XML 60 R39.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Information [Abstract]  
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]
Financial Information Concerning our Operating Segments
 
 
 
 
 
 
 
 
 
Year ended December 31,
 
2019
 
2018
 
2017
 
(Dollars in thousands)
Pre-tax adjusted operating income:
 
 
 
 
 
Annuity
$
52,834

 
$
62,846

 
$
68,821

Life Insurance
67,134

 
47,680

 
53,856

Corporate and Other
16,309

 
16,013

 
23,350

Total pre-tax adjusted operating income
136,277

 
126,539

 
146,027

 
 
 
 
 
 
Adjustments to pre-tax adjusted operating income:
 
 
 
 
 
Net realized gains/losses on investments (1)
7,358

 
(12,085
)
 
(1,234
)
Change in fair value of derivatives (1)
3,422

 
(7,832
)
 
3,923

Pre-tax net income attributable to FBL Financial Group, Inc.
147,057

 
106,622

 
148,716

Income tax expense (benefit)
(19,929
)
 
(11,650
)
 
39,983

Tax on equity income
(919
)
 
(1,179
)
 
(1,394
)
Net income attributable to FBL Financial Group, Inc.
$
126,209

 
$
93,793

 
$
187,305


Financial Information Concerning our Operating Segments - continued
 
 
 
 
 
 
 
Year ended December 31,
 
2019

2018

2017
 
(Dollars in thousands)
Adjusted operating revenues:
 
 
 
 
 
Annuity
$
212,538

 
$
223,996

 
$
224,184

Life Insurance
432,294

 
430,194

 
418,593

Corporate and Other
94,230

 
93,681

 
94,340

 
739,062

 
747,871

 
737,117

Net realized gains/losses on investments (1) (2)
7,606

 
(12,455
)
 
(1,469
)
Change in fair value of derivatives (1)
28,013

 
(15,790
)
 
2,263

Consolidated revenues
$
774,681

 
$
719,626

 
$
737,911

 
 
 
 
 
 
Net investment income:
 
 
 
 
 
Annuity
$
205,857

 
$
218,823

 
$
219,700

Life Insurance
158,230

 
158,003

 
158,318

Corporate and Other
34,302

 
33,272

 
34,918

 
398,389

 
410,098

 
412,936

Change in fair value of derivatives
26,609

 
(15,480
)
 
2,263

Consolidated net investment income
$
424,998

 
$
394,618

 
$
415,199

 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
Annuity
$
14,954

 
$
9,335

 
$
6,489

Life Insurance
4,926

 
16,515

 
18,720

Corporate and Other
66

 
7,025

 
(1,120
)
 
19,946

 
32,875

 
24,089

Net realized gains/losses on investments (1)
241

 
(184
)
 
(240
)
Change in fair value of derivatives (1)
345

 
(1,598
)
 
(639
)
Consolidated depreciation and amortization
$
20,532

 
$
31,093

 
$
23,210

 
Operating Segment Assets
 
 
 
 
December 31,
 
2019
 
2018
 
(Dollars in thousands)
Assets:
 
 
 
Annuity
$
4,671,210

 
$
4,627,277

Life Insurance
3,665,179

 
3,528,561

Corporate and Other
1,669,183

 
1,554,634

 
10,005,572

 
9,710,472

Net unrealized gains in accumulated other comprehensive income (3)
474,634

 
123,158

Consolidated assets
$
10,480,206

 
$
9,833,630



(1)
Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, interest sensitive product reserves and income taxes attributable to these items.
(2)
Beginning in 2018, amounts include the change in fair value of equity securities due to a change in accounting guidance. See Note 1 to our consolidated financial statements for additional information.
(3)
Amounts are net adjustments for assumed changes in deferred acquisition costs and value of insurance in force acquired attributable to these items.
Schedule of Segment Reporting Information, by Segment [Table Text Block]
Equity Income by Operating Segment
 
 
 
 
 
Year ended December 31,
 
2019
 
2018
 
2017
 
(Dollars in thousands)
Pre-tax equity income:
 
 
 
 
 
Life Insurance
$
3,224

 
$
3,840

 
$
2,741

Corporate and Other
1,151

 
1,778

 
1,243

Total pre-tax equity income
4,375

 
5,618

 
3,984

 
 
 
 
 
 
Income taxes
(919
)
 
(1,179
)
 
(1,394
)
Equity income, net of related income taxes
$
3,456

 
$
4,439

 
$
2,590
Reconciliation of non-GAAP measures [Table Text Block]
Reconciliation of Traditional Life Insurance Premiums, Net of Reinsurance
 
 
 
 
 
Year ended December 31,
 
2019
 
2018
 
2017
 
(Dollars in thousands)
Traditional and universal life insurance premiums collected
$
310,727

 
$
304,229

 
$
292,344

Premiums collected on interest sensitive products
(114,092
)
 
(106,609
)
 
(97,963
)
Traditional life insurance premiums collected
196,635

 
197,620

 
194,381

Change in due premiums and other
1,228

 
692

 
949

Traditional life insurance premiums as included in the Consolidated Statements of Operations.
$
197,863

 
$
198,312

 
$
195,330

 
There is no comparable GAAP financial measure for premiums collected on annuities and universal life-type products. GAAP revenues for those interest sensitive and variable products consist of various policy charges and fees assessed on those contracts, as summarized in the chart below.

Interest Sensitive Product Charges by Segment
 
 
 
Year ended December 31,
 
2019
 
2018
 
2017
 
(Dollars in thousands)
Annuity
 
 
 
 
 
Rider and other product charges
$
5,319

 
$
3,880

 
$
3,414

Surrender charges
1,362

 
1,293

 
1,070

Total
$
6,681

 
$
5,173

 
$
4,484

 
 
 
 
 
 
Life Insurance
 
 
 
 
 
Administration charges
$
19,264

 
$
16,944

 
$
15,487

Cost of insurance charges
51,122

 
50,727

 
46,096

Surrender charges
2,619

 
2,352

 
1,913

Amortization of policy initiation fees
3,737

 
4,462

 
1,954

Total
$
76,742

 
$
74,485

 
$
65,450

 
 
 
 
 
 
Corporate and Other
 
 
 
 
 
Administration charges
$
4,707

 
$
5,021

 
$
5,332

Cost of insurance charges
28,794

 
29,151

 
29,670

Surrender charges
99

 
92

 
150

Separate account charges
8,168

 
8,535

 
8,246

Amortization of policy initiation fees
516

 
823

 
119

Total
$
42,284

 
$
43,622

 
$
43,517

 
 
 
 
 
 
Impact of net realized gains/losses on investments and change in fair value of derivatives on amortization of unearned revenue reserves
1,406

 
(491
)
 
(515
)
Interest sensitive product charges as included in the Consolidated Statements of Operations
$
127,113

 
$
122,789

 
$
112,936