EX-99.O 14 dex99o.htm FINANCIAL STATEMENT SCHEDULES Financial Statement Schedules

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON SCHEDULES

 

The Board of Directors and Stockholder

Farm Bureau Life Insurance Company

 

We have audited the consolidated balance sheets of Farm Bureau Life Insurance Company as of December 31, 2006 and 2005, and the related consolidated statements of income, changes in stockholder’s equity and cash flows for each of the three years in the period ended December 31, 2006, and have issued our report thereon dated April 6, 2007 (included elsewhere in this Registration Statement). Our audits also included the financial statement schedules listed in Item 26 of this Registration Statement. These schedules are the responsibility of the Company's management. Our responsibility is to express an opinion based on our audits.

 

In our opinion, the financial statement schedules referred to above, when considered in relation to the basic financial statements taken as a whole, present fairly in all material respects the information set forth therein.

 

/s/ Ernst & Young LLP

 

Des Moines, Iowa

April 6, 2007

 

1

Schedule I—Summary of Investments—Other

Than Investments in Related Parties

FARM BUREAU LIFE INSURANCE COMPANY

 

December 31, 2006

 

Column A

    Column B
    Column C
    Column D

Type of Investment

    Cost(1)
    Value
    Amount at Which
Shown in the
Balance Sheet
     (Dollars in thousands)
Fixed maturity securities, available for sale:                     

Bonds:

                     

Corporate securities

    $ 1,782,118    $ 1,826,907    $ 1,826,907

Mortgage and asset-backed securities

      1,171,404      1,165,723      1,165,723

United States Government and agencies

      364,410      362,806      362,806

State, municipal and other governments

      266,688      267,389      267,389

Public utilities

      183,676      185,123      185,123

Redeemable preferred stock

      71,691      77,077      77,077
    
  
  

Total

      3,839,987    $ 3,885,025      3,885,025
           
      
Equity securities, available for sale:                     

Common stocks:

                     

Banks, trusts and insurance companies

      33,158    $ 47,633      47,633

Industrial, miscellaneous and all other

      1,208      1,049      1,049
    
  
  

Total

      34,366    $ 48,682      48,682
           
      
Mortgage loans on real estate      528,897             528,917
Derivative instruments      283    $ 5,526      5,526
Investment real estate      8,711             8,711
Policy loans      159,370             159,370
Other long-term investments      1,300             1,300
Short-term investments      14,810             14,810
    
         
Total investments    $ 4,587,724           $ 4,652,341
    
         
(1) On the basis of cost adjusted for repayments and amortization of premiums and accrual of discounts for fixed maturities and short-term investments; original cost for equity securities, derivative instruments and other long-term investments; unpaid principal balance for mortgage loans on real estate and policy loans, and original cost less accumulated depreciation for investment real estate.

 

2

Schedule III—Supplementary Insurance Information

FARM BUREAU LIFE INSURANCE COMPANY

 

Column A

    Column B
     Column C
    Column D
     Column E
     Deferred
Policy
Acquisition
Costs
     Future Policy
Benefits, Losses,
Claims and Loss
Expenses
    Unearned
Revenues
     Other
Policyholder
Funds
     (Dollars in thousands)
December 31, 2006:                              

Traditional Annuity—Exclusive Distribution

    $ 79,085     $ 1,830,038    $ —       $ 399,079

Traditional and Universal Life Insurance

      199,761       1,762,377      10,400       143,328

Variable

      131,363       197,022      16,784       8,976

Corporate and Other

      —         71,782      —         —  

Impact of unrealized gains/losses

      (13,309 )     —        (739 )     —  
    
 
  
 

Total

    $ 396,900     $ 3,861,219    $ 26,445     $ 551,383
    
 
  
 
December 31, 2005:                              

Traditional Annuity-Exclusive Distribution

    $ 72,005     $ 1,821,410    $ —       $ 391,030

Traditional and Universal Life Insurance

      185,164       1,717,875      10,950       149,205

Variable

      125,755       202,232      16,918       9,314

Corporate and Other

      —         69,365      —         —  

Impact of unrealized gains/losses

      (10,238 )     —        (374 )     —  
    
 
  
 

Total

    $ 372,686     $ 3,810,882    $ 27,494     $ 549,549
    
 
  
 
December 31, 2004:                              

Traditional Annuity-Exclusive Distribution

    $ 66,638     $ 1,750,821    $ —       $ 368,817

Traditional and Universal Life Insurance

      170,630       1,671,208      10,963       169,180

Variable

      117,533       197,194      17,249       —  

Corporate and Other

      —         66,424      —         —  

Impact of unrealized gains/losses

      (17,918 )     —        (660 )     —  
    
 
  
 

Total

    $ 336,883     $ 3,685,647    $ 27,552     $ 537,997
    
 
  
 

 

3

Schedule III—Supplementary Insurance Information (continued)

FARM BUREAU LIFE INSURANCE COMPANY

 

Column A

    Column F
     Column G
    Column H
     Column I
     Column J
  
     Premium
Revenue
     Net Investment
Income(1)
    Benefits,
Claims, Losses
and Settlement
Expenses
     Amortization
of Deferred
Policy
Acquisition
Costs
     Other
Operating
Expenses(2)
  
     (Dollars in thousands)  
December 31, 2006:                                        

Traditional Annuity-Exclusive Distribution

    $ 1,082     $ 145,256    $ 94,369     $ 7,046     $ 10,360  

Traditional and Universal Life Insurance

      169,569       126,841      172,800       11,495       40,895  

Variable

      40,212       13,595      21,708       6,355       20,309  

Corporate and Other

      415       5,950      253       —         7,106  

Change in net unrealized gains/losses on derivatives

      —         —        260       (10 )     —    

Impact of realized gains/losses

      (1 )     —        (1 )     (165 )     (54 )
    
 
  
 
 

Total

    $ 211,277     $ 291,642    $ 289,389     $ 24,721     $ 78,616  
    
 
  
 
 
December 31, 2005:                                        

Traditional Annuity-Exclusive Distribution

    $ 824     $ 145,672    $ 93,428     $ 9,122     $ 10,841  

Traditional and Universal Life Insurance

      164,326       125,699      166,335       10,244       42,947  

Variable

      37,590       13,896      20,264       4,316       23,130  

Corporate and Other

      385       7,588      236       —         2,698  

Change in net unrealized gains/losses on derivatives

      —         —        (12 )     —         —    

Impact of realized gains/losses

      (7 )     —        —         214       (6 )
    
 
  
 
 

Total

    $ 203,118     $ 292,855    $ 280,251     $ 23,896     $ 79,610  
    
 
  
 
 
December 31, 2004:                                        

Traditional Annuity-Exclusive Distribution

    $ 754     $ 134,014    $ 92,023     $ 4,998     $ 11,950  

Traditional and Universal Life Insurance

      161,039       122,014      158,272       12,925       43,899  

Variable

      35,325       12,848      17,859       7,116       22,114  

Corporate and Other

      480       1,324      405       —         5,989  

Change in net unrealized gains/losses on derivatives

      —         —        —         9       —    

Impact of realized gains/losses

      (45 )     —        —         307       177  
    
 
  
 
 

Total

    $ 197,553     $ 270,200    $ 268,559     $ 25,355     $ 84,129  
    
 
  
 
 
(1) Net investment income is allocated to the segments based upon the investments held by the respective segment. Beginning in 2005, we changed the allocation of capital among our segments to be consistent with a change in how we manage capital at the segment level. Accordingly, operating revenues and pre-tax operating income (loss) by segment for 2005 are impacted by the income on the investments transferred. See Note 12 to the consolidated financial statements for more information.
(2) Beginning in 2005, we changed the method in which indirect expenses (those expenses for which we do not have a reliable basis such as time studies for allocating the costs) are allocated among the segments from a pro rata method based on allocated capital to a pro rata method based on direct expenses. See Note 12 to the consolidated financial statements for more information.

 

4

Schedule IV—Reinsurance

FARM BUREAU LIFE INSURANCE COMPANY

 

Column A

    Column B
    Column C
    Column D
    Column E
    Column F
  
     Gross Amount
    Ceded to Other
Companies
    Assumed from
Other
Companies
    Net Amount
    Percent of
Amount
Assumed to Net
  
     (Dollars in thousands)  
Year ended December 31, 2006:                                   

Life insurance in force, at end of year

    $ 37,807,961    $ 7,798,007    $ 142,035    $ 30,151,989    0.5 %
    
  
  
  
  

Insurance premiums and other considerations:

                                   

Interest sensitive and index product charges

    $ 77,068    $ 580    $ 144    $ 76,632    0.2 %

Traditional life insurance premiums

      151,402      17,172      —        134,230    —    

Accident and health premiums

      12,356      11,941      —        415    —    
    
  
  
  
  
     $ 240,826    $ 29,693    $ 144    $ 211,277    0.1 %
    
  
  
  
  
Year ended December 31, 2005:                                   

Life insurance in force, at end of year

    $ 35,350,826    $ 6,858,604    $ 129,319    $ 28,621,541    0.5 %
    
  
  
  
  

Insurance premiums and other considerations:

                                   

Interest sensitive and index product charges

    $ 73,051    $ 544    $ 125    $ 72,632    0.2 %

Traditional life insurance premiums

      146,065      15,964      —        130,101    —    

Accident and health premiums

      13,245      12,860      —        385    —    
    
  
  
  
  
     $ 232,361    $ 29,368    $ 125    $ 203,118    0.1 %
    
  
  
  
  
Year ended December 31, 2004:                                   

Life insurance in force, at end of year

    $ 33,362,694    $ 6,224,766    $ 118,978    $ 27,256,906    0.4 %
    
  
  
  
  

Insurance premiums and other considerations:

                                   

Interest sensitive product charges

    $ 70,229    $ 488    $ 208    $ 69,949    0.3 %

Traditional life insurance premiums

      141,794      14,670      —        127,124    —    

Accident and health premiums

      14,078      13,598      —        480    —    
    
  
  
  
  
     $ 226,101    $ 28,756    $ 208    $ 197,553    0.1 %
    
  
  
  
  

 

5