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Statutory Insurance Information
 12 Months Ended
Dec. 31, 2019
Statutory Insurance Information [Abstract]  
Statutory insurance information [Text Block] 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. The insurance division has adopted the accounting guidance contained in the National Association of Insurance Commissioners (NAIC) Accounting Practices and Procedures manual (NAIC SAP) as the prescribed accounting practice for insurance companies domiciled in Iowa. The insurance division may permit or prescribe accounting practices that differ from those prescribed by NAIC SAP. Farm Bureau Life has adopted such practices related to index products and option accounting. 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,
 
2019
 
2018
 
2017
 
(Dollars in thousands)
Farm Bureau Life:
 
 
 
 
 
Net gain from operations (excludes impact of realized gains and losses on investments)
$
98,529

 
$
100,819

 
$
106,062

Net income
100,141

 
103,923

 
104,947

State prescribed practices that increased (decreased) statutory net income
577

 
(7,505
)
 
2,285

Greenfields:
 
 
 
 
 
Net gain (losses) from operations (excludes impact of realized gains and losses on investments)
146

 
(321
)
 
(192
)
Net income (loss)
146

 
(321
)
 
(192
)

Statutory Information of our Insurance Subsidiaries - Continued
 
 
 
 
 
Farm Bureau Life
 
Greenfields
 
December 31,
 
December 31,
 
2019
 
2018
 
2019
 
2018
 
(Dollars in thousands)
Total capital and surplus
$
642,409

 
$
637,205

 
$
8,814

 
$
8,677

Unassigned surplus (deficit)
508,926

 
503,722

 
(1,986
)
 
(2,123
)
State prescribed practices that increased (decreased) statutory surplus
(8,320
)
 
2,635

 
—

 
—

Risk-Based Capital measurements:
 
 
 
 
 
 
 
Total adjusted capital
718,175

 
704,541

 
8,826

 
8,688

Company action level capital
127,864

 
127,632

 
194

 
218

RBC Ratio
562
%
 
552
%
 
4,551
%
 
3,978
%


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, 2019, Farm Bureau Life’s net gain from operations of $98.5 million, exceeded 10% of statutory surplus; accordingly, that amount is the maximum available for distribution to FBL Financial Group, Inc. without regulatory approval during 2020. Timing of such dividends during the year is limited based on the timing of dividends paid within the preceding 12 months.