Schedule II - Condensed Financial Information of Registrant

FBL FINANCIAL GROUP, INC. (PARENT COMPANY)

Condensed Balance Sheets

(Dollars in thousands)



	December 31,
	2016		2015
Assets
Investments in subsidiaries (eliminated in consolidation)	$	1,205,356	$	1,145,988
Fixed maturities - available for sale, at fair value (amortized cost: 2016 - $29,210; 2015 - $33,389)	31,182		35,212
Equity securities - available for sale, at fair value (cost: 2016 - $2,942; 2015 - $1,470)	3,056		1,428
Short-term investments	5,988		13,066
Cash and cash equivalents	30,803		26,839
Amounts receivable from affiliates	1,758		1,264
Amounts receivable from subsidiaries (eliminated in consolidation)	10,487		1,758
Accrued investment income	13		12
Current income taxes recoverable	153		651
Deferred income tax assets	12,622		13,682
Other assets	12,585		10,106
Total assets	$	1,314,003	$	1,250,006

Liabilities and stockholders' equity
Liabilities:
Accrued expenses and other liabilities	$	28,758	$	18,470
Amounts payable from subsidiaries (eliminated in consolidation)	43		110
Long-term debt payable to non-affiliates	97,000		97,000
Total liabilities	125,801		115,580

Stockholders' equity:
Preferred stock	3,000		3,000
Class A common stock	152,903		149,248
Class B common stock	72		72
Accumulated other comprehensive income	149,555		114,532
Retained earnings	882,672		867,574
Total stockholders' equity	1,188,202		1,134,426
Total liabilities and stockholders' equity	$	1,314,003	$	1,250,006

See accompanying notes to condensed financial statements.

Schedule II -Condensed Financial Information of Registrant (Continued)

FBL FINANCIAL GROUP, INC. (PARENT COMPANY)

Condensed Statements of Operations

(Dollars in thousands)



	Year Ended December 31,
	2016		2015			2014
Revenues:
Net investment income	$	2,013	$	2,033		$	2,689
Realized gains (losses) on investments	—		(583		)	1,047
Dividends from subsidiaries (eliminated in consolidation)	85,900		50,000			45,700
Management fee income from affiliates	2,179		2,277			1,925
Management fee income from subsidiaries (eliminated in consolidation)	5,652		5,654			8,836
Other income	2		(8		)	7
Total revenues	95,746		59,373			60,204
Expenses:
Interest expense	4,850		4,850			4,723
General and administrative expenses	9,002		8,795			8,471
Total expenses	13,852		13,645			13,194
	81,894		45,728			47,010
Income tax benefit	2,349		2,507			1,011
Income before equity in undistributed income of subsidiaries	84,243		48,235			48,021
Equity in undistributed income of subsidiaries (eliminated in consolidation)	22,980		65,292			61,920
Net income	$	107,223	$	113,527		$	109,941

See accompanying notes to condensed financial statements.

Schedule II - Condensed Financial Information of Registrant (Continued)

FBL FINANCIAL GROUP, INC. (PARENT COMPANY)

Condensed Statements of Cash Flows

(Dollars in thousands)



	Year ended December 31,
	2016			2015			2014
Net cash provided by (used in) operating activities	$	(4,342	)	$	1,841		$	4,200

Investing activities
Sales of fixed maturities - available for sale	5,641			18,618			21,347
Acquisitions of equity securities - available for sale	(1,397		)	(1,188		)	(269		)
Short-term investments, net change	7,078			395			17,617
Dividends from subsidiaries (eliminated in consolidation)	85,900			50,000			45,700
Net cash provided by investing activities	97,222			67,825			84,395

Financing activities
Excess tax deductions on stock-based compensation	846			1,362			1,199
Repurchase of common stock, net	1,840			(584		)	(8,003		)
Capital contribution to subsidiary	—			(300		)	(1,000		)
Dividends paid	(91,602		)	(89,347		)	(34,749		)
Net cash used in financing activities	(88,916		)	(88,869		)	(42,553		)
Increase (decrease) in cash and cash equivalents	3,964			(19,203		)	46,042
Cash and cash equivalents at beginning of year	26,839			46,042			—
Cash and cash equivalents at end of year	$	30,803		$	26,839		$	46,042

Supplemental disclosure of cash flow information
Cash received (paid) during the year for:
Income taxes	$	5,486		$	6,344		$	6,927
Interest	(4,850		)	(4,850		)	(4,850		)

See accompanying notes to condensed financial statements.

Schedule II - Condensed Financial Information of Registrant (Continued)

FBL FINANCIAL GROUP, INC. (PARENT COMPANY)

Notes to Condensed Financial Statements

December 31, 2016

1. Basis of Presentation

The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of FBL Financial Group, Inc.

In the parent company only financial statements, our investments in subsidiaries are stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. In addition, the carrying value includes net unrealized gains/losses on the subsidiaries' investments classified as "available for sale."

2. Dividends from Subsidiaries

The parent company received dividends in the form of cash totaling $85.9 million in 2016, $50.0 million in 2015 and $45.7 million in 2014.

3. Debt

See Note 6 to the consolidated financial statements included in Item 8 for a description of the parent company's debt, including items paid off. The company's debt matures in 2047.