			106,009			97,393
Greenfields:
Net gain (loss) from operations (excludes impact of realized gains and losses on investments)	(540		)	(362		)	(433		)
Net income (loss)	(540		)	(362		)	(433		)



	FB Life						Greenfields
	December 31,						December 31,
	2016			2015			2016			2015
	(Dollars in thousands)
Total capital and surplus	$	617,321		$	603,062		$	9,175		$	4,763
Unassigned surplus (deficit)	483,838			469,579			(1,625		)	(1,037		)
Risk-Based Capital measurements:
Total adjusted capital	685,721			668,278			9,191			4,772
Company action level capital	125,994			117,284			173			110
RBC Ratio	544		%	570		%	5,322		%	4,338		%

State laws specify regulatory actions if an insurer's risk-based capital (RBC) ratio, a measure of solvency, falls below certain levels. The NAIC has a standard formula for annually assessing RBC based on the various risk factors related to an insurance company's capital and surplus, including insurance, business, asset and interest rate risks. The insurance regulators monitor the level of RBC against a statutory "authorized control level" RBC at which point regulators have the option to assume control of the insurance company. The company action level RBC is 200% of the authorized control level and is the first point at which any action would be triggered.

Farm Bureau Life's ability to pay dividends to the parent company is restricted by the Iowa Insurance Holding Company Act to earned surplus arising from its business as of the date the dividend is paid. In addition, prior approval of the Iowa Insurance Commissioner is required for a dividend distribution of cash or other property whose fair value, together with that of other dividends made within the preceding 12 months, exceeds the greater of (i) 10% of policyholders' surplus as of the preceding year end, or (ii) the statutory net gain from operations of the insurer for the preceding calendar year. As shown in the tables above, at December 31, 2016, Farm Bureau Life’s net gain from operations of $106.1 million, exceeded 10% of statutory surplus; accordingly, that amount is the maximum available for distribution to FBL Financial Group, Inc. without regulatory approval during 2017. Timing of such dividends during the year is limited based on the timing of dividends paid within the preceding 12 months.