EX-99.O 22 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, 2007 and 2006, 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, 2007, and have issued our report thereon dated April 23, 2008 (included elsewhere in this Registration Statement). Our audits also included the financial statement schedules listed in Item 24(a)(2) 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. As discussed in Note 1 to the consolidated financial statements, in 2007 the Company changed its methods of accounting for the treatment of modifications or exchanges of insurance contracts, income tax contingencies and cash flow hedges on certain fixed annuity contracts.

 

/s/ Ernst & Young LLP

 

Des Moines, Iowa

April 23, 2008

Schedule I—Summary of Investments—Other

Than Investments in Related Parties

FARM BUREAU LIFE INSURANCE COMPANY

 

December 31, 2007

 

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

    $ 1,810,133    $ 1,807,634    $ 1,807,634

Mortgage and asset-backed securities

      1,198,401      1,166,243      1,166,243

United States Government and agencies

      314,441      320,867      320,867

State, municipal and other governments

      336,327      337,446      337,446

Public utilities

      248,403      250,621      250,621

Redeemable preferred stock

      29,218      29,898      29,898
    
  
  

Total

      3,936,923    $ 3,912,709      3,912,709
           
      
Equity securities, available for sale:                     

Common stocks:

                     

Banks, trusts and insurance companies

      20,152    $ 21,062      21,062

Industrial, miscellaneous and all other

      958      897      897
    
  
  

Total

      21,110    $ 21,959      21,959
           
      
Mortgage loans on real estate      516,085             516,101
Derivative instruments      338    $ 223      223
Investment real estate      2,559             2,559
Policy loans      160,282             160,282
Other long-term investments      1,300             1,300
Short-term investments      28,660             28,660
    
         
Total investments    $ 4,667,302           $ 4,643,793
    
         
(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, real estate and other long-term investments; and unpaid principal balance for mortgage loans on real estate and policy loans.

 

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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, 2007:                              

Traditional Annuity-Exclusive Distribution

    $ 81,567     $ 1,824,823    $ —       $ 392,256

Traditional and Universal Life Insurance

      210,977       1,809,022      9,419       143,609

Variable

      137,523       191,280      16,668       7,032

Corporate and Other

      —         68,360      —         —  

Impact of unrealized gains/losses

      4,488       —        113       —  
    
 
  
 

Total

    $ 434,555     $ 3,893,485    $ 26,200     $ 542,897
    
 
  
 
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
    
 
  
 

 

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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
    Benefits, claims,
losses and
settlement
expenses
     Amortization
of deferred
policy
acquisition
costs
     Other
operating
expenses
  
     (Dollars in thousands)  
December 31, 2007:                                        

Traditional Annuity-Exclusive Distribution

    $ 1,111     $ 144,922    $ 97,181     $ 9,974     $ 10,705  

Traditional and Universal Life Insurance

      178,412       128,699      176,900       18,461       42,712  

Variable

      42,922       12,889      17,867       7,168       20,605  

Corporate and Other

      —         6,159      —         —         2,377  

Change in net unrealized gains/losses on derivatives

      —         —        (165 )     (1,484 )     —    

Impact of realized gains/losses

      (16 )     —        (1 )     69       (12 )
    
 
  
 
 

Total

    $ 222,429     $ 292,669    $ 291,782     $ 34,188     $ 76,387  
    
 
  
 
 
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

      —         5,950      —         —         2,179  

Change in net unrealized gains/losses on derivatives

      —         —        260       (10 )     —    

Impact of realized gains/losses

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

Lawsuit settlement

      —         —        —         —         4,880  
    
 
  
 
 

Total

    $ 210,862     $ 291,642    $ 289,136     $ 24,721     $ 78,569  
    
 
  
 
 
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

      —         7,588      —         —         2,638  

Change in net unrealized gains/losses on derivatives

      —         —        (12 )     —         —    

Impact of realized gains/losses

      (7 )     —        —         214       (6 )
    
 
  
 
 

Total

    $ 202,733     $ 292,855    $ 280,015     $ 23,896     $ 79,550  
    
 
  
 
 

 

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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, 2007:                                   

Life insurance in force, at end of year

    $ 40,530,132    $ 8,263,053    $ 154,028    $ 32,421,107    0.5 %
    
  
  
  
  

Insurance premiums and other considerations:

                                   

Interest sensitive and index product charges

    $ 82,201    $ 861    $ 172    $ 81,512    0.2 %

Traditional life insurance premiums

      158,510      17,593      —        140,917    —    

Accident and health premiums

      11,715      11,361      —        354    —    
    
  
  
  
      
     $ 252,426    $ 29,815    $ 172    $ 222,783    0.1  
    
  
  
  
  
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  
    
  
  
  
  

 

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