Retirement and Compensation Plans

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Compensation and Employee Benefit Plans [Text Block]

Defined Benefit Pension Plans

We participate in various defined benefit pension plans (the Plans), including a multiemployer plan. The multiemployer plan is considered qualified under Internal Revenue Service regulations and covers our employees and the employees of the other participating companies who had attained age 21, had one year of service and were employed prior to January 1, 2013. We also have a plan that provides supplemental pension benefits to certain highly compensated employees who have salaries and/or pension benefits in excess of the qualified limits imposed by federal law and were employed prior to January 1, 2013. Benefits under these plans are based on years of service and the employee’s compensation. The plans are discussed below.

Multiemployer Defined Benefit Plan

The FBL Financial Group Retirement Plan (the Multiemployer Plan) is considered a multiemployer plan, with the participation of affiliated and unaffiliated employers along with FBL Financial Group, Inc. and its subsidiaries. Under the multiemployer plan structure, contributions are made each year and our contributions are commingled with those of the other employers to fund the payment of future plan benefit obligations. Should a participating employer be unable to provide funding, the remaining employers would be required to continue funding all future obligations. If an employer elects to discontinue participation, prior to departure they will be required to contribute their portion of the underfunded pension obligation associated with their employees. This required contribution will be based on an actuarial estimate of future benefit obligations, which as an estimate may not ultimately be sufficient to fund future actual benefits. None of the participating employers have provided notice that they would be discontinuing participation in the Multiemployer Plan or would otherwise be unable to continue providing their share of required funding as of December 31, 2019.

        

Multiemployer Plan name		FBL Financial Group Retirement Plan
Employer identification number		42-1411715
Plan number		001
FBL’s contributions (in thousands)
	2019	$15,000
	2018	$30,000
	2017	$45,000

Net periodic pension cost of the Multiemployer Plan is allocated between participating employers on a basis of time incurred by the respective employees for each employer. Such allocations are reviewed annually. The Multiemployer Plan is not subject to collective bargaining agreements, a financial improvement plan or a rehabilitation plan. No surcharges were required to be paid to the Multiemployer Plan during 2019, 2018 or 2017. We are the primary employer in the Multiemployer Plan, providing more than 5 percent of the total contributions during 2019, 2018 and 2017.

Other Defined Benefit Plans

The other defined benefit plans (the Other Plans) provide benefits in addition to those offered under the Multiemployer Plan to certain of our employees or affiliated employers. These non-qualified benefit plans are not funded, whereby contributions are made as current benefit obligations become due. Net periodic pension cost of the Other Plans is allocated between the subsidiaries of FBL Financial Group, Inc. and the Farm Bureau affiliated property-casualty companies on a basis of time incurred by the respective employees for each company.

Funding Status and Net Periodic Pension Costs

	Multiemployer Plan						Other Plans
	As of and for the year ended December 31,						As of and for the year ended December 31,
	2019			2018			2019			2018
	(Dollars in thousands)
Change in projected benefit obligation:
Net benefit obligation at beginning of the year	$	319,931		$	375,999		$	25,363		$	26,914
Service cost	4,549			5,973			467			539
Interest cost	13,273			13,642			992			958
Actuarial loss (gain)	51,338			(20,594		)	2,930			(1,170		)
Benefits paid	(7,971		)	(4,001		)	(1,829		)	(1,878		)
Settlements	—			(56,256		)	—			—
Special termination benefit	—			5,168			—			—
Projected benefit obligation	381,120			319,931			27,923			25,363
Change in plan assets:
Fair value of plan assets at beginning of the year	316,008			345,396			—			—
Actual return on plan assets	39,827			869			—			—
Employer contributions	15,000			30,000			1,829			1,878
Benefits paid	(7,971		)	(4,001		)	(1,829		)	(1,878		)
Settlements	—			(56,256		)	—			—
Fair value of plan assets at end of the year	362,864			316,008			—			—
Underfunded status at end of the year	$	(18,256	)	$	(3,923	)	$	(27,923	)	$	(25,363	)
Accumulated benefit obligation	$	343,029		$	287,052		$	25,471		$	22,753

The fair value of plan assets of the Multiemployer Plan exceeded the accumulated benefit obligation at December 31, 2019 and December 31, 2018.

Net Periodic Pension Costs Incurred by the Plans

	Multiemployer Plan									Other Plans
	As of and for the year ended December 31,									As of and for the year ended December 31,
	2019			2018			2017			2019		2018		2017
	(Dollars in thousands)
Service cost	$	4,549		$	5,973		$	5,552		$	467	$	539	$	436
Interest cost	13,273			13,642			14,124			992		958		1,003
Expected return on plan assets	(18,827		)	(22,247		)	(19,184		)	—		—		—
Amortization of prior service cost	—			46			131			—		—		—
Amortization of actuarial loss	8,913			12,507			10,121			1,066		1,353		1,172
Effect of settlement	—			17,406			—			—		—		—
Effect of special termination benefit	—			5,168			—			—		—		—
Net periodic pension cost	$	7,908		$	32,495		$	10,744		$	2,525	$	2,850	$	2,611
FBL Financial Group, Inc. share of net periodic pension cost	$	2,533		$	9,956		$	3,404		$	1,449	$	1,671	$	1,551

Pension settlement charges were recognized after determining the total cash payments exceeded the sum of the service and interest cost for 2018. For years in which settlement charges occur, benefits paid as lump sum distributions are included with settlements. The special termination benefit represents a voluntary early retirement program offered in the Multiemployer Plan during 2018 that provided an additional two years of service and two years of age benefit enhancement.

The Plans’ prior service costs are amortized using a straight-line amortization method over the average remaining service period or life expectancy of the employees, depending upon who is covered under each plan. For actuarial gains and losses, a corridor (10% of the greater of the projected benefit obligation or the market value of plan assets) is used to determine the amounts to amortize. For the Multiemployer Plan it is expected that net periodic pension cost in 2020 will include $11.2 million for amortization of the actuarial loss. For the Other Plans it is expected that net periodic pension cost in 2020, included in accumulated other comprehensive income, will include $1.3 million for amortization of the actuarial loss.

We expect contributions to be paid to the Multiemployer Plan by us and our affiliated and unaffiliated employers for 2020 to be approximately $15.0 million, of which $4.8 million is expected to be contributed by us. Expected benefits to be paid under the Multiemployer Plan are as follows: 2020 - $16.5 million, 2021 - $18.7 million, 2022 - $19.1 million, 2023 - $20.9 million, 2024 - $20.7 million and 2025 through 2029 - $121.2 million. Since the Other Plans are not funded, contributions are made as benefit obligations become due. Expected benefits to be paid under the Other Plans are as follows: 2020 - $3.6 million, 2021 - $4.3 million, 2022 - $3.4 million, 2023 - $4.1 million, 2024 - $3.0 million and 2025 through 2029 - $10.0 million.

FBL’s Proportionate Share of Prepaid or Accrued Pension Cost

	Multiemployer Plan					Other Plans
	As of and for the year ended December 31,					As of and for the year ended December 31,
	2019		2018			2019			2018
	(Dollars in thousands)
Amount recognized in FBL’s consolidated balance sheets
Prepaid benefit cost	$	38,365	$	36,105		$	749		$	726
Accrued benefit cost	—		(12		)	(21,922		)	(19,480		)
Net amount recognized	$	38,365	$	36,093		$	(21,173	)	$	(18,754	)
Amount recognized in FBL’s accumulated other comprehensive income, before taxes (1)
Net actuarial loss						$	12,990		$	11,126
Net amount recognized						$	12,990		$	11,126

(1) For our Multiemployer Plan, the underfunded portion of the pension benefit obligation is not required to be recognized as a liability in our consolidated balance sheets. The unrecognized liability for the underfunded status of our Multiemployer Plan totaled $18.3 million at December 31, 2019 and $3.9 million at December 31, 2018.

Weighted Average Assumptions Used to Determine Benefit Obligation
	December 31,
	2019		2018
Discount rate	3.37	%	4.24	%
Annual salary increases	3.27	%	3.21	%

The discount rate is estimated by projecting and discounting future benefit payments inherent in the projected benefit obligation using a commercially available “spot” yield curve constructed using techniques and a bond universe specifically selected to meet the accounting standard requirements.

Weighted Average Assumptions Used to Determine Net Periodic Pension Cost
	Year Ended December 31,
	2019		2018		2017
Discount rate	4.24	%	3.72	%	4.29	%
Expected long-term return on plan assets	6.00	%	6.50	%	6.60	%
Annual salary increases	3.21	%	3.27	%	3.31	%

The Multiemployer Plan’s expected long-term return on assets represents the rate of earnings expected in the funds invested to provide for anticipated benefit payments, which is analyzed annually and revised as needed.

Multiemployer Plan Assets

The Multiemployer Plan assets are primarily invested in annuity products and diversified investments including insurance company pooled separate accounts, mutual funds, fixed maturity securities and alternative investments. Certain pension obligations that are fully funded through annuity contracts with Farm Bureau Life, are presented as funded annuity contracts below. For 2019, excluding the funded annuity contracts, the Multiemployer Plan’s long-term investment allocation targets were as follows: 47% in fixed income investments, 30% in equities, 15% in long duration fixed income investments and 8% in alternative investments. At December 31, 2019, the Multiemployer Plan assets were invested approximately 49% in fixed income investments, 29% in equities, 17% in long duration fixed income investments and 5% in alternative investments. The fixed income investments consist primarily of the group annuity contract and fixed income securities held in pooled separate accounts. The equity securities are in pooled separate accounts and mutual funds. The long duration fixed income investments consist of holdings of corporate bonds, United States government treasuries and cash. The alternative investments consist of interests in limited partnerships that own various liquid and illiquid assets. The investment strategy for the Multiemployer Plan is to (1) achieve a long-term return sufficient to satisfy all Multiemployer Plan obligations, (2) assume a prudent level of risk and (3) maintain adequate liquidity. The expected return on Multiemployer Plan assets is set at the long-term rate expected to be earned based on the long-term investment strategy of the Multiemployer Plan. In estimating the expected rate of return for each asset class, factors such as historical rates of return, expected future risk-free rates of return and anticipated returns given the risk profile of each asset class are analyzed.

The valuation methodologies used for assets measured at fair value are:

• Group and funded annuity contracts: contract value approximates fair value, as the interest-crediting rate is declared annually and subject to change when the rate no longer approximates the market rate.

• Pooled separate accounts: valued at net asset value practical expedient, which is based on the latest quoted market price of the investments held within the fund.

• Mutual funds: the net asset value of mutual funds is based on quoted market prices available in active markets.

• Fixed maturities: the fair value of U.S. Treasuries is estimated using quoted market prices available in active markets. The fair value of corporate securities is obtained from third-party pricing vendors. We have regular interaction with these vendors to ensure we understand their pricing methodologies and confirm they are utilizing observable market information. The pricing methodologies include observable inputs such as estimated cash flows, benchmark yields, reported trades, credit quality, industry events and economic events.

• Cash and cash equivalents: due to the short-term nature, the carrying amounts approximate fair value.

• Alternative investments: the carrying value of the limited partnership interests reflects the Plan’s proportionate share of the net asset value of those partnerships, which is derived from the fair value of the underlying holdings, and as of December 31, 2019 and December 31, 2018, excludes the net asset value of one limited partnership because that partnership’s fair value is measured using the net asset value per share practical expedient. There are no redemption frequency or redemption notice period restrictions on the alternative investments.

The pension financial instruments measured and reported at fair value are classified and disclosed in one of the following categories:

Level 1 - Unadjusted quoted prices in active markets for identical assets that are accessible to us at the measurement date.

Level 2 - Inputs other than quoted prices in active markets for identical assets that are either directly or indirectly observable for substantially the full term of the asset or liability.

Level 3 - Inputs are unobservable and require management’s judgment about the assumptions that market participants would use in pricing the assets.

Fair Values of the Multiemployer Plan Assets by Asset Category and Hierarchy Levels
	December 31, 2019
	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	(Dollars in thousands)
Mutual funds: (1)
U.S. equity funds	$	26,294	$	—	$	—	$	26,294
International funds	44,730		—		—		44,730
Pooled separate accounts: (1)
Short-term fixed income funds	—		1,502		—		1,502
Fixed income funds	—		13,538		—		13,538
U.S. equity funds	—		17,941		—		17,941
Real estate fund	—		14,380		—		14,380
Annuities: (2)
Group annuity contract	—		—		157,248		157,248
Funded annuity contracts	—		—		10,378		10,378
Fixed maturities: (3)
Corporate	—		28,509		—		28,509
United States government and agencies	30,648		—		—		30,648
Alternative investments: (4)
Limited partnerships	—		—		16,147		16,147
Cash and cash equivalents (5)	21		—		—		21
Total	$	101,693	$	75,870	$	183,773	$	361,336

	December 31, 2018
	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	(Dollars in thousands)
Mutual funds: (1)
U.S. equity funds	$	20,138	$	—	$	—	$	20,138
International funds	35,854		—		—		35,854
Pooled separate accounts: (1)
Short-term fixed income funds	—		510		—		510
Fixed income funds	—		12,117		—		12,117
U.S. equity funds	—		13,788		—		13,788
Real estate fund	—		12,455		—		12,455
Annuities: (2)
Group annuity contract	—		—		148,106		148,106
Funded annuity contracts	—		—		10,500		10,500
Fixed maturities: (3)
Corporate	—		24,002		—		24,002
United States government and agencies	25,039		—		—		25,039
Alternative investments: (4)
Limited partnerships	—		—		12,410		12,410
Cash and cash equivalents (5)	538		—		—		538
Total	$	81,569	$	62,872	$	171,016	$	315,457

(1) Represents mutual funds and pooled separate account investments with Principal Life Insurance Company.

(2) Represents annuity contracts with Farm Bureau Life.

(3) Represents bonds to support the long duration fixed income investments.

(4) Represents interests in several limited partnerships. A limited partnership with a fair value estimate of $1.5 million as of December 31, 2019 and$0.6 million as of December 31, 2018, using net asset value per share as a practical expedient, has not been classified in the fair value hierarchy above in accordance with fair value reporting guidance.

(5) Represents approximate fair value of cash held.

Level 3 Multiemployer Plan Asset Changes in Fair Value
	December 31, 2019
						Return on assets
	December 31, 2018		Purchases (disposals), net			Held at year end		Sold during year		Transfers into (out) of level 3		December 31, 2019
	(Dollars in thousands)
Group annuity contract	$	148,106	$	(1,066	)	$	5,382	$	—	$	4,826	$	157,248
Funded annuity contracts	10,500		(730		)	608		—		—		10,378
Limited partnerships	12,410		2,587			1,150		—		—		16,147
Total	$	171,016	$	791		$	7,140	$	—	$	4,826	$	183,773

	December 31, 2018
						Return on assets
	December 31, 2017		Purchases (disposals), net			Held at year end		Sold during year		Transfers into (out) of level 3			December 31, 2018
	(Dollars in thousands)
Group annuity contract	$	181,403	$	(21,353	)	$	7,056	$	—	$	(19,000	)	$	148,106
Funded annuity contracts	10,776		(896		)	620		—		—			10,500
Limited partnerships	9,571		1,789			1,050		—		—			12,410
Total	$	201,750	$	(20,460	)	$	8,726	$	—	$	(19,000	)	$	171,016

Postemployment Benefits Disclosure [Text Block]

Other Retirement Plans

We participate with affiliated and unaffiliated employers in a 401(k) defined contribution plan, which covers substantially all employees. We match employee contributions and provide an additional discretionary contribution as summarized in the table below. Costs are allocated among the affiliates on a basis of time incurred by the respective employees for each company. Our expense related to this plan totaled $3.1 million in 2019, $2.9 million in 2018 and $2.6 million in 2017.

Attained age 40 and 10 years of service at December 31, 2012	Accruing years of service in the Multiemployer Plan	100% Employer Match	50% Employer Match	Discretionary Employer Contribution
Yes	Yes	first 2% of employee’s contributions	employee contributions between 2% and 4%	No
No	No	first 4% of employee’s contributions	employee contributions between 4% and 6%	2.75% to 5.75%

We have established deferred compensation plans for certain key current and former employees and have certain other benefit plans that provide for retirement and other benefits. Liabilities for these plans are accrued as the related benefits are earned.

Certain of the assets related to these plans are on deposit with us and amounts relating to these plans are included in our financial statements. In addition, certain amounts included in the policy liabilities for interest sensitive products relate to deposit administration funds maintained by us on behalf of affiliates.

In addition to benefits offered under the aforementioned benefit plans, we participate with affiliated and unaffiliated employers in a plan that provides group term life insurance benefits to retirees. We froze our portion of the plan on December 31, 2016 such that no new participants will enter the plan. We also have two single-employer plans, frozen to new participants, that

provide health and medical benefits to a small group of retirees. Postretirement benefit expenses for these plans are immaterial. The immaterial change in the underfunded portion of these plans is reported in other comprehensive income. During 2018, our allocated expense totaled $0.4 million related to 18 months of medical benefits to be provided to employees who accepted the voluntary early retirement program offered during 2018.

Compensation and Employee Benefit Plans [Text Block]

Share-based Compensation Plans

Stock Option Awards

Prior to 2012, we granted stock options for Class A common stock to officers and employees, which have a contractual term of 10 years. Prior to 2009, we also granted stock options for Class A common stock to directors, which were fully vested upon grant and had a contractual term that varied with the length of time the director remained on the Board, up to 10 years. The exercise price for all options is equal to the fair value of the common stock on the grant date. Expenses have been fully recognized under this plan.

Stock Option Activity
	Number of Shares		Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value (1)
	(Dollars in thousands, except per share data)
Shares under option at January 1, 2019	11,176		$	25.11
Exercised	(4,480	)	25.70
Forfeited or expired	—		—
Shares under option at December 31, 2019	6,696		24.71		0.61	$	229
Vested at December 31, 2019	6,696		$	24.71	0.61	$	229
Exercisable options at December 31, 2019	6,696		$	24.71	0.61	$	229

(1) Represents the difference between the share price and exercise price for each option, excluding options for which the exercise price is above the share price, at December 31, 2019.

The intrinsic value of options exercised during the year totaled $0.1 million for 2019, $0.7 million for 2018 and $0.8 million for 2017.

We issue new shares to satisfy stock option exercises.    Cash received from stock options exercised totaled $0.1 million for 2019, $0.3 million for 2018 and $0.7 million for 2017. The actual tax benefit realized from stock options exercised totaled less than $0.1 million for 2019, $0.1 million for 2018 and $0.2 million for 2017.

Cash-Based Restricted Stock Units

We annually grant cash-based restricted stock units to certain executives. The restricted stock units will vest and be paid out in cash over 5 years, contingent on continued employment with us.

The amount payable per unit awarded is equal to the price per share of the Company’s common stock at settlement of the award, and as such, we measure the value of the award each reporting period based on the current stock price. The effects of changes in the stock price during the service period are recognized as compensation expense over the service period. We allocate a portion of the expense for these arrangements to affiliates; expense amounts below represent our share of these expenses. Compensation expense for arrangements under this plan totaled $1.2 million for 2019, $1.7 million for 2018 and $1.9 million for 2017. The income tax benefit recognized in the statements of operations for this arrangement totaled $0.4 million in 2019, $0.6 million in 2018 and $1.0 million in 2017.

Restricted Stock Unit Activity
	Number of Units		Weighted-Average Grant-Date Fair Value per Unit
Restricted stock units at January 1, 2019	77,191		$	60.76
Granted	23,982		70.88
Vested	(30,806	)	53.85
Forfeited or canceled	(6,350	)	66.56
Restricted stock units at December 31, 2019	64,017		67.30

The weighted average grant-date fair value per common share of restricted stock units granted was $70.88 in 2019, $71.20 in 2018 and $69.10 in 2017. Unrecognized compensation expense related to unvested restricted stock units based on the stock price at December 31, 2019 totaled $1.4 million. This expense is expected to be recognized over a weighted-average period of 2.03 years. Dividends are paid on restricted stock units upon vesting. Cash payments including dividends for restricted stock units totaled $2.5 million in 2019 and $3.3 million in 2018 and 2017.

Other

We have a Director Compensation Plan under which non-employee directors on our Board may elect to receive a portion of their compensation in the form of cash or deferred cash-based stock units. Cash-based stock units outstanding under this plan totaled 26,042 at December 31, 2019 and 25,016 at December 31, 2018. Prior to 2012, deferred stock units were used instead of deferred cash-based stock units. Under this plan, we have deferred stock units outstanding totaling 47,092 at December 31, 2019 and 50,194 at December 31, 2018. At December 31, 2019, there were 103,003 shares of Class A common stock available for future issuance under the Director Compensation Plan.

We also have an Executive Salary and Bonus Deferred Compensation Plan under which certain officers of the Company were allowed to use their base salary and annual cash bonus to purchase deferred cash-based stock units. Cash-based stock units outstanding under this plan totaled 8,478 at December 31, 2019 and 10,743 at December 31, 2018. Prior to 2012, deferred stock units were used instead of deferred cash-based stock units. Under this plan, we have deferred stock units outstanding totaling 48,740 at December 31, 2019 and 48,312 at December 31, 2018. At December 31, 2019, shares of Class A common stock available for future issuance under this plan totaled 92,641. This plan was frozen to future deferrals on December 31, 2013.

We also have an Executive Excess 401(k) Plan under which officers of the Company who met salary guidelines and 401(k) contribution guidelines were allowed to purchase unregistered deferred stock units. Under this plan, we have deferred stock units outstanding totaling 3,514 at December 31, 2019 and 3,327 at December 31, 2018. This plan was frozen to future deferrals on December 31, 2013.